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The A2 Milk Company Ltd (ASX: A2M) share price has plenty of potential upside. That’s according to one of the leading brokers in Australia.

Citi has put a price target on the business that implies that A2 Milk shares could rise by around 40% over the next year.

Whilst the company has gone through a lot of volatility over the last couple of years, management and the broker feel that things are now looking more promising.

The latest from A2 Milk

At the company’s annual general meeting (AGM), it acknowledged that FY21 was a disappointing result, with net profit after tax plunging 79.1% to $80.7 million. COVID-19 caused significant disruption and also led to excess inventory. This was partly caused by a reduction of the Chinese birth rate.

The A2 Milk share price has fallen 47% over the last year alone.

However, the company has taken a number of key actions to try to start a recovery.

It ‘recognised’ stock write-downs and deliberately slowed down sales in the fourth quarter of FY21, together with other planned initiatives, to reduce inventory levels and rebalance English label IMF pricing across channels

Another thing that A2 Milk did was swap older distributor inventory with more recent stock to improve on-shelf product freshness.

The infant formula company has increased its marketing to drive customer demand.

A2 Milk has also done some restructuring and hiring, with new talent and a re-focusing on the key business opportunities.

Citi likes the initiatives that the business has worked hard on improving its inventory position and notes the tactics it’s employing to turn things around.

Long-term ambitions

A2 Milk said that it has an ambition to grow sales to over NZ$2 billion and improve margins. This could be quite helpful for the A2 Milk share price.

It wants to regain half of the English label revenue from FY20 to FY21, through a channel recovery after COVID-19 impacts fade and also the execution of its English label strategy to gain market share.

A2 Milk also wants to double its Chinese label market share from 2.5% to 5%.

The ASX share also has plans to grow in other dairy and nutritional products to China through innovation and distribution growth. Other plans include growing in existing markets and two to three new markets as well as growth in milk and adjacent categories.

In terms of the earnings before interest, tax, depreciation and amortisation (EBITDA) margin, it’s targeting a margin “probably in the ‘teens’ in the medium-term due to expected market conditions, investment and innovation.”

Then, in the longer-term, the EBITDA margin is going to possibly be in the “low-to-mid-20s” subject to a higher-than-expected market recovery, English label channel growth and share gains.

A2 Milk share price target

Citi has a price target of $7.30. As already mentioned, that suggests the shares could rise by around 40% over the next year, if the broker ends up being right.

The post The A2 Milk (ASX:A2M) share price has 40% upside – broker appeared first on The Motley Fool Australia.

More reading

• Why opening borders might not be the good news A2 Milk (ASX:A2M) shareholders have been hoping for
• The A2 Milk (ASX:A2M) share price has hit multi-year lows in 2022. Is now the time to catch the cream?
• Why has the A2 Milk (ASX:A2M) share price spilled 5% in a month?
• Can the beaten down A2 Milk (ASX:A2M) share price get back to $10?
• Here are the top 10 ASX shares today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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All eyes will be on the Transurban Group (ASX: TCL) share price on Thursday when the company releases its earnings for the first half of financial year 2022.

While there will be plenty to cover in the company’s report, here are some of the key happenings to look out for.

As of Monday’s close, the Transurban share price is $12.83, down 0.7% on the day.

Here’s what could drive the Transurban share price on Thursday

The Transurban share price could be in for a wild ride later this week as it reports on a period that brought many ups and downs.

While the company hasn’t provided guidance for financial year 2022, it stated it plans to pay dividends in line with its free cash, excluding capital releases.

As The Motley Fool Australia reported last month, some brokers think Transurban will start to increase its dividends from financial year 2022 after cutting them with the onset of COVID-19.

Morgans is predicting the company to pay out 35 cents a share this financial year and 55.3 cents in financial year 2023.

For comparison, it handed investors 36.5 cents per share in financial year 2021 and 59 cents in financial year 2019.

What else could be included in the company’s earnings?

Over the six months ended 31 December, Transurban made a transformational acquisition and suffered through significant lockdowns. But that’s not all.

After it flagged ongoing issues with the West Gate Tunnel project in its most recent full-year results, the company announced it had been hit with another $1.7 billion bill from the project in December.

Of course, that could put a dampener on its half-year results.

Additionally, Transurban shareholders may be a little anxious as the company prepares to reveal the full impact of lockdowns caused by Australia’s Delta outbreak.  

It’s previously stated the September quarter saw its traffic volume 12% lower than that of the previous comparable period and 34% lower than that of 2019.

Finally, during the half-year just been, Sydney Transport Partners – 50% owned by Transurban ­– acquired the remaining 49% stake in Sydney’s WestConnex for $11.1 billion.

That will undoubtedly form a talking point in the company’s half-year report.

The post Own Transurban (ASX:TCL) shares? Here’s what to watch when the company reports this week appeared first on The Motley Fool Australia.

More reading

• 2 growing ASX dividend shares analysts rate as buys
• Here’s why Transurban (ASX:TCL) shares could be in for some investor TLC
• Morgans names 4 more of the best ASX shares to buy in February
• Broker names 2 ASX 200 dividend shares to buy in February
• Why has the Transurban (ASX:TCL) share price tumbled 12% so far in 2022?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) shook off a feeling of unease amid tensions between Russia and Ukraine. At the end of the session, the benchmark index finished 0.37% higher at 7,243.9 points.

While a majority of the top 200 finished in the negative, a handful of solid performers came to the rescue. The energy sector was the best of the bunch, getting a boost from higher oil prices and a booming half-year result from Beach Energy Ltd (ASX: BPT). A positive showing from banks and gold miners added to the winnings for shareholders today.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Beach Energy was the biggest gainer today. Shares in the oil and gas company rallied bolted 9.43% higher after it revealed a 66% increase in profits. The solid half was backed up by Beach Energy maintaining its guidance for FY22. Find out more about Beach Energy here.

The next biggest gaining ASX share today was Evolution Mining Ltd (ASX: EVN). The gold mining company’s share price surged 7.9% to the upside amid strength in the precious metal. Uncover the latest Evolution Mining details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Beach Energy Ltd (ASX: BPT)	$1.625	9.43%
Evolution Mining Ltd (ASX: EVN)	$3.96	7.90%
Mercury NZ Ltd (ASX: MCY)	$5.55	7.35%
Whitehaven Coal Ltd (ASX: WHC)	$3.16	6.76%
Northern Star Resources Ltd (ASX: NST)	$9.00	5.88%
JB Hi-Fi Ltd (ASX: JBH)	$51.71	5.42%
Westpac Banking Corp (ASX: WBC)	$23.88	4.83%
AGL Energy Ltd (ASX: AGL)	$7.16	4.68%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	$9.67	4.43%
Yancoal Australia Ltd (ASX: YAL)	$3.32	4.40%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• The week ahead: Russia, Ukraine, inflation, interest rates and unemployment: Scott Phillips on Nine’s Late News
• Why are ASX 200 gold shares rocketing today?
• These 3 ASX 200 shares are topping the volume charts on Monday
• Power surge! These 2 ASX 200 utilities shares are storming higher today
• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If 2020 and 2021 were the year of ASX growth shares, then 2022 could well be the year of value shares. That’s certainly shaping up as a viable scenario, judging by the kinds of shares investors have propelled higher and lower over the year so far.

We all know that ASX growth shares like Block Inc CDI (ASX: SQ2), Zip Co Ltd (ASX: Z1P) and Xero Limited (ASX: XRO) have had a rough couple of months. But which ASX value shares have been performing well over the past year or so?

Let’s look at some contenders.

So, perhaps surprisingly for some investors, ASX bank shares have been some of the best value shares over the past year. In particular, National Australia Bank Ltd. (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA). On today’s pricing, CBA remains up by more than 15.5% over the past 12 months. NAB has fared even better, up around 19.2%. With the latest round of earnings reports out of the way for these banks, investors have voted with their feet and rewarded these two companies for their recent performances.

But it doesn’t end there.

Some of the best performing ASX value shares revealed

Telstra Corporation Ltd (ASX: TLS) is another value share that has continued to reward investors. This ASX 200 telco has bested both NAB and CBA’s performance since February 2021, and has given back a return of 23%. Throw in the dividends, and Telstra has arguably been a pretty fantastic value share to own.

To a lesser extent, so has Woodside Petroleum Limited (ASX: WPL). Woodside shares have appreciated a very pleasing 29.5% or so just over the past six months. However, its 12-month performance isn’t quite as impressive at a solid 8.6%.

But not all value shares have rewarded shareholders. The Transurban Group (ASX: TCL) share price has virtually gone nowhere over the past year. And Woolworths Group Ltd (ASX: WOW) shares have lost around 3% over that same period.

Miners BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have also been fairly lacklustre compared to some of the companies above. BHP shares are up around 5.9% over the past 12 months, while Rio has managed 1.55%.

All of the shares discussed today are major constituents of the S&P/ASX 200 Value Index. This index fishes value shares out of the entire ASX 200 Index. This is done using three factors: book value compared with share price, price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio. If value shares continue to generate interest from ASX investors in 2022, expect to hear a lot more about those metrics going forward!

The post These are some of the top performing ASX 200 value shares of the past year appeared first on The Motley Fool Australia.

More reading

• Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022
• Here’s why the Woodside (ASX:WPL) share price just cracked a new 52-week high
• Own CBA (ASX:CBA) shares? Here’s the bank’s next big tech move
• Analysts name 2 excellent ASX dividend shares to buy
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Telstra Corporation Limited and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Ltd (ASX: QAN) share price struggled today, closing 1.67% in the red at $5.31 apiece.

Whilst there’s been no market-sensitive announcements out of the airline’s camp today, news has surfaced that many of its customers are seeing red, accusing Qantas of jacking up its prices on certain flight bookings.

Let’s take a closer look at what’s being levelled at the company today.

Qantas in the firing line

Qantas customers have accused the airline of “dishonest” conduct and potentially “price gouging”.

It’s claimed Qantas is charging high premiums on airline bookings being made under its flight credit redemption scheme, according to the Australian Broadcasting Corporation.

Some customers say when they attempted to redeem flight credit vouchers, ticket prices were suddenly jacked up anywhere between 50%-300% higher than if they were to pay normally.

One customer said he paid more than three times the amount of a standard ticket under the scheme after Qantas restricted its seating options for voucher holders.

He ended up paying more than $1400 in flying credits for a return trip between Adelaide and Brisbane while his wife’s ticket cost only $437 for the economy seat next to him.

A slew of similar stories has emerged over recent weeks with many customers reporting they were struggling to get a response from Qantas on its flight credit redemption policies.

Now it seems Qantas customers holding credits should be aware of a key — and perhaps not so well known — policy.

Last year, Qantas changed its policy so that credit holders making a booking after 30 September 2021 could only use their credit to purchase a ticket of equivalent value or a more expensive seat.

In other words, if you hold a flight credit of $1,400, you’ll only find ticket options of $1,400 or more — even though the same seats might be available for much less if you were paying normally.

If the booking was made before 30 September, the flight credits could be used for multiple bookings.

Qantas says its policies offer “a lot more flexibility with booking than pre-COVID, but we still have some rules in place”.

According to the airline, most customers who qualify for a flight credit have until the end of 2023 to take their flights.

Qantas share price snapshot

After a bumpy year, the Qantas share price has climbed almost 17% in the last 12 months. This year to date, Qantas is up 6%, after climbing 6.14% over the past month.

The post ‘Deeply unfair’: Here’s why some Qantas (ASX:QAN) customers are seeing red appeared first on The Motley Fool Australia.

More reading

• ‘Squawking’ bird? War of words erupts between Regional Express (ASX:REX) and Qantas (ASX:QAN)
• Qantas v the WA government: here’s the latest
• ‘Open for business’: Qantas (ASX:QAN) share price lifts amid CEO’s renewed optimism
• Why are ASX travel shares Flight Centre (ASX:FLT), Qantas and Webjet lifting off today?
• Frequent flyer: what changed for the Qantas (ASX:QAN) share price today?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Peter Overton on Nine’s Late News on Sunday night to discuss the big geopolitical and economic week ahead, including the escalating tensions in Ukraine, the spectre of higher inflation and interest rates, and the unemployment numbers due on Thursday.

The post The week ahead: Russia, Ukraine, inflation, interest rates and unemployment: Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
• Power surge! These 2 ASX 200 utilities shares are storming higher today
• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s been a stormy start to 2022 for the majority of S&P/ASX 200 Index (ASX: XJO) shares and that volatility could be here to stay according to this expert.

The ASX 200 has fallen 2.6% since the final close of last year. This month has seen the index rebounding slightly, gaining 3.9% over February so far.

But investors might want to be prepared for more drama. T. Rowe Price chief investment officer and head of global multi-asset Sébastien Page, has warned of a slump in global markets.

“[I]t is too early to talk of a recession,” he said. “[But] the possibility of an economic slowdown beyond what has been priced into financial markets seems to be increasing.

“The new environment will be difficult to navigate – but it will also provide some excellent opportunities for stock pickers.”

Let’s take a look at what the professional believes investors should keep an eye out for in 2022.  

Could this rock the boat for ASX 200 shares in 2022?

For those exhausted by the impacts the cycle of COVID-19 outbreaks and lockdowns has had on the ASX 200 over the last 24 months, Page’s analysis will be music to your ears.

“Although it is too early to say that we are entering a post‑COVID world, it is clear that the pandemic is no longer the dominant driver of markets that it has been,” he said.

Rather than COVID-19, Page says price fluctuations will likely be the result of “a looming [United States (US)] Federal Reserve rate‑hiking cycle, tightening liquidity conditions, and the unwinding of pandemic‑era economic distortions”.

And while expectations the Reserve Bank of Australia could soon increase interest rates have likely born many ASX 200 shares unrest, the expert says that globally, rate rises often don’t bear any major downturns.

“We can observe that Fed rate hikes alone do not usually derail financial markets,” said Page. He continued:

Analysis by our Multi‑Asset Division shows that out of the 21 rate‑hiking cycles since 1974, the US equity market has delivered a positive return 17 times—an 81% hit rate—in the 12 months after a rate hike and 16 times— a 76% hit rate—in the first six months after the first hike.

So, what is worth worrying about? Well, Page says investors might want to keep an eye on inflation.

ASX 200 shares could be hit hard if growth factors such as low interest rates, pent-up demand, and pandemic-related stimulus come to an end.

“As the economy is expected to slow, inflation continues to fuel higher costs,” he said.

“Although rising costs in some areas may diminish in time, in other areas – for example, labour costs – they are beginning to look more permanent.

“The more permanent inflation becomes, the bigger dent it will have on consumer confidence and, ultimately, on consumer spending and corporate profits.”

Which ASX 200 shares could be buys?

While Page didn’t give any indication on which ASX 200 shares could prove buys in 2022, his Australian colleagues provided some insight earlier this month.

Randal Jenneke, head of Australian equities at T. Rowe Price, flagged iron ore giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) as 2022 buys.

He believes that as many global markets slow, China’s growth will likely continue unabated. Thus, demand for the steelmaking ingredient will strengthen.

Meanwhile, T. Rowe Price investment analyst Nick Vidale warned ASX 200 investors to steer clear of big bank shares like Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB).

The post Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022 appeared first on The Motley Fool Australia.

More reading

• Are ASX mining shares the place to be right now?
• Own CBA (ASX:CBA) shares? Here’s the bank’s next big tech move
• The iron ore price is rising: Time to jump on Rio Tinto shares?
• Analysts name 2 excellent ASX dividend shares to buy
• At today’s share price, is BHP (ASX:BHP) going to be a dividend juggernaut in 2022?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has managed to shrug off its earlier losses to be up 0.21% in late afternoon trading.

But ASX 200 gold shares are having a much better day. In fact, 3 of the top performing shares on the index today are gold miners with other ASX 200 gold shares not far behind.

Keeping it with the top 3, the Ramelius Resources Ltd (ASX: RMS) share price is up 6.88% at time of writing.

Meanwhile, Regis Resources Ltd (ASX: RRL) shares have gained 7.17%.

And rival ASX 200 gold share Evolution Mining Ltd (ASX: EVN) is also up 7.22%.

And remember, these companies all have market caps well north of $1 billion.

The price of gold

While many factors come into play to determine a company’s share price, ASX 200 gold miners are certainly benefiting from a rising gold price.

On 31 January, the yellow metal was trading for US$1,797 per troy ounce. Today, that same ounce is worth US$1,853, up some 3%.

Friday saw bullion post its biggest daily gain in four months as investors digested the news that a Russian invasion of Ukraine is looking increasingly likely and sought out the haven asset.

While we can only hope wiser heads prevail, US officials have been sounding the alarm bell.

On Sunday, US National security adviser Jake Sullivan told CNN:

We cannot perfectly predict the day, but we have now been saying for some time that we are in the window, and an invasion could begin, a major military action could begin by Russia in Ukraine any day now – that includes this coming week, before the end of the Olympics.

How have these 3 ASX 200 gold shares been tracking?

The ASX 200 is down 4.8% so far in 2022.

By comparison, the Evolution Mining share price is down 3.8%; the Ramelius Resources share price is down 4.4%; while the Regis Resources share price is up 3.1%.

The post Why are ASX 200 gold shares rocketing today? appeared first on The Motley Fool Australia.

More reading

• Why is the Regis Resources (ASX:RRL) share price having such a stellar start to the week?
• Why is the Evolution Mining (ASX:EVN) share price leaping 8% today?
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Baby Bunting Group Ltd (ASX: BBN)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this baby products retailer’s shares to $6.22. Citi believes Baby Bunting is well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. All in all, the broker believes the company can grow its earnings per share by a compound annual growth rate of 17% between FY 2021 and FY 2024. This is expected to be driven by its store rollout, margin expansion, and penetrating existing categories with low presence. The Baby Bunting share price is trading at $5.18 this afternoon.

REA Group Limited (ASX: REA)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating but trimmed their price target on this property listings company’s shares to $178.00. It believes that fears that interest-rate rises could hit the volume of Australian property listings are overdone. And with the REA share price down materially since the start of the year, the broker believes this could be a buying opportunity for investors. Looking ahead, Morgan Stanley suggests that the company may need to invest to fuel its future growth. This could include increasing its stake in Move. The REA share price is fetching $135.33 on Monday afternoon.

Santos Ltd (ASX: STO)

Analysts at Ord Minnett have retained their buy rating and trimmed their price target on this energy producer’s shares to $9.15. This follows a few minor adjustments to its valuation after reviewing Santos’ reserves. Outside this, the broker is positive on Santos due to its belief that it has opportunities to offload assets to strengthen its balance sheet and unlock value. The Santos share price is trading at $7.70 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Baby Bunting (ASX:BBN) share price has dived 5% in 2 days
• 5 things to watch on the ASX 200 on Monday
• 2 of the ‘best’ ASX shares to buy right now
• The REA (ASX:REA) share price has tumbled 21% this year. Is it a bargain?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Regis Resources Limited (ASX: RRL) share price is catching the eyes of investors today.

In afternoon trading, shares in the $1.5 billion gold mining company are fetching $1.96, up 6.8% from its previous close.

Why is the Regis Resources share price shining today?

Investors are scrambling to buy shares in Regis Resources on Monday. This is despite the mining company not providing any announcements today.

Given the lack of corporate fodder, the catalyst for the company’s higher share price appears to be a broader one. In this case, a jump in the precious metal’s price looks to be the suspect behind the miner’s positive performance.

Amid a backdrop of increasing tensions between Ukraine and Russia, the price of gold has rallied ~1.5% since Friday morning. As a result, the safe-haven commodity is now holding at US$1,853 per ounce — putting prices on par with those hit on 25 January 2022, as shown in the chart below.

However, views are mixed on whether Russia is set to proceed with an attempted invasion. On one side, United States officials have warned that an attack could happen at any time. Whereas, Ukraine’s President Volodymyr Zelenskyy remains steadfast that there is a lack of evidence to indicate Russia will make a move.

Nonetheless, it appears investors are not taking any chances and are increasing their exposure to a risk-off hedge.

This is supported by other gold miners, beyond Regis Resources, experiencing share price appreciation today. Some names include Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST), and Newcrest Mining Ltd (ASX: NCM).

What else?

Regis Resources recently appeared at the Bell Potter Unearthed conference. In its presentation, the company highlights a ‘step change’ in gold production in FY22. This was put down to its 30% interest in Tropicana, a 2.3 million ounce resource North-East of Kalgoorlie.

The mining company shared production guidance of 120,000 ounces to 135,000 ounces in FY22. Additionally, Regis expects this to be at an all-in sustaining cost of A$1140 to A$1230 an ounce.

Finally, the Regis Resouces share price is still down 43.6% over the last 12 months.

The post Why is the Regis Resources (ASX:RRL) share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• 5 things to watch on the ASX 200 on Thursday
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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