Tag: Motley Fool

Key points

• The Mineral Resources share price fell 7.45% today
• COVID-19 border closures and lockdowns impacted operations
• Mining production volumes were 5% lower than the previous quarter

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The Mineral Resources Ltd (ASX: MIN) share price fell today after the company released its quarterly exploration and mining activities report.

The mining services company’s shares finished the day at $57.12, down 7.45% on the previous close. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) dropped 3.19% today.

Let’s take a look at what the company announced today.

Highlights of the quarterly report

• Mining services production volumes of 71.4 million tonnes (Mt) were 5% lower quarter on quarter (qoq) but 14% higher than the prior corresponding period (pcp) of Q2 FY21
• Iron ore shipments of 4.9 million wet metric tonnes, in line with previous quarter but a 12% gain on pcp
• Average iron ore price of US$63.23 per dry metric tonne (dmt), 19% less qoq
• Spodumene production at Mt Marion of 98k dmt, 3% lower qoq and 24% lower on pcp.
• Average realised spodumene price of US$1,153 per dmt, 56% higher qoq
• Safety performance improved with no lost time injuries and 3% improvement qoq on total reportable injury frequency rate

What else happened at Mineral Resources?

Mineral Resources reported border closures and lockdowns due to COVID-19 impacted operations. Production volumes were impacted by forced restrictions on staff movements.

The company said operating costs are also under pressure due to rising fuel prices, less productivity and higher off-site costs for shipping and haulage.

The iron ore shipment growth of 12% compared to the pcp was driven by headway at the company’s Utah Point Hub.

Engineering and design work at the Ashburton project in the Pilbara region of Western Australia continued. Two transhippers were contracted for construction at a COSCO shipyard in China. The build will start once government and regulatory approvals are granted.

Mineral Resources also signed port and rail agreements with Hancock Prospecting Pty Limited and Roy Hill Holdings Pty Ltd for a new iron ore export facility at South West Creek in WA. The company is confident approval for the development of this project will be granted soon.

The company’s realised price for iron ore was impacted by adjustments for prior quarter shipments of US$29.4 million. Had it not been for these modifications, shipments for the quarter would have achieved a price of US$69.16 per dmt.

Shipments at Mt Marion in WA were 92% higher qoq due to the previous quarter’s shipment being delayed.

The company also updated its COVID-19 management plan to help prevent the virus impacting operations in the future.

What’s next?

The company’s mining services business is on target to meet its FY22 volume guidance of a 15-20% increase.

Iron ore shipments for FY22 are on track to meet the full-year guidance of 18.5 to 19.5 million tonnes per annum.

Spodumene production at Mt Marion is also expected to meet its FY22 guidance of 450-475 ktpa.

The company is moving ahead with construction of the 50ktpa Kemerton lithium hydroxide plant. Spodumene ore has been introduced into the plant with commercial production earmarked for mid-2022.

Mineral Resources is also restarting the Wodgina lithium mine with the first spodumene production planned for the first quarter of FY23.

Mineral Resources share price snapshot

The Mineral Resources share price has soared 47% in the past 12 months. In the past month, it has climbed almost 4% but it has fallen 12% in the past week.

For perspective, the S&P/ASX 200 Index (ASX: XJO) Index has returned 2% in the last 12 months.

Mineral Resources has a market capitalisation of nearly $10.8 billion based on its current share price.

The post Mineral Resources (ASX:MIN) share price tumbles 7% on quarterly update appeared first on The Motley Fool Australia.

More reading

• Analysts name 3 hot ASX lithium shares to buy now
• Where this fundie sees ASX lithium shares heading from here
• Why ASX lithium shares could send heads spinning this earnings season
• These were the best performing ASX 200 shares last week
• Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022?

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) cemented yet another disappointing performance for investors. At the end of trade, the benchmark index was 2.49% further into the doldrums at 6,961.6 points. This also represents the first session close below 7,000 points since May last year.

No sector was spared in today’s ASX selloff, with all sectors falling 1% or more throughout the day. This time around we cannot place the blame on the performance of Wall Street overnight — given that it finished in the green. Instead, higher-than-expected inflation figures appear to be a catalyst for selling across the ASX on Tuesday.

The energy sector ended up faring the worst of the bunch today, falling 4.3%. Followed closely behind by tech, miners, and real estate.

However, 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, The a2 Milk Company Ltd (ASX: A2M) was the biggest gainer today. Shares in the infant formula producer jumped 7.07% amid speculation the company could be a takeover target. Find out more about The a2 Milk Company here.

The next biggest gaining ASX share today was Summerset Group Holdings Ltd (ASX: SNZ). The retirement village operator lifted 1.41% with no announcements from the company. Typically a 1.4% gain is considered to be trivial, though, on a day like today it’s enough to make the top performers list. Uncover the latest Summerset Group Holdings details here.

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

ASX-listed company	Share price	Price change
The a2 Milk Company Ltd (ASX: A2M)	$5.45	7.07%
Summerset Group Holdings Ltd (ASX: SNZ)	$11.51	1.41%
Eagers Automotive Ltd (ASX: APE)	$12.33	1.15%
Auckland International Airport Ltd (ASX: AIA)	$6.83	0.74%
Stockland Corporation Ltd (ASX: SGP)	$4.07	0.49%
The Star Entertainment Group Ltd (ASX: SGR)	$3.34	0.30%
Domain Holdings Australia Ltd (ASX: DHG)	$4.78	0.21%
Commonwealth Bank of Australia (ASX: CBA)	$101.505	0.14%
Sydney Airport (ASX: SYD)	$8.65	0.00%
Carsales.com Ltd (ASX: CAR)	$21.54	-0.05%

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

• These 3 ASX 200 shares are topping the volume charts on Tuesday
• ASX 200 breaches 7,000 points for the first time since May 2021, but why?
• Why A2 Milk, Baby Bunting, Codan, and Sezzle shares are surging higher
• Why the A2 Milk (ASX:A2M) share price is jumping 8% despite the market selloff
• ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update

Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. 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 and carsales.com 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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If you own Insurance Australia Group Ltd (ASX: IAG) shares, firstly, commiserations are in order. The IAG share price has had a shocker today, falling by a nasty 2.51% to finish the day at $4.27 a share. That almost mirrors the S&P/ASX 200 Index (ASX: XJO), which finished the trading day down by 2.49%.

IAG’s recent share price performance hasn’t lit anyone’s eyes up either, I’d wager. The IAG share price remains down by a rather horrible 14.4% over the past 12 months, and down by close to 30% over the past 5 years.

But let’s not dwell too deeply on those sobering figures, and instead let’s check out what you actually own if you own IAG shares. Remember, this is a company that once attracted the sought-after dollars of Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) a few years ago.

IAG shares: what’s in a name?

So no doubt the name ‘IAG’ wouldn’t be too familiar with Australians outside the investing space. That’s because IAG doesn’t slap its own brand on most of the insurance policies it sells. Instead, the company uses a number of subsidiary brands to this end. Heard of NRMA Insurance? That’s owned by IAG.

As is SGIO. SGIO stands for State Government Insurance Office and was an old state-owned company from Western Australia. Today, IAG owns SGIO in full. It’s the same with SGIC (State Government Insurance Commission) in South Australia. IAG acquired both names in 1998.

Other brands IAG own and offer policies through include Swann Insurance, WFI, CGU Insurance and Lumley Special Vehicles.

IAG is also the business behind the white-label Coles Insurance, offered, of course, by Coles Group Ltd (ASX: COL). When you buy car or home insurance from Coles, you are really buying a policy underwritten by IAG.

Through this rather large network of businesses, IAG gives its customers insurance on anything from cars, motorcycles and boats to crops and livestock, income protection and home and contents.

So that’s what you indirectly have a stake in if you own IAG shares.

At the latest IAG share price, this ASX insurer has a market capitalisation of $10.46 billion, with a trailing dividend yield of 3.3%.

The post Own IAG (ASX:IAG) shares? Here’s what you’re really invested in appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• Could this help take pressure off IAG (ASX:IAG) shares in the future?
• Why this broker tips IAG (ASX:IAG) shares as a buy in 2022
• Why is the IAG (ASX:IAG) share price having a rollercoaster start to the year?
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor Sebastian Bowen 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 Insurance Australia Group Limited. The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 you’re looking for an easy way to invest in international shares for diversification, then exchange traded funds (ETFs) could be just what you need.

But which ETFs should you look at? Here are two popular ETFs that could be top long term options:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This ETF allows investors to gain exposure to a portfolio of exciting tech shares that are revolutionising the lives of billions of people in Asia.

One of the shares included in the fund is search engine giant Baidu. As well as dominating search in China, Baidu is making great progress with artificial intelligence and is aiming to be an autonomous vehicle powerhouse.

Also included in the fund is tech giant Tencent Holdings. It is the tech giant responsible for the hugely popular WeChat app. This app also has a virtual duopoly with Alibaba’s Ant Group in the mobile payments industry in the country. In addition to this, it has a huge online and mobile games business and has just launched into new areas such as advertising, content, and commercial services.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to look at is the BetaShares NASDAQ 100 ETF. This ETF aims to track the performance of the NASDAQ 100. This comprises 100 of the largest non-financial companies listed on Wall Street’s famous exchange.

Among the 100 companies you will find tech giants such as Amazon, Apple, Microsoft, Netflix, and Google parent, Alphabet. In addition, investors will be gaining a slice of non-tech companies including Gilead Sciences, Lululemon, Moderna, and Starbucks.

BetaShares thinks this ETF is a good option for Australian investors as it has a strong focus on technology. It feels this gives investors diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

The post 2 top international ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors to buy this month
• 2 ASX ETFs with strong growth potential
• These 2 beaten-down growth ETFs could be a buy today
• An ASX XI to take on the world
• Here are the worst performing ASX ETFs of 2021

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. owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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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Are you looking for some growth shares to buy? If you are, you may want to check out the ones that Goldman Sachs has buy ratings on.

Here are two growth shares it rates highly:

NEXTDC Ltd (ASX: NXT)

The first growth share to look at is NEXTDC. It is a leading data centre operator with operations across Australia. It has also recently opened up offices in Singapore and Tokyo, with a view to expanding into these markets in the near future.

Given the size of these markets, if this expansion proves to be a success, it could take its growth up another level. As could its recent venture into edge data centres. These are centres in regional areas that are designed to directly and seamlessly interconnect regionally located organisations back into NEXTDC’s metropolitan data centre network.

Goldman Sachs is very positive on its future and has a buy rating and $14.40 price target on its shares. It said: “We see NXT continuing to grow EBITDA at c.20%” through to FY 2024.

Xero Limited (ASX: XRO)

Another ASX growth share that Goldman Sachs is a fan of is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses globally.

Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. Particularly given recent acquisitions, which are strengthening its offering and positioning it for growth.

In addition, Xero looks well-placed for growth thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem. Goldman Sachs is particularly positive on the latter. It believes Xero could have a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.

Goldman currently has a buy rating and $158.00 price target on its shares. The broker commented: “We expect XRO revenue to double across FY21-24E (+26% CAGR).”

The post 2 ASX growth shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

More reading

• The Nasdaq Index fell 2.7% on Friday. What does that mean for ASX tech shares?
• The Xero (ASX:XRO) share price has fallen 20% since the start of the year. Is it a buy?
• 2 ASX tech shares to buy that have plunged: experts
• Here are the tech shares leading the ASX 200 on Tuesday
• 3 exciting ASX growth shares with major upside potential in 2022

Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended 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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Key points

• The PointsBet share price has fallen victim to the negative market sentiment on Tuesday
• Among the selling, PointsBet announced a successful launch in New York
• The sports betting company is now operational across nine US states

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The PointsBet Holdings Ltd (ASX: PBH) share price has failed to garner excitement on Tuesday following the release of its latest market update.

In afternoon trade, shares in the sports betting company are down 8.63% to $5.19 apiece. Though, PointsBet is not alone in its disappointing performance. The tech sector is 3.08% down from where it was yesterday as the market nears correction territory.

Nonetheless, let’s delve into the details of PointsBet’s announcement.

Another US state chalked up for PointsBet

At the beginning of today’s session, investors were keeping the PointsBet share price close to its previous close of $5.68. However, this soon deteriorated throughout the morning as the company reached an intraday low of $5.18.

Shareholders may have thought PointsBet’s announcement, released around 2:30 pm, would revive the company’s shares. Unfortunately, the news appears to have gone unnoticed by the market.

According to the company’s release, PointsBet has successfully launched its online and mobile sports betting offerings in the US state of New York. Furthermore, the first bet through its platform in the state was recorded at 10:09 pm New York time.

Additionally, this brings the company presence to nine states across the US where its sports betting is operational. Other states include New Jersey, Illinois, Colorado, and Virginia. Yet, looking at the PointsBet share price today, you wouldn’t know it.

PointsBet’s group CEO and managing director Sam Swanell commented on the news, stating:

This marks a momentous day for PointsBet in officially launching within the state of New York, poised to be one of the largest markets in the United States. The PointsBet team is excited to prove our reputation and consistent ability to deliver a world-class experience to New York sports bettors.

Notably, this update comes only five days after the company was awarded a sports wagering license by the Pennsylvania Gaming Control Board. In turn, PointsBet will have access to one of the biggest sports betting states in the US.

Taking a punt on the PointsBet share price

It has been a brutal start to the year for the PointsBet share price. On a year-to-date basis, PointsBet shares are down roughly 25%. And, when we zoom out to the last 12 months, the pain compounds to a 66% fall in the company’s share price.

However, one broker is staying on the optimistic side of the fence for this ASX-listed sports betting company. As my colleague James recently covered, Goldman Sachs has reiterated its buy rating on the PointsBet share price. In addition, the broker tagged it with a price target of $11.00.

This would suggest a potential upside of 108% from the current PointsBet share price.

The post PointsBet (ASX:PBH) share price sinks 9% despite launching in New York appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update
• Top broker tips 80% upside for the PointsBet (ASX:PBH) share price
• 2 buy-rated ASX tech shares with 100% upside in 2022
• Here’s why the PointsBet (ASX:PBH) share price stormed 5% higher today
• PointsBet (ASX:PBH) share price falls on mixed broker note

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. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Insurance Australia Group Ltd (ASX: IAG)

According to a note of Morgan Stanley, its analysts have retained their underweight rating and $3.80 price target on this insurance giant’s shares. The broker notes that open banking is moving onto open finance and will include general insurance. Morgan Stanley sees risk from this as it will give consumers better opportunities to compare policies. The IAG share price is trading at $4.26 on Tuesday.

Regis Resources Limited (ASX: RRL)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this gold miner’s shares to $1.90. While Goldman acknowledges that there is some implied upside to its price target, it is holding firm with its sell rating. This is due to its shares trading on a higher NAV valuation to peers, McPhillamys approvals and execution risks, and its out of the money hedge book. The Regis Resources share price is fetching $1.73 today.

Scentre Group (ASX: SCG)

Analysts at Macquarie have retained their underperform rating but lifted their price target on this shopping centre property company’s shares to $2.82. Macquarie has been running the rule over the property sector and has concerns over the outlook for retail and residential property. In addition, it believes current consumer spending habits could also weigh on Scentre’s performance. The Scentre share price is trading at $2.88 this afternoon.

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

More reading

• These ‘golden’ ASX shares weighed on the All Ordinaries Index today
• Here are the latest broker updates from Macquarie. It’s not all pretty for ASX shares.
• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking
• Here’s why the Regis Resources (ASX:RRL) share price is nosediving 14% today
• Why is the Regis Resources (ASX:RRL) share price frozen today?

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 owns and has recommended Insurance Australia 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 S&P/ASX 200 Index (ASX: XJO) has had a horror Tuesday so far today, continuing the sell-off pattern we have seen take flight over the past few weeks.

At the time of writing, the ASX 200 is down by a lamentable 2.71% at 6,946 points. In fact, just 10 companies in the ASX 200 are trading in the green.

But let’s not focus too much on those depressing figures, and instead let’s take a look at the ASX 200 shares that are currently at the top of the ASX’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Sydney Airport (ASX: SYD)

Sydney Airport is our first ASX 200 share to check out today. This eponymous company has had a hefty 22.3 million shares bought and sold at this point of the trading session. There’s not too much out from Sydney Airport his Tuesday, apart from some routine paperwork showing that UBS Group has increased its total shareholding from 6.07% to 7.17% over the past month or so.

However, the company did release a traffic update last week that might still be influencing this high volume today. The Sydney Airport share price hasn’t done anything too dramatic either. It’s currently 0.12% down at $8.64 a share after stints in both positive and negative territory today. It’s this combination that is probably behind the elevated trading volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Our next share up this Tuesday is ASX 200 lithium producer Pilbara. Pilbara Minerals has had a notable 28.4 million shares bought and sold thus far today. Again, there hasn’t been much in the way of news or announcements out of Pilbara recently, apart from yesterday’s notice that the company’s quarterly activities report will be released on 31 January.

So it’s probable the high volumes we are currently seeing are the result of the nasty share price fall Pilbara has endured so far today. At the time of writing, Pilbara is down a depressing 5.91% at $3.26 a share.

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our final share of the day. A whopping 30.25 Telstra shares have found a new home at this point of the day, topping out the ASX 200 volume charts as it currently stands.

Again, we can likely point to a big share price movement to explain this high volume. Telstra shares are currently down by a steep 3.33% at $3.92 a share. That puts this company’s 5-day losses at close to 8%. Since Telstra has a relatively low share price compared to most other ASX blue chips, big moves like this can easily result in the company topping the volume tables.

The post These 3 ASX 200 shares are topping the volume charts on Tuesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 breaches 7,000 points for the first time since May 2021, but why?
• ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update
• Are ASX consumer staples shares really ‘safe’ to hold in a market selloff?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. 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 Telstra Corporation 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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Key points

• Rio Tinto has announced work at its Oyu Tolgoi project will restart after a deal was forged between stakeholders
• The agreement followed the waiving of a $3.3 billion debt owed by the Government of Mongolia
• Despite the news, the Rio Tinto share price is struggling amid a major market selloff event

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While the Rio Tinto Limited (ASX: RIO) share price suffers through a rough day on the ASX, the company has announced it has agreed to restart its Oyu Tolgoi project after a multi-billion-dollar debt was waived.

Oyu Tolgoi is a Mongolian copper mine. It’s set to be the fourth largest copper mine in the world by 2030, producing around 500,000 tonnes of copper each year from 2028 to 2036.

At the time of writing, the Rio Tinto share price is $107.11, 0.78% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 2.54%.

Let’s take a closer look at today’s news from the ASX-listed resources giant.

Work to restart at Rio Tinto’s major copper project

Owners of Rio Tinto shares rejoice! An agreement has finally been forged with stakeholders, including the Government of Mongolia, to restart work at the Oyu Tolgoi project.

The decision to move forward comes weeks after Turquoise Hill (NYSE: TRQ) – of which Rio Tinto has a 50.8% holding – announced it would forgive the Mongolian government’s approximate US$2.4 billion (around A$3.3 billion) debt after it failed to pay for its share of the project’s construction costs.

Turquoise Hill owns 66% of the Oyu Tolgoi project and the Mongolian government holds the other 34%. Rio Tinto manages the project on behalf of its owners.

Together, the entities have agreed to move the project forward. They have given the green tick to start work on underground operations, unlocking the mine’s most valuable area.

On top of that, the parties have agreed to an updated funding plan. Under the new plan, until sustainable underground production is achieved, the project will be funded by cash on hand and the rescheduling of existing debt repayments, alongside a pre-paid copper concentrate sales agreement.

The first sustainable production from Oyu Tolgoi is now expected to occur in the first half of next year.

Rio Tinto and Turquoise Hill have also updated their capital forecast for the project to US$6.925 billion – up from US$6.75 billion. That includes US$175 million of known COVID-19 impacts, up until the end of 2021.

The pair forecast around US$1.8 billion remains to be spent underground. However, they plan to revise their expectations during the first half of this year. The revisions will reflect any extra COVID-19 impacts, time-based impacts, or risks.

Finally, it has been decided the mine will be powered by the Mongolian grid. As a result, Rio Tinto has agreed to work with the nation’s government to support the grid with long-term renewable energy generation.

What did management say?

Rio Tinto CEO Jakob Stausholm commented on the agreements announced today, saying:

This agreement represents a reset of our relationship and resolves historical issues between the Oyu Tolgoi project partners. We strongly believe in the future of [Mongolia] and I am personally committed to ensuring that the people of Mongolia benefit strongly from Oyu Tolgoi along with our shareholders…

The Oyu Tolgoi underground development will consolidate Rio Tinto’s position as a leading global supplier of copper at a time when demand is increasing, driven by its role in enabling decarbonisation and electrification in the race to net zero.

Rio Tinto share price snapshot

2022 has been good to the Rio Tinto share price so far.

Right now, the company’s stock is has risen almost 7% year to date. Though, it is 12% lower than it was this time last year.

The post Own Rio Tinto (ASX:RIO) shares? Work at its major copper project is about to restart appeared first on The Motley Fool Australia.

More reading

• Two top ASX 200 mining shares to watch in 2022: Saxo Markets
• Rio Tinto (ASX:RIO) share price edges lower amid Serbian licence decision
• Here’s why the Pilbara (ASX:PLS) share price is on watch
• Can lithium charge the Rio Tinto (ASX:RIO) share price higher?
• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?

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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When it comes to ASX blue-chip shares, it doesn’t get too much bluer than Wesfarmers Ltd (ASX: WES). Wesfarmers has been around for decades. Indeed, it first opened its doors way back in 1914 – around the same time as the onset of the First World War.

Since then, Wesfarmers has grown to become one of the most influential shares on the ASX share market. Momentous events in its history – such as the acquisition and later spin-off of Coles Group Ltd (ASX: COL) – have changed the shape of the entire share market.

But how have Wesfarmers shares performed as an investment? That’s what we’ll be checking out today.

How do Wesfarmers sahres measure up against the ASX 200?

So over the past 10 years, the S&P/ASX 200 Index (ASX: XJO) has returned an average of 10.73% per annum. That’s based on the performance of the iShares Core S&P/ASX 200 ETF (ASX: IOZ) to 31 December 2021, and assumes reinvestment of all dividend distributions.

Wesfarmers actually gives us a returns calculator on its website, so we can estimate how much its shares have returned to investors. This calculator tells us that a $10,000 investment into Wesfarmers shares back on new year’s eve, 2011 would have grown to $26,714 by new year’s eve, 2021.

That’s a total return of 167% or so, or else an average of 10.32% per annum. But this calculator doesn’t include the impacts of Wesfremrs’ dividends. Since this company has historically paid out an annual dividend that equates to a rough yield of between 2-4%, we can add this to its average annual return. As such, we can say that the Wesfarmers share price has been a healthy market-beating investment over the past 10 years.

Here’s how that looks in a visual form (price appreciation only):

So there you have it, a 10-year look at the Wesfarmers’ share price and its performance. No doubt shareholders will be hoping for at least a repeat over the next decade. But we shall have to wait and see what this old company pulls out of its hat in the 2020s.

The post Here’s a deep dive into the historical returns of Wesfarmers (ASX:WES) shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 COLESGROUP DEF SET and Wesfarmers 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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