Key points

• The Centaurus Metals share price is sinking by more than 7% in afternoon trading
• The company is conducting a $75 million capital raise
• The funds will help pay for its Jaguar Nickel Sulphide project.

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The Centaurus Metals Limited (ASX: CTM) share price is plunging today amid a capital raise announcement.

The company’s shares are currently swapping hands at $1.19, down 7.39%. They had been placed in a trading halt on Wednesday morning ahead of the impending announcement.

Let’s take a look at what the mineral exploration company revealed today.

What’s weighing on the Centaurus Metals share price?

Investors are pushing down the Centaurus Metals share price after the company announced it is conducting a capital raise for its Jaguar Nickel Sulphide project.

Centaurus Metals will conduct a $75 million institutional placement at $1.16 per share. The company said it had received support from more than 20 Australian and international institutional investors.

The company is raising the funds for a definitive feasibility study for the mine and to keep up its drilling program.

The Jaguar Nickel Sulphide project in northern Brazil is 100% owned by Centaurus Metals. The company is planning a 90,000 metre exploration venture in 2022 involving “significant ongoing diamond drilling”.

In December, the company revealed it had seen a 30% increase in its mineral resource estimate at the project.

The capital raise will also help the company fund pre-development and financing activities ahead of a final investment decision on the project in the third quarter of 2023.

The placement will increase the company’s cash balance to $83 million.

Management commentary

Speaking about the capital raise, managing director Darren Gordon said:

We are delighted with the very strong level of interest received from global investors for this milestone capital raising – which really puts Centaurus in an outstanding position to realise our objective of becoming one of the world’s next significant green nickel producers.

The strong interest in this raise reflects both the scale and quality of the Jaguar Project and its impeccable ESG credentials, combined with the clear corporate strategy we have outlined to bring it into development as quickly as possible.

Centaurus Metals will issue 64,655,172 new shares to the market on February 1.

Centaurus Metals share price snapshot

The Centaurus Metals share price has returned around 37% in the past year. In the past month, it has gained just over 2% while it is down more than 17% in the past week.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO)’s has returned 5.6% over the past 12 months.

The post The Centaurus Metals (ASX:CTM) share price is tumbling 7% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Newcrest (ASX:NCM) share price dips despite acquisition approval
• Magnis (ASX:MNS) share price sinks 6% amid battery plant update
• Will Netflix earnings sink the stock market Friday?
• How do Medibank (ASX:MPL) dividends compare to NIB?
• Brokers name 3 ASX shares to buy today

Motley Fool contributor Monica O’Shea 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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Key points

• Magnis moves past the half-way mark to bring its lithium-ion battery plant online
• Customisation continuing, semi-automated production created batch of full-sized cells
• Fully-automated production anticipated in the first half of 2022

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The Magnis Energy Technologies Ltd (ASX: MNS) share price has failed to power ahead on Friday. This is despite the battery technology company announcing a positive update on activities at its New York lithium-ion battery plant.

At the time of writing, the Magnis share price is 56 cents, down 6.72%.

What’s moving the Magnis share price?

Investors are sending the Magnis share price lower alongside a broader market sell-off on the All Ordinaries (ASX: XAO). The index is currently down 1.99% to 7,516.5 points.

In today’s statement, Magnis advised that at the end of December, the New York plant was 51% complete.

Management noted that facility customisation work is continuing, and epoxy coating has been finished.

In December, the iM3NY team collaborated with Ramboll to work on the design feed information. In addition, the team reviewed the IFB drawing packages and subsequent proposals.

Workers completed mechanical, civil and electrical works at the plant. There was also progress at other sites within the facility. This includes cathode and anode mixing rooms, cell assembly dry room, high bay dry room and the electrical sub-station.

Semi-automated production also started at the end of December with a batch of full-sized cells produced.

Over the next 2 weeks, Magnis expects to produce another batch of around 1,000 cells. The company expects volume to ramp up as it seeks to achieve fully-automated production in the first half of this year.

Touching on the achievement, iM3NY CEO, Chaitanya Sharma said:

Starting this month, some major items will be completed and it is expected that the overall completion number will jump significantly and we look forward to providing updates to all our stakeholders.

Magnis chair, Frank Poullas said:

The iM3NY team continues to deliver with semi-automated production completed on-time and we are excited by the interest shown towards our project and the cells produced.

Quick take on the New York lithium-ion battery plant

Based in Endicott, New York, the facility is expected to scale up to 1.8 GWh, starting in the first half of 2022. This will make it one of the largest players in the United States lithium-ion battery cell manufacturing market.

Magnis is a major shareholder with a roughly 60% stake in iM3NY.

Magnis share price snapshot

In the past 12 months, the Magnis share price has risen by almost 200% on the back of continuing investor excitement in the sector. The shares charged notably higher in late October after an aquifer permit approval for the lithium-ion battery plant.

Based on today’s price, Magnis has a market capitalisation of about $536.8 million with 958.6 million shares on issue.

The post Magnis (ASX:MNS) share price sinks 6% amid battery plant update appeared first on The Motley Fool Australia.

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• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher
• Magnis (ASX:MNS) share price jumps 10% on ‘game-changing’ announcement
• Magnis (ASX:MNS) share price edges lower amid graphite project update
• Why Magnis, Pilbara Minerals, Syrah, and Whispir shares are storming higher
• Here’s why the Magnis (ASX:MNS) share price is powering ahead today

Motley Fool contributor Aaron Teboneras 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Thursday was another troubling day for the stock market, as it once again featured an optimistic start to the day followed by a last-minute air pocket. Until the last hour of the day, the Dow Jones Industrial Average (DJINDICES: ^DJI), Nasdaq Composite (NASDAQINDEX: ^IXIC), and S&P 500 (SNPINDEX: ^GSPC) were all higher, at times sharply so. Yet the swoon in the late afternoon led all three indexes to significant declines.

Index	Daily Percentage Change	Daily Point Change
Dow	(0.89%)	(313)
S&P 500	(1.10%)	(50)
Nasdaq	(1.30%)	(186)

Data source: Yahoo! Finance.

After the close of the regular trading session, Netflix (NASDAQ: NFLX) reported its quarterly financial results. What the video streaming service provider had to say was highly disappointing, and the result was a 19% after-hours plunge in the share price. Below, you’ll learn more about Netflix’s latest numbers and why the reception from the investment community was so negative.

Streaming slowdown

The results that Netflix announced were clearly disappointing, even though on their face, they didn’t seem to be all that bad. Revenue of $7.71 billion was up 16% year over year. Net income managed to climb 12% from year-ago levels, producing earnings of $1.33 per share. Netflix added 8.28 million net subscriptions globally, climbing almost 9% year over year.

The 1.2 million paid memberships in the U.S. and Canadian region that Netflix saw come in during the fourth quarter was the strongest period since near the beginning of the COVID-19 pandemic in early 2020. Moreover, the Asia-Pacific region saw sizable growth of 2.6 million paid memberships, compared to 2 million added memberships in the year-ago quarter. Although the Europe, Middle East, and Africa segment slowed down somewhat from prior-year results, 3.5 million net additions still made it Netflix’s most successful region.

However, there were some troubling signs as well. Perhaps the most important came from Netflix’s own guidance for the first quarter of 2022. Projections for $7.9 billion in revenue would represent just 10% growth from the first quarter of 2021 — even with Netflix’s latest price increases starting to take effect. Net income guidance for $1.3 billion, or $2.86 per share, would be substantially lower from year-earlier levels.

Worst of all, Netflix expects to bring in just 2.5 million new subscriptions globally. The company tried to explain that much of its new content will come out toward the end of the period, which it expects will lead to delayed new signups. Nevertheless, difficult economic conditions and the lingering uncertainty of the pandemic have caused Netflix’s new acquisition growth to lag behind its pre-pandemic levels, and Netflix believes that could continue.

Will the market stream lower?

Judging from the way that Netflix’s peers in the streaming industry reacted to the news, it’s apparent that few investors believe this is a company-specific problem. Shares of Disney (NYSE: DIS) were down 4% in after-hours trading, perhaps reflecting the comments about the difficulty in getting new subscribers in the highly saturated North American market. Roku (NASDAQ: ROKU) saw its stock drop 5% after hours, suggesting that connected TV is also at risk.

The big question is whether the rest of the market sees Netflix’s slowdown as indicating a broader trend. Already, the Nasdaq has fallen more than 10% from its highs, and pessimism appears to be taking root in many different corners of the stock market.

When established growth leaders hit speed bumps, it always makes shareholders think twice about their positions. Long-term investors in Netflix and other high-growth stocks have seen this episode play out many times before, but that doesn’t make it any easier to go through each time it happens. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Will Netflix earnings sink the stock market Friday? appeared first on The Motley Fool Australia.

More reading

• Here’s what you need to know before Netflix’s Q4 earnings
• Netflix earnings preview: The most important metric to watch
• 835 reasons to invest in Netflix stock right now
• Why investors will be tuning in for Netflix’s earnings report this week

Dan Caplinger owns Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix, Roku, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Key points

• Medibank Private and NIB are both ASX 200 health insurance heavyweights
• Both offer robust dividend yields, complete with full franking
• But which private health insurer comes out on top for income investors?

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The Medibank Private Ltd (ASX: MPL) share price is enjoying a pretty positive day on the ASX boards this Friday. At the time of writing, the Medibank share price is up 0.3% at $3.29. That also puts this private health insurer at a robust 11.5% gain for the past 12 months. It also puts its trailing dividend yield at a solid 3.85%.

Given Medibank usually includes full franking credits with its dividends, that means this company is today offering a grossed-up yield of 5.5%. That’s objectively not a bad yield from an ASX 200 dividend share. It’s more than what Commonwealth Bank of Australia (ASX: CBA) shares are offering right now, for starters.

But how do Medibank dividends compare to those of ASX-listed arch rival NIB Holdings Limited (ASX: NHF)?

Well, let’s check out the recent history of the Medibank dividend before we start the comparisons. So that 3.85% trailing yield comes from Medibank’s 2 dividend payments doled out in 2021. The first was the interim dividend of 5.8 cents a share that shareholders received last March. The second was the final dividend of 6.9 cents paid in September.

Both payments were fully franked, as flagged earlier. Together, that equates to a total of 12.7 cents per share in dividends for 2021, a hearty increase over the 12 cents per share Medibank dividend paid in 2020. But this is not quite at the high watermark of 15.6 cents per share dividend that Medibank paid in 2019.

So how do those payments compare to that of NIB?

How do Medibank dividends compare to NIB?

Well, to kick things off, NIB shares currently have a trailing yield of 3.64%, based on the current share price of $6.59 that we see today. That grosses-up to 5.2% with full franking credits.

That yield comes from the interim dividend of 10 cents a share that we saw last April. As well as the final dividend of 14 cents per share paid out last October. Both payouts were fully franked. That equates to a 2021 total of 24 cents per share, a record high dividend from NIB.

So it appears that the Medibank dividend is the leader here (if only just) for income investors. We’ll have to see if that holds up when both Medibank and NIB’s 2022 dividends come through the door.

Medibank share price snapshot

While the Medibank share price is up a healthy 11.5% over the past 12 months, it has weakened in 2022. The share price has fallen by 4% since the year began.

The post How do Medibank (ASX:MPL) dividends compare to NIB? appeared first on The Motley Fool Australia.

More reading

• Why Domino’s, Fortescue, Medibank, and Metcash shares are falling
• Here are Scott Phillips’ top 5 ASX shares for 2022. Is it time to buy?
• Medibank (ASX:MPL) share price shrugs off further questions over profit paybacks
• Own NIB (ASX:NHF) shares? Here are the key dates for your investor diary in 2022
• Own Medibank (ASX:MPL) shares? Here are some key dates to watch in 2022

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 has recommended NIB Holdings 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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Morgan Stanley, its analysts have upgraded this banking giant’s shares to an overweight rating with an improved price target of $31.00. This follows the broker’s review of the banking sector. It has become more positive on the sector and ANZ due to its belief that the Reserve Bank could increase rates sooner than expected. Together with ANZ’s strong position in business banking, the broker feels this bodes well for the future. The ANZ share price is trading at $28.34 on Friday.

Netwealth Group Ltd (ASX: NWL)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this investment platform provider’s shares to $17.80. This follows the release of a second quarter update which smashed the broker’s expectations. In light of this, the broker has lifted its full year funds under administration estimate to reflect this stronger than expected performance. It also feels management’s guidance for FY 2022 is conservative. The Netwealth share price is fetching $15.56 this afternoon.

Santos Ltd (ASX: STO)

Analysts at Morgans have retained their add rating and lifted their price target on this energy producer’s shares to $9.15. This follows the release of a fourth quarter update which was ahead of the broker’s expectations. Overall, the broker remains positive on the company and sees opportunities for its shares to rerate to higher multiples in 2022. The Santos share price is trading at $7.11 on Friday afternoon.

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

More reading

• ANZ (ASX:ANZ) share price raised to ‘buy’ at Morgan Stanley
• Will ASX big four bank ANZ (ASX:ANZ) raise its dividend in 2022?
• Netwealth (ASX:NWL) share price lifts on record net inflows of $3.6bn
• How are ASX bank shares performing today?
• Analysts name 2 ASX dividend shares to buy

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 Netwealth. The Motley Fool Australia owns and has recommended Netwealth. 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

• Telstra shares have had an impressive run over the past 12 months or so
• But even so, the company is still trading at around half of its all-time highs
• Can the Telstra share price ever hit close to $9 again?

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The Telstra Corporation Ltd (ASX: TLS) share price has been a bit of a crowd pleaser over the past year or so. Since reaching a low under $2.70 a share back in October 2020, Telstra shares have been on quite the run. At today’s price of $4.12 (at the time of writing), Telstra is now a healthy 53.5% above that low watermark. It was better just a few days ago too, when the company hit a new 52-week high of $4.31 a share. Take these gains and add them to Telstra’s hefty dividend payments and you have an ASX 200 blue-chip share that has been very kind to investors over this period.

But those investors with a longer memory might not be as pleased with this telco. Telstra, after all, used to be a government-owned company prior to its gradual privatisation over the late 1990s and early 2000s. As it happens, the highest share prices Telstra has ever commanded occurred around the time the government was offloading it to the private sector. Although it’s hard to picture in light of recent history, Telstra was going for close to $9 a share back in the glory days of 1999. That’s more than double its current share price.

So is it possible for Telstra to ever reclaim those highs?

Can Telstra shares ever hit close to $9 again?

Well, the answer is yes, only because the future is unlimited in its scope, and at some point from here to judgement day, we can’t rule out a $9 share price for Telstra. But let’s take a look at what some experts are saying about this telco’s prospects over the next 12 months, which is probably what most investors today are most concerned about.

As my Fool colleague James covered earlier this week, one broker who has high hopes for Telstra is Morgans. This broker reckons Telstra shares have a good chance at hitting $4.55 over the next 12 months (just over a 10% potential upside). It is also anticipated that Telstra’s annual 16 cents per share dividend will continue to flow into investors pockets without too much interruption.

Fellow broker Goldman Sachs is also very bullish on Telstra right now. Goldman currently rates the company as a buy, this time with a 12-month share price target of $4.40. Goldman likes Telstra’s fundamentals and dividends right now, as well as its recent acquisition of Digicel Pacific.

So it appears that these top ASX brokers, while bullish on Telstra shares over the next 12 months, don’t see the company coming close to its all-time highs anytime soon. But you never know with investing. Perhaps we’ll one day see Telstra with a near-$9 share price again. But only time will tell.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $48.4 billion, with a trailing dividend yield of 3.88%

The post Will Telstra (ASX:TLS) shares ever hit their $9 record high again? appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX dividend shares with grossed-up yields over 5%
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• 2 killer ASX shares to buy for a volatile 2022
• 2 excellent ASX shares for a retirement portfolio
• Why the Telstra (ASX:TLS) share price zoomed 43% higher in 2021

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

• The Genex share price is down today, and has dropped 24% in 12 months
• The energy utility company has hit a construction milestone at its K2-Hydro project
• Today’s announcement indicates the project is on track for use in Q4 2022

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The Genex Power Ltd (ASX: GNX) share price is down today, but that doesn’t mean its operations are.

This morning, the clean energy generation company announced it had made ground-breaking progress with the construction of its flagship Kidson project.

At the time of writing, the Genex share price has fallen 2.63%, trading at 18.5 cents apiece.

Let’s take a closer look…

K2-Hydro construction on-track

The 250MW Kidson Pumped Storage Hydro Project, or K2-Hydro for short, is the flagship project of Genex’s Kidson Clean Energy Hub in far north Queensland.

Once constructed, it will be the third-largest electricity storage device in the country — with a capacity of 2,000 megawatt hours [MWh] — producing and delivering on-demand renewable energy during high periods.

With a totally-funded construction cost of $777 million, its the first of its kind to be privately developed, according to the company, and will have an overall lifespan of 80 years.

In this morning’s announcement, Genex Power advised that the project’s construction was on track, with a chunk of the to-do list already checked off ahead of schedule.

Major construction in the main access tunnel has been underway over the past two months. Now, the company has pushed ahead with two manned shifts per day delivering round-the-clock underground tunnelling.

This will progress the construction stage by 8 metres per day for the next 6 months — pushing towards the project’s goal of first power generation by the fourth quarter of 2024.

What did management say?

Commenting on the update, Genex CEO James Harding said:

Following an intense period of site establishment and preparation works, I am delighted that the EPC Contractor JV of McDonnell Dowell and John Holland has formally commenced the underground excavation works for the Kidson Pumped Storage Hydro Project.

This represents a significant milestone in the project construction timeline which was achieved ahead of schedule.

We look forward to working alongside the EPC JV and keeping the market updated as the program continues to push ahead over the course of this year.

Genex share price snapshot

The Genex share price has seen a volatile 12 months, dropping overall by almost 21%.

In late November, the Genex share price saw its 52-week-low of 18 cents, though no company news was released.

The company has a market capitalisation of $197 million at the time of writing.

The post Genex Power (ASX:GNX) share price is sinking today despite project milestone appeared first on The Motley Fool Australia.

More reading

• ASX travel shares are nosediving today amid border opening delays
• Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’
• Investing in crypto? ASIC chairman sounds warning
• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• Why is the Regis Resources (ASX:RRL) share price frozen today?

Motley Fool contributor Alice de Bruin 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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Key points

• Qantas, Webjet and Flight Centre shares are all falling today
• Interstate and international border opening delays could impact ASX travel shares
• COVID-19 Omicron fears have led to Western Australia keeping its border closed

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It’s proving to be a tough day for ASX travel shares, which are sinking in a sea of red at the time of writing.

The Qantas Airways Limited (ASX: QAN) share price is currently down 1.88% to $4.94, Flight Centre Travel Group Ltd (ASX: FLT) shares are falling 2.07% to $16.99 apiece, while the Webjet Limited (ASX: WEB) share price is slipping 1.06% to $5.15.

The Helloworld Travel Ltd (ASX: HLO) share price is down 0.87% to $2.28 while Corporate Travel Management Ltd (ASX: CTD) shares are dropping 3.56%, currently swapping hands at $20.32 apiece.

Let’s take a look at what might be impacting these travel companies today.

Border opening delay

ASX travel shares are falling again today after a tough 24 hours. Qantas fell around 1% yesterday, Flight Centre dropped almost 3% and Webjet descended 3.5%.

Today, travel shares are in focus after Western Australian Premier Mark McGowan delayed the opening of Western Australia’s border indefinitely.

Further, the arrival of international tourists into Australia could be delayed due to the COVID-19 Omicron variant. Hopes the borders will be fully open by Easter have now been dashed, according to a report in the Australian Financial Review. It suggests reopening could now be months away.

Quarantine free interstate and international travel to Western Australia was due to start on February 5, but now the border will remain closed indefinitely.

The West Australian reported 6,000 interstate and international passengers were earmarked for arrival at Perth Airport on the first day of the border reopening.

Some 80,000 interstate and international travellers were due to arrive within the first two weeks, the publication added.

Mr McGowan said in a social media post:

Allowing hundreds or thousands of Omicron infected people to fly straight into Perth from 5 February, with no testing, no quarantine and no public health measures, would cause a flood of COVID-19 across our State.

So, from 12:01am on Saturday February 5, a new hard border will be in place with a focus on both safety and compassion.

The Qantas share price may be under added pressure given the direct impact of border closures on its flight routes. As Motley Fool Australia reported earlier this week, Qantas was planning to resume its Perth to London long-haul flight on March 27. The airline was also considering Perth to Johannesburg flights.

With international arrivals caps in Western Australia to remain, it is unclear if these flights will go ahead.

ASX travel shares price recap

The Flight Centre share price has returned around 8% in the past year. Meanwhile, Webjet has ascended 2.4% in the same period and Qantas has risen 1.3%. Helloworld has slumped almost 4% over the past 12 months, while Corporate Travel has skyrocketed by more than 20%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned around 6% in the past year.

The post ASX travel shares are nosediving today amid border opening delays appeared first on The Motley Fool Australia.

More reading

• Own Qantas (ASX:QAN) shares? Here’s why the airline is fronting up to the Fair Work Commission
• Why did the Flight Centre (ASX:FLT) share price gain 7% in a month?
• What could help the Qantas (ASX:QAN) share price take flight soon?
• Will the Webjet (ASX:WEB) share price travel higher in 2022?
• Why are ASX 200 travel shares down today?

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 Flight Centre Travel Group Limited and Webjet 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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Key points

• Whitehaven released its quarterly update today
• The miner says bad weather and COVID-19 played havoc on operations
• Production and sales were lower, alongside 12-month rolling yield
• Management has downgraded guidance in response to ongoing uncertainties
• The Whitehaven share price is trading down in the trenches on Friday

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Shares in Whitehaven Coal Ltd (ASX: WHC) are drilling lower today and are trading 8% down at $2.71 apiece.

The Whitehaven share price is on its way down after the mining giant released its quarterly update for the period ending 31 December 2021.

The coal giant collapsed out of the gate and sunk to an early low of $2.65 this morning before recovering somewhat to its current level.

Whitehaven share price slides due to lowered production

The company gave a broad overview of its progress and challenges this quarter, including:

• Whitehaven managed total ROM coal production of 3,235 thousand tonnes (kt), down from 5,138kt year-on-year (YoY)
• 12-Month rolling yield 82% down from 88% in the prior year
• Total coal sales 3,971kt for the quarter, down from 4,646kt last quarter and down 11% YoY
• Average coal price on own sales $211/tonne, a 145% YoY gain
• December quarter realised average thermal coal price of US$155/tonne
• Heavy rain and COVID-19 had material impacts to coal production and income during the quarter
• La Nina and COVID-19 are creating uncertainty on expected ROM production and earnings outlook

What else happened last quarter?

The company says that “unusually heavy rain” throughout the quarter saw road access to the mines and Gunnedah CHPP cut off for up to 2 weeks.

Flooding from the rain is estimated to have deferred 600 kt to 700kt of production at Maules Creek and 100kt to 200kt of production at Gunnedah.

Not only that, but COVID-19 had an impact on labour shortages across all sites “with associated production impacts of 200kt in the December quarter”.

As such, production at Maules Creek was 39% behind the previous year at approximately 2,000kt, Whitehaven says.

The company also realised an average thermal coal price of US$155/tonne throughout the quarter.

Whitehaven says this is because around 50% of Whitehaven’s thermal coal book in the December quarter was priced in prior periods, and “approximately 27% of thermal coal sales were priced with reference to sub gC NEWC 6000 CV pricing structures”.

Equity coal sales came in at 3.3Mt, including purchased coal, 11% down on the same time last year. Due to coal price strength, Whitehaven achieved an average price of $211/tonne for sales of its own coal. This was 144% higher than the prior corresponding period.

With this momentum compounding late in 2021, the Whitehaven share price hit a 52-week high of $3.64 in October.

Management commentary

Speaking on the announcement, Whitehaven CEO Paul Flynn said:

Coal prices continued at attractive levels through the December quarter and remain well supported for the near future given strong underlying demand and persistent supply-side disruptions. Cash generation has been strong, with the business expected to be net cash in the March quarter. Whitehaven has unfortunately not been immune
to recent heavy rains that impacted large parts of regional NSW and QLD as La Niña made its presence felt for the second Australian summer in a row.

What’s next for Whitehaven?

The company notes that as of January 2022, the impact of La Nina and COVID has caused an approximate 5% decrease in expected ROM production, which management has reflected in its guidance.

Management now forecasts managed ROM coal production of 19Mt to 20.5Mt, down from 20Mt to 21.5Mt on the previous forecast.

It also sees a higher cost of coal in FY22, estimating $79/tonne to $84/tonne, whereas it had previously forecasted $72/tonne to $76/tonne.

Whitehaven also expects to complete 17.2Mt to 17.8Mt in managed coal sales, a substantial down-step from previous modelling showing 18Mt to 18.6Mt.

Updated unit cost guidance per tonne includes many variables such as increasing diesel prices, increased demurrage costs, volumetric impacts of flooding and “COVID related absenteeism”.

Management notes the “bottom end of guidance reflects the continuation for the remainder of FY22 of recent COVID labour related impacts” whereas the “top end of guidance reflects a return to more usual activity within Q3 FY22”.

Whitehaven share price summary

After a strong performance in 2021, the Whitehaven share price is up 64% over the past 12 months. It broke away from the benchmark index back in May of last year in line with coal pricing.

The post Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• Goldman tips Whitehaven (ASX:WHC) share price to jump 25%
• Why has the Whitehaven Coal (ASX:WHC) share price rallied 20% in a month?

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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Key points

• S&P/ASX 200 Index (ASX: XJO) down 4.8% in 2022
• Bitcoin (CRYPTO: BTC) down 14.4% in 2022
• Ethereum (CRYPTO: ETH) down 20.1% in 2022
• Don’t put all your eggs in 1 basket!

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Crypto investor take heed.

While investing in crypto assets like Bitcoin and Ethereum can deliver some outsized returns, those gains are far from guaranteed.

Indeed, after hitting record highs in November last year, the world’s top 2 cryptos by market cap are deep in the red so far in 2022.

Bitcoin is currently trading for US$40,976 (AU$56,926). That’s down 2.1% over the past 24 hours and down 14.4% for the day, according to data from CoinMarketCap.

Ethereum is faring even worse. The number 2 crypto is down 3% since this time yesterday and has lost 20.1% since 1 January.

Which brings us to this word of warning from Australian Securities and Investments Commission (ASIC) chairman, Joseph Longo.

Crypto investors take heed

With more than 2 million Aussies already having invested in cryptos, Longo is cautioning investors they could lose some or all of their investment due to scams or other misconduct in the industry.

As the Australian Financial Review reports, Longo said, “I’m worried about consumer harm and the number of people in Australia exposed to crypto.”

Longo continued:

We know from anecdotal and factual evidence between us and the ACCC, there is definitely an uptick in the number of scams and misconduct leading to people losing money by attempting to invest in cryptocurrencies and assets.

My personal warning to people is to be careful and don’t put all your money into crypto.

Limited intervention powers

Unlike its broad powers to regulate the share market, ASIC has far less oversight over the crypto world. That’s because the decentalised nature of cryptocurrencies means they aren’t officially financial products and so aren’t subject to the Corporations Act.

Addressing the potential risk of investing in crypto or other high-risk assets, Longo advised investors to be well informed:

This whole issue of financial literacy is a significant issue. We still have too many people who are making poor decisions around their finances. If you’re putting a big proportion of your wealth into a single investment, you really need to be careful.

The post Investing in crypto? ASIC chairman sounds warning appeared first on The Motley Fool Australia.

More reading

• Can Ethereum reach $5,000?
• Is Ethereum losing steam in 2022?
• Bitcoin (CRYPTO:BTC) takes most popular crown, here are 3 cryptos hot on its heels
• This under-the-radar cryptocurrency stock could outpace Bitcoin in 2022
• Crypto is crashing: Should you invest now?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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