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Finding ASX shares worth buying is always a hard task. Nothing is ever certain in life, and even less so in the ever-changing world of share market investing. That’s why it can often be worth paying attention to what some of the ASX’s top brokers and experts are saying. So today, let’s check out Adairs Ltd (ASX: ADH).

Adairs is an ASX retail share that specialises in homewares, bedding and linen. The Adairs share price has had a moderately pleasing past 12 months, rising by just over 13%. In saying that, it has spent the past 6 months going backwards, falling by 3.2% since last July.

As it stands today, Adairs is currently trading at a share price of $3.92, down a nasty 3.2% so far today.

Even so, Adairs is currently being rated as a ‘buy’ by a couple of top ASX brokers.

Top ASX brokers rate Adairs share price as a buy

The first is investment bank Goldman Sachs. Goldman currently rates Adairs as an ASX buy, with a 12-month share price target of $5.11. That’s almost 30% above the share price of $3.92 that Adairs shares are asking today. Goldman likes Adairs’ strong presence both in the physical and online retail spaces, as well as its current valuation.

But Goldman isn’t the only broker rating Adairs shares as a buy right now.

As my Fool colleague James covered last week, fellow broker UBS is also bullish, even more so than Goldman. UBS currently gives Adairs shares a 12-month share price target of $5.90. That implies a potential future upside of close to 50% on today’s pricing. UBS is eyeing potentially large dividend income from Adairs shares. It is expecting a full year and a fully franked dividend of 19.6 cents per share in FY2022, and 29.9 cents per share for FY23. The latter would represent a forward yield of almost 7.6% on today’s share price.

No doubt investors will be crossing their fingers that these broker opinions become fact over the next year or so.

At the current Adairs share price, this ASX retailer has a market capitalisation of $692.1 million, with a price-to-earnings (P/E) ratio of 10.99 and a dividend yield of 5.84%.

The post A top broker reckons this ASX retail share is a buy with a 50% upside appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields of more than 8%
• 2 ASX dividend shares to buy in January
• Top ASX shares to buy in January 2022
• 2 buy-rated ASX dividend shares with growing yields
• Here’s an under the radar ASX growth share with 22% upside

Motley Fool contributor Sebastian Bowen owns ADAIRS FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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 ASX is suffering today in what could be a reaction to a disastrous session in the United States. But, interestingly, one All Ordinaries Index (ASX: XAO) share has been thriving.

While most of Australia slept, the Nasdaq Composite Index (NASDAQ: .IXIC) tumbled 3.3%. Meanwhile, the S&P 500 Index (SP: .INX) slipped 1.9% and the Dow Jones Industrial Average Index (DJX: .DJI) slid 1%. This may have put substantial pressure on ASX shares, particularly those in the tech sector.

Right now, the S&P/ASX 200 Index (ASX: XJO) is down 1.87% and the S&P/ASX All Technology Index (ASX: XTX) has plunged 5.65% lower.

Meanwhile, the All Ordinaries Index is down 1.84%. So, which All Ords share has managed to dodge the carnage and soar to a new multiyear high?

This ASX All Ordinaries share is surging to new heights today

Earlier today, the Ridley Corporation Ltd (ASX: RIC) share price reached a high of $1.63 – the highest it’s been since 2015.

However, it has since dipped. Currently, it’s flat with its previous close, trading at $1.58. Though, that’s 20% higher than it was 30 days ago.

So, what might be saving the All Ordinaries livestock feed company’s stock from tumbling today? Let’s take a look.

What might be buoying the Ridley share price?

The last time the market heard price-sensitive news from Ridley – aside from during its annual general meeting – was when it released its results for the financial year 2021.

Then, the company announced it had returned to profitability. It posted increases to its earnings before interest, tax, depreciation, and amortisation (EBITDA) and a $24.8 million after-tax profit. And, according to some industry experts, its strong performance might continue this year.

The Australian Government’s latest Agriculture Overview forecasts the value of farm production will reach a record $78 billion over 2021/2022.

While Ridley doesn’t produce agricultural commodities, it works closely with those that do. Thus, what’s good news for farmers is likely to be good news for Ridley.

However, Ridley is far from the only ASX All Ordinaries share to be gaining today.

The company is joined in the green by Cyclopharm Limited (ASX: CYC) and Panoramic Resources Ltd (ASX: PAN), both recording gains of more than 6% today.

Meanwhile, some of the index’s tech shares, including Humm Group Ltd (ASX: HUM) (which became the subject of a takeover offer today) and Freelancer Ltd (ASX: FLN), are also trading higher.

The post This ASX All Ordinaries share has defied today’s sell-off to hit a new 6-year high appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares involved with green metals
• Why BHP, Clinuvel, Latitude, and Peet shares are pushing higher
• These are the 5 worst performing ASX shares of 2021
• Top brokers name 3 ASX shares to buy today
• Should ASX investors allocate 3% to Bitcoin and Ethereum?

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 recommended Freelancer Limited and Humm 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 ASX is known for being a commodity-heavy share market.

Australia is a global iron ore mining powerhouse thanks to ASX shares like Rio Tinto Limited (ASX: RIO), BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Mineral Resources Limited (ASX: MIN).

However, some analysts think that green commodities could be a way to protect against inflation. That’s according to Andrew McAuley, chief investment officer at Credit Suisse Australia, as reported by the Australian Financial Review.

Mr McAuley said:

The role of metals in the transition to more sustainable production and consumption (e.g. through electric vehicles) should continue in 2022 with the materials sector well-placed to benefit from those structural changes.

Which ASX shares are involved in green metals?

There are a few different commodities that can count as a green resource.

One commodity involved in the decarbonisation of the world is nickel.

Nickel, according to the Nickel Institute, can be used in the gearing and generator components of onshore wind power. In offshore wind generation, nickel is useful thanks to its fouling and corrosion protection. Tidal power and emerging wave power systems face similar marine corrosion and fouling environments, according to the institute.

Nickel can also be used as part of solar power generation, geothermal energy and rechargeable batteries. It is also used in electric vehicles.

Two of the biggest miners involved in nickel production are BHP and Nickel Mines Ltd (ASX: NIC).

Lithium is another of the commodities that is experiencing a rapid increase in demand as electric vehicles and other battery uses soar. There are a few different ASX shares involved with this green metal, including Pilbara Minerals Ltd (ASX: PLS).

Rio Tinto, which is growing its exposure to lithium, has said that the market fundamentals for battery grade lithium carbonate are strong, with lithium demand forecast to grow by between 25% to 35% per annum over the next decade with a significant supply demand deficit expected from the second half of this decade.

Minerals Resources also has a sizeable presence in the lithium space.

Copper is another green metal. According to the International Copper Association Australia (ICA)), it’s a highly efficient electricity conductor. It is used in renewable energy systems to generate power from solar, hydro, thermal and wind energy. Copper is helpful at making energy systems more efficient. It is also helpful for making buildings and other products more energy efficient.

Two of the biggest businesses involved in copper mining includes BHP and OZ Minerals Limited (ASX: OZL).

However, whilst BHP, Rio Tinto, OZ Minerals, Nickel Mines, Mineral Resources and Pilbara Minerals may all be inflation-protection possibilities, the profit they can generate is heavily linked to the changing commodity prices which can go down as well as up.

The post 6 ASX shares involved with green metals appeared first on The Motley Fool Australia.

More reading

• Why BHP, Clinuvel, Latitude, and Peet shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?
• Is the Fortescue (ASX:FMG) share price on track to reach $50?
• 2 ASX dividend shares with yields of more than 8%

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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 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) is having a day to forget. In afternoon trade, the benchmark index is down 2% to 7,412.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

BHP Group Ltd (ASX: BHP)

The BHP share price is up 1.5% to $43.30. This appears to have been driven by another decent rise in the benchmark iron ore price. According to CommSec, the spot iron ore price rose by US$2.45 or 2% to US$125.35 a tonne during Wednesday night trade.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up 1.5% to $27.12. This is despite there being no news out of the biopharmaceutical company. However, it is worth noting that its shares have been under significant pressure recently. Concerns over the launch of a competing product led to its shares losing a third of their value over the last couple of months. Some investors may believe they have bottomed now.

Latitude Group Holdings Ltd (ASX: LFS)

The Latitude share price is up 2.5% to $2.02. This morning the lender announced an agreement to acquire the consumer business of Humm Group Ltd (ASX: HUM). This business comprises Humm’s buy now pay later (BNPL), instalments and cards operations. The two parties have agreed a price of $335 million. However, the consideration will be paid largely in Latitude shares, with just $35 million being paid in cash.

Peet Limited (ASX: PPC)

The Peet share price is up 4% to $1.14. Investors have been buying this property company’s shares after it announced the sale of 250 hectares of broadacre land in New Beith, Queensland for ~$80 million. Management advised that the property was not part of its short to medium term development program and has been sold at a price which represents an 83% premium to book value.

The post Why BHP, Clinuvel, Latitude, and Peet shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares involved with green metals
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Latitude (ASX:LFS) share price higher on $335m Humm BNPL acquisition
• Humm (ASX:HUM) share price shoots 8% higher after BNPL takeover approach
• Is the BHP (ASX:BHP) share price a buy for the 13% dividend yield?

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 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 was a prosperous year for Australian equities in 2021. Most of the ASX shares in the top 200 shook off concerns of new COVID-19 strains and tightening monetary policy by central banks. However, some companies weren’t as fortunate throughout the year.

We’ve put the constituents of the All Ordinaries Index (ASX: XAO) under the microscope to uncover the shares that were least favoured by investors in the last year.

Count yourself lucky if none of these companies were in your portfolio in 2021. The following five ASX shares were bullets worth dodging.

5 worst performing ASX All Ords shares of 2021

Laybuy Holdings Ltd (ASX: LBY)

Illustrating the destruction across buy now, pay later (BNPL) shares in 2021, instalment payment provider Laybuy takes the crown for the worst performing ASX share of the year.

The company made its entrance into the year at a price of $1.30. By the time the curtains drew close on 2021, Laybuy shares were fetching 24 cents apiece — representing a stomach-churning 82% fall over the course of the year.

While Laybuy managed to achieve a record year in terms of revenue and gross merchandise value, investors punished the share price as sentiment waned across the BNPL sector.

Splitit Ltd (ASX: SPT)

Continuing the trend, the next poorest performing ASX share making the list is another instalment payment provider.

Splitit couldn’t escape the shift in how bullish investors were on BNPL companies. In turn, Splitit shares plummeted 81% by the end of the year. A steep increase in bottom-line losses likely didn’t help with the company’s appeal in 2021. Losses ballooned to US$35.2 million in FY21 compared to US$26.6 million in FY20.

Currently, Splitit shares are trading at 26 cents per share, down a further 10% on Thursday.

Ora Banda Mining Ltd (ASX: OBM)

2021 wasn’t kind to ASX-listed gold mining shares. Even the giants of the game suffered throughout the year. Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST), and Evolution Mining Ltd (ASX: EVN) all witnessed a fall of 10% to 30%.

Though, it was the more speculative segment of the gold mining market that was smashed. Perth-based Ora Banda Mining sank 78% last year. Shares in the company continued to move lower after Ora Banda raised $21 million to fund the development of its Davyhurst Gold Project.

Damstra Holdings Ltd (ASX: DTC)

Turning towards the tech-end of the town, workplace management solutions provider Damstra was a drag on investors’ portfolios in 2021.

The Damstra share price waltzed into last year at $1.53 after having gained ~32% in the previous year. However, shares gradually declined as the company experienced challenges. These included a contractual dispute with a client and a reduction of service to another client.

As a result, FY22 guidance was cut to between $30 billion to $34 million, down from $35.9 million to $38.9 million. The mounting disappointments were reflected in the 78% fall in Damstra shares in 2021.

Cleanspace Holdings Ltd (ASX: CSX)

Rounding out the top five worst-performing ASX shares of 2021 is respiratory protection equipment manufacturer, Cleanspace.

The company enjoyed a record-setting year in 2020 as demand for respirators skyrocketed in the face of COVID-19. Opportunistically, shares in Cleanspace debuted on the ASX in October 2020.

Unfortunately for investors, a sudden dropoff in sales in the second half of FY21 led to a 50% crash in Cleanspace shares. The Cleanspace share price continued to face challenges throughout the remainder of 2021 to finish the year 78% lower.

The post These are the 5 worst performing ASX shares of 2021 appeared first on The Motley Fool Australia.

More reading

• 5 worst ASX 200 tech shares of 2021
• These were the 5 worst performing ASX BNPL shares of 2021
• Why is the Laybuy (ASX:LBY) share price rocketing 42% today?

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 Damstra Holdings Ltd. The Motley Fool Australia owns and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended CleanSpace 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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Once again, with the majority of brokers across Australia taking a well-earned break, broker notes will be few and far between until next week.

In light of this, listed below are a few recent broker recommendations that remain very relevant today. Here are three ASX shares rated as buys:

Appen Ltd (ASX: APX)

According to a note out of Citi, its analysts have a buy rating and $17.10 price target on this artificial intelligence data services company’s shares. Although Citi notes that Amazon’s entry into the fully managed data labelling service market could increase competition in the Enterprise space, it doesn’t expect it to impact Appen’s relationships with major tech companies. The broker also highlights that Amazon’s move is a sign that Appen’s services remain in demand with end users despite concerns about self-learning systems. The Appen share price is currently trading at $10.13.

CSL Limited (ASX: CSL)

A note out of Morgans reveals that its analysts have an add rating and $334.70 price target on this biotherapeutics giant’s shares. The broker was pleased with the acquisition of Vifor Pharma for $17 billion and believes it will complement its existing business and provide growth opportunities. Morgans also doesn’t believe the acquisition is being undertaken because CSL’s core plasma business’ growth is over. The CSL share price is fetching $283.60 on Thursday.

De Grey Mining Limited (ASX: DEG)

Analysts at Macquarie have put an outperform rating and $1.70 price target on this gold developer’s shares. Macquarie is a fan of De Grey Mining partly due to its Mallina gold project. The broker believes this project has tier-1 potential and could support upwards of 15 years of production. Macquarie expects production to commence in FY 2026 and generate significant free cash flow each year. The De Grey share price is trading at $1.14 today.

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

More reading

• Why did Pro Medicus (ASX:PME) and 2 other ASX 200 healthcare shares fall today?
• Why the Appen (ASX:APX) share price crashed 55% lower in 2021
• 5 things to watch on the ASX 200 on Wednesday
• Leading brokers name 3 ASX shares to buy
• Here are the 5 best performing ASX biotech shares 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 Appen Ltd and CSL Ltd. The Motley Fool Australia owns and has recommended Appen 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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Should ASX investors allocate 3% of their portfolio to Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH)?

According to a growing number of billionaires, investors should at least consider that. Though looking at today’s price action, investors who’ve yet to dip their toes into the crypto markets are likely pleased they’ve held off.

Cryptos tumbling into the red

Bitcoin is taking a tumble. The world’s biggest crypto by market cap is down 5.6% over the past 24 hours, currently trading for US$43,616 (AU$60,494).

It’s not just Bitcoin taking a beating though.

Most of the top cryptos are in the red, pulled lower alongside the broader global selloff in tech shares and other risk assets. The selloff looks to be fuelled by concerns the US Fed and other leading central banks will be upping interest rates and slashing bond purchases sooner and more aggressively than most investors had been led to expect.

Ethereum, the world’s number 2 crypto, is down an even more dramatic 7.2% since this time yesterday. One Ether is currently worth US$3,529

That’s the short-term price action.

Longer-term, we return to our headline question.

Should investors allocate 3% of their portfolio in Bitcoin and Ethereum?

For some insight into that question, we turn to the billionaires.

Namely Interactive Brokers founder Thomas Peterffy, who Forbes reports is worth US$24 billion. And Bridgewater Associates founder Ray Dalio, worth US$20 billion.

Peterffy readily admits he can’t predict where Bitcoin, Ethereum and other leading altcoins are heading next. He said, “I think it can go to zero, and I think it can go to a million dollars. I have no idea.”

Still, as Bloomberg reports, Peterffy believes, “It’s prudent to have 2% to 3% of one’s personal wealth in cryptocurrencies, just in case fiat currency goes to ‘hell’.”

Ray Dalio, who not long ago was a vocal crypto sceptic, now also holds “at least some” Bitcoin and Ethereum in his portfolio. Though we’re unsure whether he’s hit that 2–3% range recommended by Peterffy. According to Bloomberg, Dalio “views the investments as an alternative money in a world where ‘cash is trash’ and inflation erodes buying power”.

The post Should ASX investors allocate 3% to Bitcoin and Ethereum? appeared first on The Motley Fool Australia.

More reading

• Can Bitcoin (CRYPTO:BTC) steal gold’s safe haven shine to top US$100,000?
• Can these 3 ‘Ethereum Killers’ actually kill Ethereum in 2022?
• Investing in Bitcoin? Here’s what the crypto experts are predicting for 2022
• Here’s what happened with the Ethereum price in 2021
• 3 more countries to make Bitcoin legal tender this year: expert

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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) may be down today, but this small-cap ASX share is bucking the trend.

The Marquee Resources Ltd (ASX: MQR) share price has surged 17.2% today, currently trading at 17 cents. However, in early trade, shares jumped 27% to 18.5 cents. This was a 52-week high for the company.

Let’s take a look at what might be impacting this explorer’s share price today.

Digging for copper and gold

The Marquee Resources share price surged in morning trade after the company released results from its Lone Star project. The company is mining for copper and gold in Washington State, USA.

Drilling results from the mine revealed intersection with multiple large zones of mineralisation. Up to 18.5% of high-grade copper mineralisation was affirmed from the first two diamond drill holes. Meanwhile, “significant elevated gold” up to 10.4 grams per tonne and up to 106 grams per tonne of silver was also identified.

The company’s drill rig has been “spinning around the clock” after only a short Christmas break.

Commenting on the results driving up this ASX share, executive chairman Charles Thomas said:

We are delighted with the high-grade results we have received from the first two drill holes of the program.

The results have confirmed the outstanding opportunity that Lone Star represents and the presence of high-grade gold and silver further adds to the potential of this exciting project.

These results strengthen our position to deliver a quality JORC compliant resource in the first half of 2022.

Marquee Resources has now completed seven diamond drill holes at the Lone Star mine, with results received for just two of them.

The company signed a deal to acquire up to 80% of the Lone Star copper-gold mine in November.

The news today follows a share market boost in December when the company revealed “significant potential” for lithium bearing lithium-ceasium-tantalum (LCT) pegmatites at the West Spargoville project near Kalgoorlie.

Marquee Resources share price snapshot

The Marquee Resources share price has soared 126% in the past year and 17% in the past month. Meanwhile, it’s up nearly 26% aince the start of the past week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 13% to investors in the past year.

This ASX share commands a market capitalisation of around $36 million based on its current share price.

The post This ASX mining share leapt 27% on an ‘outstanding’ new discovery appeared first on The Motley Fool Australia.

More reading

• Marquee Resources (ASX:MQR) sprints 13% higher on lithium update

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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If you’re an owner of Zip Co Ltd (ASX: Z1P) shares, you might be wondering what is expected from the company in the coming years.

In light of this, I’ve taken a look at a recent note out of Citi to see what its analysts are forecasting.

What is expected from Zip?

If you were hoping that Zip would be profitable in the near future, you may be disappointed to learn that Citi is expecting losses for the foreseeable future.

Its analysts have recently made a material cut to their earnings forecasts for Zip to reflect slower growth in the United States.

According to the note, the broker expects Zip’s losses to widen from $211 million in FY 2021 to $218 million in FY 2022. After which, Citi is forecasting the company’s losses to lessen to $171 million in FY 2023 and then $103 million in FY 2024.

Are Zip’s shares in the buy zone?

In light of the above, Citi isn’t recommending investors rush in to buy Zip’s shares just yet. It has put a neutral rating and $5.85 price target on its shares.

Though, due to recent weakness in the Zip share price, this price target implies potential upside of 50% for investors over the next 12 months. Which isn’t bad for a neutral rating!

Citi commented: “Zip’s US growth is slowing faster than expected. We lower our Zip TTV forecasts by -10% to -13% and make material cuts to our earnings forecasts, which primarily reflects slower than expected growth in the US. While the Zip share price has underperformed recently, given weaker than expected trends in spite of a step-up in marketing spend we maintain our Neutral rating and lower our target price by -23% to $5.85.”

The post Own Zip (ASX:Z1P) shares? Top broker forecasts earnings for next 3 years appeared first on The Motley Fool Australia.

More reading

• These 3 ASX tech shares just hit 52-week lows. What’s going on?
• Is the party over for ASX BNPL shares?
• ASX 200 tech shares on watch after Nasdaq selloff
• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise
• Why is the Zip (ASX:Z1P) share price having a lousy start to 2022?

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 ZIPCOLTD FPO. 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 Evolution Mining Ltd (ASX: EVN) share price is backtracking on Thursday afternoon. This comes after the company provided investors with an update on the acquisition of the Ernest Henry copper-gold mine.

At the time of writing, the Evolution shares are fetching for $3.98 a pop, down 2.45%.

Ernest Henry acquisition complete

With the S&P/ASX 200 Index (ASX: XJO) sinking 1.27% to 7,470 points, the Evolution share price has not been spared.

Despite falling wayside today, the company announced it has completed the full ownership of Ernest Henry located in north-western Queensland.

In mid-November, Evolution entered into an agreement with Glencore to acquire all the issued share capital of Ernest Henry for $1 billion.

So far, Evolution has paid $800 million from its existing cash reserves as part of the deal. The remaining $200 million is due on the first anniversary of the completed transaction (6 January 2023).

Acquiring Ernest Henry is expected to yield a number of economic benefits for Evolution.

In particular, the company noted that copper production will increase while lowering its all-in sustaining costs by around 12% on an annualised basis. This is will cement Evolution as one of the lowest cost gold producers in the world.

Evolution executive chair, Jake Klein commented:

Acquiring full ownership of Ernest Henry is transformational for Evolution and again demonstrates our track record of identifying and securing opportunities that are both accretive and improve the quality of the portfolio.

Ernest Henry is a world class operation in a Tier 1 jurisdiction which we know well through our previous economic interest investment in 2016. I extend a warm welcome to our new colleagues that join Evolution today.

Evolution share price summary

Evolution is an Australian mining and exploration company that owns and operates five gold and silver mines in New South Wales, Queensland and Western Australia.

Over the past 12 months, the Evolution share price has lost more than 20% in value. A deterioration in commodity prices throughout the latter part of 2021 caused investors to run for the hills.

On valuation metrics, Evolution commands a market capitalisation of around $7.32 billion, with approximately 1.83 billion shares outstanding.

The post Evolution (ASX:EVN) share price falters amid acquisition update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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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