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The S&P/ASX 200 Index (ASX: XJO) has put in a strong year by historical standards.

Since the opening bell on 4 January, the ASX 200 has gained 10%.

But some leading ASX 200 resource shares have done a lot better.

Take Mineral Resources Ltd (ASX: MIN), for example. The Mineral Resources share price is up 23% in 2021. The miner also pays a 5.8% dividend yield, fully franked.

Oz Minerals Ltd (ASX: OZL) outperformed as well, gaining 39% year-to-date. Oz Minerals also pays a 0.9% dividend yield, fully franked.

Topping the list of our 3 ASX 200 resource shares for 2021 is Pilbara Minerals Ltd (ASX: PLS), up 185% for the calendar year. Pilbara doesn’t pay a dividend, but with that kind of share price growth you’re unlikely to hear shareholders complaining.

What are these miners focused on?

Both Pilbara and Mineral Resources have a strong focus on lithium. While Oz Minerals derives much of its revenue stream from copper.

Both of these metals have seen resurgent demand as the world moves to cut greenhouse gas emissions. Copper and lithium are core elements in most electric vehicle (EV) batteries.

With the growth outlook of the global EV market impacting on the growth outlooks of these ASX 200 resource companies, the Motley Fool asked Josh Gilbert, analyst at multi-asset investment platform eToro, whether EVs are really poised to take the place of traditional cars. Or are investors putting the cart well ahead of the horse?

ASX 200 copper and lithium producers hope to see EVs boom

“Most investors have a longer-term outlook, especially when it comes to EVs,” Gilbert told us. “They aren’t expecting every vehicle on the road tomorrow to be an EV. But they understand the transition and expect to see this trend play out over the next decade.”

He pointed to Norway as a nation leading the charge, with plans to go entirely EV by 2025.

While many of the biggest nations aren’t nearly so ambitious in their timelines to transition from combustion vehicles to EVs, Gilbert says, “We have seen car manufacturers take matters into their own hands, with GM pledging to sell only zero-emission vehicles by 2035 and Ford will only offer electric and hybrid vehicles in Europe from as early as 2026.”

Then there’s the early front runner in the EV game, and still going strong, Tesla Inc (NASDAQ: TSLA).

Gilbert told the Motley Fool:

To single out names, Tesla is already doing this on a global scale. Going back 5 years or so, most analysts said Tesla couldn’t deliver 500,000 vehicles this quickly, and now the company is delivering over 200,000 vehicles a quarter amid a global chip shortage and supply chain disruptions.

Not every EV name will be able to keep up with the demand, and this may see some quality drop in vehicles. However, I think that’s the same with the traditional car market. Manufacturers with good quality vehicles will stand out and continue to expand. We’ve already seen names such as Volkswagen, GM and Ford dedicate billions of dollars to this transition to EV to make sure they’re challenging Tesla for the crown.

Global ambition

Global EV adoption has plenty of room to grow. It’s currently around 2-3% of the vehicle market, but Gilbert said this “could climb to as much as 15-20% in the next 10 years”.

He notes that China already has around 20% adoption of EVs. Which, he said, “Is why we have seen many investors interested in stocks such as [Chinese EV manufacturer] Nio.”

“Nevertheless, we have to remember that there will likely be some headwinds,” Gilbert added. “The chip shortage is heavily impacting manufacturers. Although this is likely to ease in early 2022, it’s still a cause for concern for many EV manufacturers who rely on chips.”

Which brings us back to our ASX 200 resource shares.

According to Gilbert:

The biggest concern to watch would be a shortage of battery components such as lithium as demand increases. The lithium price has already climbed by around 400% in 2021, demonstrating the increasing cost pressures that EV manufacturers face.

Ultimately, demand could increase by another 40 times by 2030, which could see automakers pass these costs onto consumers. Most big names are working to guarantee supplies, but it’s clear that supply will remain tight and prices elevated.

Tight lithium supplies amid surging demand would certainly be good news for Pilbara and Mineral Resources.

As for ASX 200 copper share, Oz Minerals, the copper price is still trading near record highs.

12 months ago, a tonne of copper was worth US$7,750. Today that same tonne is fetching US$9,543, up some 23%.

The post What this EV forecast could mean for top ASX 200 resource shares appeared first on The Motley Fool Australia.

More reading

• Here’s why the OZ Minerals (ASX:OZL) share price hit a 13-year high today
• The Pilbara (ASX:PLS) share price pumped 5% higher today. What happened?
• Here’s why this top broker is tipping 20% upside for the Pilbara (ASX:PLS) share price
• These 3 ASX 200 shares are topping the volume charts on Monday
• These 3 ASX 200 shares are topping the volume charts this Friday

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 Reserve Bank of Australia (RBA) governor, Philip Lowe has outlined what the future holds for the Australian currency, and it might be a digital token.

As digital wallets are replacing physical wallets and the use of cash is dwindling, Lowe flagged the possibility that token or account-based forms of currency might soon be favoured over cash. And the RBA might be readying itself to jump in on the action.

However, he is “sceptical” that cryptocurrency will disrupt the Aussie dollar.

So, what might the future of the Australian currency and monetary regulation look like? Here’s what Lowe thinks.

Will the RBA ditch cash for a digital token?

Lowe spoke to this year’s Australian Payments Network Summit on Thursday.

Lowe welcomed the support of regulators and government moves to control the payments sector.

He also flagged the increasing use of digital wallets. The governor said Australians are enthusiastically adopting digital wallets, so digital forms of currency might be the next big hit.

In fact, the RBA may start issuing and backing digital tokens in the future – just like it does with banknotes.

Lowe commented: “This would be a form of retail central bank digital currency (CBDC) – or an eAUD.”

“This could allow day-to-day payments to be made by moving tokens around rather than moving banknotes or value between bank accounts,” he said.

While there hasn’t been public pressure for a digital token, or an eAUD, to replace cash just yet, a case for the switch could evolve quickly. This is particularly because tokens might offer a lower-cost solution for certain payments.

Lowe said the RBA is looking into the technology needed to facilitate a shift to a token-based digital currency:

We are working through the relevant technical issues, as well as the broader policy implications of any shift away from a payments system based on the movement of value between bank accounts, to one that uses tokens. As part of this effort, we are planning to work with Australia’s new Digital Finance Cooperative Research Centre. We will also be working with the Treasury on these issues.

Will cryptocurrency be king?

Unfortunately for crypto bulls, Lowe doesn’t think crypto will ever be used for general payments in Australia.

Lowe said:

It is likely that the asset used for the settlement of most transactions in the economy will remain some form of secure fiat currency with a stable value, rather than cryptocurrency with a volatile price.

Though, there’s still a role for the likes of cryptocurrencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE). The currencies can help boost innovation, and Lowe notes there’s value in experimentation.

Could another body regulate an Australian token?

Lowe also said a digital token, or eAUD, could be issued and backed by another entity. That entity would be in charge of creating a ‘stablecoin’.

Though, stablecoins would need to be backed by “high-quality assets” and meet strong safety and security measures.

There might even be multiple stablecoins, with each being exchangeable for another.

The post Is the RBA about to join the digital currency revolution? appeared first on The Motley Fool Australia.

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• Why Ethereum, Dogecoin, and Polkadot are heading lower today
• Survey reveals surprising crypto swing as Aussie housing bubble fears grow
• Why Cryptocurrency Mining Stocks Were Up Big Today
• Can Bitcoin and other cryptos be used as an inflation hedge?

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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Experts are warning of more volatility for ASX shares as we head into the new year, but there’s a growing risk to the economy in 2022 that might be harder-hitting than COVID-19.

This risk stems from the severe shortage of a little-known chemical called AdBlue. It’s an additive used in diesel engines, and Australia could be just weeks from running out of the diesel exhaust fluid.

How AdBlue can hit ASX shares

The crisis is threatening our supply chains as just about all essential goods, such as food and medicine, are transported by diesel-burning trucks.

The problem is so serious that the Federal Government has set up a high-level emergency task force, reported the Australian Financial Review.

AdBlue is in short supply globally because Russia and China aren’t exporting as much high-grade urea.

Countdown to disaster

AdBlue is a mixture of organic compound urea and deionised water. It is essential to cut harmful emissions from diesel engines as it converts nitrogen oxides into nitrogen and water.

DGL Group Ltd (ASX: DGL) told the AFR that it had just six weeks of stock in its warehouse and was struggling to fulfil orders. DGL supplies 60% of the Australian market.

The supply crisis is exacerbated by panic buying from trucking companies. It’s much like the toilet paper fiasco that we witnessed at Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) at the onset of the pandemic.

ASX shares in the Adblue firing line

As Australia sources urea from other countries, such as the Middle East, Industry and Energy Minister Angus Taylor said that more shipments of the product would arrive soon. This could give the industry an extra two weeks of supply – as long as companies do not hoard the chemical.

A range of ASX shares may be impacted by a supply shortage, including supermarkets and retail shares such as the Australian Pharmaceutical Industries Ltd (ASX: API) and Wesfarmers Ltd (ASX: WES).

Petrol station companies such as Ampol Ltd (ASX: ALD) and Viva Energy Group Ltd (ASX: VEA) are also struggling with supply levels of AdBlue.

Hang on tight in 2022

The AdBlue crunch comes at a time when ASX investors appear to be getting more comfortable with the Omicron COVID mutation.

There are early promising signs that the more infectious variant isn’t as deadly as initially feared. It may even help end the pandemic by crowding out more severe versions of COVID.

But the AdBlue shortfall shows why we can’t grow complacent. Even if the COVID threat recedes, ASX shares still might have a wall of worry to scale in 2022.

The post Could this be a bigger threat to ASX shares in 2022 than COVID? appeared first on The Motley Fool Australia.

More reading

• Is the RBA about to join the digital currency revolution?
• Here’s why the Hazer (ASX:HZR) share price is plummeting 11% today
• Could this ASX share really be the next Afterpay (ASX:APT)?
• Apollo Tourism & Leisure (ASX:ATL) share price roars 23% higher. Here’s why
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update

Motley Fool contributor Brendon Lau 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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The Hazer Group Ltd (ASX: HZR) share price is deep in the red during early afternoon trade on Friday. This comes after the hydrogen producer provided an update on its Commercial Demonstration Project (CDP).

Hazer is building its CDP at Water Corporation’s Woodman Point Water Recovery Facility in Western Australia. The company aims to convert natural gas and similar methane feedstocks into hydrogen and high-quality graphite, using iron ore as a process catalyst.

At the time of writing, Hazer shares are down 11.84% to $1.08. This is in stark contrast to last month when the Hazer share price traded as high as $1.765.

What’s dragging the Hazer share price down?

ASX investors are heading for the hills and selling Hazer shares following the company’s shock announcement.

In today’s statement, Hazer advised there has been a delay in completing the fabrication of the reactor for the CDP. This has evidently pushed back the commissioning of the new plant post the company’s current target date of Q1 2022.

Hazer revealed that it identified a manufacturing flaw in the reactor vessel currently waiting for heat treatment in China. In response, quality assurance and non-destructive testing activities were carried out over the past 2 days, confirming the fault.

Furthermore, the company also found other areas within the reactor were a cause for concern.

As such, the reactor shell has been deemed unsuitable and will require remedial manufacturing repairs before being certified and dispatched.

Hazer noted that its project team are working with suppliers and independent experts and carrying out further investigations to rectify the defect.

In addition, Hazer stated that the impact on the project’s costs and schedule cannot be exactly determined. However, it will look to see if any remedies can be made under the contract terms and insurance policy.

The delay is expected to be about 8 to 12 weeks. Hazer will update shareholders on any revisions to the schedule or budget when more information comes to light.

What did the head of Hazer say?

Hazer CEO, Geoff Ward, commented:

The occurrence of this issue so far into our construction schedule is deeply disappointing.

We will carefully work through the causes of this issue and what we can do to rectify the defect identified in the reactor and implement any actions available to mitigate the impact on the project budget and schedule.

The identified manufacturing flaw does not impact the planned operation of the reactor or our intended program of operations at the CDP. All other project activities are progressing as scheduled.

We will continue with all of these planned activities to allow us to undertake cold commissioning and testing of the plant, including catalyst handling, fluidisation and control systems, prior to the delivery and installation of the reactor.

Hazer share price snapshot

Despite today’s heavy fall, the Hazer share price has accelerated by 40% over the past 12 months.

Interest in novel graphite and hydrogen production technology has picked up considerably in recent times. This has prompted ASX investors to buy.

Hazer presides a market capitalisation of $175.1 million and has approximately 160.65 million shares on its books.

The post Here’s why the Hazer (ASX:HZR) share price is plummeting 11% today appeared first on The Motley Fool Australia.

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• Why is the Hazer (ASX:HZR) share price getting tasered today?
• Why are ASX hydrogen shares tumbling today?
• The Hazer (ASX:HZR) share price is having a bad day but it’s still up 50% in a month

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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Afterpay Ltd (ASX: APT) first began trading on the ASX on 29 June 2017.

The following day, shares in the then nascent buy now, pay later (BNPL) company closed at $2.90.

You may not have heard of the company back then. Few investors had.

But over the following years, as the Afterpay share price continued to push higher and the BNPL space grew more popular, the company began to make regular financial headlines and was added to ever more portfolios.

Just before the onset of the pandemic driven market selloff, on 21 February 2020, Afterpay was trading for $38.44 per share. That was up a phenomenal 1,225% since its second day of listing.

In the following month, like most every ASX share, the Afterpay share price crumbled. On 20 March 2020 it bottomed out at $12.44 per share, a loss of 68%.

But Afterpay wasn’t down and out. Far from out.

Over the next 11 months the buy now, pay later company’s share price soared 1,121%, peaking out at $151.92 on 19 February this year. Meaning investors who hadn’t heard of the company before then, almost certainly did during its incredible march higher.

Which also means that ASX investors keeping a keen eye open for ‘the next Afterpay’, hoping to get in early.

Could this ASX share really be the next Afterpay?

Dean Fergie is the director of Cyan Investment Management. And Afterpay is one of the shares that counts as an early win for the fund.

Speaking to Livewire, when Fergie was asked what his “next Afterpay” was, he “fired back with Raiz Invest Ltd (ASX: RZI)”. If you’re not familiar with Raiz, Livewire explains, the company was “the name behind the retail-investing-platform-formerly-known-as-ACORNS.”

Here’s how the micro-investing platform has been performing.

How has Raiz Invest been performing?

Raiz listed on the ASX on 21 June 2018.

Since closing at $1.39 per share on its second day of trading, the Raiz share price has gained 22%.

The past 12 months has seen that performance pick up, with Raiz shares gaining 77% since this time last year.

Raiz got a good boost from some strong figures in its full 2021 financial year report.

Revenue grew 37% year-on-year to $13.4 million and the company ended the year with $19.4 million cash on hand, as at 30 June.

So is Raiz the next Afterpay?

We’ll leave those prognostications to the expert analysts, like Dean Fergie.

The post Could this ASX share really be the next Afterpay (ASX:APT)? appeared first on The Motley Fool Australia.

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• More pain for ASX buy now, pay later shares in 2022: expert
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• Here’s why ASX BNPL shares are in the spotlight today
• Why did the Afterpay (ASX:APT) share price go backwards in November?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T 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 Apollo Tourism & Leisure Ltd (ASX: ATL) share price is taking off on news it is planning to merge with its New Zealand-based peer.

Apollo is looking to merge with fellow campervan and RV rental, sales, and manufacturing company Tourism Holdings Ltd (NZE: THL).

At the time of writing, the market has bid the Apollo share price up to 69 cents. That’s 23.42% higher than its previous close. Simultaneously, the Tourism Holdings share price is surging 5.6% higher on the New Zealand exchange.

Let’s take a closer look at the proposed merger and what the resulting company might look like.

Apollo share price soars on merger news

The Apollo share price is surging due to its plan to exit the pandemic stronger by merging with a peer.

The merger will be all-scrip. Apollo shareholders will receive 1 Tourism Holdings share for every 3.68 (approximately) Apollo shares they own.

That implies a 32.6% premium on each company’s shares as of market close on 9 December. It also represents an 18.9% premium on the 1-month volume-weighted average price for each company’s stock for the same date.

The merger will leave Apollo shareholders with a 25% ownership of Tourism Holdings.

According to the company, combining the two will create a leading diversified travel company serving Australia, New Zealand, North America, the United Kingdom, and Europe.

Apollo anticipates cost synergies will bring an earnings before interest and tax boost of between approximately $16.2 million and $18.1 million annually.

About 69% of those synergies are fixed costs relating to the duplication of corporate costs or properties.

Additionally, a fleet rationalisation of about 1,250 vehicles should bring a net debt benefit of more than $38 million. There also could be another one-off debt reduction worth about $28.5 million, subject to operational efficiency improvements.

It also expects to face one-off implementation costs of between $3.8 million and $6.7 million.

The merger is subject to Tourism Holdings being able to list on the ASX. It’s also conditional on the approval of the Australian Competition and Consumer Commission and the New Zealand Commerce Commission.

They’ll also need the okay from the Australian Foreign Investment Review Board, the Supreme Court of Queensland, and Apollo shareholders.

Apollo expects to complete the merger by the end of this financial year.

Major shareholder to vote in favour

About 53% of Apollo’s shares are held by its founders, the Trouchet family.

The Trouchets are planning to vote in favour of the merger. They have also volunteered to put 90% of the Tourism Holdings shares they receive in escrow for at least a year.

What did management say?

Apollo Managing Director, Luke Trouchet, commented on the merger:

The two businesses have similar operations and like-minded cultures, and we both strongly believe in the potential of the global RV market. The proposed merger would give us a better platform to meet the ongoing impacts of COVID-19, continue to offer our guests the best combination of products, services and prices possible, and better leverage the re-opening of global travel.

With a more diverse portfolio of brands, strong presences in the key RV travel markets and a more robust balance sheet, the combined business will be better able to capitalise on near-term growth opportunities as borders re-open and cross-border tourism begins to return to pre-pandemic levels.

Still no FY22 guidance

In news that could weigh on the Apollo share price today, the company once again refused to provide guidance. It stated:

While earnings to date in [financial year 2022] gives the Apollo board confidence that Apollo will achieve improved results when compared with [financial year 2021], an underlying loss is still anticipated.

Apollo said it won’t provide earnings guidance due to the uncertainty of the trading environment. However, its board noted the merger will place it in a better position to restart its dividend payments.

The post Apollo Tourism & Leisure (ASX:ATL) share price roars 23% higher. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• Here’s why the EBOS (ASX:EBO) share price is climbing today
• Fortescue (ASX:FMG) share price falls following surprise CEO exit
• Expert warns Zip (ASX:Z1P) and cohorts may need to raise more capital in 2022
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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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end a positive week on a disappointing note. The benchmark index is currently down 0.45% to 7,351.2 points.

Here’s what is happening on the ASX 200 today:

Fortescue CEO steps down

The Fortescue Metals Group Limited (ASX: FMG) share price is trading lower today after announcing the surprise exit of its CEO, Elizabeth Gaines. Once a replacement is found, Ms Gaines will transition to a Non-Executive Director role. Global management consulting and executive search firm Egon Zehnder has been tasked with identifying a CEO and other leaders with exceptional skills and global experience across heavy industry, manufacturing, and renewable energy.

Westpac $3.5bn buyback update

The Westpac Banking Corp (ASX: WBC) share price is edging lower today despite sweetening the terms of its $3.5 billion share buyback. One amendment is the discount range of the buyback to a more generous 0% to 10% discount from 8% to 14% previously. Management notes this will improve the potential return of the buyback for shareholders. The Westpac Board made the move in response to an 18% decline in the Westpac share price since the buyback was announced.

Rio Tinto shares upgraded

The Rio Tinto Limited (ASX: RIO) share price is pushing higher today after being upgraded by the team at Morgan Stanley. This morning the broker upgraded the mining giant’s shares to an overweight rating with an improved price target of $110.50. Morgan Stanley likes Rio Tinto partly due to its exposure to aluminium.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Iluka Resources Limited (ASX: ILU) share price with a 5% gain. This morning Macquarie retained its outperform rating and lifted its price target on the mineral sands company’s shares to $12.00. The worst performer has been the Afterpay Ltd (ASX: APT) share price with a 4.5% decline. This follows another poor night of trade for the Square share price, which devalues its takeover offer for Afterpay even further.

The post ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update appeared first on The Motley Fool Australia.

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• Fortescue (ASX:FMG) share price falls following surprise CEO exit
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• 2 highly rated ASX 200 shares to buy
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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The EBOS Group Ltd (ASX: EBO) share price is edging higher today after the company provided an update on its equity raise.

At the time of writing, the pharmaceutical wholesaler and distributor’s shares are swapping hands for $36.17, up 4.24%.

What did EBOS announce?

Investors are buying up the EBOS share price after coming out of a trading halt this morning.

According to the release, EBOS advised that it has successfully completed a fully underwritten placement. The offer received significant interest in which both new and existing investors across Australia and overseas, raising NZ$674 million (A$642 million).

EBOS will issue around 19.5 million ordinary shares under the placement, which represents about 11.9% of its entire issued capital. The issue price of NZ$34.50 per share reflected a 5.5% discount to the last closing price of NZ$36.50.

The newly created shares are expected to settle on Tuesday 14 December, with allotment on the following day.

In addition, EBOS will launch a non-underwritten retail offer to eligible shareholders, raising a further NZ$105 million (A$100 million). Detail of the retail offer will be released in a retail offer booklet on 15 December.

The closing date for application in the offer will be on Monday 17 January.

The proceeds raised from the placement will be used to partly fund the acquisition of LifeHealthcare. EBOS will use a combination of equity, debt and existing capital reserves.

Founded in 2006, LifeHealthcare is one of the largest distributors of third-party medical devices in Australia and New Zealand. The company has a broad portfolio of products in various channels that include spine, orthopaedics, robotics, plastics & reconstructive surgery, and interventional neuro-vascular surgery.

What did management say?

EBOS CEO, John Cullity commented:

We are very encouraged by the strong support from investors for the Placement and in particular, the level of support from our existing shareholders. We are also pleased to have the opportunity to welcome new high-quality investors to the register.

The acquisition of LifeHealthcare accelerates EBOS’ medical devices strategy and creates a platform for EBOS to capitalise on additional future growth opportunities. We look forward to completion and the integration of LifeHealthcare into our existing institutional healthcare division.

About the EBOS share price

Adding to today’s gains, the EBOS share price has accelerated 51% in the past 12 months. It’s worth noting that the company’s shares are hovering about 3% off its all-time high of $37 reached in mid-September.

Based on valuation grounds, EBOS presides a market capitalisation of $5.93 billion, with roughly 164.18 million shares outstanding.

The post Here’s why the EBOS (ASX:EBO) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• EBOS (ASX:EBO) share price on watch amid cap raise and $1 billion acquisition

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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The Fortescue Metals Group Limited (ASX: FMG) share price is trading lower on Friday.

In morning trade, the mining giant’s shares were down almost 2.5% to $17.83.

Why is the Fortescue share price tumbling lower today?

Investors have been selling down the Fortescue share price on Friday following the surprise announcement of the exit of its Chief Executive Officer, Elizabeth Gaines.

According to the release, after four years in the top job, Ms Gaines is stepping down and will transition to the role of Non-Executive Director.

What’s next?

Fortescue is now embarking on an extensive global search for a replacement with the appointment of global management consulting and executive search firm Egon Zehnder.

Egon Zehnder will be tasked with identifying a CEO and other leaders with exceptional skills and global experience across heavy industry, manufacturing, and renewable energy.

Fortescue also highlights that its new CEO and leaders will be expected to have a strong track record of delivering transformation, innovation and enhanced value for stakeholders. Furthermore, the successful candidates will share Fortescue’s culture and values to assist the company as it delivers on its vision of moving from a pure play iron ore producer to a diversified renewable energy and resources major.

“An enormous opportunity”

Fortescue’s Chairman, Dr Andrew Forrest, has commented on the search for a replacement.

He said: “The search with Elizabeth, for a CEO and an even deeper management bench, is an enormous opportunity for a talented and visionary executive team, to continue the successful leadership of Fortescue, as we deliver on our strategy to diversify Fortescue to a renewable energy and resources company.”

“Fortescue Future Industries (FFI) is making enormous progress and will support the decarbonisation of Fortescue through the innovation and technological development of a green fleet and the supply of green energy. We are undergoing a significant transition, and I am delighted that with Elizabeth, the board is united in its vision and enthusiasm for the opportunity this presents,” Dr Forrest added.

The Fortescue share price is down 28% in 2021 amid falling iron ore prices and FFI uncertainty. Ms Gaines exit today certainly adds to the latter.

The post Fortescue (ASX:FMG) share price falls following surprise CEO exit appeared first on The Motley Fool Australia.

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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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ASX buy now, pay later (BNPL) shares, such as Zip Co Ltd (ASX: Z1P), might find themselves short of funds in the new year, according to Grant Halverson, the founder and CEO of payments consultancy McLean Roche.

In response, ASX BNPL giants may need to turn to investors to garner the cash.

Will 2022 dampen ASX BNPL shares?

Halverson believes rising interest rates may force BNPL companies to borrow at fixed margins above interbank lending rates to maintain their own loan books.

Additionally, the companies may be engaging in a ‘race to the bottom’ to get into the United States market. That will likely put their operations at a higher risk of bad debts and lessen their chances of receiving cheap loans.

That could leave ASX BNPL companies like Zip Co turning to the market to raise cash.

Let’s test Halverson’s theory and take a look at Zip’s balance sheet, latest fundraising activities, and growth plans.

Zip is expanding worldwide

It hasn’t been long since Zip last underwent a capital raise. In April 2021, the Zip share price temporarily dipped on news it was undergoing a $400 million notes offering to fund its international expansion plans.

And expand it has done. The company acquired European BNPL provider, Twisto Payments last month.

It also recently rebranded US BNPL company QuadPay, which Zip Co purchased in 2020.

Zip is also gearing up to finalise its acquisition of South African BNPL provider, Payflex early next year. Zip has also made moves to break into the Middle East, Philippines, and Indian markets.

The company hasn’t flagged if it’s still looking for new acquisitions in 2022.

Zip’s financial position and share price

At the end of FY2021, Zip Co had about $330 million in cash or cash equivalents to its name. Its assets totalled approximately $1.1 billion. It reported $143.5 million in gross profits over the period.

For comparison, the biggest BNPL player on the ASX, Afterpay Ltd (ASX: APT), recorded a gross profit of about $675 million for FY2021. It ended the period with approximately $1.1 billion in cash and cash equivalents and approximately $2.6 billion in total assets.

In FY2021, the Zip Co share price experienced a wild ride. It soared to an all-time high of $14.53 on 16 February after trading at a 52-week low of $4.96 in December 2020. Overall, Zip shares increased in value by 42% from $5.30 on July 1 2020 to $7.57 on June 30 this year.

What’s next for the Zip share price?

Whether ASX investors will be kind to Zip Co in 2022 is impossible to know. But according to reporting by the Australian Financial Review, Halverson says ASX BNPL shares could see higher bad debts in 2022. He says this may lead to lower credit ratings and higher funding costs.

Interested market watchers might want to keep an eye on interest rates and their effect on ASX players like Zip.  

In early morning trade on Friday, Zip shares are fetching $4.92, down 2.96%. Afterpay is also trading lower at $96.58, down 3.68%.

The post Expert warns Zip (ASX:Z1P) and cohorts may need to raise more capital in 2022 appeared first on The Motley Fool Australia.

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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. owns and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended AFTERPAY T 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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