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The FFI Holdings Ltd (ASX: FFI) share price is plummeting this week for no apparent reason.

Interestingly, the same week has been full of news of another FFI. That is, the unlisted, hydrogen-focused, green energy leg of Fortescue Metals Group Limited (ASX: FMG), Fortescue Future Industries.

Could the chaos experienced by FFI Holdings’ shares have been driven by a case of mistaken identity?

FFI Holdings – operator of Fresh Food Industries – saw its stock soar 21% on Friday despite the company’s silence. It has since handed its gains back, plunging 17.97% over the course of this week.

At the time of writing, the FFI Holdings share price is $6.94, having fallen 7.9% on Wednesday.

Let’s take a closer look at what might have spurred the food manufacturer and distributor’s recent surge and fall.

Why is the FFI Holdings share price falling?

The FFI Holdings share price has had an unexplainably odd week on the ASX while a barrage of announcements has kept Fortescue Future Industries, often abbreviated to FFI, in the spotlight.

The latter acquired a 60% stake in Dutch-based High yield Energy Technologies (HyET) Group last Thursday. The HyET Group houses HyET Solar and HyET Hydrogen.

It then teamed up with the Queensland Government to announce its plan to double global output of electrolysers on Sunday. Electrolysers are the equipment needed to produce hydrogen from water.

It also partnered with Australian fertiliser supplier Incitec Pivot this week. Fortescue Future Industries will help swap Incitec’s ammonia-production facility’s feedstock from natural gas to renewable hydrogen.

Finally, Fortescue Future Industries’ chair, Andrew ‘Twiggy’ Forrest, stood beside NSW’s Premier Dominic Perrottet and Treasurer and Energy Minister Matt Kean to launch the state’s $3 billion green hydrogen strategy yesterday.

Kean told those present that NSW’s hydrogen industry will be as big as its coal industry by 2050 and Twiggy stated it will “dwarf the scale of iron ore”.

Simultaneous to the barrage of news from Fortescue Future Industries, the FFI Holdings share price has been experiencing turbulence and, not to mention, popularity.

55,702 of the company’s shares were traded on Monday, 19,600 on Tuesday, while another 23,351 swapped hands on Wednesday.

For context, over the last 4 weeks, the average day sees around 6,500 FFI Holdings shares traded.

Whether FFI Holdings’ dramatic movements have been caused by investors mistaking the company for Fortescue Future Industries is impossible to say. Though, it could help to explain the ASX-listed stock’s strange week.

The post The FFI Holdings (ASX:FFI) share price has lost 18% this week. Could this be a case of mistaken identity? appeared first on The Motley Fool Australia.

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• Redbubble (ASX:RBL) share price on watch after first quarter update
• Why did the Flight Centre (ASX:FLT) share price have such a great FY22 first quarter?
• HUB24 (ASX:HUB) share price on watch after record Q1 performance
• 2 ASX dividend share opportunities rated as buys by brokers
• 3 reasons why Bubs (ASX:BUB) shares could be worth owning

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

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The Redbubble Ltd (ASX: RBL) share price could be a mover on Thursday after the company released its first quarter trading update.

How did Redbubble perform in Q1?

It has been a wild ride for the Redbubble share price, especially following its FY21 full-year results. Today, the company was pleased to announce that its trading performance in the first quarter came in line with expectations.

The global marketplace was continuing to retain the majority of the accelerated revenue growth that it experienced during FY21.

Redbubble said that it saw an improved performance from July to September, and reiterates the FY22 outlook statements it provided in August.

Despite the company’s positive commentary, its financial performance may appear discouraging at face value, which could weigh on the Redbubble share price.

Its first quarter financial highlights include:

• Gross transaction value of $142 million, down 21% on the prior corresponding period (pcp)
• Marketplace revenue of $106 million, down 28%
• Gross profit of $42 million, down 34%
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $3.9 million, down 85%
• Operating cash inflow of $11 million, compared to $27 million in 1Q21
• Cash balance of $109 million at 30 September

Redbubble advised that excluding masks and on a paid basis, underlying 1Q22 marketplace revenue was down 6%.

Encouragingly, as the quarter progressed, underlying marketplace revenue improved from negative 11% in July to negative 2% in September.

From an operational perspective, the company continued to deliver initiatives to drive growth.

During the quarter, Redbubble successfully launched Afterpay Ltd (ASX: APT) services for its customers in the United States, Canada, United Kingdom and Australia.

The company was also driving a number of ‘experiments’ to drive customer retention and improve the discoverability of new artists. As well as the introduction of new products and line extensions including dad hats, baseball caps, desk mats, mousepads and iPhone 13 cases.

What’s next for Redbubble?

The Redbubble share price has been moving in a volatile fashion as it adjusts to lower growth expectations.

Looking ahead, the company said that its marketplace revenue growth in the first half of FY22 will likely be negative year-on-year. In the second half, the company believes there will be a steady return to year-on-year growth rates.

As previously stated, the company’s targeted investments will weigh on gross margins, with EBITDA margins as a percentage of marketplace revenue expected to be in the mid-single digit range of FY22.

Redbubble share price snapshot

The Redbubble share price is down 23% year-to-date, largely driven by a 23% single-day selloff on 22 April.

In recent weeks, the Redbubble share price has managed to find its footing around the low-mid $4 level.

The post Redbubble (ASX:RBL) share price on watch after first quarter update appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Flight Centre Travel Group Ltd (ASX: FLT) share price travelled 45% higher in the first quarter of FY22. The positive shift comes as the long-awaited travel agenda comes back to Australian lives.

At the end of Wednesday’s market session, Flight Centre shares closed at $22 apiece.

Travel plans restart

While overseas holidays are expected to soon be a reality, the Flight Centre share price has taken off in recent times.

Clearer visibility surrounding the resumption of travel has led the company to target a return in leisure and corporate profitability. In particular, sales revenue increased month-on-month in the United States buoyed by a return to normal life.

Corporate transaction numbers were at 50% of pre-COVID levels, representing around 40% of Flight Centre’s total transaction value (TTV).

In addition, accelerated vaccination programs have resulted in restrictions being either relaxed or removed in key travel markets. This gives more freedoms to passengers who wish to travel internationally.

As more countries are accepting to live with the virus, a number of international routes are restarting. Australia is set to open up to selected counties from November onwards, with destinations including the United Kingdom and the United States. Other countries such as Fiji, Japan, Singapore, New Zealand and others are anticipated to be available at a later date.

Late last month, Flight Centre managing director, James Kavanagh highlighted the light at the end of the tunnel is getting nearer. He said:

The first day after Qantas’s announcement regarding international flight coming back, we saw a dramatic spike in both bookings and searches – with locations ranging from Los Angeles to Delhi – and over a quarter of these bookings were for business travel.

Flight Centre share price snapshot

Up until late August, Flight Centre shares were trading mostly sideways. However, since then, its shares have skyrocketed almost 60% in less than 2 months. When looking at the larger picture, the company’s share price is up around 40% for the calendar year.

Flight Centre has an attractive price-to-earnings (P/E) ratio of 7.07 and commands a market capitalisation of roughly $4.49 billion.

The post Why did the Flight Centre (ASX:FLT) share price have such a great FY22 first quarter? appeared first on The Motley Fool Australia.

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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 recommended Flight Centre Travel 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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There are a number of ASX dividend shares that could be options for income.

The businesses in this article have been rated as buys by brokers, meaning they think they are good value.

A business isn’t automatically worth owning just because it pays a dividend. But these two are rated as worth owning:

Deterra Royalties Ltd (ASX: DRR)

As the name suggests, this business owns royalties. Mining royalties to be precise. It has the MAC royalty, the Doral royalty interests, the Sheffield royalty interest and the Cable Sands royalty interest.

In FY21, the MAC royalty (the key asset) performed “strongly” thanks to a strong iron ore price environment.

This company has a dividend policy of paying out 100% of net profit after tax (NPAT), franked to the maximum extent possible. It has low debt and low costs, allowing for opportunistic investment and a highly scalable corporate structure, according to the company.

The ASX dividend share is looking to increase its scale and diversification with complementary value-adding acquisitions.

It’s currently rated as a buy by the broker Morgan Stanley, with a price target of $4.55. That suggests a potential 20% increase of the Deterra Royalties share price over the next 12 months, if the broker is right.

In terms of the dividend, Morgan Stanley thinks Deterra Royalties will pay a dividend of 23.8 cents per share in FY22, which translates to a grossed-up dividend yield of 9%.

Charter Hall Retail REIT (ASX: CQR)

This is a real estate investment trust (REIT) that is operated by the property management business Charter Hall Group (ASX: CHC) to own and manage retail properties.

It has around 350 properties that are worth a total of $3.6 billion, with an occupancy rate of 98.3% and a weighted average lease expiry (WALE) of 7.5 years. This gives the business a high level of income visibility for the next few years.

COVID-19 certainly impacted the value and rental profit of this business. That may explain why the Charter Hall Retail REIT share price is still 17% lower than the level it was at just before the COVID-19 crash.

However, the business is expecting that specialty sales and traffic will rebound strongly after lockdowns finish, after seeing this pattern with previous lockdowns.

It’s going to pay FY22 distributions based on its cashflow.

In FY21 the ASX dividend share paid a distribution of 23.40 cents per unit (which was down 4.6% on FY20).

The brokers at Macquarie Group Ltd (ASX: MQG) rate this REIT as a buy, with a price target of $4.24. They think that Charter Hall Retail REIT is going to pay a FY22 total distribution of 24.9 cents per unit and a FY23 total distribution of 26.80 cents per unit, which equates to yields of 6.1% and 6.6% respectively.

Whilst the net rental profit has been impacted, it has seen its valuation per unit increase for investors. Over FY21, the net tangible assets (NTA) increase by 6.9%, compared to FY20, to $4.01. That means the current Charter Hall Retail REIT share price is now roughly in line with its NTA.

Its portfolio look-through gearing is 33.1%, with balance sheet gearing of 25.7%. But it still has available investment capacity of $308 million, consisting of cash and undrawn debt facilities.

The post 2 ASX dividend share opportunities rated as buys by brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 HUB24 Ltd (ASX: HUB) share price will be one to watch on Thursday.

This follows the release of the investment platform provider’s first quarter update this morning.

What did HUB24 announce?

HUB24 has continued its positive form in FY 2022 and reported further strong growth in its funds under administration (FUA).

According to the release, the company achieved record first quarter platform net inflows of $3 billion for the three months ended 30 September.

As a result, at the end of the period, total FUA reached $63.2 billion. This comprises platform FUA of $45.4 billion, which is up 139% year on year and 9.5% since the end of June, and Portfolio, Administration and Reporting Services (PARS) FUA of $17.8 billion.

Management notes that this record quarter comes on the back of a record FY 2021 net inflow result. It feels this is a testament to HUB24’s market leadership position and continued focus on delivering innovative solutions and customer service excellence.

The company also revealed that, according to the latest Strategic Insights data, it ousted Netwealth Group Ltd (ASX: NWL) to take the top spot for share of net inflows for the June quarter. Positively, this means HUB24’s market share has increased to 4.3% from 2.1% over the 12 months to 30 June putting it in 7th position.

Looking ahead, management appears optimistic that the fund inflows will continue. It advised that its new business pipeline continues to grow with 30 new licensee agreements signed during the quarter. This includes new agreements with self-licensed advisers, boutiques, and an advice aggregator.

Is the HUB24 share price in the buy zone?

One leading broker that appears to believe the HUB24 share price is in the buy zone is Credit Suisse.

Earlier this week the broker retained its outperform rating and lifted its price target to $34.00.

Based on the current HUB24 share price, this implies potential upside of 18% over the next 12 months.

The post HUB24 (ASX:HUB) share price on watch after record Q1 performance 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. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Hub24 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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At the current Bubs Australia Ltd (ASX: BUB) share price, there are a few different reasons why it could be worth owning.

Bubs offers consumers a number of different products including goat milk infant formula, Bubs organic grass-fed cow’s milk infant formula, organic baby food, cereals, toddler snacks and Vita Bubs infant and children’s vitamin and mineral supplements.

It’s also the leading producer of goat dairy products in Australia, with exclusive milk supply to the farm gate.

The business recently announced its FY22 first quarter update, which had several positive elements which were compelling:

Chinese recovery

Chinese customers are huge consumers of infant formula products.

Bubs has been experiencing difficulties relating to Chinese demand and sales, but it now seems to be going through a recovery.

The company said that the daigou, cross-border e-commerce and general trade sales to China were up 156% year on year and 98% quarter on quarter, which contributed 53% of quarterly gross revenue.

Breaking that down into different segments, CBEC gross revenue rose 50% year on year, with 14% growth quarter on quarter.

Daigou gross revenue went up 451% year on year (with infant formula sales going up 6.5 times). It was also up 209% quarter on quarter. More growth like that could be very helpful for the Bubs share price.

International growth and diversification

The business has advanced its global expansion strategy by establishing entities in New Zealand, China and USA.

Outside of China, the business continues to see strong growth. International gross revenue for the quarter was up 489% year on year and up 35% quarter on quarter.

It said that the first shipment of Aussie Bubs products arrived in the USA during the quarter and Bubs is now an official Walmart vendor, with the first online sales expected to be realised in October 2021.

Bubs is now being sold into a number of Asian countries including Vietnam, Malaysia, Singapore, South Korea and Japan.

Dennis Lin, the Bubs executive chair, said:

We continue to explore opportunities to stretch the Bubs brand to cater to new market segments, adjacent categories and consumer groups. In light of that, we are confident that our vision to take Bubs to a global stage is becoming reality. We are investing in our manufacturing capabilities at our facility in Victoria.

Bubs also said that it has created Deloraine Dairy Solutions, which made up 17% of the first quarter revenue, is focused on industrial dairy ingredient sales, contract manufacture and end-to-end product development for global customers. This increases the diversification of the customer base, optimises its assets and brings efficiencies across the entire business.

Positive cashflow

Achieving positive operating cashflow can be an important step for a business so that it isn’t reliant on external funding for its day to day operations.

In the first quarter, it received $15.3 million of cash receipts and made $0.5 million of operating cashflow. It spent $8.1 million on product manufacturing and operating costs, as well as $2.8 million on advertising and marketing.

The post 3 reasons why Bubs (ASX:BUB) shares could be worth owning appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST 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 Temple & Webster Group Ltd (ASX: TPW) share price could be worth considering at the moment.

This e-commerce player may have a lot of potential and it could be worth considering for the long-term.

COVID-19 has really dialled things up for the online retail sector. Temple & Webster is trying to take advantage of the increase in demand. It’s succeeding at generating more volume and growth.

Here are three good reasons to consider the Temple & Webster share price:

Rapidly growing

A business that is rapidly growing each has the ability to deliver good total growth after a years thanks to the power of compounding.

Businesses that are scalable, like online retail, can really drive profit higher if revenue is increasing at a nice rate.

FY20 saw revenue growth of 74% to $176.3 million. FY21 revenue went up 85% to $326.3 million. In a trading update for the first two months of FY22, revenue had grown by another 49%.

FY21 showed how profitable the business can be, despite the high level of investing it’s doing for growth. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 141% to $20.5 million, whilst ‘normalised’ net profit was 165% higher to $14 million.

Temple & Webster continues to look for new ways to increase and diversify its earnings. Business customers are a growing part of the picture. The trade and commercial division saw revenue growth of 110% year on year.

The Temple & Webster share price could be significantly influenced by how much it grows its revenue and profit over the coming years.

Big addressable market

Temple & Webster says that it’s operating in a large $16 billion market, with less than 9% sold online. This excludes the business to business market, which Temple & Webster does have a growing presence in.

At the end of FY21, it had 778,000 active customers – this was an increase of 62% year on year.

The business has a growing range of products on offer. It has around 210,000 products from more than 500 suppliers across 210 categories. Around 74% of this is operated through a ‘drop ship’ model, where the supplier sends the product directly to the customer. This comes with no inventory risk.

Its operating model allows it to have a negative working capital model. This way, it can leverage third party warehouses and carrier networks. The average time to dispatch is 1.9 days.

Investing to capture the opportunity

Temple & Webster is investing in a number of areas to increase its revenue and its long-term profit margins.

For example, it’s investing in its private label offering, which offers diversification of supply, less dependency on the drop ship network, improved margins, stock assurance and speed of dispatch.

It’s investing in its app so that it’s the leading offering and can drive higher levels of engagement, plus repeat purchasing.

Temple & Webster is also looking to merge the online and offline experience with its augmented reality offering so that customers can see the products in their room. This can remove barriers in the online shopping journey and increase conversion.

The company is also investing in an AI interior design service, suggesting products to match a customer’s selected item. The next version will be 3D generated life-like rooms. These types of things also drive the conversion rate and average order values.

Market capitalisation snapshot

At the current Temple & Webster share price, it has a market capitalisation of $1.45 billion, according to the ASX.

The post 3 reasons why the Temple & Webster (ASX:TPW) share price could be a top buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Datt Capital principal Emanuel Datt explains how a coal miner could possibly be a great investment and why it’s important to practise dollar-cost averaging.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for 4 years, which stock would you want to hold?

Emanuel Datt: It was quite funny because when I read this question, I thought of SelfWealth Ltd (ASX: SWF). 

But then I realised, “Oh, well, SelfWealth’s whole business is about having a tradable market. Oh, that wouldn’t work.”

So I think that the stock that we would want to hold would be Whitehaven Coal Ltd (ASX: WHC). Ultimately, that’s driven by the reality that the transition to cleaner energy sources will require coal, and lots of it, effectively. 

I think that, ultimately, that’s driven by the green lobby having labelled nuclear power as dangerous but, conversely, this strengthens the position of fossil fuels. It basically extends what we think will be the time horizon for fossil fuels to be used. 

Longer term, the coal market is positively positioned because new mines are generally quite difficult to permit and the output from existing mines is falling, and this is despite relatively stable demand. That’s projected over the next 20 or so years.

Accordingly, we think that there’s going to be enduring supply-demand mismatch, at least over the next 10 to 20 years [which will] lead to higher prices down the line. 

Whitehaven’s coal is known for its positive clean qualities, I guess. Its customers are primarily ex-Chinese east Asians — like the Japanese and Koreans. It also has already permitted and advanced expansion opportunities while also, we feel, that it’s materially undervalued on projected DCF [discounted cash flow] basis. 

If strong coal prices persist, then we feel that Whitehaven will be in a very strong position to potentially cash fund their expansion projects while also making generous capital returns back to shareholders. 

The way we see it… Whitehaven is just a pure cash machine, so we’d feel quite comfortable holding this for the long term.

MF: Is it one of your core holdings?

ED: Yeah. Well, we’re actually sort of building into it at the moment because we do have a position, but not a big enough position at the moment.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

ED: Most recently, it’s not buying Whitehaven in May in the low $1 range.

MF: Yes, the price has ramped up since mid-May, hasn’t it?

ED: Yeah, it’s gone up about 3 times.

But we were [still] thinking about buying because we know the history of the company quite well, and we noticed that a particular major shareholder was reducing their stake. Ultimately, we were too fixated on an entry point around $1, and I think the low was maybe $1.10 or $1.20 or something like that. 

So, being too fixated, we just missed out because it shot up to $2 very quickly and today it’s trading at over $3. Ultimately, we like the company so we’re having to put up our hard earned [at] over $3.

MF: It goes to show you, even the professionals are susceptible to anchoring.

ED: Absolutely, yeah. I think it’s really just a prime example of just being overconfident in the information that we had at hand. 

Ultimately, ideally, we should’ve staggered our entry given how confident we were in the company’s prospects. But… [we had] the bias of hoping that’ll pull back to make an entry point at some stage. 

It’s really a great lesson to practise dollar-cost averaging.

The post Why I’d hold this coal-mining ASX share for 4 years: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 could be an interesting idea to think about for a few different reasons.

Fortescue is one of Australia’s biggest miners, with several assets. In FY21 it shipped 182.2 mt of iron ore, which was 2% higher than what it did in FY20. It currently has the Chichester Hub in the Chichester Ranges, the Solomon Hub in the Hamersley Ranges, it is developing the Western Hub (140km west of Solomon) which includes the new Eliwana mine and it owns its Hedland operations.

The Hedland operations are wholly owned and have purpose-designed rail and port facilities, constructed to deliver iron ore from the mines to Port Hedland to ship the commodity to customers. Its railway covers 760km of track, which it claims is the fastest and heaviest haul line in the world.

That’s the current business. Here are three reasons why the Fortescue share price could be one to consider:

Lower share price

The Fortescue share price has fallen by around a third over the past two months. There could be a few different factors. Analysts point to the decline of the iron ore price and perhaps the ongoing uncertainty in the Chinese real estate market as key contributors to the problems.

According to the latest news reports, not only is Evergrande facing problems, but there are now other Chinese real estate businesses also seemingly missing payments or in difficult financial trouble including Fantasia, Sinic Holdings and Modern Land (China).

Either way, the Fortescue share price is now substantially lower than where it was a few months ago, making it potentially better value.

Two of the largest broker ratings have come from brokers that rate the Fortescue share price as a buy. Ord Minnett has price target on Fortescue of $25 and Macquarie Group Ltd (ASX: MQG) has a price target of $21.

Growth of other projects

Fortescue is looking to expand its mining operations, so that it isn’t so focused on lower grade iron ore.

The Iron Bridge Magnetite Project is an important part of that. It’s costing between US$3.3 billion to US$3.5 billion to develop, but it will deliver 22mt per annum of high grade 67% Fe magnetite concentrate product. This is located 145km south of Port Hedland.

Fortescue said the innovative process design, including the use of a dry crushing and grinding circuit, will deliver globally competitive capital intensity and operating costs.

The company continues to look for iron ore that can be produced at low cost in Australia.

It’s also looking for copper-gold in the Paterson, Rudall and Goldfields regions in Western Australia. Fortescue says additional exploration activity is underway in New South Wales and South Australia, including through the farm-in and joint venture agreement with Tasman Resources in South Australia.

On top of that, it is looking for global opportunities and commodities that can support decarbonisation and electrification of the transport sector. It’s looking for copper in Ecuador and copper-gold in Argentina.

It’s also assessing exploration and development opportunities in Peru, Chile and Brazil, as well as Portugal and Kazakhstan.

Plus, it has a 19% stake of the Canadian-listed Candente Copper Corporation.

Fortescue Future Industries (FFI)

FFI is a division of Fortescue. Its goal is to become the world’s leading, fully renewable energy and green products company, powering the Australian economy and creating jobs for Australia as the country transitions away from fossil fuels.

One of the most recent announcements out of FFI was the construction of the world’s largest electrolyser, renewable industry and equipment manufacturing centre at Gladstone, Queensland.

The Fortescue share price rose 5% on the day that this was announced.

This global green energy manufacturing centre (GEM) will be the first in a series of centres that will “transform regional Australia throughout the manufacture of equipment that is critical to the generation of renewable energy and green hydrogen”. The GEM will be a key enabler of Fortescue achieving its target of carbon neutrality by 2030.

The GEM will include the manufacture of wind turbines, solar photovoltaic cells, electrolysers, long-range electric cabling, electrification systems and associated infrastructure.

Subject to customer demand, as orders firm for both electrolysers and the associated green industry, the investment could be up to US$650 million. The initial electrolyser investment is expected to be US$83 million.

The post 3 reasons why the Fortescue (ASX:FMG) share price could be a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of 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 Australian share market is home to a large number of shares offering attractive dividend yields.

But which ones should you buy? Here’s are two that one leading broker rates highly right now:

DEXUS Property Group (ASX: DXS)

The first ASX dividend share to look at is this Australian real estate company with a focus on owning, managing, and developing office, industrial and retail properties. Dexus’ areas of operation include both a direct property portfolio and third-party fund management. The former invests directly in Australian office and industrial properties, whereas the latter manages office, industrial and retail properties located across Australia.

The team at Macquarie are very positive on the company and responded positively to recent news that it is acquiring $900 million of industrial assets, including a majority stake in Jandakot airport. The broker has put an outperform rating and $11.90 price target on its shares.

Macquarie is also forecasting dividends per share of 53.7 cents in FY 2022 and 58.1 cents in FY 2023. Based on the current Dexus share price of $10.48, this will mean yields of 5.1% and 5.5%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share that Macquarie is positive on is Mineral Resources. It is a mining and mining services company with exposure to iron ore and lithium. And while iron ore prices have fallen heavily in recent months, Macquarie doesn’t expect this to stop Mineral Resources from paying generous dividends.

The broker has pencilled in fully franked dividends per share of $2.81 in FY 2022 and $2.47 in FY 2023. Based on the current Mineral Resources share price of $42.28, this will mean yields of 6.6% and 5.8%, respectively, over the next two years.

Macquarie has an outperform rating and lofty $77.00 price target on the company’s shares.

The post Broker names 2 ASX dividend shares to buy 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 owns shares of and has recommended Macquarie 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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