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The AGL Energy Limited (ASX: AGL) share price is on watch today as a series of happenings continue to put pressure on the energy producer.  

Today, the energy giant has officially exited the S&P/ASX 50 Index (ASX: XFL) after its share price fell more than 20% over the September quarter.

In addition, reports of the company’s annual general meeting (AGM) are circulating this morning. The company’s board reportedly might struggle to push its renumeration report through a shareholder vote on Wednesday.

Last year, AGL’s AGM saw 46.5% of shareholders vote against the renumeration report. Thus, the resolution was hit with a ‘first strike’. Should 25% or more of shareholders vote against this year’s renumeration report, they’ll be given the chance to spill the board.

Also, shareholders may be voting for a resolution which would see the company forced to disclose emissions targets in line with the Paris Agreement.

The AGL share price finished Friday’s session trading at $5.52, 6.6% lower than Thursday’s close.

Let’s take a closer look at what could be weighing on the AGL share price today.

All eyes on AGL’s AGM

The AGL share price will be in focus on Monday as the company’s AGM approaches.

The company’s been banished from its spot amongst Australia’s top-50 listed companies ahead of its potentially divisive AGM.

AGL’s 2021 renumeration report will go to shareholder vote on Wednesday.

The Australian Financial Review has today reported proxy advisors Institutional Shareholder Services (ISS) and CGI Glass Lewis have recommended clients vote in favour of the resolution. The two advisors were both against AGL’s renumeration report last year.

Meanwhile, the Australian Shareholder Association (ASA) will vote all undirected proxies against the renumeration report. It will also vote against the granting of performance rights to AGL’s CEO. It claims the motions don’t support the direction needed for AGL to recover from its current situation.

ASA believes the biggest issues of the AGM will be the AGL share price’s struggles and the company’s decreasing profitability. In a statement ASA commented:

We see the removal of the return on equity hurdle for the long-term incentive and reduction in weight to the carbon transmission hurdle after receiving a first strike on its remuneration report in 2020 as not supporting the direction the company needs to make in its current situation.

Additionally, as The Motley Fool Australia reported on Friday, the Australian Shareholder Association (ASA) will be voting in favour of resolution 6b, against the advice of AGL. The AFR reports ISS will also be voting in favour of resolution 6b.

If passed, resolution 6b will see AGL forced to disclose carbon emissions targets in line with the Paris Agreement. Though, resolution 6b is contingent on resolution 6a passing a shareholder vote.

All named proxy firms and bodies reportedly plan to vote against resolution 6a.

AGL share price snapshot

The AGL share price has fallen a huge 54% so far this year.

It is also currently 60% lower than it was this time last year.

The post Why the AGL (ASX:AGL) share price is in focus on Monday appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 (ASX:XJO) shares last week
• AGL (ASX:AGL) share price falls amid ASA’s planned push for Paris targets
• Why AGL, BHP, IRESS, & Lendlease shares are dropping
• AGL (ASX:AGL) share price crashes 7% to new 20 YEAR LOW!
• Which ASX 300 shares are on the move mid-week?

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 Fortescue Metals Group Limited (ASX: FMG) share price plunged 11.48% on Friday to a 15-month low of $15.27.

Iron ore prices were far from supportive, continuing to free fall back to pre-COVID levels. Spot prices finished the week below US$100 a tonne for the first time since July 2020.

According to the Financial Times, the last time iron ore suffered a sell-off of this magnitude was during the Global Financial Crisis in 2008.

What’s driving iron ore prices lower?

China has been cracking down on emissions intensive industries such as steel and aluminium.

The government and its policymakers have played a far more active role in curtailing steel output – and it looks like it’s working.

S&P Global reported that China’s August crude steel output tumbled 13% year-on-year and fell 4.1% month-on-month to 80.24 million metric tonnes.

The sudden focus on energy consumption and emissions targets has rattled the iron ore market and is dragging the Fortescue share price along with it.

Is there any hope for the Fortescue share price?

Fortescue’s rapid descent to 15-month lows might tempt some investors to buy shares in the now heavily discounted, blue-chip miner.

According to the Australian Financial Review (AFR), Ausbil’s global resources fund “recently shifted its exposure from a short position in iron ore to now being long”.

The fund owns both Fortescue and Rio Tinto Limited (ASX: RIO) shares.

The fund’s co-portfolio manager, James Stewart said that “what we’ve seen is a buyer’s strike which has allowed iron ore to enter freefall.”

“Steel production is falling but so is end-product steel inventory, meaning China can’t keep drawing down inventory without increasing output, so that rebuilding of production has to occur at some point,” he added.

The fund believes that iron ore prices are oversold and a “rebound will occur before the end of this year.”

The post Could the Fortescue (ASX:FMG) share price bounce back? This fund thinks so appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week
• This top broker has named the Fortescue (ASX:FMG) share price as a sell
• How has the Fortescue (ASX:FMG) share price performed since reporting results?
• These were the worst performing ASX 200 (ASX:XJO) shares last week

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 Woodside Petroleum Limited (ASX: WPL) share price is staging a rebound of late, following its 12% fall in mid-August.

At the end of last week, the energy producer’s shares finished at $21.11 apiece.

Why are Woodside shares pushing higher recently?

It’s no secret that the spot price of oil has surged lately which has sent the Woodside share price higher. In fact, its shares have climbed 10% in the past five trading days.

On 14 September alone, the company’s share price soared 6.23% following OPEC’s monthly oil market report.

The “cartel” highlighted a positive outlook for the global economy, providing a detailed analysis of key developments impacting oil market trends.

OPEC noted that global economic growth forecasts for 2021 and 2022 remain unchanged from last month at 5.6% and 4.2%, respectively. However, it acknowledged that recovery efforts continue to be challenged by uncertainties. This includes the spread of COVID-19 variants and the pace of vaccine rollouts worldwide.

There are over 160 different types of oil traded on the global market. Two primary types of crude oil serve as a global benchmark for oil prices, West Texas Intermediate (WTI) and Brent crude.

The type of crude oil generally depends on the geographical location of the oil field and the characteristics of the oil itself.

Currently, the WTI is hovering around the $72 mark, approximately 3% higher after OPEC’s update.

In July, the WTI had been trading above $75, which led Woodside shares to roar past $24. If this feat can be achieved again for WTI, it represents a significant upswing for Woodside shares.

What’s next?

For the remainder of 2021, OPEC stated that global oil demand is estimated to average 96.7mb/d (million barrels per day).

In 2022, oil demand is expected to increase by roughly 4.2 mb/d, about 0.9 mb/d higher compared to last month’s report. This is being underpinned by both the OECD and non-OECD countries. The revival in various fuel prices is expected to be stronger than anticipated and coupled with a steady economic outlook.

Overall, oil demand in 2022 is projected to reach 100.8 mb/d, exceeding pre-pandemic levels.

If the short-term projections are achieved, it could have a strong effect on Woodside shares in 2021.

About the Woodside share price

Despite last week’s surge, the company’s shares are down 7% year-to-date. But when factoring in the past 12 months, Woodside shares are up 15%.

The company commands a market capitalisation of more than $20.3 billion and has almost 964 million shares on issue. 

The post The Woodside (ASX:WPL) share price has just had a great week. What’s next? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 (ASX:XJO) shares last week
• 5 things to watch on the ASX 200 on Friday
• Woodside (ASX:WPL) share price up 7% this week amid bullish oil outlook
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras owns shares of Woodside Petroleum Ltd. 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 Transurban Group (ASX: TCL) share price won’t be going anywhere on Monday.

This morning the toll road operator requested a trading halt.

Why is the Transurban share price paused?

This morning the Transurban share price was paused so the company could launch an equity raising.

According to the release, the company is raising $4.2 billion to support its acquisition of the remaining 49% stake in the WestConnex from the NSW Government for $11.1 billion.

This will mean Transurban and its Sydney Transport Partners (STP) consortium will now own 100% of WestConnex.

Transurban’s Chief Executive Officer, Scott Charlton, commented: “WestConnex is one of the largest road infrastructure projects in the world with an enterprise value of $33 billion based on this transaction. WestConnex is a key component of the NSW Government’s integrated transport plan to ease congestion and connect communities in Sydney.”

“We feel privileged to take Sydney Transport Partners’ holding in this critical asset to 100%. This transaction is expected to support Free Cash growth and distributions for Transurban security holders for the life of the concession,” he added.

Why acquire WestConnex?

The company notes that WestConnex has close to 40 years concession life remaining. The additional ownership in WestConnex, including the extension to the M5 West concession from 2026, extends Transurban’s weighted average concession life to approximately 30 years.

WestConnex is expected to generate significant free cash and support distributions. This is underpinned by strong asset fundamentals with potential upside from future infrastructure development and economic growth across Greater Sydney.

Management advised that it currently expects to receive more than $600 million of potential capital releases until FY 2025 resulting from its increased stake in WestConnex. This is in addition to more than $2 billion of potential capital releases expected to be achieved between FY 2021 and FY 2025 from a number of assets across Transurban’s portfolio.

The acquisition is expected to be free cash per security accretive over the near, medium, and long-term when including capital releases.

In light of this transaction, management has advised that it expects to pay an interim distribution of 15 cents per share for the first half of FY 2022. This is in line with the prior corresponding period.

Equity raising

Transurban will raise $4.22 billion of new equity. This includes $3.97 billion through a fully underwritten, 1 for 9 entitlement offer to eligible security holders at an offer price of $13.00 per security. This represents an 8.3% discount to the Transurban share price at Friday’s close.

The balance will be raised via a placement to STP consortium member AustralianSuper at $13.07 per security to raise $250 million. This is in addition to AustralianSuper taking up its full entitlement under the Entitlement Offer.

The post Transurban (ASX:TCL) share price halted for $4.2bn WestConnex equity raising appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• The Transurban (ASX:TCL) share price is up only 1% this year. Is it a buy?
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• Analysts name 2 ASX dividend shares to buy now

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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The Oil Search Ltd (ASX: OSH) share price has been on a bumpy ride recently.

Shares in the oil and gas company have climbed 5% higher since a merger announcement a couple of weeks back.

So, what’s the outlook for the Oil Search share price?

Forecast for Oil Search shares remains cloudy

Shares in Oil Search have stumbled along since news of its merger.

The oil and gas company announced that it has entered into a definitive agreement to merge with fellow energy company Santos Ltd (ASX: STO).

According to Oil Search’s management, the merger could provide a stronger balance sheet, access to broader capital markets, and growth projects.

Despite the promising potential, shares in Oil Search face some uncertainty as the deal pends approval.

Several terms need approval before the merger can go ahead, including regulatory hurdles and shareholder approval.

In addition, many of the prospective growth projects are in Papua New Guinea.

As a result, the PNG government holds veto power over the deal, which could be a potential deal-breaker.

More on Oil Search’s merger

As part of the all-scrip transaction, shareholders will receive 0.6275 new Santos shares for each Oil Search share held.

Upon completion of the merger, Oil Search shareholders will own approximately 38.5% of the merged entity.

Overall, the new combined company will boast a forecasted market capitalisation of $21 billion.

The formal announcement of a merger between Oil Search and Santos is not news to many investors.

Oil Search received a non-binding merger proposal from Santos in early July.

Since 6 August both companies have been carrying out due diligence on each other.

Snapshot of the Oil Search share price

The Oil Search share price has stumbled along in 2021.

Since the start of the year, shares in the oil and gas company are trading 3.5% higher.

In addition to the merger announcement, shares in Oil Search recently received a boost following a positive outlook for oil demand.

Oil Search shares closed Friday’s trading session at $3.84.

The post The Oil Search (ASX:OSH) share price has jumped 5% since the merger announcement. What’s next? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares so far today
• Why the Woodside (ASX:WPL) share price is leaping 6% today
• ASX 200 energy shares are leading the market on Tuesday
• ASX 200 rises, Santos and Oil Search merge

Motley Fool contributor Nikhil Gangaram 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 CSL Limited (ASX: CSL) share price has bounced back strongly over the last six months.

During this time, the biotherapeutics company’s shares have risen 19%.

This is twice the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the CSL share price?

According to a recent note out of Morgans, its analysts believe the CSL share price is still decent value.

The note reveals that the broker has an add rating and $324.40 price target on its shares at present.

Based on the current CSL share price of $309.36, this implies potential upside of 5% over the next 12 months.

What did the broker say?

Morgans was pleased with the company’s performance in FY 2021 considering the headwinds it faced. The broker notes that both its revenue and profits were stronger than it was expecting.

Its analysts commented: “FY21 results were solid, with better than expected top/bottom line growth and improving OCF, but GM contracted on higher plasma costs. Seqirus was the standout, on strong demand for influenza vaccines, while Behring was more modest, as Albumin gains on transition to a direct China distribution and cost-outs were offset by Ig/Specialty/Haemophilia growth flattish to down.”

However, the broker acknowledges that the near term is uncertain due to plasma collection headwinds.

It explained: “Improving plasma collections are a prelude to a steepening earnings trajectory, but timing is everything, with a lengthy manufacturing cycle (9-12mos), higher costs and ongoing COVID pandemic, adding uncertainty for a quick turnaround.”

Nevertheless, it sees enough quality in the company to maintain its add rating on the CSL share price.

Morgans concluded: “We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs.”

The post The CSL (ASX:CSL) share price has had a good 6 months. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• 2 high quality ASX 50 shares named as buys
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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 CSL Ltd. 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 small side of the Australian share market carries significantly more investment risk than other areas.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio. This is due to the potential returns on offer if you can find a star of the future in its early days.

With that in mind, here are two small cap ASX shares that could be worth watching closely:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Australia’s leading online beauty retailer.

Adore Beauty has been growing strongly over the last few years and continued this positive form in FY 2021. For the 12 months ended 30 June, the company reported a 48% increase in revenue to $179.3 million and a 53% jump in EBITDA to $7.6 million. This was driven by increased repeat sales and a 39% lift in active customers to 818,000.

Positively, the company still has a long runway for growth in the future. Management notes that the beauty and personal care (BPC) market in Australia is worth $11.2 billion and is expected to grow at a 26% CAGR through to 2024. Furthermore, online sales comprise just 11.4% of the BPC market at present but are expected to grow significantly as more sales shift online.

Earlier this month the team at Morgan Stanley put an overweight rating and $6.00 price target on the company’s shares.

Clarity Pharmaceuticals Ltd (ASX: CU6)

Another small cap ASX share to look at is Clarity Pharmaceuticals. It is a newly listed clinical stage radiopharmaceutical company. Clarity specialising in targeted copper theranostics, for the diagnosis and treatment of cancers.

The team at Bell Potter note that this type of molecular targeted radiation offers significant advantages to traditional oncology tools. These include radiotherapy, chemotherapy, and has synergistic impacts with hormone therapy, and immunotherapies.

It also notes that Clarity’s unique platform is based on copper radionuclides. It feels this may offer advantages compared to other frequently used radionuclides.

The broker currently has a speculative buy rating and $1.77 price target on its shares. Though, Bell Potter believes a fully de-risked pipeline would make its shares worth $3.75.

The post 2 exciting small cap shares tipped as buys 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 recommended Adore Beauty Group Limited. 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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Last week was not a good one for the National Australia Bank Ltd (ASX: NAB) share price. Shares in the big four bank fell 1.1% lower on Friday to close the week down 1.3% at $27.89 per share.

Let’s take a look at what’s moving bank shares right now and what could lie ahead for NAB.

Why the NAB share price is under pressure

Despite a disappointing week, there were no new price-sensitive announcements from the Aussie bank last week. That didn’t stop investors from selling down and putting the NAB share price under pressure.

Interestingly, NAB’s value was sliding even as the likes of Commonwealth Bank of Australia (ASX: CBA) edged higher to close the week. However, there were reports of a key change from NAB late in the week.

NAB has reportedly decided to increase some of its fixed-rate home loan rates. The Aussie bank is set to increase its 3-year rate by 10 basis points (bps) to 2.18% with 4-year and 5-year rates up 25 bps and 30 bps to 2.49% and 2.79%, respectively.

According to RateCity.com.au research director Sally Tindall, the rate hikes are no surprise. It comes as banks try to balance competitive market rates with profitability looking ahead to the economic recovery.

Higher rates may mean fewer borrowers going to the bank compared to its peers. Furthermore, investors could be wary of banks that prematurely increase rates. But at the same time, they may also punish those banks that see their net interest margin (NIM) deteriorate.

The NAB share price was under pressure last week following the news, but what lies ahead?

What’s next for NAB?

The big four banks don’t operate on the same reporting cycle as most other ASX companies. This means investors will be watching closely ahead of NAB’s full-year results release on 9 November.

As we saw last week, the state of the economy also looms large in 2021. Where the NAB share price is headed next could be determined by the re-opening of the Aussie economy post-COVID and other macro factors such as interest rates and the strength of the housing market.

The post The NAB (ASX:NAB) share price has just had a lousy week, what’s next? appeared first on The Motley Fool Australia.

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• Why this fund manager sees limited growth potential for ASX 200 banks
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• How has the NAB share price performed since reporting results
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Motley Fool contributor Ken Hall 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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On the S&P/ASX 200 Index (ASX: XJO), most companies that pay a dividend do so every six months. That means that every week, there is usually at least one ASX 200 dividend share that is about to trade ex-dividend for its upcoming shareholder payouts.

An ex-dividend date usually results in a corresponding drop in the company’s share price. So it pays to know when exactly your shares are about to go ex-div. As for this week, these ASX 200 dividend shares are in line to do just that:

5 ASX 200 dividend shares going ex-dividend this week

Qube Holdings Ltd (ASX: QUB)

Infrastructure and logistics company Qube is set to trade ex-dividend this week on Tuesday. Shareholders will receive Qube’s final dividend for FY21 of 3.5 cents per share, fully franked, on 22 October.

At Qube’s last share price of $3.36, this company had a dividend yield of 1.79%.

Adbri Ltd (ASX: ABC)

ASX 200 construction company Adbri (formerly Adelaide Brighton Cement) is our next ASX share going ex-dividend this week. Adbri will trade without its upcoming dividend included in its share price on Wednesday. This payment will be a 5.5 cents per share interim payment, fully franked, that will hit shareholders’ pockets on 6 October.

At Adbri’s last share price of $3.48, this company had a dividend yield of 3.66%.

Cochlear Limited (ASX: COH)

Healthcare company Cochlear is also trading ex-dividend this week, also on Wednesday. Shareholders will be receiving Cochlear’s final FY21 dividend of $1.40 per share, unfranked, on 18 October.

At Cochlear’s last share price of $238.28, this ASX 200 company had a dividend yield of 0.89%.

NRW Holdings Limited (ASX: NWH)

Another ASX 200 construction company to look at today, NRW is going ex-dividend on Wednesday too. This company will be forking out a 5 cents per share final dividend, fully franked, on Friday 13 October (clearly NRW is not a superstitious company).

At NRW Holdings’ last share price of $1.83, this company had a dividend yield of 4.92%.

Eagers Automotive Ltd (ASX: APE)

And last but not least, we have automotive sales company Eagers rounding out our list today. Eagers is scheduled to trade ex-dividend on Wednesday as well for its upcoming payout of 28.4 cents per share, fully franked. Investors can look forward to receiving this dividend on 15 October.

At Eagers’ last share price of $16.21, this ASX 200 share had a dividend yield of 2.78%.

The post These 5 ASX 200 shares are going ex-dividend this week appeared first on The Motley Fool Australia.

More reading

• The Cochlear (ASX:COH) share price is down 8% in 4 weeks. Is it a buy?
• How have ASX healthcare shares performed during the August 2021 earnings season?
• The Qube (ASX:QUB) share price is on a rollercoaster this week
• Which ASX shares are making a move on the ASX 300?
• 2 fantastic ASX 50 shares that analysts rate as buys

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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The BHP Group Ltd (ASX: BHP) share price slumped 5.4% lower last week in a disappointing week for shareholders. Let’s see what’s moving the Aussie mining giant’s shares right now and what lies ahead in 2021.

Why the BHP share price is down 5% in a week

Last week was a relatively big one for the iron ore giant. For starters, BHP provided an update on its Western Canada potash mine on Wednesday.

The BHP share price slipped lower despite the company outlining what it expects from the Jansen Mine in Saskatoon, Canada.

BHP expects to generate an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of circa 70% from the mine, which is forecast to be paid back 7 years after operations commence.

The company is hoping operations will start in early 2027 and bring a globally diverse customer base, increasing BHP’s operating footprint and providing greater immunity from economic cycles.

Another factor moving the BHP share price last week was falling iron ore prices. Iron ore prices have now slipped by more than 20% in a month and have nearly halved since hitting US$233 per tonne in May.

The sharp decline is, perhaps unsurprisingly, largely being driven by China. According to Reuters, China released a report stating its steel output reached its lowest point since March 2020 last month.

That was disappointing news for the Aussie iron ore giant and its investors with the BHP share price sliding lower to end the week.

What’s next for BHP?

Perhaps the biggest news ahead for BHP is its proposed petroleum division merger with Woodside Petroleum Ltd (ASX: WPL). The two ASX giants are aiming to create a global, top-10 independent energy company by production with the transaction.

As with any resources share, underlying commodity prices will play a role in how the BHP share price fares in the near term. Investors will be watching China’s next moves closely for signs of strength or weakness in iron ore imports in 2021.

The post The BHP (ASX:BHP) share price is down 5% in a week, what’s next? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• BHP (ASX:BHP) shares are down 20% in a month. Here’s why it’s not all bad news for investors
• How has the BHP (ASX:BHP) share price performed since reporting results?
• ASX 200 resources giants lift despite plummeting iron ore price
• 2 ASX 200 blue chip shares analysts rate as buys

Motley Fool contributor Ken Hall 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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