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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.7% to 7,405.6 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has fallen 11% to $15.33. This has been driven by a pull back in the iron ore price overnight and a broker note out of UBS this morning. In respect to the latter, the broker has downgraded the iron ore producer’s shares to a sell rating and cut the price target on them from $18.00 to $15.00. UBS made the move on the belief that iron ore prices will fall to US$70 to US$80 a tonne.

IRESS Ltd (ASX: IRE)

The IRESS share price is down almost 10% to $12.22. Investors have been selling the financial technology company’s shares after takeover talks with EQT collapsed. IRESS advised that discussions between it and EQT have now concluded and the parties have been unable to agree a transaction. Last month EQT tabled a non-binding offer to acquire the company for $15.91 cash per share.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is 3% lower at $23.86. Investors have been selling gold miners today after the price of the precious metal dropped to a one-month low. According to CNBC, the spot gold price is down 2.3% to US$1,754.10 an ounce. This was driven by better than expected economic data in the US.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is down 4% to $1.21. This follows news that the graphite producer has been struggling to ship its product from the Balama Graphite Operation in Mozambique due to container ship shortages. Approximately 12kt of natural graphite sales from Balama were planned to ship from the Port of Nacala in late September. However, container shipping market disruption means that this has been delayed to October.

The post Why Fortescue, IRESS, Newcrest, & Syrah shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks
• Why the Fortescue (ASX:FMG) share price is down 8% today
• Why the Syrah (ASX:SYR) share price is tumbling 7% lower today
• IRESS (ASX:IRE) share price sinks 13% after takeover talks end
• 5 things to watch on the ASX 200 on Friday

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 Whitehaven Coal Ltd (ASX: WHC) share price is sinking in afternoon trade today. This comes as the coal miner faces backlash over its Vickery coal project extension that was approved yesterday.

Whitehaven shares are currently changing hands at $2.83 apiece, an 8.71% drop from the market open.

This is a complex issue with a lot of moving parts – but we’ve done the analysis for you. Here are the details.

Let’s set the scene quickly

In order to grasp the situation fully, it’s important to realise the backdrop here.

The Vickery colliery, located around 20km north of Gunnedah in NSW, was originally owned by Rio Tinto Limited (ASX: RIO) before its closure in 1998. Whitehaven then acquired the mine and was granted a restart approval in 2020.

It has since been a messy road for the project’s upstart, as several climate activist groups have come out against the mine’s go-ahead.

For instance, a group of eight students unsuccessfully sought an injunction against the Vickery extension in May of this year.

However, a Federal Court agreed that the federal environment minister, Sussan Ley, did have a responsibility to ensure no harm was caused to the future of young people as a result of the decision.

The Federal Court ordered the minister to at least factor this into any decision making, before approving the project.

Whitehaven’s Vickery extension project gains approval

Alas, Ley used ministerial powers entrusted by the cabinet and yesterday approved the controversial plans to extend open-cut operations at Vickery. This appears to have had a negative effect on the Whitehaven Coal share price.

The minister has subsequently appealed the Federal Court’s ruling as well.

Ley’s decision is still subject to a series of assessments on environmental conditions, a water management plan, and how the coal giant intends to offset any destruction to the local habitat.

However, in a statement released late Thursday afternoon, Ley indicated that contingencies and restrictions imposed by NSW authorities on the site would mitigate any risk posed to the future of children, or humans in general.

Ley also indicated that if the mine wasn’t approved, a new coal resource, either in Australia or abroad, “will be developed to take its place”. She referenced the work of Professor Will Steffen, of the Australian Department of Climate Change, in her findings.

As such Ley determined there was no harm to humans, now or in the future, that could arise from approving Whitehaven’s $600 million expansion project.

Unsurprisingly, Whitehaven Coal welcomed the decision, which completed an “exhaustive process” that spanned 5 years. The Whitehaven Coal share price also ended Thursday’s session in the green.

Yet, the approval has faced severe backlash, with investors, politicians, and community members alike voicing their distaste for Ley’s decision.

Australian Greens party environment spokesperson Sarah Hanson-Young took to Twitter to say: “Once again, Sussan Ley proves she’s the minister AGAINST the environment, not for.”

“Expanding coal in the middle of the climate crisis is madness,” Hanson-Young added. “Approving a new coal mine just weeks before the world’s climate summit in Glasgow is poor form from Australia.”

Whitehaven Coal share price snapshot

Some investors appear to hold the same sentiment as the Greens. At one stage today the Whitehaven Coal share price sunk as low as $2.77 but is now at $2.83 — down 8.71% on the day.

The miner’s shares are still up more than 70% this year, and 227% over the past 12 months.

The post Why the Whitehaven Coal (ASX:WHC) share price is tumbling 8% today appeared first on The Motley Fool Australia.

More reading

• Why Anteotech, API, Myer, & Whitehaven Coal shares are charging higher
• Here’s why the Whitehaven Coal (ASX:WHC) share price is rising today
• Here are 2 ASX mining shares up 25% in the past month
• Why the Whitehaven (ASX:WHC) share price is gaining on Friday
• Here are the 3 most heavily traded ASX 200 shares today

The author Zach Bristow has no positions 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 Commonwealth Bank of Australia (ASX: CBA) share price is down 0.2% in early afternoon trade.

The S&P/ASX 200 Index (ASX: XJO) is down 0.7% at this same time.

If the CBA share price closes in the red today, it will make 3 days of gains for the week and 2 of losses. Wednesday was the only other day shares closed lower, down 0.2% to $101.41 per share.

Below we take a look at what’s been happening with CommBank over the week.

CBA share price shrugs off defamation allegations

The CBA share price closed up 0.2% on Monday, despite news that Colcambios Australia, a remittance company, had accused the big 4 bank of defamation.

Colcambios makes use of cryptocurrencies to transfer pesos and Aussie dollars between Columbia and Australia for its customers.

Concerned that money in its customers’ accounts could stem from fraudulent activities, CommBank wrote letters saying they may “have fallen victim to a scam”.

In its defence, CBA said it didn’t mention Colcambios Australia by name, and that it was acting in accordance with its perceived legal duties.

Green loans

CBA’s share price closed up 0.3% on Tuesday.

That was the day it revealed it had acted as the sole financier and “green coordinator” for Charter Hall Group‘s (ASX: CHC) Melbourne based development. Once completed, the development will serve as the new headquarters for Australia Post.

CommBank said the $202 million construction facility is Australia’s maiden Climate Bond Initiative-certified Green Development Loan.

More legal woes

Thursday’s news that the Australian Securities and Investments Commission (ASIC) had filed 30 charges against the bank didn’t deter investors, who sent the CBA share price up 1.4% yesterday.

As my Foolish colleague, Tony Yoo noted, “The matters relate to CBA’s promotion and sales of add-on insurance products CreditCard Plus and Loan Protection.”

The bank is accused of “false or misleading representations” to some customers.

CommBank said it accepted that its prior behaviour was not acceptable and reported that it no longer sells these products. The bank will plead guilty and has already compensated 165 customers. It faces a maximum potential penalty of $1.7 million for each of the 30 offences.

CBA share price snapshot

The CBA share price is up 22% year-to-date, compared to a gain of 11% posted by the ASX 200.

Over the past month CBA’s shares are up 3%.

The post What’s happening with the CBA (ASX:CBA) share price this week? appeared first on The Motley Fool Australia.

More reading

• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
• Commonwealth Bank (ASX:CBA) faces 30 criminal charges
• How has the CBA (ASX:CBA) share price performed since reporting results?
• Could liar loans crash the housing market?
• How these 4 ASX 200 bank shares have performed since reporting results

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 Qantas Airways Limited (ASX: QAN) share price is gaining today and the company has completed a $500 million bond refinancing.

The bond offer resulted in 6 times as many subscriptions as were available, according to the company’s statement.

Qantas said this is the strongest response to a bond offer in its history. The company said this reflects the market’s confidence in its recovery plan and market position.

Qantas released the non-price sensitive news after the ASX closed yesterday. Right now, the Qantas share price is $5.50, which is 0.92% higher than its previous close.

Let’s take a closer look at yesterday’s announcement from Australia’s largest airline.

Qantas secures $500 million of debt

The Qantas share price is gaining today on news of the company’s latest bond refinancing.

The 7-year $500 million unsecured bond was issued to refinance an existing $300 million bond. The original bond is due to mature in May 2022.

According to Qantas, it initially planned to simply replace the $300 million bond. However, it boosted the offer by $200 million after it was heavily oversubscribed.

In fact, the bond offer was 6 times oversubscribed, boasting a bookbuild of about $1.9 billion.

The bond will give the company more cheap debt to put towards increasing its liquidity, repaying maturing debt, and repairing its balance sheet.

The unsecured bond has a rate of 3.15%. That’s significantly less than the 7.75% rate of the maturing bond.

The airline expects that both domestic and international travel restrictions will begin to ease before the end of 2021.

It’s planning to start taking off to some international destinations in December. The Qantas share price has gained 12.9% since it announced its plan to restart international flights.

Qantas hopes the resulting income will help it get back to its target net debt range by the end of this financial year.

Qantas share price snapshot

The Qantas share price is 12% higher than it was at the start of 2021. It has also gained 38.9% since this time last year.

The post Qantas (ASX:QAN) share price lifts on oversubscribed bond refinance update appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price reverses day’s losses as first international flights scheduled
• Qantas (ASX:QAN) share price slips as buyers line up for land package
• Lithium surge, Sydney Airport takeover, ACCC torches Qantas deal. Scott Phillips on Nine’s Late News
• ASX 200 (ASX:XJO) midday update: Sydney Airport jumps, Qantas falls
• Qantas (ASX:QAN) share price down after major blow from ACCC

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 Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), AKA Soul Patts, share price is currently down more than 3% today.

That means it has declined by around 9% since Tuesday. The S&P/ASX 200 Index (ASX: XJO) has only fallen around 1% in that same time period.

As an investment conglomerate, the underlying portfolio value of Soul Patts can be influenced by the changing values of its investments.

Looking at some its biggest investments today, there are declines across the board.

The TPG Telecom Ltd (ASX: TPG) share price is down 0.2%, the Brickworks Limited (ASX: BKW) share price is down 2% and the New Hope Corporation Limited (ASX: NHC) share price has fallen 2.2%.

What else could be influencing the Soul Patts share price this week?

One of the other larger investments in the Soul Patts portfolio is a holding of Australian Pharmaceutical Industries Ltd (ASX: API) shares.

API featured in the news this week after receiving a bigger takeover bid from Wesfarmers Ltd (ASX: WES) which, at this stage, it intends to accept. The revised offer is $1.55 per share, a 37% premium to API’s one-month volume weighted average price $1.133 per share to 9 July 2021, prior to the initial offer by Wesfarmers.

Soul Patts has agreed to vote its 19.3% shareholding in API in favour of Wesfarmers’ revised proposal. The investment conglomerate has also granted a call option for its API shares in favour of Wesfarmers.

FY21 profit update

The Soul Patts share price is now essentially back to where it was on 6 September 2021. What’s special about that date? It’s when the ASX 200 company announced an update regarding its FY21 regular profit.

Within that, there were three mentions of profit growth and one detractor.

First, Soul Patts referenced that New Hope disclosed in its latest quarterly report that the miner expects to make earnings before interest, tax, depreciation and amortisation (EBITDA) of $372 million for FY21, primarily as a result of thermal coal prices currently being at a 10-year high.

Second, Brickworks is expecting to report record earnings from its property division, driven by the value of its property trust.

Finally, Round Oak, a wholly owned mining business, is expected to report a regular net profit for FY21 of between $64 million to $68 million. Management described this expected result as a significant improvement on the FY20 net loss of $43 million. There were two factors for this turnaround. One, commodity prices (mostly zinc and copper) have improved. Second, the company moved from development into production at a number of its mines.

Soul Patts is expecting FY21 regular net profit to be in the range of $316 million to $336 million, up from $170 million in FY20.

However, TPG will provide a reduced contribution after the merger between TPG and Vodafone in July 2020. The investment conglomerate will no longer equity account for its share of TPG’s net profit. Soul Patts also noted it only received one dividend from TPG in FY21, amounting to $18 million (compared to the equity accounted profit of $72 million in FY20).

Soul Patts dividend yield snapshot

At the current Soul Patts share price, it currently has a grossed-up dividend yield of 2.4%.

The post The Soul Patts (ASX:SOL) share price is down 3% on Friday appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
• These 3 ASX 200 shares are the most heavily traded so far this Thursday

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended TPG Telecom 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 Audinate Group Ltd (ASX: AD8) share price is edging higher in today’s session.

Shares in the audio tech company are currently up 0.19% to $10.56. This comes after the company released its annual report earlier today.

Let’s take a closer look at what’s buoying the Audinate share price.

What did Audinate announce?

Shares in Audinate are rising after the company released its annual report for FY21.

The company’s management lauded Audinate’s emergence from the uncertainty of the COVID-19 pandemic.

However, Audinate said supply chain uncertainties could impact the first half of FY22. As of 30 June 2021, the company noted record backlogs due to the temporary shutdown of its manufacturing line in Malaysia.

Despite the disruptions, Audinate does not expect new product delays to impact revenue given the ongoing strong demand from end-users.

For FY22, the company highlighted several priorities including;

• Driving further design wins for Dante video and next generation software products;
• Launching new Dante video software and cloud services products;
• Improving adoption of Dante by non-English speakers; and
• Implementing business scalability initiatives.

The positive annual report follows Audinate’s strong full-year report released late last month.

How did Audinate perform in FY21?

The Audinate share price bolted higher after the release of the company’s full-year results for FY21.

The company’s result was highlighted by a 22.5% increase in revenue of $33.4 million.

Other highlights included:

• Gross profit increased 23.1% to US$19.2 million compared to prior year;
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of A$3 million, up 50.1%;
• Bottom line losses narrowed to A$3.4 million, a 17% improvement on FY20; and
• Expanded into video products with launch of Bolin Technology and Patton Electronics.

Audinate attributed its strong report to a 62% surge in revenue from its software products. Additionally, the company also reported narrowing losses on its bottom line.

Snapshot of the Audinate share price

Audinate specialises in hardware and software solutions for the audio-visual (AV) market. The company’s flagship and award-winning Dante program is a global leader in AV connectivity.

Since the start of the year, shares in Audinate have soared by around 29%.

The Audinate share price is bucking the trend of the broader market today. At the time of writing, the All Ordinaries Index (ASX: XAO) is down 0.56%, while Audinate shares are up 0.19%.

The post Audinate (ASX:AD8) share price lifts on annual report appeared first on The Motley Fool Australia.

More reading

• 3 growing mid cap ASX shares named as buys
• Brokers think these 2 top ASX shares are buys in September 2021
• Audinate (ASX:AD8) share price climbs as FY21 revenue surges 22%
• The Audinate (ASX:AD8) share price tanked 7% last time the company reported
• Brokers name 2 mid cap ASX shares as buys

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. owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL 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 S&P/ASX 200 Index (ASX: XJO) is selling off on Friday, down 0.5% to 7,421 at the time of writing. In morning trade, it dipped as low as 7,382 points.

Amid the red, the S&P/ASX Information Technology (INDEXASX: XIJ) index stands tall, up 1.43%. Its performance is headlined by none other than the Afterpay Ltd (ASX: APT) share price.

At the time of writing, shares in the ASX’s largest tech stock are up 2.9% to $127.12.

How come the Afterpay share price is shooting green on Friday?

Nasdaq finishes mixed overnight session in positive territory

The ASX 200 might be influenced by the mixed overnight performance of Wall Street.

The Dow Jones Industrial Average and S&P 500 both fell 0.18% and 0.15% respectively, while the tech-heavy Nasdaq rose 0.13%.

The Nasdaq managed to stay in positive territory, supported by the likes of Amazon.com, Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Netflix Inc (NASDAQ: NFLX) and Tesla Inc (NASDAQ: TSLA) all eking out small gains of less than 1%.

Afterpay’s US-listed rival is surging

Perhaps more relevant for the Afterpay share price was the overnight performance of Affirm Holdings Inc (NASDAQ: AFRM).

Affirm shares rallied 7.13% overnight and have surged more than 75% since 27 August.

On 9 September, Affirm released its fourth-quarter results. Its revenue jumped 70.7% year-on-year to US$261.8 million vs. consensus expectations of US$225 million, according to CNBC.

In addition, the company gave encouraging guidance for the current quarter. It expects revenue to be between US$240 million and US$250 million.

This could be a positive takeaway for the Afterpay share price, given Affirm is the largest BNPL provider in the United States.

Square share price lifts overnight

The Square Inc (NASDAQ: SQ) share price also rallied overnight, up 2.53% to US$255.09.

The Afterpay share price has largely been tracking the performance of Square ever since the $39 billion takeover offer on 2 August.

The scheme implementation deed will see Afterpay shareholders receive a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay share they own on the record date.

After Square’s overnight performance, this values the Afterpay share price at approximately $122.57 at today’s exchange rates. That’s up from yesterday’s $119.58.

The post ASX 200 tumbles but the Afterpay (ASX:APT) share price is green? appeared first on The Motley Fool Australia.

More reading

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• The Afterpay (ASX:APT) share price is down 9% in September. What’s next?
• Why I’m holding my Afterpay (ASX:APT) shares: expert
• 2 ASX shares ready to explode after COVID: expert
• Why Afterpay, Chorus, NAB, & Omni Bridgeway shares are dropping

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. 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. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., Amazon, Microsoft, Netflix, Square, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon and Netflix. 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 Venture Minerals Limited (ASX: VMS) share price is deep in the red in early afternoon on Friday. This comes after the mineral exploration company provided an update in regards to the Riley Iron Ore Mine in Tasmania.

At the time of writing, Venture Minerals shares are down a massive 33.77% to 5.1 cents. This means that its shares are now trading at a 6-month low.

What did Venture Minerals announce?

According to its release, Venture Minerals advised it has completed its first ever commercial shipment of iron ore from its Riley Iron Ore Mine.

The shipment comprised 45,632 tonnes of iron ore with an average grade of 57.3% Fe. A discharge port in China as designated by the company’s off-take partner, Prosperity Steel will receive the shipment. It’s expected that Venture Minerals will collect around $5.1 million in the next fortnight under its offtake agreement.

While this is good news, the company provided a concerning operational update, which has caused its shares to fall.

As such, Venture Minerals stated that 62% of Fe iron ore prices have declined significantly in the past few months. Once reaching highs of US$230 per tonne, the current market rate is hovering just above US$100 per tonne.

Furthermore, the company’s 57% Fe grade ore has been heavily discounted to a market rate of 30%. This is a stark contrast to when its iron ore was trading at just a 10% market rate discount.

Venture Minerals’ woes have been amplified with the volatile shipping market caused by congestion at Chinese ports, COVID-19, and political impacts. The shipping rates for iron ore have tripled since 2019 from US$18 per tonne to the current rate of US$54 per tonne.

In response to the above conditions, the company is conducting a full review of its Riley Iron Ore Mine operations. Management hopes to identify cost efficiency measures to offset some of the external market volatility.

While some of the external pressures are expected to be temporary, Venture Minerals has decided to suspend mining operations. It aims to preserve existing capital while it works through its review and assesses the situation.

About the Venture Minerals share price

Over the past 12 months, Venture Minerals has gained almost 50% despite today’s significant drop. However, when looking at year-to-date, its shares are down around 7% for the period.

Venture Minerals presides a market capitalisation of roughly $68 million and has 1.3 billion shares on issue.

The post Venture Minerals (ASX:VMS) share price crashes 33% on project update appeared first on The Motley Fool Australia.

More reading

• The Venture Minerals (ASX:VMS) share price has fallen 6% this week

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 Mineral Resources Limited (ASX: MIN) share price is on course to end the week deep in the red.

At the time of writing, the mining and mining services company’s shares are down 7% to $48.92.

This means the Mineral Resources share price has now fallen 25% from its July high of $65.38.

Why is the Mineral Resources share price sinking?

The weakness in the Mineral Resource share price has been driven by a pullback in iron ore prices.

Mineral Resources has exposure to iron ore via its Iron Valley Iron Ore operation in the Pilbara and its Koolyanobbing iron ore deposit in the Yilgarn.

According to CommSec, the spot iron ore price fell US$6.90 or 6.1% to US$106.50 a tonne during overnight trade. This is being driven by declining Chinese steel production.

It was thanks largely to sky high iron ore prices that the company reported a 230% increase in underlying net profit after tax to $1,103 million in FY 2021. As a result, the recent weakness in prices appears to have investors concerned that its profits could take a hit in FY 2022.

Is this a buying opportunity?

According to a note out of Macquarie from last week, its analysts appear to see the recent pullback by Mineral Resources’ shares as a buying opportunity.

The note reveals that its analysts have an outperform rating and $77.00 price target on the company’s shares.

Based on the current Mineral Resources share price, this implies potential upside of 57% over the next 12 months.

And if you include dividends, the potential return on offer gets even juicier. Macquarie has pencilled in fully franked dividends per share of $2.57 in FY 2022 and then $2.29 in FY 2023. These represent yields of 5.2% and 4.7%, respectively, over the next two financial years.

Macquarie likes Mineral Resources due to it offering strong iron ore price leverage and production growth. It also considers the company a key preference for lithium exposure thanks to its huge Wodgina Lithium Operation. Wodgina is one of the largest known hard rock lithium deposits in the world.

All in all, this could make Mineral Resources’ shares one to consider when the dust settles.

The post The Mineral Resources (ASX:MIN) share price is down 7% today. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares with attractive yields
• The latest ASX 200 mining shares to get hit by broker downgrade
• ASX 200 midday update: Macquarie jumps, gold miners sink
• Why the Mineral Resources (ASX:MIN) share price is moving higher today
• Top broker says Mineral Resources (ASX:MIN) share price is in the buy zone

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 Toro Energy Limited (ASX: TOE) share price is sliding lower on Friday.

Shares in the Aussie uranium exploration and production company are down 8.16% to 4.5 cents this morning having surged 19.5% higher on Thursday.

Why the Toro Energy share price is sliding 8% on Friday

Toro Energy is one ASX resources company that may not be on every investor’s radar. The Aussie small-cap boasts a market capitalisation of $171 million and largely focuses on uranium deposits in Western Australia.

Shares in the ASX uranium share surged higher yesterday after two key updates. One was a deposit reserve update, the other was Australia’s new nuclear-powered submarine deal. That announcement from US President Joe Biden came as part of the AUKUS trilateral security agreement.

The Toro Energy share price closed 19.5% higher on Thursday afternoon following the updates. Toro’s Lake Maitland Uranium Deposit Study update noted the vanadium resource is “currently being integrated into the uranium resource block model ready for optimisation”.

The big news pushing ASX uranium shares higher on Thursday, however, was arguably the AUKUS deal. Shares in Aussie uranium companies jumped higher following the 7am AEST announcement of the historic agreement.

The Toro Energy share price was no exception, leaping 23.8% higher at the market open as investors looked to speculate on uranium shares. That’s despite no indication of individual companies being involved in any submarine-building deals.

However, Friday morning has seen the ASX uranium share fall in a hangover of sorts from yesterday. There have been no new announcements from the company but that hasn’t stopped Toro Energy shares from correcting more than 8% to end the week.

However, Toro shares are still up 125% so far this year, and 350% over the past 12 months.

The post Toro Energy (ASX:TOE) share price slides 8% following yesterday’s surge appeared first on The Motley Fool Australia.

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• The Toro Energy (ASX:TOE) share price is surging 23%. Here’s why

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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