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The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Monday, starting the week off with a new major milestone.

The stock roared to a peak of $21.775 this afternoon, marking a 2% gain on its previous close. That’s the highest it’s been in over 18 months – and just 5% off its post-pandemic high.

So, what’s got under the wings of the S&P/ASX 200 Index (ASX: XJO) travel agency lately? Let’s take a look.

Flight Centre share price soars to 52-week high

The Flight Centre share price has been on its own journey lately, rising close to 51% since the start of 2023. It’s also now 140% higher than it was in March 2020.

The ASX 200 travel stock was among those hardest hit when Australia’s borders were slammed shut in an effort to subdue the virus that took the world by storm in 2020.

And it’s not just the company’s stock that’s been outperforming lately.

Flight Centre’s total transaction value (TTV) surpassed pre-pandemic levels in March, beating that of March 2019 by 6%, the company revealed last week.

Not to mention, its underlying cost margin is at a historic low, reflecting structural changes made at the height of the pandemic.

So, with such positive momentum, is it just a matter of time before the Flight Centre share price recovers to its pre-pandemic levels? Well, there might be more than meets the eye when it comes to the travel stock’s valuation in 2023.

Flight Centre shares are still trading 40% lower than they were prior to the pandemic. However, the company’s market capitalisation is near to where it was in late 2019, as the chart below shows:

That’s largely due to a $700 million capital raise undergone in 2020 in an effort to shore up its finances.

The raise nearly doubled the company’s outstanding share count, with securities priced at $7.20 apiece.

Thus, Flight Centre’s valuation already sits around its 2019 level – at $4.7 billion as of Friday’s close.

The post The Flight Centre share price just rocketed to a new 52-week high. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 travel share has already taken off by 48% in 2023?
• Here are the 10 most shorted ASX shares
• Why this broker just upgraded Flight Centre shares to a buy rating
• 4 ASX 200 shares just upgraded by brokers
• How did the Flight Centre share price manage to flog the ASX 200 in April?

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

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The Core Lithium Ltd (ASX: CXO) share price smashed the benchmark in April.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock gained an impressive 14% over the month, easily surpassing the 1.8% gains posted by the ASX 200 in April.

Of course, those gains have all been banked.

The pressing question now is, can the Core Lithium share price continue to outperform in May?

What can ASX 200 investors expect from Core Lithium in May?

As we kick off the second week of May, the Core Lithium share price is up 6.1% so far this month.

That’s being driven by a big surge today, with shares up 7.8% at the time of writing. This will be welcomed by shareholders but comes as rather sour news to the host of traders betting against the ASX 200 lithium stock.

Currently short interest in the stock stands at 9%.

And short sellers may get burned beyond today and throughout May as full-scale production at Core Lithium’s Finniss Lithium Project looks to be just around the corner.

Atop soon moving into producer territory, the Core Lithium share price could receive some helpful tailwinds from a potential rebound in the lithium price.

As you may know, the lithium carbonate price is down some 75% from the all-time highs reached in November 2022.

But in recent days a growing number of analysts are coming out of the woodwork to forecast a rebound in lithium prices in 2023.

Part of that is related to Chile’s plan to nationalise the nation’s lithium industry, which could put a crimp on supplies.

Daniel Hynes and Soni Kumari, commodity strategists at ANZ, said Chile’s policy will see the government involved in “all new lithium projects”.

They also highlighted that the technology required for the nation’s push for environmentally friendly processing is “still unproven on a commercial scale”.

According to the strategists:

This could delay the delivery of its pipeline of projects. Other producers also have their issues. Increasing resource nationalism, particularly in Africa could limit growth in supply.

A decreased supply from Chile, a top-three global lithium producer, could drive higher prices for the battery critical metal, which in turn should support the Core Lithium share price.

Indeed, research firm Antaike expects lithium carbonate prices to average US$33,828 per tonne this year. While that’s less than half the average price recorded last year, it’s some 25% above current prices.

Also sounding a bullish note on the outlook for the lithium price is Morgan Stanley.

The broker believes the beaten-down lithium price is at a “turning point”.

“China carbonate prices have bounced 30% from their lows, and hydroxide prices have rebounded by 20%,” the broker noted this week.

According to Morgan Stanley:

Although China’s electric vehicle sales and battery production are back in growth mode after a lacklustre start of the year, cathode and battery cell producers are still not fully back buying in the spot market. But sentiment is clearly improving, and their lithium inventories appear to have eroded.

Core Lithium share price snapshot

The Core Lithium share price is up 3% in 2023 and down 10% over the past 12 months.

Investors who bought shares in the ASX 200 lithium stock two years ago will be sitting on a gain of 315%.

The post What’s the outlook for the Core Lithium share price in May? appeared first on The Motley Fool Australia.

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More reading

• ASX lithium shares are off and racing today. What’s behind the boost?
• Here are the 10 most shorted ASX shares
• The Core Lithium share price surged 14% in April. Here’s why
• What’s the forecast for the lithium price in May?
• 7 reasons why Core Lithium says you should buy its shares

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has started the week in a positive fashion. In afternoon trade, the benchmark index is up 0.7% to 7,270.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is down 2% to $173.71. Investors have been selling this investment bank’s shares after brokers responded to its full-year results. This has seen a number of analysts take an axe to their valuations. For example, Citi has retained its neutral rating but cut its price target to $175 from $190.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is down 6% to 15 cents. This follows the release of an update on drilling activities at the Caldeira Project in Minas Gerais Brazil. Investors appear to have been betting on stronger results being announced by the rare earths explorer.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is down 2.5% to $1.77. Investors have been selling this sports betting company’s shares despite there being no news out of it. However, it is worth noting that Pointsbet shares rocketed higher last week on divestment speculation. This could have led to some profit taking by investors today.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price has resumed its slide and is down 5.5% to 96 cents. Investors have been selling this graphite share after the release of a disastrous quarterly update at the end of last month. In response to unit costs being higher than the graphite prices, management has reduced its production plans and raised $150 million to shore up its balance sheet. Syrah shares are now down 40% in the space of a month.

The post Why Macquarie, Meteoric Resources, Pointsbet, and Syrah shares are falling appeared first on The Motley Fool Australia.

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More reading

• Is the Macquarie share price good value following the bank’s results?
• Here are the 10 most shorted ASX shares
• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• Everything you need to know about the boosted Macquarie dividend

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 positions in and has recommended PointsBet. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended PointsBet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. At the time of writing, the benchmark index is up 0.5% to 7,255.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is up 11% to $7.30. Investors have been scrambling to buy this rare earths producer’s shares after it announced that the Malaysian government has granted permission to keep importing and processing lanthanide concentrate at its Malaysian facility until 2024. Lynas is looking at taking further action with the aim of overturning an upcoming ban.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is up almost 8% to 84 cents. This follows a strong session for lithium shares and the release of the company’s quarterly update this morning. In respect to the former, investors have been piling into the industry amid hopes that lithium prices have bottomed for the time being.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is up 2% to $21.76. This morning, Australia’s oldest bank released its half-year results and reported a 22% increase in profit to $4 billion. This was driven by a combination of solid net interest income growth and lower expenses. Westpac declared a 70 cents per share fully franked interim dividend, which was up 15% year over year.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up almost 3% to $34.03. Investors have been buying Woodside and other ASX 200 energy shares after oil prices rebounded strongly on Friday night. This has led to the S&P/ASX 200 Energy index rising by a sizeable 2.1% on Monday afternoon.

The post Why Lynas, Piedmont Lithium, Westpac, and Woodside shares are rising appeared first on The Motley Fool Australia.

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More reading

• Could this tax change end up burning the Woodside share price?
• Here’s what you need to know about the 70 cents Westpac dividend
• Why is ASX 200 share Lynas Rare Earths leaping 12% on Monday?
• Westpac share price on watch amid $4bn half-year profit
• ASX 200 energy shares expected to jump after oil prices surge

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share price of S&P/ASX 200 Index (ASX: XJO) giant QBE Insurance Group Ltd (ASX: QBE) leapt to long-forgotten heights on Monday. The stock peaked at a near-decade high of $15.64 earlier today.

Unfortunately, the QBE share price has since slumped to trade at $15.31 this afternoon. That’s 0.26% lower than its previous close.

So, what might the future hold for the ASX 200 insurance share? Let’s take a look.

Is this ASX 200 insurance share still in the buy zone?

The QBE share price has been on a roll lately, with the most recent news from the company being its financial year 2022 earnings, released in February.

The insurance provider posted a combined operating ratio (COR) of 93.7% – an improvement on the prior year’s 95% COR. Meanwhile, it posted a 13% growth in gross written premium (GWP).

Looking forward, the company expects further improvement, with its financial year 2023 Plan Group COR guidance sitting at around 93.5% and its GWP growth tipped to be in the mid-to-high single digits.

Not to mention, its investment portfolio has seen improvements on the back of interest rate hikes, while its premiums have largely been lifted in line with inflation.

All that means the company could have the potential to thrive in the current environment.

And the ASX 200 insurance provider isn’t the only one that’s hopeful of its future – many experts are bullish on its shares.

What do experts say?

Brokers and experts broadly appear hopeful for the QBE share price.

UBS, Goldman Sachs, and Morgans all have buy ratings on the stock, with respective price targets of $18, $17.45, and $16.98. That represents between 11% and 18% of potential upside.

Morgans thinks the share is cheap right now. It also expects benefits from rate hikes are yet to be felt in the ASX 200 company’s insurance book, my Fool colleague James Mickleboro reports.

UBS, meanwhile, expects strong premium prices to bolster the QBE’s bottom line.

Speaking of, Goldman Sachs notes the company’s well-capitalised balance sheet could bode well in the current uncertain economic environment.

Finally, Airlie senior investment analyst Joe Wright is also bullish, as The Motley Fool Australia’s Tony Yoo reports. Wright recently wrote for the fund manager’s blog:

We continue to believe QBE is underearning as margins for both the North American business unit, and more recently the Lloyd’s syndicates, have dragged on group performance.

QBE share price snapshot

The QBE share price has been on a roll lately – the ASX 200 insurance stock has soared 23% over the last 12 months. It’s also gained 17% since the start of 2023.

Meanwhile, the ASX 200 has risen 5% year to date and 2% since this time last year.

The post Up 23% in the past year. Is it too late to buy this ASX 200 insurance share? appeared first on The Motley Fool Australia.

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More reading

• Perfect balance: 2 ASX 200 shares set to surge while paying dividends
• 2 ASX 200 dividend shares to buy now: brokers
• Leading brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday
• Morgans says these are among the best blue chip ASX 200 shares you can buy

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 positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price has seen plenty of volatility over the past five years. There have been big changes in iron ore earnings amid changes in demand from China, which affected the iron ore price.

The iron ore price is drifting towards US$100 per tonne after being above US$120 per tonne for quite a lot of 2023.

BHP does have exposure to other commodities, including coal, copper and nickel. Management has recently increased the company’s exposure to the decarbonisation commodities of copper and nickel after completing the acquisition of OZ Minerals.

Why does BHP want more exposure to copper (and nickel)?

BHP CEO Mike Henry said:

This acquisition strengthens BHP’s portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles, wind turbines and solar panels to support the energy transition.

Combining our two organisations will provide options for growth, bring new talent and innovation to unlock these resources in a sustainable way, and deliver value to shareholders and communities.

He went on to say that BHP can “establish a copper province in South Australia” with the Olympic Dam, Prominent Hill and Carrapateena assets.

BHP chief operating officer Edgar Basto said that South Australia has the potential to be a “major supplier of copper to meet the world’s increasing demand for copper”.

How much is demand going to grow?

There are various projections out there, but things are looking positive for copper, which could help the BHP share price.

As reported by CNBC, copper could go through a “generational shift in demand as decarbonisation ramps up”, according to BNY Mellon lead portfolio manager Al Chu. The fund manager said:

Copper typically is used as a construction metal for wiring for building, wiring for machinery and what not, but if we look at the decarbonisation net zero energy transition trend, copper is the new oil.

Is it solar power, is it wind, is it EVs, is it any form of renewable energy? Every renewable energy pretty much needs copper, because if you’re talking about electrifying something and transmitting electricity, you need copper.

No straight line

Part of the problem, according to Chu, is that there has been a decline in the grade/quality of copper over the past 20 years. It also takes a long time to bring a new copper mining project online. Chu went on to say:

A lot of these reserves and deposits are found in very, very hard places to produce – Congo, Inner Mongolia – these are not in very developed regions where you say ‘oh it’s really easy, let’s build a mega-mine.

When you look at the long-term secular story, you can just see strong demand. A lot of people focus on lithium as the kind of energy transition metal, but I think we should be much more focused on copper, because I think that is the real pinch point, the real choke point for the energy transition story.

But there’s only so much those markets can do because the incremental demand from renewables isn’t a small bump up in demand, it’s almost a multiyear tsunami of demand coming through that we’re not thinking about, so it’s going to be all hands on deck but absolutely, the price has to go up.

He thinks that the copper price will keep rising until “it incentivises much larger exploration cycles or a ramp-up of secondary markets and copper recycling.”

While demand for copper may not go up in a straight line, this could be a promising development for BHP’s copper division.

BHP share price snapshot

Since the start of 2023, BHP shares are down by 1.7%.

The post Can copper be the next big boost for the BHP share price? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• If I invest $10,000 in BHP shares how much passive income will I receive?
• Analysts name 2 ASX 200 dividend shares to buy for passive income
• 4 ASX 200 shares just upgraded by brokers
• Why the iron ore price is ‘not out of the danger zone’

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 Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) gold shares have delivered some super-sized returns over the past six months.

The big gold stocks, and indeed many of the junior miners and explorers, have benefited from a fast-rising gold price.

Bullion, a classic haven asset, has been on a tear since November amid ongoing geopolitical uncertainties, sticky inflation in the world’s top economies, and global recession fears, among other factors.

Indeed, gold has managed to deliver positive returns in five of the last seven recessions.

On 7 November gold was trading for US$1,676 per ounce. Today that same ounce is worth US$2,017. That’s up 20% in just six months and fast approaching new record highs.

How have ASX 200 gold shares performed?

As you’d expect, a 20% surge in the price of the yellow metal they dig from the ground has been a boon to ASX 200 gold shares.

Over the past six months the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold stocks outside of the ASX 200 – has surged 51%. That compares to a six-month gain of 4.5% posted by the ASX 200.

As for some of the top Aussie gold miners, here’s how they’ve tracked over the six months:

• The Regis Resources Ltd (ASX: RRL) share price is up 39%
• The Northern Star Resources Ltd (ASX: NST) share price has gained 48%
• The Evolution Mining Ltd (ASX: EVN) share price has leapt 82%
• The Gold Road Resources Ltd (ASX: GOR) share price is up 39%

I don’t think you’ll hear many shareholders complaining about those returns!

Of course, these gains have all been banked.

The big question now is, can ASX 200 gold shares continue to outshine the benchmark?

What’s next for the gold price in 2023?

The first quarter Gold Demand Trends report from the World Gold Council, released on Friday, reveals a mixed picture for Q1 but indicates a potentially strong year ahead for bullion and ASX 200 gold shares.

On the negative side of the ledger, demand in India, the world’s most populous nation, fell steeply over the quarter. That was driven by record-high gold prices in Indian rupee terms, which impacted both investment and jewellery consumption during the quarter.

Gold-backed exchange-traded funds (ETFs) also recorded a modest 29 tonne outflow over the quarter. Though that trend reversed in March with renewed ETF inflows as investors turned to the haven asset amid the US banking crisis.

On the plus side for the outlook for gold demand – and by connection ASX 200 gold shares – central bank appetite for bullion remains voracious.

According to World Gold Council, central banks added 228 tonnes of bullion to their reserves. That’s a record amount for the first quarter.

“Against the backdrop of turmoil in the banking sector, ongoing geopolitical tensions and a challenging economic environment, gold’s role as a safe haven asset has come to the fore,” said Louise Street, senior markets analyst at the World Gold Council.

Street added:

In this landscape, it is likely that investment demand will grow this year, especially with waning headwinds from the strong US dollar and interest rate hikes. Positive demand for gold ETFs has continued in Q2 so far, and the looming threat of developed market recession may be the trigger for inflows to accelerate later in the year.

Central bank buying is likely to remain strong and will be a cornerstone of demand throughout 2023 – even if at lower levels than the record highs seen last year.

Should bullion demand indeed remain resilient, ASX 200 gold shares are well-positioned to keep outperforming.

The post Why these booming ASX 200 gold shares could continue to outshine in 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 3 ASX 200 mining stocks leaping to new 52-week highs today
• Here are the top 10 ASX 200 shares today
• ‘Additional growth options’: Why the Northern Star share price is flying today
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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Warren Buffett and Berkshire Hathaway co-founder Charlie Munger were in the spotlight on Saturday.

The two legendary investors, both in their 90s, didn’t miss a beat at Berkshire Hathaway’s annual general meeting. The event was attended by a massive crowd of some 40,000 people at a convention centre in Omaha, in the US state of Nebraska.

Among the highlights on the day, Warren Buffet – well-known as a value investor – sounded off on the ongoing US banking crisis.

What’s going on with Warren Buffett and bank stocks?

The Oracle of Omaha began divesting Berkshire’s sizeable holding of bank stocks in 2020.

And with the banking crisis that erupted in the US and Europe in March, that move looks to have been prescient.

The collapse of First Republic – the biggest bank failure since the 2008 GFC – followed on the heels of numerous other regional bank implosions in the US, including Silicon Valley Bank and Signature Bank. Financial contagion from the collapses led to a similar liquidity crunch at Credit Suisse, which was then scooped up by UBS.

Today Warren Buffet really only expresses confidence about one bank stock. Namely, Bank of America Corp (NYSE: BAC), in which he holds a 13% stake.

“I like Bank of America and I like the management,” he said, referring to long-time Bank of America CEO Brian Moynihan.

Drilling into First Republic, he said the bank’s long-term, low fixed-rate mortgages were “a crazy proposition”.

“It was doing it in plain sight and the world ignored it ‘til it blew up,” he said (quoted by Bloomberg). “The incentives in bank regulation are so messed up and so many people have an interest in having them messed up… So we are very cautious in a situation like that about ownership.”

And Warren Buffett was adamant that the banks’ bosses be held to account for their mistakes.

“The situation in banking is very similar to what it’s always been in banking – the fear is contagious, always,” he said. Adding that penalties should “hit the people that caused the problems”.

The Berkshire CEO said shareholders of bad banks should lose their investments. “We don’t know where shareholders of banks are going,” he said. “Banking can have all kinds of new inventions, but it needs to have old value.”

Should we be cautious of ASX 200 bank stocks?

To date, the banking crisis has largely been contained to the US and Europe.

But should we worry about the health of S&P/ASX 200 Index (ASX: XJO) bank stocks, which count as the best capitalised in the world?

Perhaps.

Rob Shears, investment manager at Valor Private Wealth, points to the concerns Warren Buffett and Charlie Munger raised on bank loans to the real estate sector (courtesy of The Australian Financial Review).

“The banks extend and pretend. But we are starting to see the consequences of people who could borrow at 2.5%, see that it doesn’t work at higher rates and hand [the property] back,” Warren Buffett said. “Berkshire has never been active in commercial real estate.”

Sounding a warning note for potential problems ahead for ASX 200 bank stocks, Shears said:

The things that Warren and Charlie are warning about are things that Aussie investors have a lot in their industry super funds.

So banks are problematic in Australia, because of the residential property bubble. Commercial real estate, it’s still part of the Aussie banks and if you go around the city in Sydney and Melbourne, the offices are still empty.

Those problems may loom on the horizon.

But the big four bank stocks are all well into the green in late morning trade this Monday.

The post Warren Buffett is ‘very cautious’ about investing in bank stocks. Should you be? appeared first on The Motley Fool Australia.

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More reading

• Fortescue’s Twiggy could wipe this ASX 300 share from the bourse. Here’re all the details
• ASX lithium shares are off and racing today. What’s behind the boost?
• 2 exciting ASX growth shares I’d buy and hold to 2030
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America and Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Wyloo Metals – a private company owned by Fortescue Metals Group Limited (ASX: FMG) founder and chair Andrew ‘Twiggy’ Forrest – has raised the stakes in its battle to takeover S&P/ASX 300 Index (ASX: XKO) mining share Mincor Resources NL (ASX: MCR).

It’s declared its intent to delist the takeover target if its voting power comes in at less than the 90% needed to kick off a compulsory acquisition.

Wyloo put forward a $1.40 per share bid in March, valuing the ASX 300 miner at $760 million. The Mincor board continues to recommend shareholders vote in favour of the acquisition.

Interestingly, Mincor stock is currently trading higher than the private entity’s bid. Its share price is $1.4025 right now, marking a 0.18% gain on its previous close.

Let’s take a closer look at the latest on the takeover currently underway by the Fortescue boss’ private mining company.

Fortescue boss’ Wyloo hopes to delist ASX 300 share

Wyloo appears to have changed tack in its takeover battle for ASX 300 nickel share Mincor. The suitor has so far acquired a 61.6% interest in the company.

It announced it’s changed its mind on the takeover target’s continued listing on the Aussie bourse today.

If Wyloo’s interest in Mincor doesn’t reach 90% by the end of the offer period – currently set to close on 22 May – it will seek to remove the ASX 300 stock from the market. That is, if the suitor believes it can satisfy all requirements to do so.

If it were to delist, anyone left holding stock in the company would no longer be able to sell their stake on the market. That has serious liquidity implications.

Wyloo declared its $1.40 per share offer for Mincor ‘best and final’ in the absence of a competing proposal after the ASX 300 miner withdrew its guidance.

Mincor scrapped its earnings forecast and announced it’s been delivering off-specification product to BHP Group Ltd (ASX: BHP) amid the ramp-up of its Northern and Southern operations in late March.

Mincor share price snapshot

The Mincor share price has had a rough trot as of late.

The stock has plunged 5% so far this year. It’s also currently 35% lower than it was this time last year.

For comparison, the ASX 300 has gained 5% year to date and 2% over the last 12 months.

The post Fortescue’s Twiggy could wipe this ASX 300 share from the bourse. Here’re all the details appeared first on The Motley Fool Australia.

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More reading

• Why the iron ore price is ‘not out of the danger zone’
• Here’s what brokers are saying about the Fortescue share price in May
• Own Fortescue shares? You may have missed this week’s ‘game changer’ moment
• Why did the Fortescue share price tumble 7% in April?
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?

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 Scott Phillips.

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It’s been a pleasant start to the week for the S&P/ASX 200 Index (ASX: XJO) as trading kicks off this Monday morning. At the time of writing, the ASX 200 has put on a healthy 0.67%, lifting the index above 7,268 points. But let’s talk about ASX lithium shares.

Lithium stocks seem to be one of the areas of choice today. Most are having a stunning start to the week. Take the flagship ASX lithium share Pilbara Minerals Ltd (ASX: PLS). Pilbara shares are currently up by a happy 5.45% at $4.64 each:

Core Lithium Ltd (ASX: CXO) is also doing well, up 5.1% at $1.01 a share. Liontown Resources Ltd (ASX: LTR) is a little more muted so far today but still has added a robust 1.75% at $2.90 a share. Meanwhile, Lake Resources NL (ASX: LKE) has stormed 4% higher to 52 cents a share.

So what’s going on in the lithium space that is seeing these ASX lithium shares lead the ASX 200’s winners so far this Monday?

Why are ASX lithium shares on fire this Monday?

Well, there’s no concrete reason we can point to, unfortunately. However, there is some discussion out there that might explain why ASX lithium shares are having such a cracker day.

According to reporting in the Australian Financial Review (AFR) this morning, ASX broker Morgan Stanley has come out and stated that it believes lithium markets have hit a “turning point” following recent weakness in the sector.

As my Fool colleague Brooke noted last month, lithium prices have been on the slide over most of 2023 so far. This slump has been driven by falling demand for electric vehicles in the Chinese market, thanks to the winding up of government subsidies.

But Morgan Stanley noted that “China carbonate prices have bounced 30 per cent from their lows, and hydroxide prices have rebounded by 20 per cent”.

Here’s what Morgan Stanley commodities strategist Marius van Straaten had to say:

The turning point in lithium markets? Yes, it looks like that for now at least…

Although China’s electric vehicle sales and battery production are back in growth mode after a lacklustre start of the year, cathode and battery cell producers are still not fully back buying in the spot market, but sentiment is clearly improving, and their lithium inventories appear to have eroded.

The broker sees lithium prices becoming tighter over the remainder of the 2023 calendar year.

So this sentiment might be behind the strong showing that we are seeing with most ASX lithium shares so far this Monday. Let’s see how this popular but volatile corner of the ASX market fares over the rest of the week.

The post ASX lithium shares are off and racing today. What’s behind the boost? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• Why ANZ, Block, Pilbara Minerals, and SSR Mining shares are storming higher
• 3 ASX 200 mining stocks leaping to new 52-week highs today

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. 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 Scott Phillips.

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