Tag: Motley Fool

The results have certainly been coming in thick and fast this month.

Two ASX growth shares that brokers have slapped buy ratings on this week following the release of their respective results are listed below. Here’s what they are saying:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share that has been named as a post-results buy is this fast fashion jewellery retailer.

Earlier this week, Lovisa released its half-year results and reported a 44.8% increase in revenue to $315.5 million and a 31.9% jump in net profit after tax to $253.2 million.

This went down well with analysts at Morgans, which responded by retaining its add rating with an improved price target of $29.00. The broker commented:

LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand. Investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar. We retain an ADD rating. Our target price increases from $28.50 to $29.00.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share that delivered strong growth during the first half was enterprise software provider Readytech.

It reported a 34.1% increase in revenue to $47.9 million and underlying EBITDA of $15.6 million. Management also confirmed that it remains on target to achieve its FY 2023 guidance and reaffirmed its FY 2026 goal of over $160 million of organic revenue.

While the result was a touch short of expectations, Goldman Sachs responded positively and retained its buy rating with a trimmed price target of $4.40. It said:

RDY’s 1H23 result missed on both revenue and EBITDA (-5%/-9%), although we remain positive on the company’s ability to meet its reiterated full-year guidance for mid-teens organic growth at low-to-mid 30’s EBITDA margin. Our constructive view is based on encouraging metrics including (1) A$9mn ACV from 6 enterprise deals signed late in 1H23 and yet to contribute to group revenue; (2) average revenue per new customer of A$72k in the half, up from A$52k in FY22, demonstrating RDY’s enterprise momentum; and (3) easing tech labour pressures, supporting margin expansion in 2H23.

The post Results in! Buy these ASX growth shares now: analysts appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares defying the market following earnings announcements
• 3 ASX All Ords tech shares making moves on earnings updates
• These ASX tech shares are buys with 30%+ upside: brokers
• Two ASX shares with bucketloads of growth potential: experts
• How to create a second income from ASX growth shares

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 Lovisa and ReadyTech. The Motley Fool Australia has recommended Lovisa and ReadyTech. 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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There’s no doubt small-cap ASX shares can fly high in a hurry unlike anything their larger rivals are likely to do.

But nothing comes for free, and this type of explosive growth won’t just fall into an investor’s lap.

Picking the right small-cap stock requires much research of businesses where information might be pretty scarce.

And because many of them are in pre-profit or even pre-revenue stages, financial fundamentals might not even necessarily reflect their future potential.

It’s indeed an imprecise art.

However, there are professional investors that study small caps for a living. Listening to their favourite picks and the rationale behind them might provide some insight for your own decisions.

One of those pros is Salter Brothers portfolio manager Gregg Taylor. This week, he named one ASX stock with a bright outlook that investors may not know much about:

Dirt cheap for ‘defensive growth’

Acrow Formwork and Construction Srvc Ltd (ASX: ACF) provides services and formwork solutions for the civil construction industry.

Those in the know have flocked to the stock, seeing the share price rocket more than 39% over the past year.

Taylor’s team reckons there’s still upside in excess of 45% above the current share price over the next couple of years.

The business is “consistently growing” its revenue and earnings, as seen over the five years that it’s been listed on the ASX.

“It’s also generating good cash, has a good balance sheet, is quite profitable and is dividend-paying — fully franked yield of close to 6%.”

Despite the rise in share price, Acrow shares are still trading at a price-to-earnings multiple of seven to eight times, which is a bargain in Taylor’s eyes.

“So you’re not paying a lot for that defensive growth.”

The post The obscure ASX share with 45% upside one small-caps expert is backing right now appeared first on The Motley Fool Australia.

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More reading

• Broker says these small cap ASX shares offer big returns potential

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MedAdvisor. 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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Are you looking for dividend shares to buy this week? If you are, then the two listed below could be worth checking out.

Both have been named as buys by analysts at Morgans this week and have been tipped to provide very attractive yields. Here’s what you need to know about these dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that Morgans thinks is a buy is supermarket giant Coles.

its analysts were pleased with the company’s half-year results and particularly the stronger than expected performance from its supermarkets segment.

In light of this positive form and its defensive qualities, the broker believes Coles is a great option right now. It commented:

Trading on 22.5x FY24F PE and 3.6% yield, we continue to see COL as offering good value with the company’s healthy balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. In our view, the unwinding of local shopping trends should continue to be a tailwind and further trading down from consumers will also be positive given COL’s strong Own Brand offering.

As for dividends, the broker is forecasting fully franked dividends per share of 66 cents in both FY 2023 and FY 2024. This represents yields of 3.6% for both years.

Morgans has an add rating and $19.60 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been named as a buy is HomeCo Daily Needs.

It is a property investment company that offers investors exposure to a portfolio of daily needs assets. These include convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans is very positive on the company due to the resilience of its cashflows and its huge development pipeline. Earlier this week, the broker commented:

HDN’s portfolio remains well positioned with resilient cashflows and continues to be a beneficiary of accelerating click & collect trends. +80% of tenants are national and 73% of tenants offer click & collect reinforcing the importance of assets being able to support ‘last mile logistics’. Sites are also in strategic locations with strong population growth (79% metro). HDN offers investors an attractive yield of +6% underpinned by contracted rental income and has a large development pipeline.

In respect to dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.26, this will mean dividend yields of 6.6% and 6.7%, respectively.

Morgans has an add rating and $1.50 price target on HomeCo Daily Needs’ shares.

The post These excellent ASX dividend shares are buys: Morgans appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX All Ords shares to buy after their excellent results
• Wake up! Buy 5 ASX shares that are reporting season gems: Morgans
• Top brokers name 3 ASX shares to buy today
• 3 ASX 200 dividend shares to buy now before their dividend payouts
• Is Coles now one of the best ASX 200 dividend shares?

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 positions in and has recommended Coles 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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Earlier this week, The Motley Fool reported Wilsons equities strategist Rob Crookston’s seven ASX growth stocks to buy that could become takeover targets.

The idea behind that, according to the Wilsons team, is that acquisition bids are almost always favourable for the existing shareholders.

“Normally, companies are acquired at a significant premium to their latest share price,” said Crookston in a memo to clients.

“Identifying companies that will make suitable takeover targets can make for very lucrative investments.”

And the great thing for investors is that an actual transaction doesn’t even have to materialise for their ASX shares to explode out of the gates.

“Any hint of a possible acquisition can trigger positive momentum even before a bid is announced.”

‘Infrastructure-like’ ASX shares with free cash flow

One way to identify tempting takeover targets is to find companies that are asset-rich that have reliable incomes.

“We screened for infrastructure or ‘infrastructure-like’ stocks with low market betas, free cash flow yields (FY25) above 4% and companies that haven’t seen a material re-rate over the last year.”

Using these criteria, Crookston’s team came up with six S&P/ASX 200 Index (ASX: XJO) shares that one could buy in anticipation of a takeover bid:

• AGL Energy Limited (ASX: AGL)
• Aurizon Holdings Ltd (ASX: AZJ)
• Ramsay Health Care Ltd (ASX: RHC)
• APA Group (ASX: APA)
• Cleanaway Waste Management Ltd (ASX: CWY)
• Lottery Corporation Ltd (ASX: TLC)

Crookston noted that Cleanaway and Lottery Corp both already feature in Wilsons’ “focus portfolio”.

“These look attractive acquisition targets due to their stable cash flows, relatively low debt balances and strong market positioning in their respective markets.”

The Lottery Corporation also operates as a monopoly in every state except for Western Australia.

“Looks well priced versus other infrastructure-like assets.”

Energy provider AGL was already the subject of a failed takeover attempt last year, as was Ramsay Health.

According to Crookston, the story might not be over for Ramsay.

“Cost out and real estate asset sales could be [an] opportunity for the right buyer. Earnings recovery after the pandemic could also be alluring.”

Private ownership might actually help freight rail provider Aurizon operate better, read the Wilsons memo.

“Infrastructure asset, monopoly, relatively steady (high) cash flows. Might benefit from being taken private from an ESG perspective.”

The post 6 asset-rich ASX 200 shares to buy for their takeover potential: expert appeared first on The Motley Fool Australia.

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More reading

• Here’s why the AGL share price is dipping on Wednesday
• Boost your passive income with these ASX shares: analysts
• Hoping to bag the next AGL dividend? You’d better be quick
• 8 ASX 200 shares trading ex-dividend this week
• 3 excellent ASX 200 shares to buy and hold for a decade: analysts

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Aurizon. 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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There is much macroeconomic and geopolitical manoeuvring that’s distracting investors of ASX shares.

But one mustn’t forget the current reporting season has been revealing crucial information about the businesses themselves.

Lucky for us, experts like Morgans analyst Andrew Tang have been keeping tabs on all the company reports.

In his regular “call to action” blog post, he picked out five ASX shares this week that are the best buys on the back of their February updates:

‘Industry leading’ with growth runway intact

Investment platform provider Hub24 Ltd (ASX: HUB) reported “above expectations”, with underlying earnings and net profit both up.

“Hub24 looks to be delivering ‘cleaner’ financials,” Tang wrote on the Morgans blog.

“The product offering is industry leading — along with Netwealth Group Ltd (ASX: NWL) — and the runway to secure more clients looks intact.”

Average funds under management and platform revenue also grew significantly.

The only bone to pick with Hub24 shares is that they have already risen 16.8% over the past year and a phenomenal 326% since the COVID-19 market crash.

They’re still an add for Tang’s team though.

“Whilst upside to our valuation is reasonably low, the potential for larger ‘transitions’ wins is a realistic catalyst within CY23.”

Industry halves but this player is standing strong

Monash IVF Group Ltd (ASX: MVF) is going from strength to strength, according to Tang.

“Despite industry volumes declining in the half, Monash IVF continues to gain market share in its key markets through both organic growth and through acquisitions.”

The February report was solid, with net profit after tax (NPAT) of $12.6 million coming in marginally higher than guidance.

“A strong increase in new patient registrations for the 2Q gives us confidence in the pipeline for 2H23,” said Tang.

“Management has upgraded underlying NPAT guidance to 15% growth to A$25.5m for FY23 (up from guidance provided at its AGM of 10%+ growth).”

The Monash share price is flat from a year ago.

Potential clouds coming, but this one’s still a buy

Tang called online jobs classifieds Seek Ltd (ASX: SEK)’s update “broadly a positive result”.

However, forward guidance was biased towards the lower end of expectations with a slowing economy dampening job ad growth in Australia and New Zealand.

Morgans has subsequently downgraded its earning forecast, but the stock remains a buy.

“We adjust our FY23F to FY25F EPS by -5% to +1% factoring in the revised guidance, lower topline estimates across our forecast period on additional conservatism and improved EBITDA margins in SEEK Asia.”

The Seek share price is down 9.75% over the past 12 months.

‘Potential short-term catalyst’ coming for these dealers

Car dealership network Peter Warren Automotive Holdings Ltd (ASX: PWR) enjoyed a surge in vehicle sales at the height of the pandemic.

Despite that fervour subsiding over the past year, its share price has managed to rise 4.4%.

Tang is buying the stock after a result that was “broadly in-line”.

“Peter Warren is trading on ~11x our assumed more ‘normalised’ conditions (FY24/25),” he said.

“Industry consolidation will continue — we expect PWR to be a participant which adds to structural earnings capacity.”

He added that the onboarding of Toyota Motor Corp (TYO: 7203) to its network would be “a potential short-term catalyst”.

Excellent result and new CEO

Supermarket giant Coles Group Ltd (ASX: COL) hogged the limelight in the financial media earlier this week with excellent results and the transition to a new chief executive.

According to Tang, Coles is expecting consumer habits to change in 2023.

“Management said supermarkets volume growth returned to modestly positive from mid-January and is expecting more customers to be value conscious as cost-of-living pressures increase.”

The company’s booming supermarkets arm is somewhat cancelled out by reduced earnings in its liquor division.

Coles is also selling off its petrol station network to Viva Energy Group Ltd (ASX: VEA), which will impact short-term earnings.

The Coles share price is up 5.4% over the past 12 months while paying out a 3.5% dividend yield.

Tang’s team is maintaining its add rating.

The post Wake up! Buy 5 ASX shares that are reporting season gems: Morgans appeared first on The Motley Fool Australia.

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More reading

• These excellent ASX dividend shares are buys: Morgans
• These blue chip ASX 200 shares are post-results buys: experts
• Top brokers name 3 ASX shares to buy today
• 3 ASX 200 dividend shares to buy now before their dividend payouts
• Is Coles now one of the best ASX 200 dividend shares?

Motley Fool contributor Tony Yoo has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Coles Group, Hub24, and Netwealth Group. The Motley Fool Australia has recommended Seek. 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 7,314.5 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market is expected to fall again on Thursday following a relatively poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% lower this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 has fallen 0.25% and the NASDAQ is flat.

Rio Tinto full-year results

The Rio Tinto Ltd (ASX: RIO) share price will be one to watch on Thursday. That’s because the mining giant released its full-year results after the market close on Wednesday and reported a 13% decline in revenue to US$55,554 million and a 41% reduction in net profit after tax to US$12,420 million. This was short of expectations and may explain why its shares are down 3% on the NYSE.

Oil prices sink

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough session after oil prices sank on Wednesday night. According to Bloomberg, the WTI crude oil price is down 3.2% to US$73.95 a barrel and the Brent crude oil price is down 3% to US$80.58 a barrel. Traders were selling oil on demand concerns.

Qantas results

The Qantas Airways Limited (ASX: QAN) share price will be on watch when the airline operator releases its half-year results. The Flying Kangaroo has guided to an underlying profit before tax of $1.35 billion to $1.45 billion for the half. The company has also been tipped by Morgans to announce a $400 million share buy-back.

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued session after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.4% to US$1,835.1 an ounce. The precious metal dropped in response to the release of US Federal Reserve minutes.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto share price on watch amid FY22 results
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 3 reasons I prefer buying ASX shares over an investment property
• Why Origin, Santos, Service Stream, and WiseTech shares are racing higher
• The Santos dividend just rocketed by 78%. Here’s the lowdown

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 Scott Phillips.

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If you want to become a stock market millionaire, I have some good news for you.

Growing a million-dollar portfolio is something that anyone can do if they have a combination of time, patience, and sufficient disposable income to invest.

Over the long term, the stock market has generated an average total return of 10% per annum.

And while past performance is not a guarantee of future returns, it would be disappointing if the stock market didn’t generate the same level of returns in the future. In light of this, we’re going to base our calculations on this return.

Building a million-dollar stock portfolio with ASX shares

If you’re able to build a portfolio of ASX shares that matches the market return, then investing $5,000 a year in the share market would grow to the million-dollar mark after 31 years.

If you would like to get there sooner, then you would have to increase your annual contributions.

For example, doubling your investment to $10,000 per annum, you would reach your goal after just over 24 years with an average 10% per annum return.

But what if you could beat the market Warren Buffett-style?

Well, if you can beat the market by identifying cheap ASX shares that provide even greater than average returns. Let’s say 15% per annum. Then your journey to $1 million would be given a boost.

Investing $5,000 each year would turn into one million almost 8 years earlier after just over 23 years. Whereas investing $10,000 per year would get you there in just under 19 years, which is approximately 5 years ahead of schedule.

Though, it is worth noting that beating the market consistently over a long period is a task that few achieve. But there’s nothing to stop you from trying!

The Buffett-inspired VanEck Morningstar Wide Moat ETF (ASX: MOAT) could be worth considering.

It gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages.

The index that this ETF tracks has beaten the market over the last decade with a 15% per annum return and has generated an average annual return of 18.5% since inception.

Whatever you choose to do, the main thing is to make a plan and stick with it, and let compounding work its magic.

The post I’d aim for a million buying just a few cheap ASX shares! appeared first on The Motley Fool Australia.

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More reading

• 2 ASX ETFs I’d buy for my child for the long term
• 3 ASX shares that could create lasting generational wealth
• I think this ETF is one of the best to buy on the ASX
• Forget term deposits! I’d listen to Warren Buffett and invest $250 a month to try to retire rich
• Top ASX ETFs to buy in February 2023

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 recommended VanEck Morningstar Wide Moat ETF. 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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With earnings season in full swing, brokers have been running the rule over a large number of ASX 200 shares.

Two blue chip shares that have been named as post-results buys are listed below. Here’s what you need to know about these shares:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share that has been tipped as a buy following its results release is Goodman.

It is leading industrial property company with a world class portfolio of assets that are in-demand with end users across the globe.

In response to its strong half-year results, Citi has retained its buy rating and $24.00 price target. The broker believes that strong demand will drive earnings growth for the foreseeable future. It commented:

GMG’s 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. Higher than expected FUM, record development margins this period (~100%) and increased potential for rental reversion should support overall earnings growth into the future. Debt costs may be higher but lower gearing ensures limited impact to this. We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share that has been named as a buy this week is Seek.

It is of course the job listings giant behind the eponymous Seek website, as well as several international equivalents.

Morgans was pleased with its performance in the first half and has recommended it as a post-results buy. Its analysts commented:

SEK’s 1H23 result was ~2% ahead of Visible Alpha consensus at the topline (revenue of ~A$627m, +21% on pcp), with EBITDA of ~A$283m (+13% on pcp) in line and NPAT excluding significant items (A$135m, +9% on pcp) ~4% ahead. It was broadly a positive result, in our view, however job ad volume growth moderating in 2H23 (particularly ANZ), whilst not unexpected, looks to be a factor in guidance being set at the lower end of previously flagged ranges.

Morgans has retained its add rating with a trimmed price target of $28.40.

The post These blue chip ASX 200 shares are post-results buys: experts appeared first on The Motley Fool Australia.

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More reading

• Seek share price swings wildly amid first-half results release
• 3 excellent ASX 200 shares to buy and hold for a decade: analysts
• How to generate passive income the Warren Buffett way with ASX shares
• 2 ASX 200 stocks on the move following earnings updates
• Why experts say these ASX 200 blue chip shares are buys

Motley Fool contributor James Mickleboro has positions in Seek. 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 Goodman Group and Seek. 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 Rio Tinto Ltd (ASX: RIO) share price will be one to watch on Thursday.

That’s because the mining giant has just released its full-year results after the market close.

Rio Tinto share price on watch following results release

• Revenue down 13% to US$55,554 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) down 30% to US$26,272 million
• Net profit after tax down 41% to US$12,420 million
• Fully franked final dividend down 46% to US$2.25 per share

What happened during FY 2022?

For the six months ended 31 December, Rio Tinto reported a 13% decline in revenue to US$55,554 million and a 41% reduction in net profit after tax to US$12,420 million.

Management advised that this reflects the movement in commodity prices, the impact of higher energy and raw materials prices on its operations, and higher rates of inflation on operating costs and closure liabilities.

In addition, the company recorded an effective tax rate on net earnings of 30.9% compared with 27.7% in 2021, with the increase being primarily due to the $0.8 billion write down of deferred tax assets in the United States.

In light of this profit decline, the mining giant’s board has declared a final dividend of US$2.25. This brings its full-year dividend to US$4.92, which is down 38% from US$7.93 per share a year earlier.

How does this compare to expectations?

According to a note out of Goldman Sachs, its analysts were expecting Rio Tinto to report underlying EBITDA of US$26.8 billion versus the consensus estimate of US$26.7 billion.

On the bottom line, Goldman was forecasting a net profit after tax of US$12.9 billion, compared to the consensus estimate of US$13.7 billion.

Finally, it was expecting this to lead to a fully franked full year dividend of US$4.64 per share, whereas the market was expecting a US$4.92 per share dividend.

As you can see above, Rio Tinto has missed on these earnings metrics but is in-line with the market’s dividend estimate.

Management commentary

Rio Tinto’s CEO, Jakob Stausholm, was pleased with the work the company did in FY 2022. He said:

We are building a stronger Rio Tinto and delivering against our four objectives. Our operational performance has improved, as evidenced by a number of second half records being set at our Pilbara iron ore mine and rail system. We are also investing for the future, doubling our stake in the Oyu Tolgoi copper-gold project in Mongolia through the acquisition of Turquoise Hill Resources, progressing the Rincon Lithium Project in Argentina and reaching milestone agreements that underpin the long-term success of our Pilbara iron ore business.

We continue to focus on making lasting change to strengthen our workplace culture and to building better relationships with Indigenous peoples, communities and other partners. At all times we will seek to find better ways, in line with our purpose. We clearly have more to do but I am encouraged by the progress we are making.

Outlook

Rio Tinto has reaffirmed the production and cost guidance it provided for FY 2023 with its fourth quarter update. This includes:

• Pilbara iron ore shipments of 320Mt to 335Mt
• Aluminium production of 3.1Mt to 3.3Mt
• Mined copper production of 650kt to 710kt
• Pilbara iron ore unit cash costs of US$21 to US$22.5 per wmt

The post Rio Tinto share price on watch amid FY22 results appeared first on The Motley Fool Australia.

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More reading

• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Passive income boost! 2 excellent high yield ASX dividend shares to buy: experts
• Should you dig into Rio Tinto shares before the ASX 200 miner reports next week?
• Why experts say these ASX 200 blue chip shares are buys
• Here’s the iron ore price forecast for 2023: CBA

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 Scott Phillips.

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Speculation is rife these days that the spectacular run of ASX lithium shares over the past few years may be over.

Probably not, if you ask these company directors.

They’ve just shelled out tens of thousands of dollars of their own money buying more shares in their ASX lithium companies.

Here are the details.

Galan Lithium Ltd (ASX: GLN)

Galan Lithium non-executive director Daniel Jimenez bought 105,000 shares on-market for $126,000 on 16 February.

According to the ASX change of director’s notice, the last time Jimenez bought Galan shares was in June 2022.

He now owns almost 2.45 million shares with a shares option of one million shares at 21 cents per share expiring in October this year.

Galan delivered an investor presentation at the recent RIU Explorers Conference in Western Australia.

Earlier this month, the company announced it had moved to 100% ownership of its Candelas lithium brine project in the Catamarca Province of Argentina.

Candelas has a JORC 2012 Resource of 685kt lithium carbonate (LCE) and a production capacity of 14,000 tonnes per year over 25 years of life, with an after-tax payback period of 4.75 years.

The Galan Lithium share price closed down 3.45% to $1.12 today. It is down 16% over the past 12 months but up 4.7% in the year to date.

Global Lithium Resources Ltd (ASX: GL1)

Global Lithium non-executive director Dianmin Chen purchased 30,000 shares on market for $53,100 via a family account on 16 February.

He now owns more than 5.53 million shares directly and about 4.3 million shares indirectly, according to the ASX notice.

Chen also has a juicy options contract for three million shares at $1 per share expiring in November 2024.

Global Lithium held an investor roadshow this week and also presented at the RIU Explorers conference.

In the latest news, Global Lithium revealed ‘compelling’ results in a scoping study of its Manna Lithium Project. Manna is located 100km east of Kalgoorlie in Western Australia.

Based on the results, the board has recommended that a definitive feasibility study should be conducted.

The Global Lithium share price closed down 3.93% to $1.59 today. It is up 16.5% over the past 12 months and down 13.8% in the year to date.

What’s going on with lithium prices?

Lithium carbonate prices in China have fallen to their lowest level in 12 months at US$61,289 per tonne.

This is 30% off their all-time high of US$87,038 per tonne recorded back in November.

Analysis from Trading Economics suggests stronger supply and expectations of poor demand means there might be a surplus of the mineral this year.

Fears of a global recession and the end of stimulus measures for Chinese battery manufacturers have impacted demand for electric vehicles.

The post 2 ASX lithium shares being bought up by company directors appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX lithium share just leapt 32% on big news out of the US
• Why Boral, Galan Lithium, Nuix, and Suncorp shares are racing higher
• Guess which ASX lithium share is surging 9% on the prospect of ‘robust economic returns’?
• Lithium giant forecasts 15% greater demand. How are ASX lithium shares reacting?

Motley Fool contributor Bronwyn Allen 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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