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The Australian share market is among the most generous in the world, with a good portion of companies on the S&P/ASX 200 Index (ASX: XJO) rewarding their shareholders with dividends each year.

One popular share that has bucked the trend is A2 Milk Company Ltd (ASX: A2M). In the seven and a half years that it has traded on the ASX boards, the infant formula company’s shares have never provided investors with a dividend.

That’s despite the company sitting on a mountain of cash. At the end of FY 2022, it had NZ$816.5 million in its bank account.

When will A2 Milk shares pay a dividend?

The good news is that there’s reason to believe that A2 Milk shares could pay a dividend in the not so distant future.

In fact, management hinted that this could be the case last year. It said:

The Board is actively reviewing capital management initiatives, including a potential share buy-back.

Since then, the company has launched a NZ$150 million on-market share buy-back. Which, as of its last update, has seen the company acquire and retire approximately 13.5 million shares. These shares currently have a market value of $90.7 million, which means there’s still plenty more buying to come.

Back to dividends, according to a recent note out of Macquarie, its analysts believe a dividend could be coming in FY 2024.

Its analysts are anticipating a maiden dividend of 12.4 cents per share that year. Based on where A2 Milk shares are currently trading, this represents a modest 1.7% dividend yield.

Though, it is worth acknowledging that Macquarie isn’t particularly positive on the company despite the prospect of a maiden dividend. It currently has an underperform rating and $4.25 price target on its shares.

All in all, 2023 might be a little too soon for a dividend, but 2024 seems entirely possible.

The post Could A2 Milk shares pay a dividend in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• What drove the A2 Milk share price 18% higher in November?
• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
• The A2 Milk share price just hit a 52-week high. What’s going on?

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 A2 Milk. 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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This year has humbled the All Ordinaries Index (ASX: XAO), but not all shares have been weighed down by the market’s struggles.

After gaining 14% in 2021, the All Ordinaries hit a snag in its upwards trajectory. The benchmark index has fallen 7% since the start of 2022.

Fortunately, some ASX All Ordinaries shares have defied its downturn to post whopping gains of as much as 133% year to date.

But the year’s not quite over yet. Let’s take a look at three stocks shaping up to be some of the market’s biggest 2022 winners.

3 ASX All Ordinaries winners in 2022

The first cab off the rank are shares in All Ordinaries lithium explorer Argosy Minerals Limited (ASX: AGY). The stock has gained 74% so far this year to trade at 57 cents today.

And there’s been plenty of news to drive it higher. Most recently, the company announced commissioning works at its Rincon Lithium Project had produced battery quality lithium carbonate product of 99.76% purity.

Ramping up of the project’s production operations is on track to begin in the first quarter of 2023.

Another All Ordinaries share having a brilliant year so far is Yancoal Australia Ltd (ASX: YAL). It’s gained 133% since the start of 2022 to swap hands for $6.53 apiece this afternoon.

The ASX coal stock has been bolstered by soaring coal prices. Associated higher earnings helped it pay off US$459 million of debt in a 15-month window. Meanwhile, the company was the subject of a short-lived takeover offer posed by its major shareholder.

Finally, is any list of top performing All Ordinaries stocks complete without mentioning the Core Lithium Ltd (ASX: CXO) share price? Not if you ask me.

The lithium developer and soon-to-be-producer has been incredibly popular among investors in 2022.

That interest, alongside the company’s efforts to progress the development of the Finniss Lithium Project, has helped bolster its shares by 61% this year. They’re trading at $1.01 right now.

The post 3 ASX All Ordinaries shares up by more than 60% in 2022 appeared first on The Motley Fool Australia.

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More reading

• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher
• Pilbara Minerals vs Core Lithium shares: Which is the better buy right now?
• Why is the Core Lithium price rebounding today?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Core Lithium share price has 25% upside: Macquarie

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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There are a number of ways to generate retirement income. ASX dividend shares could be a very effective way to produce $50,000 of passive income.

With higher interest rates, the income potential from assets has improved. Term deposits and bonds are now offering better yields. Falling property prices are giving investors a stronger rental yield.

ASX dividend shares can be high-yielding and easy to invest in. I’m looking to the ASX stock market to fulfil my future income needs.

I’m looking to build a portfolio of businesses that can deliver an attractive, resilient flow of dividends.

Step one: Build wealth

However someone does it, we need to build enough wealth to deliver the desired income.

Unless a person wins the lottery or gets an inheritance, people will need to build their finances through conscious choices. That involves earning money and then spending less than they earn and putting the difference to work.

The power of compounding can really help power our money higher over the years.

If investors use ASX shares to build wealth, then investing in quality individual ASX shares could make a lot of sense. Or, using an exchange-traded fund (ETF) like VanEck Morningstar Wide Moat ETF (ASX: MOAT) or Vanguard MSCI Index International Shares ETF (ASX: VGS) that own a strong group of businesses could also deliver solid long-term compounding growth.

Historically, the overall share market has returned an average of 10% per annum. If someone invested $1,000 per month for 30 years and it returned 10% per year, it would turn into almost $2 million ($1.97 million) according to the Moneysmart compound interest calculator.

Step two: Decide on the desired retirement strategy

If investors do decide to go with ASX dividend shares, they need to decide what type to go with.

There are some ASX dividend shares with very high dividend yields such as Fortescue Metals Group Limited (ASX: FMG), BHP Group Ltd (ASX: BHP), Best & Less Group Holdings Ltd (ASX: BST) and Shaver Shop Group Ltd (ASX: SSG). They could pay grossed-up dividend yields of 10% or higher in 2023, depending on how things go. But, those dividends may not be consistent or consistently reliable.

But, for me, if I’m relying on this dividend income for retirement income, I’d want it to be as reliable as possible. Dividends aren’t guaranteed of course, and lower yields aren’t necessarily more robust than higher ones, but they could be.

What type of ASX dividend shares are needed? If an investor has a $2 million portfolio, then the average dividend yield of the portfolio only has to be 2.5% to make $50,000 per annum.

A $1 million portfolio with an average dividend yield of 5% would make $50,000 of annual dividend income.

Step three: Invest in those ASX dividend shares

Putting money to work with ASX dividend shares can be really beneficial thanks to the annual cash flow they pay to investors. When in retirement, I think it’s a good idea to not pay attention to the day-to-day movements of share prices.

Plus, market crashes do happen occasionally – like COVID-19 in early 2020 – but historically the ASX share market and economy have gone on to recover from those bumps. So, it’s probably a good idea to just focus on the dividend cash flow during rough periods.

For me, it is investments that have already proved to be defensive and pay good dividends during difficult times that are the ones I’m focused on.

While there are a few listed investment companies (LICs) in my dividend-growth-focused portfolio, there are names like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – which has the longest consecutive annual dividend growth record on the ASX – as well as Brickworks Limited (ASX: BKW) and Rural Funds Group (ASX: RFF) in there.

While these ASX dividend shares have yields closer to the 4% to 5% range, I think they are well suited to investors wanting retirement income because they have a good investment income record already. I think Soul Pattinson offers a good dividend yield, diversification and long-term capital growth potential.

The post Hoping to make a retirement income of $50k per annum? Here’s how to do it with ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy Wesfarmers shares before 2023
• Should I buy CSL shares before 2023?
• This Whitehaven Coal director just sold 25% of their company shares. What’s going on?
• Arafura Rare Earths share price rebounds strongly after dumping 17% in 5 days
• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher

Motley Fool contributor Tristan Harrison has positions in Brickworks, Fortescue Metals Group, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Vanguard Msci Index International Shares ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares 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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We’re fast running down the clock on 2022, and what a year it has been for ASX investors. Rising interest rates, decades-high inflation figures, and the S&P/ASX 200 Index (ASX: XJO) falling by more than 5.5% (on today’s numbers) have all made 2022 rather memorable.

But let’s talk about Wesfarmers Ltd (ASX: WES) shares, and whether you should buy them before 2023.

3 reasons to buy Wesfarmers shares for 2023

Diversification

So Wesfarmers is the giant industrial and retail conglomerate behind well-known brands like Bunnings, OfficeWorks, Kmart and Target. The company owns a bevvy of other small businesses across a wide range of industries, including resources, manufacturing and energy.

But the company’s retailing businesses deliver the lion’s share of Wesfarmers’ earning base. Even so, Wesfarmers’ top-notch retailers, together with its other interests, make it one of the most diversified ASX 200 blue chip shares on the share market.

Dividends

Wesfarmers has a long and strong history of paying fully franked dividends to its shareholders, making it an appealing ASX share for 2023, in my opinion. Dividends provide cash flow to investors, as well as added returns and a potential inflation hedge.

There are also the tax benefits of the full franking credits that Wesfarmers typically attaches to its dividends too. On recent pricing, the shares are offering a fully-franked yield of 3.9%.

I think that’s a compelling yield to consider today, especially since Wesfarmers raised its dividends from $1.70 per share in 2021 to $1.78 per share in 2022.

Darn good returns from Wesfarmers shares

Quite simply, Wesfarmers is an ASX 200 share that has consistently delivered top-tier returns to investors over decades, as you can see below:

Earlier this year, my Fool colleague Aaron calculated that if an investor bought $10,000 worth of Wesfarmers shares back in early 2012, they would be sitting on an investment worth approximately $43,949 by March 2022.

That figure assumes our investor has received all Wesfarmers dividends, as well as the shares and subsequent dividends of Coles Group Ltd (ASX: COL) that Wesfarmers investors received back in 2018 when the company kicked Coles out of its nest.

Now Wesfarmers has lost some skin in 2022, falling (on today’s pricing) by more than 23% since the start of the year. But the evidence still speaks for itself that Wesfarmers has been a long-term winner for ASX investors. I don’t see why this won’t continue for the next decade.

The post 3 reasons to buy Wesfarmers shares before 2023 appeared first on The Motley Fool Australia.

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More reading

• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement
• 10 ASX shares I think are buys for 2023
• Stock market correction: How I’m using this opportunity to build wealth with ASX shares
• Guess which ASX 200 share turned a $10,000 investment into $40,000 in 2022
• Don’t try to predict where ASX shares go in 2023, do this instead: Scott Phillips

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. 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 and Wesfarmers. 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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Out of the five largest companies on the ASX by market capitalisation, CSL Limited (ASX: CSL) shares have performed the worst throughout 2022.

The market went cold on the biotech giant in January as the world was gripped by uncertainty. A month earlier, the company announced it intended to hand over A$17.5 billion to acquire Vifor Pharma in what would be CSL’s largest deal in its history.

Fast forward to today, the CSL share price is 2.3% worse off than where it finished up last year. Could the depressed share price be a buying opportunity before 2023? Or, could it be better to avoid injecting this company into your portfolio?

What do the experts think of CSL shares?

Despite the Australian drug developer’s rather lofty price-to-earnings (P/E) ratio, a number of brokers and fund managers still like the look of CSL. At the current market rate, the plasmas-derived product maker trades at 40 times earnings.

Nonetheless, the team at Citi holds a buy rating on the company’s shares with a $340 price target. This would suggest an additional 17% upside from here. Part of the optimistic perspective relies on CSL’s drug development pipeline — something that the Vifor acquisition is believed to further enhance.

Likewise, analysts at Bell Potter hold a positive outlook on CSL amid its latest expansion. The broker also foresees strong and sustained growth in global plasma volumes, increasing at an 8% per annum clip.

Finally, Tribeca portfolio manager Jun Bei Liu shared a bullish perspective on CSL shares a few weeks ago. Liu revealed her expectations that the biotech company will ” … grow double digits for the next three years.”

Why it could be worth the premium

The success of a company can be influenced by the acumen or ineptitude of its competition. That’s why I would take a look at some of CSL’s rivals in the industry.

A couple of competitors that come to mind are Grifols (a Spanish plasma-based pharmaceutical player) and Baxter International Inc (NYSE: BAX) (an American healthcare giant focused on areas similar to Vifor).

Of these three companies, CSL has the thickest profit margins… it’s not even a close comparison. This would suggest CSL is either a superiorly managed company, holds more valuable intellectual property, operates more efficiently, or a combination of these.

After all, the CSL share price probably wouldn’t be up more than 100% over the past five years if it didn’t have some edge.

The post Should I buy CSL shares before 2023? appeared first on The Motley Fool Australia.

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More reading

• Looking to buy ASX shares for your kids this Christmas? I think these are great options
• Here’s how I’d invest $10,000 in ASX shares for 2023
• Down 4% in 3 days, should you buy the dip on CSL shares?
• Here’s why analysts rate these blue chip ASX 200 shares as buys
• Experts say these strong blue chip ASX 200 shares are buys for 2023

Motley Fool contributor Mitchell Lawler 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 CSL. 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 rollercoaster month for the Arafura Rare Earths Ltd (ASX: ARU) share price. Just take a look at the chart below.

As can be seen, the stock was on a volatile but relatively horizontal trajectory for much of the period between April and December, before rocketing 36% between 8 December and 14 December, hitting a new 52-week high of 55 cents in early trade last Thursday.

From there, it plummeted. Stock in the rare earths developer tumbled 17% over the following five sessions to hit an intraday low of 42.5 cents yesterday.

Fortunately, however, things are looking up today. The Arafura Rare Earths share price is up 4.55% right now, trading at 46 cents.

For comparison, the All Ordinaries Index (ASX: XAO) hasn’t gone anywhere this month. It’s currently just 0.6% lower than it was in late November.

So, what’s been moving the Arafura Rare Earths share price lately? Let’s take a look.

What’s been going on with the Arafura share price lately?

Interestingly, there’s been no price-sensitive news from the company since early December. However, the recent volatility exhibited by the Arafura Rare Earths share price might date back that far.

The company announced a $121 million placement on 5 December, wherein Gina Rinehart ultimately took a $43 million stake – leaving the billionaire with around 8% of the company. Each new share on offer under the placement was priced at 37 cents.

The Arafura Rare Earths share price’s surge amid the official confirmation of Rinehart’s investment may have later spurred some investors to lock in profits, thereby driving the stock lower in subsequent sessions.

Fortunately, its recent tumble hasn’t majorly dinted the rare earths developer’s strong year to date performance.

The Arafura Rare Earths share price has gained 98% since the start of 2022. It’s also currently 153% higher than it was this time last year.

For comparison, the All Ordinaries Index has fallen 7% year to date and 4% over the last 12 months.

The post Arafura Rare Earths share price rebounds strongly after dumping 17% in 5 days appeared first on The Motley Fool Australia.

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More reading

• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher
• Why did the Arafura Rare Earths share price dive 9% on Tuesday?
• Why Appen, Arafura, Aurizon, and Star shares are sinking today
• Why is the Arafura Rare Earths share price rocketing 13% today?
• Why Arafura, Block, Leo Lithium, and St Barbara shares are storming higher

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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The S&P/ASX 200 Index (ASX: XJO) has continued its positive form on Thursday. In afternoon trade, the benchmark index is up 0.6% to 7,158.5 points.

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

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is up 4% to 58.2 cents. Investors have been buying this lithium developer’s shares after it provided an update on the Rincon Lithium Project in Argentina. According to the release, current commissioning works have produced a battery quality 99.76% lithium carbonate product. This was achieved during part of the overall development towards commencing the 2,000tpa lithium carbonate operation.

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price 4.5% to 46 cents. This may have been driven by bargain hunters swooping in after recent share price weakness. Prior to today, the rare earths developer’s shares were down approximately 17% in the space of a week.

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is up 7% to 74 cents. This uranium developer’s shares were already racing higher prior to the release of a positive announcement this afternoon. That announcement reveals that it has completed its two-stage, 10,000m follow-up reverse circulation drill program at the Omahola project, with positive results delivered and new targets identified.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is up 5% to $57.17. Investors have been buying this health imaging technology company’s shares after it signed a $15 million seven-year deal with Luminis Health. Pro Medicus’ technology will replace legacy PACS throughout the Luminis Health network. Management also revealed that its pipeline remains strong and spans all market segments.

The post Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Why did the Arafura Rare Earths share price dive 9% on Tuesday?
• Why Appen, Arafura, Aurizon, and Star shares are sinking today
• Why is the Arafura Rare Earths share price rocketing 13% today?
• Why Arafura, Block, Leo Lithium, and St Barbara shares are storming higher
• Why Arafura, Megaport, Nitro, and Sayona Mining shares are storming higher today

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 Pro Medicus. The Motley Fool Australia has positions in and has recommended Pro Medicus. 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 record a decent gain. At the time of writing, the benchmark index is up 0.6% to 7,159.7 points.

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

29Metals Ltd (ASX: 29M)

The 29Metals share price is down a massive 18% to $1.92. Investors have been selling this copper miner’s shares following the release of disappointing guidance for 2023. 29Metals revealed that copper production is expected to be flat year-on-year. The miner also advised that its gold and silver production is likely to fall between 10% to 15% compared to 2022. In response, Macquarie has downgraded its shares to an underperform rating from outperform.

BWX Ltd (ASX: BWX)

The BWX share price is down a further 10% to another new record low of 19 cents. The Sukin skincare manufacturer’s shares have been hammered this week after returning from a suspension of almost four months. Its return followed the release of shocking business update. BWX now has a mountain of debt more than double its market capitalisation and is on track to breach its debt covenants.

Readytech Holdings Ltd (ASX: RDY)

The Readytech share price is down 11% to $3.49. This morning, the enterprise software company revealed that Pacific Equity Partners has withdrawn its original $4.50 per share takeover proposal. The company advised that the investment firm is now working on an alternative proposal that could still deliver a $4.50 per share consideration.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is 3.5% to $3.28. Investors have been selling this dairy processor’s shares following the release of a profit update. Synlait has warned that its first half profit will be down over the prior corresponding period. This has been driven by delays to shipments, reduced lactoferrin volumes, and increased costs.

The post Why 29Metals, BWX, Readytech, and Synlait shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why did this ASX 300 mining share just crash 20%?
• Why BWX, Novonix, Symbio, and TPG shares are dropping today
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today
• Why is the BWX share price crashing 48% on Tuesday?
• BWX share price on watch amid $335m loss and guidance downgrade

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 ReadyTech. The Motley Fool Australia has recommended 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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Two S&P/ASX 200 Index (ASX: XJO) lithium shares have been the talk of the town in 2022. They are, of course, Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS).

The pair came in as the first and second most traded ASX shares of 2022, according to data from trading and superannuation platform Superhero.

They’ve also each outperformed the ASX 200 this year. Pilbara Minerals shares’ 10% gain has been dwarfed by the 64% surge posted by Core Lithium stock, shown in the chart below.

But which of the pair is the better buy right now? Let’s take a look.

Compare the pair

First off, it’s important to note that comparing the two companies is made difficult by their vast differences. Indeed, the fact they are both ASX 200 lithium shares is just about their only similarity.

Pilbara Minerals posted its maiden profit in August and is expected to kick off dividends this fiscal year. Meanwhile, Core Lithium is yet to begin production at its flagship Finniss Project.

Thus, a dividend-focused investor might find the former lithium stock more appealing, while a growth-focused investor might be initially drawn to the latter.

Though, many brokers have indicated a preference.

Top brokers prefer Pilbara Minerals shares over Core Lithium

Morgans, for instance, tips Pilbara Minerals shares as one to buy. It believes the stock could rise 22% to $4.70. The ASX 200 lithium giant is currently trading at $3.86, as the below chart shows.

Goldman Sachs agrees. It recently upped its price target for Pilbara Minerals shares to $4.70. Though, it still has a neutral rating on the stock.

But Goldman Sachs is far less bullish on Core Lithium shares, slapping them with a $1 price target – a potential 3% drop on their current price of $1.03 ­– and a sell rating. The broker believes the company’s stock has run ahead of fundamentals.

Meanwhile, Barrenjoey is said to expect Core Lithium shares to fall to 85 cents, as my Fool colleague Monica reports. The same broker has tipped Pilbara Minerals to rise to $4, as per The Australian.

But not all are so bearish on Core Lithium shares.

Macquarie thinks the company could be cash flow positive by financial year 2024. It has tipped the share to grow 26% to $1.30 and hit it with an outperform rating.

The broker was also recently bullish on Pilbara Minerals. It had an outperform rating on the stock, tipping it to rise to $7.70, my colleague James reported last month.

The post Pilbara Minerals vs Core Lithium shares: Which is the better buy right now? appeared first on The Motley Fool Australia.

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More reading

• Here’s what Goldman Sachs is now saying about the Pilbara Minerals share price
• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Core Lithium price rebounding today?
• Pilbara Minerals share price leaps on positive lithium price update

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 Macquarie 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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29Metals Ltd (ASX: 29M) is one mining share in the S&P/ASX 300 Index (ASX: XKO) that is not enjoying a green session today.

Shares in the copper-focused mining company are responding violently to the latest operations update which was released late yesterday afternoon.

At the time of writing, the damage toll is sitting at an 18% fall to $1.90 per share. However, the 29Metals share price fell as much as 20% earlier in the session — reaching an intraday low of $1.80. For comparison, the ASX 300 index is 0.59% higher at 7,119.5 points.

2023 is not looking pretty for production

29Metals shareholders are probably wishing they could skip to 2024 already after reading the company’s operations update. The copper and precious metals producer unfortunately did not paint an appetising image for production in 2023.

Providing preliminary guidance for metal production next year, 29Metals unveiled some disappointing estimates. According to the release, copper production is anticipated to be flat year-on-year. Even worse, gold and silver production is slated to fall between 10% to 15% compared to 2022.

It wasn’t all negative news for production though. Looking at the bright side, zinc production is expected to increase by between 5% to 10%. However, this consolation doesn’t appear to be doing much for this ASX 300 mining share today.

Although, any 29Metals shareholders that have added to their position over the last five months or so can’t be too unhappy. Between 15 July and 14 December, the 29Metals share price had more than doubled.

The apparent culprit behind expected production reductions include:

• Reduced milling rates at Capricorn Copper to manage tailings capacity
• Awaiting regulatory approval for additional tailings facility; and
• Lacking project development at Golden Grove due to the tight labour market

What else is weighing down this ASX 300 share?

Unfortunately, it is not only the forward view that is undesirable… it’s also the back. In addition to the 2023 guidance, 29Metals provided a summary of 2022 production.

Copper and zinc production is expected to be in the lower half of the previously stated full-year guidance range. Meanwhile, total costs are expected to be in the top half of the range.

Positively, gold and silver production is slated to be at or above the top end of guidance. Nevertheless, the 29Metals market capitalisation is certainly looking a little lighter today following the news.

The post Why did this ASX 300 mining share just crash 20%? appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals vs Core Lithium shares: Which is the better buy right now?
• What is ANZDA and why has it just hit my ASX portfolio?
• 2 ASX dividend shares that could see big payout increases next year
• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement
• 10 ASX shares I think are buys for 2023

Motley Fool contributor Mitchell Lawler 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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