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The Whitehaven Coal Ltd (ASX: WHC) share price is down 9.35% in early afternoon trade on Monday amid flooding from La Niña events hampering production at its open-cut mines in the Gunnedah Basin in New South Wales.

Shares in the prominent coal producer currently trade for $8.53.

The S&P/ASX 200 Energy Index (ASX: XEJ) is also almost flat at a 0.46% gain for the day.

Crucially, flooding at the Gunnedah Basin was said to have changed its outlook and guidance for the financial year 2023. Let’s cover the highlights.

Flooding changes Whitehaven’s FY23 guidance

The following changes to Whitehaven’s guidance for FY23 were announced:

• Managed ROM [run-of-mine] production down: 19-20.4 Mt
• Maules Creek production down: 10.3-11 Mt
• Narrabri production up: 5.6-6 Mt
• Gunnedah O/C production down: 3.1-3.4 Mt
• Managed coal sales down: 16.5-18 Mt
• Equity coal sales down: 13.1-14.4 Mt
• Unit cost per coal up: 95-102 $/t

Whitehaven notes that flooding has not been directly observed on site, but that it is expected to affect run-of-mine (ROM) production, particularly at its Maules Creek and Tarrawonga sites.

Meanwhile, the company expects stronger production at Narrabri along with a higher unit cost per coal moving forward.

Flooding has reportedly reduced access to needed haulage and transportation roads, while also changing the moisture profile of the soil at Gunnedah Basin. It has also elevated water levels at its dams and river systems.

The effect of floods put a damper on operations at all three open-cut mines in September, and this wet weather has persisted into October and now November.

The International Monetary Fund (IMF) notes that climate change is likely playing a part in increasing the frequency and severity of natural disasters, such as floods. It expects these events to become more common by the end of the century as temperatures rise.

Whitehaven Coal share price snapshot

The Whitehaven Coal share price is up 226% year to date. That’s beating the S&P/ASX 200 Index (ASX: XJO) by a huge margin as it’s down 6% for the same period.

The company’s market capitalisation is around $8.75 billion.

The post Whitehaven share price dives 9% as floods hit guidance appeared first on The Motley Fool Australia.

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More reading

• Nervous about buying ASX shares right now? Here are some top tips from Scott Phillips
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today  
• Here are the 3 most traded ASX 200 shares on Tuesday
• Guess which ASX 200 director sold $6.5m worth of their company shares last week

Motley Fool contributor Matthew Farley 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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As one of the big four banks, the National Australia Bank Ltd (ASX: NAB) dividend is a popular option for income investors.

In light of this, readers might be interested to learn what the bank is saying about its dividend today following the release of its full year results for FY 2022.

Here’s the lowdown on the NAB dividend

This morning NAB released its full year results and, for the 12 months ended 30 September, reported cash earnings of $7,104 million. This represents an increase of 8.3% year over year.

This solid earnings growth allowed the NAB board to declare a fully franked final dividend of 78 cents per share, which was an increase of 16.4% over last year’s final dividend of 67 cents.

For the full year, this took NAB’s dividend to a fully franked 151 cents per share, which was an increase of 18.9% year over year and equates to a total return of $4.8 billion.

Based on the current NAB share price, this final dividend equates to a fully franked 2.5% yield and its full year dividend represents a 4.9% yield.

Commenting on its decision to pay this dividend, NAB said:

NAB is making excellent progress on our strategy and the Board is encouraged to see the operational results that this is delivering. This is reflected in improved earnings with all businesses contributing to underlying profit growth, and significant and sustainable momentum across the Group. Our most recent colleague engagement score is 76, compared with 77 in July 2021, and is close to the latest top quartile score of 78. Taking all this into account, the Board has determined dividends for the year of 151 cents per share, returning $4.8bn in total to shareholders.

What else do you need to know?

If you wish to be eligible for the upcoming NAB dividend, you’ll need be a shareholder before its shares trade ex-dividend on 15 November. After which, you can look forward to receiving this dividend just under a month later on 14 December.

If you’re already a shareholder and looking to use NAB’s dividend reinvestment plan (DRP), you’ll need to make sure that you have indicated that this is your wish (if you haven’t previously done so) before the close of business on 17 November. Unfortunately, on this occasion, there is no DRP discount for the final dividend of FY 2022.

The post Everything you need to know about the NAB dividend appeared first on The Motley Fool Australia.

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More reading

• Why is the NAB share price sinking today?
• NAB share price on watch following FY22 earnings miss
• 5 things to watch on the ASX 200 on Wednesday
• Are ASX 200 bank shares a no-brainer buy in an inflationary environment?
• Are NAB shares a buy ahead of this week’s results?

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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The Fortescue Metals Group Limited (ASX: FMG) share price is off to a great start in early trading today, rising 2.53% to $17.05 at the time of writing.

There is no news out of Fortescue today, but its home sector is thriving. The S&P/ASX 200 Materials (ASX: XMJ) is the best-performing sector so far today, up 2.36%.

Fellow ASX mining shares are also rising. The Rio Tinto Limited (ASX: RIO) share price is up 2.11% to $98.38. The BHP Group Ltd (ASX: BHP) share price is up 1.71% to $41.04.

Iron ore price up… for the moment

The big miners are likely being moved higher today by the rising iron ore price in recent days.

The iron ore price dipped slightly in overnight trading but is up 7.93% over the past week. Iron ore is currently fetching US$88.50 per tonne, according to Trading Economics.

This is boosting ASX iron ore shares, with the Fortescue share price up 12.5% over the past five trading days. BHP shares are up 8.4% and Rio Tinto shares are up 9.2% over the same period.

Fortescue is getting a bigger benefit because it’s an iron ore pure play.

The iron ore price has almost halved in six months after reaching a 52-week peak of about $160 per tonne in March.

According to Trading Economics:

Chinese authorities emphasized that the zero-Covid policy will remain in place for the time being, erasing previous hopes that the economy would reopen and jeopardizing demand.

While holding a slight rebound since the beginning of November, iron ore prices are 45% down from the peak hit in March amid prevalent recession fears and woes in China’s property sector.

Key manufacturing PMIs in China pointed to continued contraction in factory activity at the start of the fourth quarter.

Also, investment in the country’s giant but debt-ridden property sector fell more than 8% year-on-year in the first three quarters of the year, pointing to increased hesitance for new building activity.

Low steel demand drove iron ore imports to fall by 4.7% in October.

Buy the dip strategists take note. The Fortescue share price dipped below $15 late last month. We haven’t seen that since November last year.

Had you popped $10,000 into Fortescue shares on 31 October when they closed at $14.70, you’d be up $1,600 right now. Just sayin’.

Moving on…

Other commodities also up this week…

Other materials commodities up over the past week include silver, up 10.72% to US$21.358 per ounce.

The price is the highest since June as a result of the lower US dollar and weakening treasury bond yields.

This has contributed to an 8% lift in the South32 Ltd (ASX: S32) share price over the past five days. South32 operates one of the world’s largest silver mines, located in Cannington in Queensland.

Pure-play ASX silver shares like Silver Mines Limited (ASX: SVL) have received an even bigger benefit.

Silver Mines shares are up 12.9% over the past five days. The company owns the undeveloped Bowdens Silver Project in New South Wales.

Copper prices are up 6.13% this week to US$3.68 per pound. This would be contributing to the boost in Rio Tinto shares, with the company operating the largest copper mine in the world, located in Chile.

According to Trading Economics: “Commodity trader Trafigura warned that global copper stocks have fallen to record lows, with current inventories enough to supply world consumption for just 4.9 days.”

Other ASX copper shares receiving a boost this week include OZ Minerals Limited (ASX: OZL), the market’s largest pure-play copper miner.

The Oz Minerals share price is up 6% this week to $26 per share.

The post Why is the Fortescue share price bolting out of the gate on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Fortescue share price firing up 4% today?
• Why are ASX 200 mining shares bolting out the gates on Monday?
• Looking to buy Fortescue shares? Here are the questions I asked before jumping in
• Hotels, hurt feelings, and HR hassles, but Fortescue’s biggest shareholder still got richer this week
• What’s the forecast for the iron ore price right now?

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Fortescue Metals Group Limited. 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has seen plenty of volatility over the past few weeks and months. But, a director saw an opportunity with the S&P/ASX 200 Index (ASX: XJO) share.

In 2022 to date, the Domino’s share price has dropped by around 50%. This has been a painful period for shareholders.

Not only is the business being affected by the widespread concern about high inflation and rising interest rates, but it’s also losing the boost it received from lockdowns when more people were ordering home delivery.

What’s happening with Domino’s shares now?

In the first three trading days of November, the Domino’s share price fell by more than 16%.

On 2 November 2022, the food business held its annual general meeting (AGM).

The company reminded its shareholders that in FY22, network sales increased 4.6% to $3.92 billion and underlying earnings before interest and tax (EBIT) dropped 10.5% to $262.9 million.

In FY22, it organically added 294 new stores, which was a 10% increase in the network. It also acquired 156 stores and expanded into its tenth market, Taiwan.

However, investors may have been troubled by the FY23 trading update. Domino’s said that in the financial year to date, network sales were down 1.8%, with same-store-sales down 1%. However, in October, same-store-sales were up 1.6%.

Domino’s said that after a challenging first quarter, as expected, sales have improved in October. It is forecast to end FY22 within the medium-term outlook of 3% to 6%.

It has added 41 more stores in FY23 so far.

However, inflation will challenge earnings. Management expects to deliver net profit after tax (NPAT) growth in FY23.

The company intends to set a new record for network expansion in FY23, aiming to beat the FY16 record of 484 stores.

Director investment

Yesterday, it was announced that director Tony Peake’s superannuation fund had added 1,600 Domino’s shares through an on-market trade.

The cost of those 1,600 shares was $53.71 per share, meaning the total cost was around $86,000.

Keep in mind that prior to this investment, his wife held 1,400 shares and the superannuation fund owned 1,000 shares. So, the investment increased the family’s position by quite a lot.

I think it’s worthwhile taking note when directors buy shares of their business. Because it can indicate that they believe the Domino’s share price is good value and that the company has a compelling future.

Foolish takeaway

After the heavy fall in the valuation of the ASX 200 share, the Domino’s share price is valued at 31x FY23’s estimated earnings and 24x FY24’s estimated earnings, according to CommSec. This price might be much more digestible for investors, particularly if the business can continue to grow its same-store-sales and store network.

The post This ASX 200 share dumped 16% in the first 3 days of November, and a director went thrift shopping 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 10 most shorted ASX shares
• Brokers name 3 ASX shares to buy today
• Why Bravura, Domino’s, Lendlease, and Woolworths shares are sinking
• Why is the Domino’s share price down 13% in two days?

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 recommended Dominos Pizza Enterprises Limited. 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 National Australia Bank Ltd (ASX: NAB) share price has come under pressure on Wednesday.

In morning trade, the banking giant’s shares are down 3% to $31.02.

Why is the NAB share price falling?

Investors have been selling down the NAB share price this morning after the bank’s full year results disappointed the market.

According to the release, for the 12 months ended 30 September, NAB reported cash earnings growth of 8.3% to $7,104 million.

This was driven largely by strong earnings growth from its Business & Private Banking and Corporate & Institutional Banking businesses, which offset an earnings decline from the Personal Banking business.

NAB’s board declared a fully franked final dividend of 78 cents per share, which brought the bank’s full year dividend to 151 cents per share. This represents an increase of 18.9% year over year.

What has the reaction been?

Analysts at Goldman Sachs were a little underwhelmed with the result, which may explain some of the weakness in the NAB share price today. It commented:

NAB reported FY22 cash earnings (company basis) from continued operations of A$7,104 mn, which was up 8.3% on pcp and -1.5% below GSe, driven by higher-than-expected BDDs.

NAB’s 2H22 NIM was up 4 bp hoh to 1.67% (up 8 bp to 1.71% ex Markets and Treasury impacts), which was 2 bp below our expectations (GSe 1.69%) and we note that NAB’s 4Q22 NIM was 1.72% (up 10 bp on 3Q).

Goldman also points out that NAB has highlighted some headwinds facing the business in FY 2023. It explained:

Looking forward, NAB highlighted additional headwinds into FY23, noting: i) higher inflationary pressure on wages and vendor costs, ii) higher depreciation & amortisation of c.A$140 mn, iii) targeting productivity savings of c.A$400 mn, iv) overall Cost to Income ratio expected to trend lower, and v) investment spend expected to be c.A$1.5 bn.

The broker also notes that NAB stated that “housing lending competitive pressures [are] likely to intensify” and the “deposit mix headwind [is] accelerating, further increase in funding costs.”

Should you buy the dip?

Goldman has a buy rating and $34.81 price target on the company’s shares. Based on the current NAB share price, this implies potential upside of 12%.

Though, it is worth remembering that the broker could amend its recommendation and price target once it has adjusted its financial model to reflect today’s result.

The post Why is the NAB share price sinking today? appeared first on The Motley Fool Australia.

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More reading

• NAB share price on watch following FY22 earnings miss
• 5 things to watch on the ASX 200 on Wednesday
• Are ASX 200 bank shares a no-brainer buy in an inflationary environment?
• Are NAB shares a buy ahead of this week’s results?
• Brokers name 2 ASX 200 dividend shares to buy

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

On Monday, Tesla (NASDAQ: TSLA) stock hit its lowest level in about 18 months, and the shares continued to move further below the notable $200 level Tuesday. As of 1:53 p.m. ET, the stock was trading down by 1.5% after having touched a new 52-week low of about $187 per share. 

So what

The catalyst for Tuesday’s decline may have been a new vehicle recall. According to the National Highway Traffic Safety Administration, the recall involves just over 40,000 2017-2021 Model S and Model X electric vehicles (EVs). The issue is the potential for the EVs to lose power-steering assistance under certain road conditions such as bumps and potholes. Tesla began to send out over-the-air software updates on Oct. 11 to recalibrate the vehicles’ systems. But after receiving alerts related to the calibration values, Tesla decided to voluntarily recall the affected vehicles. 

Now what

As of the start of November, the problem had been addressed in almost all involved vehicles, so the direct impact to Tesla’s business should be minimal. But it’s another blow to the brand. CEO Elon Musk has repeatedly been in the news surrounding his recent takeover of Twitter. Since that deal closed, Musk has made numerous public comments via the social media platform that may not be helping Tesla’s brand. 

On Tuesday, a senior Barron’s writer published a column in which he warned that Musk’s dealings at Twitter may be negatively impacting Tesla shares. Whether his ownership of the social media platform distracts Musk from his duties as Tesla’s CEO may not be the issue. As Tesla has grown, he has managed to also run SpaceX and his other businesses. But Musk did take on debt to close his Twitter purchase, and it’s conceivable that the cash flow from the business alone won’t cover those debt obligations. If he is forced to liquidate more Tesla stock, it could have the short-term effect of driving down the price, and leading others to sell the stock, too.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla hit a new 52-week low today appeared first on The Motley Fool Australia.

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More reading

• Why Tesla shares dropped below $200 on Monday
• Forget Dogecoin, this crypto could be the even bigger winner from Elon Musk’s Twitter takeover
• Tesla sees a China slowdown, but this Nasdaq stock is faring much worse
• Why Tesla shares dropped Wednesday
• Could ‘no deal’ with Tesla actually be good news for Core Lithium shares?

Howard Smith has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Medibank Private Ltd (ASX: MPL) share price is rising in early Wednesday trade after hackers published the data of hundreds of the insurer’s customers to the dark web overnight.

The data includes names, addresses, birth dates, contact information, Medicare numbers, and in some cases passport numbers and health claims data.

The company warned of such a possibility yesterday. CEO David Koczkar once again apologised and encouraged impacted Australians to “remain vigilant” on Tuesday.

The Medibank share price is trading at $2.805 right now, 0.9% higher than its previous close.

It has fallen 21% since the S&P/ASX 200 Index (ASX: XJO) health insurer first revealed the ‘cyber incident’ in mid-October.

Medibank share price rises as hackers publish data

The Medibank share price is gaining on Wednesday despite cybercriminals having published stolen customer data to the dark web after the company refused to pay a ransom.

Medibank previously said the data of nearly 10 million current and former customers had been accessed as part of last month’s attack.

The files released overnight appear to be a sample of the data the company previously confirmed was accessed by the criminal.

It expects the criminals to continue publishing customer information on the dark web.

The hackers are now working to fashion the data into a more understandable format than their initial ‘data dump’, according to various media reports.

They also appear to have published ransom-related discussions with Medibank representatives. The Australian Financial Review quoted them as having told the company yesterday:

Data will be published in 24 hours. PS I recommend sell medibank stocks.

The hackers are reportedly linked to Russian ransomware group, REvil. The group appears to be slowly leaking customers’ data, potentially in an attempt to continue extorting the company.

Medibank is still working with the Australian Government, including the Australian Cyber Security Centre, and the Australian Federal Police. Koczkar today said:

This is a criminal act designed to harm our customers and cause distress.

We take seriously our responsibility to safeguard our customers and we stand ready to support them.

The post Medibank share price lifts despite hackers leaking data appeared first on The Motley Fool Australia.

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More reading

• Medibank share price slides following latest blows from hackers and customers
• Medibank share price on watch amid class action and new data threat
• Medibank share price lifts on cyberattack ransom update
• Here are the top 10 ASX 200 shares today
• ‘Close to bottom’: Expert names 3 bargain ASX shares to buy right now

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 REA Group Limited (ASX: REA) share price is trading lower on Wednesday morning.

At the time of writing, the real estate listings company’s shares are down 4% to $114.75.

Why is the REA share price falling?

Investors have been selling down the REA share price on Wednesday following the release of the company’s first quarter update.

According to the release, REA delivered a 16% increase in revenue to $305 million and an 11% lift in operating EBITDA to $131 million.

This was supported by a 5% increase in national listings during the period and the leadership position of the flagship realestate.com.au website. The latter delivered an average monthly audience of 12.4 million during the quarter, representing 61% of Australia’s adult population.

This led to 121.9 million average monthly visits during the period, which is 3.3 times more visits than the nearest competitor.

So why are investors selling?

While this would appear to be a solid quarter, it is worth remembering that REA has been targeting “positive jaws” in FY 2023 with mid to high-single digit operating cost growth.

Positive jaws is when your revenue grows quicker than your costs, leading to margin expansion and earnings growth.

However, first quarter operating costs grew 22% over the prior corresponding period, well ahead of its revenue growth for the period. This was driven by higher employee costs from its continued investment to deliver strategic initiatives, increased marketing, and travel costs.

Though, it is worth noting that management continues to target positive jaws in FY 2023. It commented:

The Group continues to target full year positive operating jaws for Australia in FY23. Australian operating cost growth is expected to be mid to high single-digits, with growth rates varying between quarters given operating expenses in the prior year were more heavily weighted to the second half.

Outlook

Management advised that national residential listings were down 18% in October. But thanks to price increases, the impact of Premiere Plus, and continued growth in depth penetration, management remains positive on its outlook.

REA CEO, Owen Wilson, commented:

We’ve seen the heat come out of the property market in recent months and while positive underlying fundamentals remain, we expect this moderation to persist as interest rates rise. REA is well positioned in this environment, and we will continue to invest in the growth of our platforms and adjacent businesses to further increase the value we provide to our customers and consumers.

Broker response

Goldman Sachs has responded to the update. Here’s what it had to say:

We note full year REA opex guidance has been reduced to high single to low double digit growth vs. low double digit growth previously (GSe +11%) – suggesting REA is more cautious on FY23 listings outlook than previous (forecasted mid single digit declines, noting 1Q23 +5%, with October -18%). Compositionally core Australia revenues was marginally stronger than GSe (+14% despite Finance declines), with India growth also higher than expected (+47% vs. GSe +40%).

The post REA share price tumbles despite 16% revenue boost appeared first on The Motley Fool Australia.

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More reading

• How I’d find ASX growth shares to buy today to double my money
• 5 ASX shares to buy for the Christmas rally: expert
• How I’d build a portfolio by investing in top ASX shares now
• Which ASX 200 shares could benefit from the federal budget?
• Experts say these top ASX 200 shares are buys

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 REA Group Limited. 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 article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Cryptocurrencies didn’t just wake up on the wrong side of the bed this morning; they had a terrible night. At 9:45 p.m. ET on Monday, the bottom fell out of the FTX Token (CRYPTO: FTT) and the race was on to sell everything in crypto. 

The worst of the decline was reserved for smaller cryptocurrencies, but as of 9:40 a.m. ET, Bitcoin (CRYPTO: BTC) has fallen 5.8% in the last 24 hours, Ethereum (CRYPTO: ETH) is down 7.5%, and Aptos (CRYPTO: APT) has dropped 13.3%. 

So what 

Drama has been building in the crypto space for about a week after CoinDesk reported that Sam Bankman-Fried’s trading arm, Alameda Research, has $14.6 billion in assets and $8 billion in liabilities. That’s not a problem in itself, but CoinDesk also said that $5.8 billion of the assets were the FTX Token, FTT. It’s notable that Bankman-Fried also founded the FTX exchange, which is one of the top exchanges in cryptocurrencies.

Over the weekend, Binance CEO Changpeng Zhao announced that he would be selling nearly $500 million in FTX Tokens, causing speculation that their value would plummet. That’s exactly what happened on Monday night, whether it was because of Binance’s selling or traders anticipating the sale.

At the same time, customers are pulling money off of FTX’s exchange, which could cause a “run on the bank”. Nansen reported that FTX has had $1.2 billion worth of Ethereum and ERC-20 tokens withdrawn in the last 24 hours compared to $540 million in deposits. CryptoQuant says FTX’s Bitcoin reserves were zero at one point.

Banks and exchanges typically don’t keep enough reserves to pay all customers their money if they withdraw all at once, which is known as a run on the bank. This can cause panic selling and leave a company insolvent relatively quickly. 

Now what 

This is reminiscent of the summer collapse of Three Arrows Capital, which brought down Celsius Network and Voyager with it. Leverage that investors didn’t know about on the balance sheet suddenly became problematic when crypto values fell and loans were called back. 

We’re not sure this is what’s happening at Alameda with the FTX Token, but given the price action and money moving out of FTX, investors are taking a cautious approach. 

It’s not clear what happens next. FTX is still one of the largest exchanges, and if it fails, the impacts on crypto could be enormous. I wouldn’t be surprised if this isn’t the end of the decline in crypto prices, although that means a buying opportunity for long-term investors, because an exchange can go bankrupt, but a token can’t.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin and Ethereum were down big on Tuesday morning appeared first on The Motley Fool Australia.

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More reading

• This one trend could send Bitcoin even higher
• Ethereum and Bitcoin price crash spells the end for these Aussie crypto ETFs
• Up 18% in a month, could it still be worth buying Ethereum at its current price?
• The Bitcoin price leapt 10% in October. Here’s why
• Why one of the smartest investors bought Bitcoin and thinks you should too

Travis Hoium has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Novonix Ltd (ASX: NVX) share price is on the move on Wednesday morning.

At the time of writing, the battery materials and technology company’s shares are up over 2% to $2.52.

Why is the Novonix share price rising?

Investors have been bidding the Novonix share price higher today after the company released an announcement.

According to the release, the company has opened its new pilot production facility in Nova Scotia, Canada, which aims to position Novonix as an industry leader in cathode technology.

Management notes that the program will be housed in a newly opened, 35,000-square-foot facility and leverage Novonix’s all-dry cathode synthesis technology to pilot its patent-pending technology for material production with the target of servicing the rapidly expanding electric vehicle (EV) and energy storage sectors.

It also highlights that the pilot scale facility will allow the company to demonstrate the feasibility of large-scale production, with the production target of up to 10 tonnes per annum.

This could be great timing. With over 50% of all new car sales predicted to be EV by fiscal 2030, according to BloombergNEF, millions of tonnes of anode and cathode material will be needed.

Novonix founder and CEO, Chris Burns, commented:

Launching our cathode pilot facility is another significant step in NOVONIX’s efforts to pioneer a North American battery supply chain and revolutionize the sector with high quality materials and more efficient production methods. NOVONIX is committed to enhancing the production of cathode material through its proprietary process while providing scalable solutions that address skyrocketing battery materials demand.

Darcy MacDougald, president of Novonix Battery Technology Solutions, added:

We’re expecting to have the pilot line operational shortly after opening. Our goal is to demonstrate our technology at scale in the first year. NOVONIX continues to innovate, and the launch of this pilot line will help us drive the shift to EV battery and energy storage forward.

The post What’s boosting the Novonix share price on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why are Novonix shares listed on the Nasdaq as well as the ASX?
• Why did the Novonix share price jump 50% in October?
• Why is the Novonix share price gaining today?
• Why is the Novonix share price tanking 5% today?
• A major shareholder sold off most of its Novonix shares last week. What’s happening?

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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