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The A2 Milk Company Ltd (ASX: A2M) share price has started the week positively.

In afternoon trade, the infant formula company’s shares are up 1.5% to $5.50.

This means the A2 Milk share price is now up 5% since this time last week.

Why is the A2 Milk share price rising?

Investors have been buying the company’s shares since last week’s announcement of US FDA approval to import its infant formula into the enormous market.

According to the announcement, the FDA has approved the import, sale, and distribution of a2 Platinum infant formula products (Stages 1 and 2) from New Zealand through to 3 January 2023. This can be extended through to October 2025 at the FDA’s discretion.

A2 Milk was granted approval after changing its product design to meet the US FDA’s requirements. This will see the products manufactured with different scoops, mixing instructions, and labelling.

Broker reaction

The team at Bell Potter reacted positively to the news. In response, the broker retained its buy rating and lifted its price target slightly to $6.80. This implies potential upside of almost 24% for investors over the next 12 months.

Bell Potter was pleased with the news. Though, it acknowledges that that the gross margin on these products is expected to be lower. As a result, it has only modestly increased its earnings estimates for the coming years.

A2M expects US gross margins to be lower than average, distribution costs to be higher (initially air freighted), some rework costs, and incremental marketing and trade investment to enter the category. The prevalence of slotting fees, tariffs (once a certain import quota has been met) and higher marketing (as a proportion of sales) in our view are likely to result in more modest margins than those generated in Australian IMF channels.

We have adjusted our forecasts to incorporate modest sales volumes in the US IMF category through to FY25e (assuming sustained market access) and also updated for 1H23 NZD movements. The net effect is NPAT upgrades of +2% in FY23e, +1% in FY24e and +3% in FY25e.

Nevertheless, the broker believes the US business could eventually become a meaningful contributor to its earnings. It concludes:

We view the initial entry into the US IMF category as incrementally positive, though note the scale of A2M’s existing US fresh distribution footprint implies this could be a more meaningful contributor should sales velocities approach levels seen in other markets.

The post Broker tips A2 Milk share price to jump 24% appeared first on The Motley Fool Australia.

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More reading

• Why did the A2 Milk share price go backwards in October?
• Brokers name 3 ASX shares to buy today
• Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, New Hope, Perpetual, and Talga shares are charging higher

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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The Novatti Group Ltd (ASX: NOV) share price is lighting up today after the ASX fintech share revealed it’s been granted a restricted banking license.

The Novatti share price emerged from a trading halt to rocket 54% higher this morning. At the time of writing, Novatti shares are trading at 28 cents apiece, up 49%, giving the company a market capitalisation of $94.2 million.

Novatti granted its banking wish

The ASX fintech share has been trying to get its hands on a banking license for some time now. It first submitted an application to the Australian Prudential Regulation Authority (APRA) in November 2019.

This morning, Novatti revealed that this license finally has been granted after years of waiting.

Specifically, Novatti’s dedicated banking subsidiary, International Bank of Australia, has been granted a restricted authorised deposit-taking institution (RADI) license. This license allows holders to conduct limited business banking in Australia before meeting the requirements of the full prudential framework. 

Part of this restriction phase comes with the expectation that a RADI will progress to an authorised deposit-taking institution (ADI) license. As a result, the restricted phase is for a maximum of two years. After that, the RADI will either progress to an ADI license or the holder will exit banking.

Other ASX shares currently holding an ADI license include Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), AMP Ltd (ASX: AMP), and Tyro Payments Ltd (ASX: TYR).

Novatti holds a 91% interest in International Bank of Australia and will tip in a further $5 million as part of a series A funding round to launch the banking business.

What does Novatti have planned for banking?

Novatti’s managing director, Peter Cook, sees banking services as significant across card issuing, merchant acquiring, billing, and cross-border payments.

It underpins the infrastructure and capability of Novatti’s core payments business. So, in turn, it brings the opportunity to increase margins.

What’s more, Cook noted that International Bank of Australia has the advantage of leveraging Novatti’s existing payments ecosystem and global footprint to help win customers quickly.

International Bank of Australia has its sights set on fintech customers, believing this market segment has been underserved by traditional banks.

Guy Carvalho, CEO of International Bank of Australia, commented:

For a long time, we have known that traditional banks have not been able to keep up with the requirements of the disruptive business models of fintechs, particularly those offering alternative ways to make or accept payments, domestically or internationally. IBOA will overcome this challenge, leveraging technology to enable the seamless end-to-end movement of money.

International Bank of Australia also sees significant potential in the underserved migrant sector. Commenting on the opportunity, Carvalho said:

The bank will have the advantage of being able to leverage Novatti’s existing payments ecosystem and global operating base to reach potential customers overseas and enable them to set-up bank accounts and transact before they even set foot in Australia.

In its investor presentation, the company noted it would be the first bank in Australia to offer a service of this kind.

As an example, with a borderless bank account, it says customers would be able to pay for their university fees and apartment bond instantly before arriving in Australia, avoiding costly foreign exchange and international transaction fees.

Novatti share price snapshot

While ultra-competitive, payments and banking are big business, so it’s no surprise to see the Novatti share price race higher today.

Today’s surge has almost erased all of Novatti’s share price losses this year. At 28 cents, Novatti shares are now sitting just 5% below where they ended 2021. But they’re still far from the lofty heights achieved in mid-2021 when shares catapulted to around 80 cents.

In FY22, Novatti doubled its sales revenue to $32.5 million but extended its net loss to $16.6 million.

The post This ASX fintech just got a banking license, and its share price surged 54% appeared first on The Motley Fool Australia.

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More reading

• Own CSL shares? Here’s what brokers are saying about its R&D pipeline
• Why are ASX 200 mining shares bolting out the gates on Monday?
• Why is the Zip share price dropping today?
• 3 ASX All Ordinaries shares hitting new multi-year highs today
• Better big tech stock: Apple vs. Alphabet

Motley Fool contributor Cathryn Goh has positions in Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Macquarie Group Limited and Tyro Payments. 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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CSL Limited (ASX: CSL) shares are pushing higher on Monday.

At the time of writing, the biotherapeutics giant’s shares are up 0.5% to $276.85.

Why are CSL shares rising?

CSL shares are rising on Monday after brokers responded positively to the company’s research and development (R&D) update.

One of those brokers was Morgans, which has responded by retaining its add rating and $312.20 price target on the company’s shares.

Morgans was pleased with the update and notes that a decent proportion of the pipeline has the potential to become standard of care treatments. It commented:

Internal efforts and the Vifor acquisition have seen the R&D pipeline grow c70% with the majority late-stage programs. Management is optimistic of the future “conservatively” estimating at least 10 compounds (c20% of the total pipeline) having the potential to be standard of care for the targeted patient group.

Key catalysts include: potential approval and launch of the first-ever hemophilia B gene therapy EtranaDez; Phase 3 data for anti-FXIIa antibody garadacimab in HAE; and Phase 2 recruitment completion of CSL112 for reducing secondary heart attacks.

What else are brokers saying?

The team at Citi was equally positive and has retained its buy rating and $340.00 price target. Like Morgans, the broker has highlighted the CSL112 therapy as a key highlight. It stated:

CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3. Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.

Finally, Goldman Sachs responded by maintaining its neutral rating and $291.00 price target. Its analysts note that the garadacimab (CSL312) product has the potential to be a “pipeline in a product” thanks to multiple end use possibilities. The broker explained:

CSL312 is a humanised anti-factor XIIa monoclonal antibody in development for multiple indications including as a subcutaneous therapy for HAE, with the potential for administration every 4 weeks (vs. every 2-3 days for Haegarda). Given its early position in the coagulation cascade, there is also potential application in various other disorders (including fibrosis, cardiovascular and inflammatory indications).

The post Own CSL shares? Here’s what brokers are saying about its R&D pipeline appeared first on The Motley Fool Australia.

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More reading

• Why I’m seriously considering investing $10,000 in these ASX 200 shares
• 5 things to watch on the ASX 200 on Friday
• What’s happening with the CSL share price today?
• Here’s why brokers rate these blue chip ASX 200 shares as buys
• Top brokers name 3 ASX shares to buy 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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) mining shares are handily beating the benchmark on Monday.

In early afternoon trade, the ASX 200 is up 0.6%.

As for the big-name mining stocks:

• Rio Tinto Limited (ASX: RIO) shares are up 3.1%
• BHP Group Ltd (ASX: BHP) shares are up 4.3%
• Fortescue Metals Group Limited (ASX: FMG) shares are up 3.9%

Here’s what investors are considering on Monday.

What’s boosting ASX 200 mining shares today?

Rio Tinto, BHP and Fortescue all look to be enjoying some healthy tailwinds from a big leg up in the iron ore price. The ASX 200 mining shares all derive at least half of their annual revenue from iron ore.

The industrial metal is up 5% today to US$88 per tonne.

The lift came amid renewed speculations that China may move to ease its COVID-zero policies. Demand for the steel-making metal from China, the world’s number two economy and most populous nation, has been hit as rolling lockdowns in the country continue to hamper its industry and economic growth.

The ASX 200 mining shares leapt higher on Friday on their international listings as speculations on China’s virus control policies swirled. The BHP share price gained 9.8% on the NYSE on Friday while Rio Tinto shares closed up 10%.

Commenting on those moves, Ben Cleary, global natural resources portfolio manager at Tribeca Investment Partners said (courtesy of The Australian Financial Review):

That move on Friday was a big move, not a move we’ve seen for more than a decade. [On China] there seems to be a different headline every day, but the reality is it’ll reopen at some stage, and they’re seemingly in the early stages of making [Western vaccines] available for certain groups, including expats.

Cleary looks to have nailed that analysis on several fronts, including the different headlines every day out of China.

Over the weekend, Chinese officials reiterated their commitment to the COVID-zero policies. However, that doesn’t look to be dampening ASX 200 investor enthusiasm for the big mining shares today.

How have BHP, Fortescue and Rio Tinto shares been tracking?

All three of the ASX 200 mining shares have outpaced the benchmark over the past 12 months.

While the ASX 200 has lost 7% over the full year, BHP shares have gained 10%, Rio shares have gained 7% and the Fortescue share price is up 14%.

The post Why are ASX 200 mining shares bolting out the gates on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Rio Tinto share price having such a stellar start to the week?
• Looking to buy Fortescue shares? Here are the questions I asked before jumping in
• Why is the BHP share price charging 4% higher?
• Hotels, hurt feelings, and HR hassles, but Fortescue’s biggest shareholder still got richer this week
• Why did the Rio Tinto share price underperform by over 10% in October?

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

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The Zip Co Ltd (ASX: ZIP) share price has started the week in the red.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down 1.5% to 65 cents.

Why is the Zip share price falling?

The Zip share price is under pressure today despite there being no news out of the BNPL provider.

However, it is worth noting that both the financials and tech sectors are under pressure today, which could be weighing on its shares.

For example, the S&P/ASX 200 Financials index is down 1.2% this afternoon and the S&P/ASX All technology Index is down 0.9%.

Anything else?

It’s possible that some commentary from Westpac Banking Corp (ASX: WBC) CEO Peter King could be putting pressure on the Zip share price.

King spoke cautiously about the economic environment and consumer spending. He said:

We are not yet seeing increases in hardship or stressed assets. Many customers built up savings during the past two years and 68% remain ahead on their mortgage repayments. However, it is inevitable that the impact of higher rates will be felt, including when borrowers’ low fixed-rate loans are rolled over.

In Australia, consumer spending is resilient but as higher rates bite, we expect the heat to come out of the economy and inflation pressures to ease. Small business is one sector we are watching closely as consumption slows. Housing prices have fallen in recent months and this will continue into 2023. Credit growth is expected to ease. GDP growth will slow and unemployment will rise. These will be necessary outcomes if we are to lower inflation.

Whether this impacts spending on Zip’s platform, only time will tell.

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

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More reading

• Zip share price slides despite CEO pinpointing profit timeline
• What could this proposed regulation mean for Zip shares?
• Why is the Zip share price up 5% on Tuesday?
• Why has the Zip share price dumped 12% in October?
• Could this represent another nail in the Zip share price coffin?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The All Ordinaries Index (ASX: XAO) is back in the green today, driven high by three shares posting new multi-year highs. Right now, the benchmark index is up 0.3% at 7,110.5 points.

Meanwhile, these ASX All Ordinaries shares have gained as much as 6.9% today to hit their highest points in years.

So, what’s bolstering them to long-forgotten, or never-before-seen, heights? Keep reading to find out.

3 ASX All Ordinaries shares posting multi-year highs

First off the rank is the share price of ASX All Ordinaries gold developer Tietto Minerals Ltd (ASX: TIE). The stock launched to a new all-time high of 77 cents earlier today, marking a 6.9% gain.

Interestingly, there’s been no news from the miner this month. Additionally, the market had no reaction to its latest quarterly report, released in late October.

Though, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is gaining 3.9% right now and gold futures lifted 2.8% on Friday to reach US$1,676.60 an ounce.

The Stanmore Resources Ltd (ASX: SMR) share price also soared to a new all-time high today, reaching $3.21 in early trade despite the company’s silence. Sadly, it’s since plunged into the red.

The ASX All Ordinaries coal share has had a ripper ride through 2022 so far, gaining more than 200% year to date.

Finally, the Syrah Resources Ltd (ASX: SYR) share price took off this morning, gaining 3.9% to reach $2.65 – its highest point since 2018.

Once again, there’s been no news from the graphite and battery anode developer today.

Though, both it and Tietto Minerals were among the best performing ASX All Ordinaries resources shares in October.

The post 3 ASX All Ordinaries shares hitting new multi-year highs today appeared first on The Motley Fool Australia.

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More reading

• Top 3 rising ASX resources shares in October
• Why has the Paladin Energy share price surged 11% in a month?
• Up 30% in a month, the ASX coal share that still ‘seems too cheap’: expert
• 2 ASX companies producing minerals the whole world wants: expert
• 5 ASX shares that have crushed the market this year

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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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.

Shares of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved in opposite directions after their latest earnings reports. Apple’s stock jumped nearly 8% on Oct. 28 after it soundly beat Wall Street’s expectations, but Alphabet’s stock tumbled 9% on Oct. 26 after it broadly missed analysts’ expectations on both the top and bottom lines.

Apple’s stock has still declined 12% this year as of this writing, but Alphabet fared much worse with a 34% drop. Let’s see why Apple outperformed Alphabet by such a wide margin and if it will remain the better bear market buy.  

The key differences between Apple and Alphabet

Apple generated 79% of its revenue in its latest quarter by selling iPhones, iPads, Macs, and other hardware products and accessories. The remaining 21% came from its Services business, which houses its App Store and subscription-based services. It ended fiscal 2022 (which ended in September) with over 900 million subscribers across all of its services.

Alphabet generated 79% of its revenue in its latest quarter from Google’s advertising business, which houses the ads from its core search engine, its advertising network, and YouTube. The rest of Alphabet’s revenue came from Google’s Cloud platform (10% of its revenues), its subscription-based services, hardware products, and other smaller businesses.

Apple’s hardware business faced supply chain constraints throughout the first nine months of fiscal 2022, but that pressure eased in the fourth quarter. It was also affected by intermittent COVID-19 lockdowns in China, but its sales in the Greater China area (19% of its fiscal 2022 revenue) still increased nearly 9% for the full year.  

Alphabet’s main challenge is the slowdown of the digital advertising market. Its ad sales had recovered quickly from the pandemic in 2021, but inflation, rising rates, and other macro headwinds all caused companies to buy fewer ads this year. YouTube, which suffered its first year-over-year revenue decline last quarter, also struggled to keep pace with ByteDance’s TikTok in the short video market. Google’s Cloud business continued to grow, but it couldn’t fully offset its slower ad sales.

Which tech giant is growing faster?

Apple’s revenue rose 33% to $365.8 billion in fiscal 2021, driven by robust sales of the iPhone 12 (its first family of 5G devices), while its EPS surged 71%. Its growth cooled off in fiscal 2022 as it lapped those 5G upgrades and it faced persistent supply chain headwinds, but its revenue still increased 8% to $394.3 billion as its EPS rose 9%. Analysts expect its revenue and earnings to grow 4% and 5%, respectively, this year.

Those growth rates might not seem impressive, but they don’t factor in any new devices — including its long-rumored AR (augmented reality) headsets — or services that Apple might launch in 2023. Apple ended fiscal 2022 with $169 billion in cash and marketable securities, so it could still easily expand into new markets with big investments and acquisitions.  

Alphabet’s revenue rose 41% to $257.6 billion in 2021 as its advertising business posted a strong post-pandemic recovery. Its EPS also increased a whopping 91%. But in the first nine months of 2022, its revenue only grew 13% year over year to $206.8 billion (and decelerated throughout all three quarters) as its EPS declined 14%. Analysts expect its revenue to rise 10% this year but for its earnings to decrease 15%.

That slowdown can be entirely attributed to the market’s softening demand for digital ads. Its overseas revenues are also being gobbled up by a strong dollar, which could continue to strengthen as interest rates continue to rise. Nevertheless, analysts expect Alphabet’s revenue and earnings to grow 9% and 14%, respectively, as some of those headwinds dissipate.

Alphabet ended the third quarter with $22 billion in cash and equivalents, which also gives it ample room for fresh investments and acquisitions. But for now, Alphabet plans to rein in its spending until its core advertising business recovers.

The valuations and verdict

Apple’s stock outperformed Alphabet’s this year because its core business seemed more resistant to the macro headwinds. But at 24 times forward earnings, Apple’s stock looks a bit pricey relative to its near-term growth. Alphabet trades at just 17 times forward earnings, but that lower valuation suggests that investors aren’t too optimistic about its future. 

I own both of these stocks, and I think they’re still great long-term investments. But if I had to buy more shares of one of these stocks right now, I’d pick Apple instead of Alphabet because its near-term growth is more predictable, it’s better insulated from the macroeconomic headwinds, and it’s widely expected to roll out new products and services — which the market probably hasn’t fully priced in yet — in 2023 and beyond. Alphabet’s stock might seem cheaper, but it probably won’t command a higher valuation until the broader digital advertising market recovers. 

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

The post Better big tech stock: Apple vs. Alphabet appeared first on The Motley Fool Australia.

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More reading

• Is Apple stock a buy now?
• Does the Vanguard International Shares ETF contain ‘good’ quality companies?
• Why Alphabet’s earnings disappointment is no reason to panic
• Apple’s latest price changes tell investors a lot about the future of the company
• Better cloud computing stock: IBM vs. Alphabet

Leo Sun has positions in Alphabet (A shares) and Apple. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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 Woodside Energy Group Ltd (ASX: WDS) share price has started the week in a positive fashion.

At the time of writing, the energy producer’s shares are up over 2% to $39.04.

Why is the Woodside share price pushing higher?

Investors have been bidding the Woodside share price higher today after oil prices surged higher on Friday night.

According to Bloomberg, the WTI crude oil price was up 5% to US$92.61 a barrel and the Brent crude oil price charged 4.1% higher to US$98.57 a barrel.

Traders were buying oil amid speculation that China could soon scrap its COVID zero policy. This sparked hopes that Chinese economic growth could get a big boost and put a rocket under most commodity prices.

Why aren’t its shares rising more?

Unfortunately, the above speculation lasted little more than a day, with Chinese authorities reiterating that its policy is here to stay at the weekend.

This has led to oil prices pulling back on Monday during Asian trade. At the time of writing, the WTI crude oil price is down 1.6% to US$91.16 a barrel and the Brent crude oil price is down 1.2% to US$97.41 a barrel.

Are its shares buys?

The general consensus right now is that the Woodside share price is fully valued.

For example, Macquarie has a neutral rating and $33.10 price target and Morgans has a hold rating and $36.90 price target and . Morgans commented:

WDS is a high quality global-scale business, but recent share price strength, which has performed increasingly in excess of the oil price, has left the company appearing close to fair value. We maintain a Hold rating with a A$36.90 Target Price.

Even Citi, which has a buy rating, has a price target below the current Woodside share price at $38.80.

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

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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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ASX lithium shares have been high on investor radars this year.

And looking at the Trek Metals Ltd (ASX: TKM) share price action today, you can understand why.

Shares in the lithium stock leapt 50% higher in early trade and as we head into the lunch hour remain up a heady 40.6% trading at 9 cents apiece.

Prices for the battery-critical mineral are trading at or near all-time highs amid booming global EV growth. And investors are bidding up the ASX lithium share after it exited Friday’s trading halt this morning and released an update reporting promising lithium exploration results.

What did Trek Metals report?

The Trek Metals share price is rocketing on the report that it has confirmed significant lithium potential at its Tambourah Project in Western Australia.

The junior explorer reported that laboratory assays from rock chip samples returned results of up to 3.07% Li2O. The samples came from multiple recently identified spodumene-bearing pegmatite dykes.

Commenting on the results sending the ASX lithium share soaring today, Trek Metals CEO Derek Marshall said:

Confirming very high-grade lithium at surface in multiple spodumene-bearing pegmatite dykes is about as good as it gets for this stage of exploration, highlighting the enormous prospectivity of the mineralised system at Tambourah.

The company noted that the Tambourah Project is under-explored for lithium and has never been drill tested.

“We have ticked another major box towards making a greenfields lithium discovery,” Marshall said.

As for the next steps for the ASX lithium share, Marshall added:

We are looking forward to advancing the project to the next stage with the definition of drill targets and progressing agreements and approvals required to get a rig turning as soon as practicable.

How has this ASX lithium share fared in 2022?

The Trek Metals share price has seen some significant swings this calendar year. Despite soaring higher today, the ASX lithium share remains down 10% in 2022.

That’s right in line with the 10% year-to-date loss posted by the All Ordinaries Index (ASX: XAO).

The post Guess which ASX lithium share just rocketed 50% on a new discovery appeared first on The Motley Fool Australia.

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• Why is the Rio Tinto share price having such a stellar start to the week?
• 3 reasons why I’d buy ASX shares now and hold them forever
• Why is the Westpac share price dropping 4% today?
• Arafura share price rockets 10% on Hyundai and Kia rare earths deal
• Why is this newly minted ASX 200 share rocketing 10% on Monday?

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

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It’s been a pretty decent start to the week for ASX shares and the S&P/ASX 200 Index (ASX: XJO) so far today. At the time of writing, the ASX 200 has gained a healthy 0.45% to back over 6,920 points. But the Rio Tinto Limited (ASX: RIO) share price is doing even better than that.

Rio shares are up pleasing 2.82% so far today to $95.42 each, a gain worth several-fold more of what the broader markets have delivered. So what’s going on with Rio shares that have gotten investors so excited this Monday?

Why is the Rio Tinto share price shooting the lights out today?

Well, the first thing to note is that it’s not just Rio Tinto that is enjoying some time in the sun today. Most ASX mining shares have also risen strongly. The BHP Group Ltd (ASX: BHP) share price is up more than 4% today, while Woodside Energy Group Ltd (ASX: WDS) is up 2.2%, and Newcrest Mining Ltd (ASX: NCM) shares have gained 3.3%.

This follows a strong rally in commodity prices over the weekend. As my Fool colleague covered this morning, WTI crude rose 5% to US$92.1 per barrel, while Brent crude lifted 4.1% to US$98.57. Gold also rose 2.8% to US$1,676.60 per ounce. Iron ore, Rio Tinto’s primary commodity, also performed strongly. It rose by 4.78% to US$87.30 per tonne.

This might have had something to do with speculation that China could be about to alter its growth-sapping zero-COVID policy.

Miners like Rio tend to rise and fall on the prices of the commodities that they produce. So it’s no surprise that most ASX resources shares are reacting so well to these higher prices during today’s ASX session. And with iron ore rising close to 5%, there was little chance that the Rio Tinto share price wouldn’t get an invite to the party.

Even so, Rio Tinto shares remain down by 4.44% over 2022 thus far. At the current Rio share price, this ASX 200 mining giant has a market capitalisation of $34.44 billion, with a trailing dividend yield of 10.1%

The post Why is the Rio Tinto share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

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More reading

• Why did the Rio Tinto share price underperform by over 10% in October?
• Why is the Rio Tinto share price faring worse than the ASX 200 today?
• What’s the forecast for the iron ore price right now?
• I think right now is the time to buy these 2 ASX dividend shares
• Why Atlantic Lithium, Coronado Global, Lake Resources, and Rio Tinto are charging higher

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining 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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