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Government says Aussie coal exports will hit record levels. Here’s which ASX 200 shares are cashing in
The value of Australia’s combined coal exports is tipped to surge to $120 billion in financial year 2023, driving the nation’s resource and energy exports to a record $450 billion — and plenty of S&P/ASX 200 Index (ASX: XJO) shares could cash in.

The findings were published in the Australian government’s latest Resources and Energy Quarterly report.

It tips the value of the nation’s thermal coal exports to surpass those of metallurgical coal during this fiscal year – reaching $62 billion and $58 billion respectively. That’s up from $46 billion and $66 billion respectively in financial year 2022.

Perhaps unsurprisingly, the S&P/ASX 200 Energy Index (ASX: XEJ) – hosting the market’s largest coal shares – is among the market’s best-performing sectors right now. It’s gaining 3.2% compared to the benchmark index’s 2.39% lift.

Aussie coal exports tipped to reach all-time high in FY23

Surging commodity prices will likely drive Aussie exports to a new record, according a report from the Department of Industry, Science, and Resources. And coal will be one of the major contributors.

Record thermal coal prices are expected to see $62 billion worth of the electricity-generating commodity exported in financial year 2023 – up from $46 billion in the previous year.

After averaging at US$333 a tonne in 2022, the thermal coal price is tipped to fall to US$125 a tonne in 2024. Though, that’s still well above historical averages.

It also faces potential boosts from the European energy crisis and possible La Niña-driven flooding in eastern Australia

An increase in thermal coal exports will likely offset the falling value of Australian metallurgical coal, otherwise known as coking coal.

The price of coking coal – mainly used to make steel – is forecast to average at nearly US$400 a tonne in 2022. After that, it’s tipped to fall amid normalising supply chains, reaching US$220 a tonne by 2024.

That means Aussie exports of the commodity are expected to fall from $66 billion in financial year 2022 to $58 billion in financial year 2023.

ASX 200 coal shares cashing in

Of course, what’s good news for coal is generally good news for ASX 200 coal shares. They’re all trading higher following the report’s release.

Shares in coal producer New Hope Corporation Ltd (ASX: NHC) are surging 5.16% right now.

Most of New Hope’s earnings come from thermal coal. Though, it’s got its eye out for opportunities in coking coal.

Meanwhile, the Whitehaven Coal Ltd (ASX: WHC) share price is up 3.61% at the time of writing. The company produces both thermal and metallurgical coal.

Finally, the share price of coal producer Coronado Global Resources Inc (ASX: CRN) is up 3.28%.

Most of the company’s business is in coking coal. The commodity represented 96% of the company’s coal revenues in the first half of 2022.

The post Government says Aussie coal exports will hit record levels. Here’s which ASX 200 shares are cashing in appeared first on The Motley Fool Australia.

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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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4 October 2022
Why did the Lake Resources share price get smashed in September?
The Lake Resources N.L. (ASX: LKE) share price may be back on form on Tuesday, but it was a very different story in September.

During the month, the lithium developer’s shares crashed a disappointing 23% lower.

What happened to the Lake Resources share price last month?

Investors were selling down the Lake Resources share price last month for a couple of reasons.

The first was the significant market volatility that occurred amid concerns that a global recession is coming.

Higher risk investments, such as lithium shares, were hit hardest. This led to many lithium shares recording particularly large declines during the month.

What else?

Also putting pressure on the Lake Resources share price was news that the company is facing an ownership dispute with its partner Lilac Solutions.

Lilac Solutions is the company providing the DLE technology that will be integral to Lake Resources’ Kachi operation.

According to the release, Lilac Solutions believes it has until the end of November to achieve certain milestones that will grant it a 25% ownership in the Kachi project.

However, Lake Resources doesn’t agree and says that these milestones needed to be delivered by the end of September to achieve an interest in the project. To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement of both Lake and Lilac or by arbitration.

This is a bit of a concern for investors as Lilac Solutions’ unproven technology has been talked up by management as being the key to making the project a success. Management previously commented on Lilac’s technology. It said:

Lake believes DLE will become the primary method of lithium extraction because it is the only practical way to ramp up lithium supply sustainably and in a way that conforms to increasing ESG scrutiny on lithium projects. However, in the lithium industry not all DLE processes are the same. This is why Lake has taken the time to identify the process that is not only most efficient but also delivers a product that represents the most socially and environmentally sustainable approach to lithium extraction through ion exchange DLE and brine managed reinjection.

The phrase: ‘don’t bite the hand that feeds you’, springs to mind here.

The post Why did the Lake Resources share price get smashed in September? 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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4 October 2022
ASX gold share surges 42% following ‘mining CEO of the year’ appointment and maiden lithium project news
The S&P/ASX 200 Materials Index (ASX: XMJ) is lifting nearly 3% today, but one ASX gold share is soaring far higher.

The Cygnus Gold Ltd (ASX: CY5) share price is soaring 42% today and is currently trading at 35.5 cents.

Let’s take a look at why this explorer is having such a good day.

Lithium project news

Cygnus Gold is exploring lithium, gold, nickel, copper and platinum. Today, the company advised it has appointed David Southam to the board.

The company has named this key appointment as it prepares for maiden drilling at the Pontax Lithium Project in James Bay, Canada.

Southam’s experience includes a three-year stint as managing director at Mincor Resources NL (ASX: MCR). He recently received “Mining CEO of the year” accolades from mining publication Mining News.

Southam will serve as non-executive director at Cygnus Gold from 1 November before taking on the managing director role from mid-February.

The Pontax lithium project is 50km away from the Allkem Ltd (ASX: AKE) James Bay lithium project.

Cygus highlighted that all holes drilled so far at Pontax have intersected with “spodumene bearing lithiumcaesium-tantalum (LCT) pegmatites”. The company plans to start a 10,000m drilling program in the upcoming quarter.

Commenting on today’s news, Cygnus chairman Ray Shorrocks said:

David’s decision to join Cygnus also speaks volumes about the potential at Pontax, where drilling has already established the presence of high-grade spodumene.

Cygnus Gold share price snapshot

The Cygnus Gold share has exploded 182% in the past year and is up 102% year to date.

For perspective, the ASX 200 Materials Index has climbed nearly 7% in the last year.

Cygnus gold has a market capitalisation of about $51 million based on the current share price.

The post ASX gold share surges 42% following ‘mining CEO of the year’ appointment and maiden lithium project news appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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4 October 2022
Leading brokers name 3 ASX shares to buy today
With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Life360 Inc (ASX: 360)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this location technology company’s shares with a buy rating and $7.50 price target. Goldman notes that Life360 is exposed to an estimated US$12 billion global total addressable market. In addition, the broker believes that Life360 is reaching a volume/pricing inflection point, with potential structural profitability tailwinds on the horizon. The Life360 share price is trading at $5.00 today.

New Hope Corporation Limited (ASX: NHC)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this coal miner’s shares to $7.20. The broker is positive on the company due to higher-than-expected coal prices. It also sees the potential Acland approval (AWL) as an under-recognised catalyst, capable of adding +70 cents per share to market valuations. The New Hope share price is fetching $6.60 on Tuesday.

Xero Limited (ASX: XRO)

Analysts at Citi have retained their buy rating and $106.80 price target on this cloud accounting platform provider’s shares. This follows the investor day event of rival Intuit. Citi highlights that the Quickbooks owner is growing subs quicker than Xero in the US. However, Xero is outperforming outside the US and particularly in the UK. Overall, it hasn’t seen anything to change its view that Xero is well-placed for strong growth. The Xero share price is trading at $73.78 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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4 October 2022
Government tips Aussie lithium exports to surge 180%. Which ASX shares are in on the action?
ASX lithium shares are in the spotlight today.

Again.

This comes following the release of the Industry Department’s latest quarterly Resources and Energy Report.

And investors in lithium stocks will likely take heart from what the report reveals.

Lithium exports to surge 180%

Lithium is a crucial element in lithium-ion batteries that power EVs.

Some 75% of the world’s consumption of lithium currently goes into rechargeable batteries. And EV sales are forecast to grow tenfold over the next decade. Remarkable growth that’s kept ASX lithium shares high on investor radars.

With Australia already claiming the title of the world’s top exporter of lithium, the Industry Department report states, “Notably, lithium exports are now forecast to rise by over 180% to $13.8 billion in 2022-23.”

This compares to $4.9 billion in 2021-2022, a figure which was just revised upwards from the previous $4.1 billion estimate.

Remarkably, lithium export earnings in 2020-21 were ‘only’ $1.1 billion. Meaning a tenfold increase in just two years. Certainly, some gusty tailwinds for ASX lithium shares.

Further ahead, Industry Department analysts expect lithium export revenues to drop slightly in 2022-23 to $12.9 billion as lithium prices ease amid more supply coming onto the market.

As for prices for the battery critical mineral, the report stated, “We expect lithium hydroxide prices to lift from US$17,370 a tonne in 2021 to US$38,575 a tonne in 2022 and US$51,510 in 2023, and moderate to US$37,650 by 2024.”

That’s the outlook for the battery-critical metal.

Now which ASX lithium shares are in on the action?

Which ASX lithium shares are in on the action?

While there is a wide range of ASX lithium shares exploring lithium, only a handful are currently producing and exporting the metal.

First up we have Mineral Resources Limited (ASX: MIN).

While Mineral Resources is also a mining services company, it has a large footprint in the lithium space. The miner’s Mt Marion operations in Western Australia are situated in the Pilbara region.

The Mineral Resources share price is up 58% over the past 12 months.

Next, we have Allkem Ltd (ASX: AKE), formerly known as Orocobre.

Allkem’s projects are primarily located in Argentina. It supplies lithium carbonate to a variety of industrial and technical sectors. The miner is among the lowest-cost lithium producers in the world and aims to ramp up production by three times its current levels by 2026.

The Allkem share price is up 73% in 12 months.

The third ASX lithium share in the production stage is Pilbara Minerals Ltd (ASX: PLS).

Pilbara’s Pilgangoora Lithium-Tantalum Project is also located in the Pilbara region of Western Australia.

Pilgangoora is one of the largest hard-rock lithium-tantalum deposits in the world. Pilbara forecasts spodumene concentrate capacity at Pilgangoora will increase from 560,000 to 580,000 dry metric tonnes (dmt) this year.

The Pilbara share price is up 158% over the past full year.

In case you’re wondering, Core Lithium Ltd (ASX: CXO) isn’t officially on this list yet. That’s because the miner’s Finniss Lithium Project, located in the Northern Territory in proximity to Darwin, hasn’t produced its first lithium yet. Though that production is now forecast to be just months away.

The Core Lithium share price has rocketed 169% in 12 months.

The post Government tips Aussie lithium exports to surge 180%. Which ASX shares are in on the action? appeared first on The Motley Fool Australia.

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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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4 October 2022
Why Allkem, Evolution, Paradigm, and Sayona Mining shares are zooming higher
The S&P/ASX 200 Index (ASX: XJO) is back on form on Tuesday and racing higher. In afternoon trade, the benchmark index is up 2.5% to 6,619.2 points.

Four ASX shares that have climbed more than most today are listed below. Here’s why they are zooming higher:

Allkem Ltd (ASX: AKE)

The Allkem share price has rebounded 7% to $14.14. Investors have returned to lithium shares again after investor sentiment improved materially following a very strong night of trade on Wall Street. This has helped drive the materials sector an impressive 3.35% higher on Tuesday.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is up 4% to $2.09. This follows a strong rebound from the gold price overnight after the US dollar and bond yields softened. In addition, this morning Evolution announced that it has secured a competitive, long-term power supply agreement for its Cowal Gold Operation under a new eight-year partnership with AGL Energy Limited (ASX: AGL).

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The Paradigm share price has jumped 19% to $1.50. The catalyst for this has been the release of positive results from a clinical trial for osteoarthritis (OA). According to the release, several OA biomarkers analysed were observed to favourably change over time in patients treated with iPPS compared to a placebo. Management highlights that there were 303.1 million cases of hip and knee osteoarthritis worldwide in 2017, giving it a significant market opportunity.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is up 12% to 25.3 cents. Investors have been buying this lithium developer’s shares following a rebound in the lithium industry and the release of a promising announcement. The latter reveals that Sayona is looking at the potential production of lithium carbonate at the North American Lithium (NAL) operation. This lithium carbonate would be made from spodumene produced at NAL.

The post Why Allkem, Evolution, Paradigm, and Sayona Mining shares are zooming higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem 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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4 October 2022
This FAANG stock is down 35%. Buying it could be a genius move
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.

This market is taking no prisoners. Whether you own shares of a newly public company or one of the world’s most dominant technology enterprises like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), it’s been a rough year. Specifically, Alphabet is down 35% from its high, its largest decline since the Great Recession (2007-2008).

But it’s not just a market issue. Companies that advertise to make money, like Alphabet, are pointing out economic turbulence on the horizon and bracing for a more challenging operating environment. It can sound cliched, but leaning into the fear and buying Alphabet could be a decision you’re bragging to your friends about when things eventually turn around. Here is why.

Advertising is becoming treacherous waters

Alphabet makes most of its money by selling ads on its two most popular internet platforms, Google Search and YouTube. Traffic is a vital part of that. The more eyeballs you have, the more you can charge for your ads. However, the total money companies spend on ads, which you can think of as a pie, can fluctuate in size. Companies might advertise more when the economy is doing well, and potential customers are spending more. On the other hand, ad budgets might shrink when the economy is doing poorly, and people aren’t spending as much.

The US economy has already been slowing down. Gross domestic product (GDP) was negative over the past two quarters. Some view it as a recession already, but the worst might not be over. The Federal Open Markets Committee (FOMC), which sets the federal funds rate, the benchmark interest rate that determines what the rest of the economy can borrow at, is rapidly increasing rates to combat high inflation.

U.S. Inflation Rate data by YCharts

This affects the economy. You may notice that mortgage rates at your local bank have soared. Companies that borrow money must now pay higher interest on their loans. Rising rates make borrowing more expensive and reduce how much people and businesses spend. That lower economic activity means that advertising budgets are likely coming down. That pie piece that represents advertising spend may get smaller.

Broken stock, not broken company

You can see this play out in Alphabet’s revenue growth over the past year, which has dramatically decelerated. Going from 40% growth year over year to 12% growth in four quarters seems like hitting the brakes pretty hard. But it’s essential to understand the context behind this and ask: Is this because Alphabet isn’t getting the eyeballs to charge for its ads, or is what companies spend on ads shrinking?

GOOG Revenue (Quarterly YoY Growth) data by YCharts

Based on the economic circumstances above, the pie is getting smaller. You can check advertising companies’ landscapes and see similar growth collapses. Roku, for example, guided for 35% revenue growth for the entire 2022 year in the first quarter. But it completely withdrew its full-year revenue growth guidance just one quarter later due to economic concerns.

On the other hand, Alphabet’s top two platforms (Google and YouTube) remain top traffic getters. A report for August from Semrush named Google and YouTube as the two top sites on the internet, garnering more than 23 billion visits in August. Facebook.com was third at just 5.5 billion visits, which shows just how large the gap is between Alphabet and the rest of the field. Investors can be reasonably sure that Alphabet’s ad revenue will recover once the economy improves because its websites remain the dominant internet destinations where brands prioritize their ad budgets.

Enjoy the sale

The stock’s decline remains a buying opportunity for long-term investors. Alphabet now trades at its lowest price-to-earnings (P/E) ratio in a decade and is well below its median P/E of 27. From a price-to-sales (P/S) standpoint, the stock has only been less expensive during the COVID-19 crash in 2020.

GOOG PE Ratio data by YCharts

Sure, growth may slow temporarily in this cruddy economic environment. Still, Alphabet remains a dominant business with a fortress-like balance sheet that includes $125 billion in cash against just $12 billion in debt. It seems this drop is market- and economy-driven and not due to Alphabet’s fundamentals, making this a possible buy-the-dip moment for patient investors.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post This FAANG stock is down 35%. Buying it could be a genius move appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Justin Pope has positions in Roku. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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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4 October 2022
Why Cronos Australia, Mesoblast, Sims, and WAM Research are dropping
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and raced higher. At the time of writing, the benchmark index is up 2.45% to 6,614.4 points.

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

Cronos Australia Ltd (ASX: CAU)

The Cronos Australia share price is down 5% to 68.5 cents. This is despite there being no news out of the medicinal cannabis company. However, it is worth noting that even after today’s decline, the Cronos Australia share price is up 25% since this time last month. This could mean that profit taking is weighing on its shares today.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down over 1% to 83 cents. This also appears to have been driven by profit taking from investors following a strong showing on Monday. The biotech company’s shares jumped yesterday following the release of a promising update.

Sims Ltd (ASX: SGM)

The Sims share price is down over 1% to $13.05. This has been driven by the scrap metal company’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving Sims’ partially franked 50 cents per share dividend later this month on 19 October.

WAM Research Limited (ASX: WAX)

The WAM Research share price is down 6% to $1.34. This has also been driven largely by the fund manager’s shares going ex-dividend this morning. WAM Research will be paying eligible shareholders a fully franked 5 cents per share dividend in a couple of weeks. That payment is scheduled to hit bank accounts on 17 October.

The post Why Cronos Australia, Mesoblast, Sims, and WAM Research are dropping 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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4 October 2022
Was the Woodside share price a safe haven in September?
The S&P/ASX 200 Index (ASX: XJO) fell by 7.3% in September, which was one of the most painful months for ASX shares in the last few years. But, was the Woodside Energy Group Ltd (ASX: WDS) share price able to provide some relief against this sell-off?

It might be reasonable to think that Woodside may be an uncorrelated performer considering it has already beaten the ASX 200 by such a wide margin in 2022 to date – Woodside is up 45% this year while the ASX 200 is down 13%.

But, just because it’s up this year doesn’t mean it will do well every month.

Woodside share price performance in September

Last month saw Woodside shares drop by approximately 7.5%. This was actually slightly worse than the ASX 200 which dropped by 7.3% over the month.

As one of ASX’s largest resource businesses, its short-term performance is highly correlated to the commodities that it produces. As a major oil and gas business, how energy prices perform can be very important for investor sentiment.

The oil price climbed in the first half of 2022 as markets reacted to the knock-on effects of the Russian invasion of Ukraine and how the West decided to try to isolate Russia.

However, since June, the oil price has actually been trending downhill. Woodside can’t generate quite as much profit as it could when the oil price was where it was in the middle of the year.

What’s next for energy prices?

It’s hard to say what energy prices will do next. On the one hand, the northern hemisphere is heading into winter which could mean further volatility (and increases?) for energy sources like coal and gas.

But, there is also a growing wariness about the potential for a global recession. This could mean less demand for oil, which could partly explain why the oil price has been going lower and may also be the reason for the short-term weakness of the Woodside share price.

But, one broker gave out some optimistic thoughts about the business in September. Citi upgraded its rating to a buy on Woodside, with a price target of $36.50. That implies a possible upside of more than 10%.

The reason for the optimism was an increase in expectations for global gas prices. It thinks Woodside can do well through LNG sales to the market.

At the current Woodside share price, Citi thinks it’s valued at 7 times FY23’s estimated earnings with a projected grossed-up dividend yield of 14.2%.

The post Was the Woodside share price a safe haven in September? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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4 October 2022
Why is the Pilbara Minerals share price surging 7% on Tuesday?
The Pilbara Minerals Ltd (ASX: PLS) share price is taking off on Tuesday. Its gain sees it coming in as one of the S&P/ASX 200 Index (ASX: XJO)’s top performers.

The ASX lithium stock has lifted 6.81% right now to trade at $4.86.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is surging 2.75% to lead the broader ASX 200’s 2.26% gain.

So, what wind might be lifting the wings of the ASX 200 lithium favourite today? Well, the federal government has revealed its outlook for the commodity, and it’s remarkably bullish.

What’s going right for the Pilbara Minerals share price?

The Pilbara Minerals share price is launching amid news Australia is predicted to pocket $13.8 billion from lithium exports in 2022-23. That marks a whopping 180% increase on the prior year’s near-$5 billion impact.

The Australian Government’s latest quarterly Resources and Energy report forecasts spodumene and lithium hydroxide prices to rise from US$598 and US$17,370 a tonne respectively in 2021 to US$2,730 and US$38,575 a tonne in 2022.

They’re predicted to peak at US$3,280 and US$51,510 a tonne in 2023.

The value of Australia’s lithium exports is then forecast to drop to $12.9 billion in 2023-24 as the commodities’ prices ease to US$2,490 and US$37,650 per tonne in 2024.

Australia is the world’s largest lithium exporter, responsible for 46% of global lithium production in 2020.

And the nation is expecting its production capacity to grow at an annual average of more than 20%. That could see Aussie lithium production rise from 247,000 tonnes of lithium carbonate equivalent in 2020-21 to 469,000 tonnes in 2023-24.

More positive sentiment for the lithium sector is, of course, likely good news for the Pilbara Minerals share price.

It’s also likely helping boost those of fellow ASX 200 lithium stocks Allkem Ltd (ASX: AKE), Mineral Resources Limited (ASX: MIN), and Core Lithium Ltd (ASX: CXO).

They’re gaining 7.1%, 2.9%, and 6.6%, respectively, right now.

The post Why is the Pilbara Minerals share price surging 7% on Tuesday? appeared first on The Motley Fool Australia.

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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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4 October 2022