IAG is an important company in the Australian economy. Its businesses insure various aspects of Aussie life across the brands NRMA Insurance, CGU, WFI, ROLLiN', AMI, State, NZI, and Lumley.

Late last month, experts at Citi ran the ruler over the insurance giant and provided some insightful commentary regarding what we may see from the business.

Commentary on IAG shares

According to The Australian, Citi analysts think the upcoming results from both IAG and Suncorp Group Ltd (ASX: SUN) will be "difficult to mask". Their results are expected to be driven by perils losses, and Citi also warned that regulatory risks for general insurers "could be rekindled".

While Citi analyst Julian Braganza believes that regulatory risks remain, he did advise that they could be manageable. He further commented that the focus on insurers had "somewhat reduced" amid a reduction of price rises.

Pleasingly for owners of IAG shares, the Citi analyst believes both IAG and Suncorp are enjoying favourable underlying profit margin increases for their insurance operations, with premium increases in home and motor policies rising faster than overall inflation.

However, out of the two insurance giants, Braganza believes Suncorp is more likely to be the winner on growth metrics because of its "more competitive pricing", which is likely to help it achieve growth at the top end of its guidance range of between 10% to 12%.

The Citi analyst suggests that both Suncorp and IAG can win from a soft summer of weather in both Australia and New Zealand. The recent storms in Sydney are expected to be "manageable".

Both Suncorp and IAG are expected by Citi to deliver a capital return for investors. Owners of IAG shares could benefit from the company unwinding provisions, while Suncorp is expected to deliver the cash from the sale of Suncorp Bank to ANZ Group Holdings Ltd (ASX: ANZ).

Price target

A price target is the price a broker thinks a company's share price will be in 12 months from the time of the investment call.

Citi has a price target of $8.10 on IAG, which was raised from $8.05. That means the broker is suggesting the IAG share price could fall by around 8% from where it is right now.

The post Own IAG shares? Here's what to look out for in the upcoming HY25 report appeared first on The Motley Fool Australia.

As reported in The Australian, four ASX All Ords shares have just received broker upgrades.

In addition, the experts are forecasting between 10% and almost 30% share price growth for these companies over the next 12 months.

Let's take a look.

Buy 'em! 4 ASX All Ords shares just upgraded by brokers

Bell Potter likes lottery company's chances

Bell Potter has commenced coverage on digital lottery services provider, Jumbo Interactive Ltd (ASX: JIN).

The broker reckons Jumbo shares are a buy. It's put a 12-month price target of $16.50 on the ASX All Ords consumer discretionary share.

The Jumbo Interactive share price is currently $12.83, up 1.91%. Bell Potter's price target suggests a potential 29% upside over the next 12 months.

There is no price-sensitive news out of Jumbo Interactive today.

Go overweight on this ASX All Ords utilities share

Barrenjoy has upgraded its rating on APA Group (ASX: APA) to overweight.

The broker has slapped a 12-month share price target of $8.60 on the ASX All Ords utilities share.

APA shares are trading for $6.85 on Thursday, up 2.39% for the day so far.

The price target implies a potential 25% upside for investors who buy APA shares today.

 The ASX energy infrastructure company has not released any announcements today.

Broker commences coverage on ASX All Ords mineral sands miner

Ord Minnett has started coverage on ASX mineral explorer Iluka Resources Limited (ASX: ILU).

The broker rates the ASX All Ords mining share a buy and has a 12-month price target of $6.30.

The Iluka Resources share price is down 0.54% to $5.51 at the time of writing. Thus, the broker anticipates a potential 14% upside on Iluka shares from here.

Iluka has not announced any official news today.

Broker gives thumbs up on ASX All Ords insurance share

Macquarie has raised its rating on QBE Insurance Group Ltd (ASX: QBE) shares to outperform.

The broker thinks this ASX financial share has more room for growth despite a 28% uplift in 2024 already.

Macquarie's 12-month share price target for QBE is $20.80.

QBE shares are currently trading for $18.87, up 1.07% on Thursday.

So, Macquarie foresees a potential 10% upside for investors who buy QBE shares today.

QBE announced a proposed issue of AUD Floating Rate Subordinate Notes yesterday and released the pricing today.

QBE said the proposed issue was part of its ongoing funding and capital management strategy. The insurer added that it expected the proceeds of this issue to fund Tier 2 capital.

The post 4 ASX All Ords shares offering 10% to 30% annual growth: brokers appeared first on The Motley Fool Australia.

The S&P/ASX 200 Materials Index (ASX: XMJ) finished down 5.27% and was the second-worst performing sector on Monday, behind the S&P/ASX 200 Energy Index (ASX: XEJ).

Things weren't looking too good on a more macro level either, as the S&P/ASX 200 Index (ASX: XJO) also struggled, closing at a 1.6% loss.

Driving the nail deeper, some lithium shares ended Monday down 12% or more. Let's assess the damage.

Anson Resources Ltd (ASX: ASN)

The Anson Resources share price closed down 16.9% this afternoon. Investors could be reeling after the company's 16 September announcement that it would raise $50 million as part of a capital raise.

Anson Resources will raise funds from institutional investors, and will issue 139 million shares for 36 cents apiece.

Monies will be used to fund the development of its Paradox Lithium Project in the United States.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price finished trade down 13.16%. This company has defied sell-offs over the past week and was one of the better-performing ASX lithium shares last Wednesday.

The miner is involved in producing graphite, an important material used in the construction of batteries used in electric vehicles.

The most recent update from the company came last Friday when it announced preliminary drilling results at its Rincon Lithium Project in Argentina, with a better outcome than anticipated.

Morella Corporation Ltd (ASX: 1MC)

The Morella Corporation share price closed the day down 12%.

The ASX lithium share posted its annual report for FY22 to the market on 23 September.

In it the company reported a $682,944 loss after providing for income tax and non-controlling assets for the financial year. That's significantly lower than the $73 million loss it reported in the previous corresponding period.

Meanwhile, revenues for the company ended at $788,937, while revenues for 2021 were $133,382.

The post 3 ASX lithium shares that dropped by 12% or more on Monday appeared first on The Motley Fool Australia.

Exploration activities at the Mt Edon project have identified potential subsurface lithium targets.

At the time of writing, the Sayona share price is 12 cents, 7.69% lower than its previous close.

In comparison, the All Ordinaries Index (ASX: XAO) is up 0.03%.

Let's take a closer look at what's going on with this All Ords lithium share today.

Sayona share price stumbles despite lithium find

The Sayona share price is suffering amid a broader sell-off of ASX lithium shares today. That's despite seemingly good news from its Mt Edon project.

Exploration at the project, conducted by Morella Corporation Ltd (ASX: 1MC), has mapped 53 pegmatite outcrops within two targets.

A total of 32 samples were taken from the pegmatites, with resulting assays finding the area has the potential for subsurface lithium mineralisation.

While many pegmatites appear narrow and discontinuous, others show apparent thickness and continuity that may evolve into a commercially viable mining opportunity, Morella said.

The two-target project is majority-owned by Sayona. The companies entered into an earn-out agreement last year allowing Morella to earn a 51% stake in the project's lithium rights. It can do so by spending $1.5 million on exploration at the site over three years.

However, today's news hasn't been enough to save the Sayona share price from the broader sell-off among ASX lithium shares.

Other lithium stocks such as Liontown Resources Limited (ASX: LTR), Lake Resources NL (ASX: LKE), and Argosy Minerals Limited (ASX: AGY) are also falling. They are currently down 7.73%, 15.48%, and 3.51% respectively.

Today's tumble also follows from the 7% fall the Sayona share price experienced yesterday. This came after the company released its investor presentation which highlighted its strategic direction.

The stock is now nearly 14% lower than it was at the start of 2022. Though, it has gained 100% since this time last year.

The post Sayona share price dives 8% despite lithium news appeared first on The Motley Fool Australia.

At today's close, the emerging lithium producer's shares were swapping hands at 36 cents apiece, up 2.86%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) closed down 1.57% to 7,473.3 points.

What's powering Sayona today?

Investors rallied up the Sayona share price following an announcement by fellow mining company, Morella Corporation Ltd (ASX: 1MC).

The latter owns a 51% interest in Sayona's lithium development portfolio in Western Australia via an earn-in agreement.

In its release, Morella provided an update on exploration activities being undertaken in the Pilbara region of Western Australia.

Management advised that the reverse circulation (RC) drill contractor mobilised in the second week of April. After completion of site and safety protocols, drilling commenced at the Mallina Lithium Project on 18 April.

The drilling program consists of three collars, around 150 metres each, in preparation for diamond core tails to 470 metres. This is expected to be completed within the next week.

In addition, a second drilling contractor arrived on site and began inductions in preparation for the commencement of diamond core drilling. The core program consists of 1,020 metres of drilling and is expected to be completed in four to five weeks.

Commenting on the update that appears to be boosting the Sayona share price today, Morella CEO Alex Cheeseman said:

…Given the current environment for labour and exploration resources, the fact that we have two rigs on site and progressing through our program is testament to the Company's drive and focus to advance our projects.

Furthermore, Morella also began early-stage exploration and fieldwork at the Mt Edon Lithium Project in Western Australia.

During late March, the company undertook field investigations to map and sample pegmatite outcrops within the project area 

Currently, the team is waiting for the final report and results from the fieldwork program.

However, it was noted that the "observed pegmatites were deeply weathered with decomposed feldspar leading to friable surface outcrop".

Management believes the heavy weathering may result in depleted grades for lithium at surface.

About the Sayona share price

Since this time last year, the Sayona share price has gained more than 740% in value.

In 2022, the company's shares have continued their impressive trajectory, up 170%.

Based on valuation grounds, Sayona Mining has a market capitalisation of roughly $2.54 billion.

The post Here's why the Sayona share price outperformed today appeared first on The Motley Fool Australia.

It wasn't long ago that tumbling lithium prices pushed the broader ASX lithium sector to the brink of collapse, with smaller players such as Alita Resources Ltd (ASX: A40) and Altura Mining Ltd (ASX: AJM) spiralling into administration.

Fast forward to today, a resurgence in lithium demand has helped rally the Pilbara Mineral share price well beyond its 2018 peak and into record territory.

From zero to hero

A year ago, the Pilbara Minerals share price was trading around 23 cents, backtracking the company's valuation to when it was still undergoing drilling programs to identify its potential lithium resource.

Things were getting pretty ugly for Pilbara Minerals with its FY20 results flagging a net loss after tax of $99.2 million. This compares to its net loss after tax of $28.9 million in FY19.

By November 2020, however, lithium prices had finally begun to tick upwards and the Pilbara Minerals share price followed suit.

Between October and December 2020, the company's shares rallied 178% to a 2-year high of 87 cents.

With the lithium market showing signs of promise, Pilbara Minerals made a bold move to acquire embattled lithium miner Altura on 28 October 2020.

This acquisition would see Pilbara Minerals acquire a "well-timed and cost-effective strategic acquisition" which neighbours its main Pilgan plant.

A bumper 2021 for the Pilbara Minerals share price

It's been onwards and upwards for Pilbara Minerals, with the company's shares joining the S&P/ASX 200 Index (ASX: XJO) on 12 March.

The company's March quarter results highlighted record production of 77,820 dry metric tonnes (dmt) of spodumene concentrate at an annualised production capacity of approximately 330,000 tonnes per annum (tpa).

The quarterly announcement also advised that site works were underway to improve the project's spodumene concentrate production to ~380,000 tpa.

Additional growth options are currently being explored, including a Pilgan Plant stage 2 expansion which could increase production capacity by another ~100,000 tpa.

On 25 June, Pilbara Minerals was pleased to announce that it plans to restart the production of Altura Mining operations.

This would see the company dust off the Ngungaju plant, with restart costs of approximately $39 million.

The Ngungaju plant is expected to be another growth driver, with an anticipated 180,000 to 200,000 dmt of production by mid calendar year 2022.

The post It's been a massive year for the Pilbara Minerals (ASX:PLS) share price appeared first on The Motley Fool Australia.

At the time of writing, the Pilbara Minerals share price is down 3.02% to $1.50 per share, however, despite today's losses, Pilbara shares have gained more than 12% across the past week.

Today's price movement follows an update regarding a plant restart, production costs and June quarter shipments.

Ngungaju plant restart

Pilbara Minerals is looking to grow its lithium production through the restart of its Ngungaju plant.

The Ngungaju operation was formerly owned by Altura Mining Limited (ASX: AJM), which Pilbara Minerals acquired in October last year for $175 million. This was during a time where lithium spot prices had collapsed to multi-year lows, resulting in Altura falling into administration.

In today's announcement, the board has approved the staged restart of the Ngungaju plant, with operations expected to recommence in the December quarter of 2021.

The company estimates the restart will cost approximately $39 million, consistent with its original forecast at the time of the acquisition.

Pilbara Minerals said costs will likely be funded by existing cash, however, will consider funding support via a potential restructure of its existing syndicated debt facility, if favourable terms and conditions can be achieved.

Production is expected to be ramped up to approximately 180,000 to 200,000 dry metric tonne (dmt) by mid calendar year 2022. The company advises this will make a significant contribution to the annual production of its overall Pilgangoora project, increasing from 560,000 to 580,000 dmt.

Shipments and costs update

In the same announcement, Pilbara Minerals expects a record June quarter spodumene concentrate shipment of approximately ~96,000 dmt.

In light of strong production figures, the company flagged the likely increase in unit cash operating costs in FY22. The higher costs were driven by factors including higher sea freight rates, costs associated with the Ngungaju plant restart, and a stronger Australian dollar to US dollar exchange rate.

Additionally, Pilbara Minerals said a higher mining strip ratio, the amount of waste material that must be removed to reach the ore, will be required over the 12–24 months to support higher plant output. The higher ratio will drag on operating costs.

According to the announcement, cash operating costs of the combined Pilgangoora operation for FY22 is expected to be in the range of A$525 to A$575/dmt (including cost, insurance and freight to China) or approximately US$395 to US$430/dmt at an AUD:USD exchange rate of 75 cents.

Beyond calendar year 2022, the company expects costs to trend lower, as it realises synergies and improved economies of scale from the ramp-up of Ngungaju operations and the normalisation of freight costs and strip ratios.

What did management say?

Pilbara Minerals' managing director and CEO, Ken Brinsden welcomed the restart, saying:

The well-timed acquisition of the Altura Lithium Operations provides Pilbara Minerals with available spodumene concentrate at the same time the market is expected to grow rapidly to deal with the mass global adoption of lithium-ion battery technology for use in clean energy applications

Brinsden acknowledged higher costs in FY22 but remains confident in the company's long-term trajectory:

While production costs will likely be slightly elevated during FY22, we remain confident in both Pilgangoora's pre-eminent position as an important global lithium raw materials supply base and the trend towards lower cost in the coming years as the Ngungaju Plant restarts, normalises and production settles at a higher rate.

Head above the clouds for the Pilbara Minerals share price

The Pilbara Minerals share price has set a new record all-time high in each of its last four trading sessions.

It looks like its year-to-date returns are fast approaching triple digits, currently up about ~85% this year.

The Pilbara Minerals share price has benefited from factors including firmer lithium prices and a broader bullish performance of lithium-related shares.

The post The Pilbara Minerals (ASX:PLS) share price is up 12% in a week appeared first on The Motley Fool Australia.

This marks 8 consecutive green days for the bullish lithium miner. Today, the Pilbara Minerals share price has edged 0.39% higher to close at $1.30.

Why the sudden surge in the Pilbara share price?

Lithium prices edge higher

Lithium prices have continued to trend higher, with carbonate and hydroxide prices pushing more than 50% off November 2020 lows.

The latest update from Fastmarkets highlighted "lithium hydroxide price ex China edged higher on tight supply and robust buying appetite, while the lithium carbonate price softened". Seaborne lithium prices were steady amid tight supply.

Positive investor strategy and outlook announcement

Pilbara released an in-depth strategy and outlook announcement on 11 May. Included in the presentation was the company's plans to increase production to support growth in customer sales.

This will be achieved through the restart of the Altura Mining Ltd (ASX: AJM) mine, prospective partnerships to handle mid-stream products and downstream processing, and several initiatives to transition to renewable energy.

Broad based lithium rally

The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) invests in the "full lithium cycle, from mining and refining the metal, through battery production". Its involvement in lithium from mining through to its end-users makes it a useful indicator for how the broader lithium sector is performing.

Included in the exchange-traded fund's 40 holdings are Pilbara Minerals, Galaxy Resources Ltd (ASX: GXY) and Orocobre Ltd (ASX: ORE).

The Lithium ETF has been on a tear since 13 May, lifting 16% to a 4-month high. The uplift in the ETF broadly coincides with the resurgence in the Pilbara share price.

Within arm's reach of record all-time highs

The Pilbara Minerals share price surged to a record all-time high of $1.465 on 22 January. After stalling throughout February and May, its shares have attempted to retest record highs in both late April and early May.

Having struggled to break out on both occasions, the Pilbara Minerals share price is closing in again on a chance to break above the clouds.

The post The Pilbara (ASX:PLS) share price is up 20% in two weeks appeared first on The Motley Fool Australia.

However, April has so far been a solid month for ASX lithium shares, with share prices approximately 5% to 10% higher and within 20% of all-time highs. 

Why ASX lithium shares hadn't been moving in 2021 

The Galaxy, Orocobre and Pilbara share price more than doubled between October 2020 and February 2021. This was driven by a broad range of factors, including a surging Tesla Inc (NASDAQ: TSLA) share price, Joe Biden's stance on climate change, and higher lithium prices. 

However, the rapid appreciation of ASX lithium shares might have priced in current and near-term tailwinds. 

Broader weakness in lithium and renewable related sectors could also be a dragging factor. The Global X Lithium & Battery ETF (NYSEARCA: LIT) for example, fell more than 25% between 17 February and 25 March this year. This ETF invests in the full lithium cycle, from mining and refining through to battery production. The ETF's top 3 holdings include the world's largest provider of lithium for electric vehicle batteries. Namely, Albemarle Corporation (NYSE: ALB), Chinese lithium giant Ganfeng, and multinational electronics company Samsung.

Lithium prices continue to grind higher 

Lithium prices have continued to push higher in March driven by an uplift in global demand. Fastmarkets provided the following commentary for recent lithium price movements:  

• Asian seaborne lithium prices were steady against a backdrop of tight availability and firm demand.  Meanwhile, Chinese suppliers have made aggressive offers for battery-grade lithium carbonate. 
• Spot trades in domestic Chinese market remained slow with consumers conducting "hand-to-mouth" purchases, but supply continued to be tight. 
• Europe, US battery-grade lithium spot prices continued to trend higher with deals reported at higher levels.

What's next for ASX lithium shares? 

ASX lithium shares might continue to move sideways. However, the companies are looking to ramp up production and push development projects forward to take advantage of higher lithium prices. 

For Galaxy, this has involved ramping up production at its flagship Mt Cattlin mine, which was previously lowered to 60% of nameplate capacity. The company is also advancing the development of its Sal de Vida lithium brine project. 

Pilbara follows a similar but more cautious approach where its half-year results commented that "any increase in production capacity will only occur once there is clear evidence of a sustained improvement in customer demand and pricing to support investment decisions and capital commitments".

Despite its more cautious tone, Pilbara did in fact make a significant $201 million investment to acquire neighbouring lithium miner, Altura Mining Ltd (ASX: AJM) late last year. 

The post Why ASX lithium shares are shooting higher in April appeared first on The Motley Fool Australia.

Lithium spot price recovery 

Much like booming iron ore prices sending the Fortescue Metals Group Limited (ASX: FMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) share prices to record highs, recovering lithium prices has initiated a broad recovery in ASX lithium shares. 

On 6 January 2021, Pilbara reported a record December quarter 2020 shipment of 70,609 dry metric tonnes (dmt) on improving spodumene concentrate demand conditions. The update highlights a material uplift in lithium chemicals pricing within China, with the Platts battery grade lithium carbonate pricing assessment up 35% to date from its lows in August 2020. 

Previously, in the company's 2019 annual report, annual spodumene concentrate sales were achieving a selling price of US$674/dmt. By July 2020, prices had further weakened to US$410–423/dmt. 

Pilbara pushing ahead 

While a lithium price recovery is still in its early days, Pilbara has gone full steam ahead with an acquisition under the belt, focusing on cost and moving from moderated production towards full production. 

Back on 14 December 2020, the company launched a $240 million equity raising to acquire Altura Mining Limited (ASX: AJM). Pilbara neighbours Altura's operations, so the acquisition will allow the group to unlock significant exploration, logistics and infrastructure synergies. 

From a cost perspective, many ASX lithium shares such as Orocobre Limited (ASX: ORE) have been producing at or below cost amidst weak lithium prices.

Pilbara has been able to maintain low production costs despite its plants running at lower utilisation levels. In its September 2020 quarterly update, the company's unit cash operating costs stood at US$355/dmt, with unit costs trending towards its target of US$320–350/dmt. 

Pilbara Minerals managing director and CEO Ken Brinsden is pleased with how the new year has turned out. Looking ahead, he commented:

The significant amount of work we have undertaken over the past 18-months in improving lithia recoveries, reducing operating costs and refinancing our senior debt facility, together with the impending acquisition of the neighbouring Altura Lithium Project, means that Pilbara Minerals is well positioned to respond to a recovery in the lithium market and capitalise on improvements in market conditions.

At the time of writing, the Pilbara share price is up 0.64% for the day at $1.10 per share.

The post The Pilbara Minerals (ASX:PLS) share price is already up 25% in 2021 appeared first on The Motley Fool Australia.

What was announced?

Altura Mining recently fell into receivership after a collapse in lithium prices weighed on its operations and an attempt to recapitalise failed to gain support. This led to the company appointing KordaMentha as its receiver on 26 October.

After the market close on Wednesday, Pilbara Minerals revealed that it has entered into an implementation deed with the senior secured loan noteholders of Altura, which provides it with a path to potentially acquire the Altura Lithium Project through the purchase of the shares in Altura Lithium Operations for approximately US$175 million. This is subject to completion of the receivership process.

According to the release, loan noteholders have agreed to vote in favour of the Pilbara Minerals sponsored deed of company arrangement should the acquisition proceed.

Furthermore, Pilbara Minerals has the right to match any competing proposal offered for the Altura Project, and has secured payment of a break fee in the event that the receiver accepts a competing proposal, or the loan noteholders fail to vote in favour of the deed.

The upfront cash consideration of US$155 million will be predominantly funded through a future equity capital raising, which is being supported by binding equity funding commitments from both AustralianSuper and Resource Capital Fund of AS$240 million.

What is the Altura Lithium Project?

The Altura Project is a producing hard rock spodumene concentrate operation. It is located on an adjoining tenement package immediately to the west of Pilbara Minerals' Pilgangoora Lithium-Tantalum Project.

Management notes that the operation is part of the same mineralised system that underpins the Pilgangoora Project and uses similar open-pit mining methods, processing flowsheets, and mining equipment.

It feels the combination of these factors, along with the proximity of both operations, provides a unique opportunity for Pilbara Minerals to realise tangible synergies, both immediately following the acquisition and over time.

The post Pilbara Minerals (ASX:PLS) share price on watch after announcing Altura Mining acquisition plan appeared first on The Motley Fool Australia.

Here is a breakdown of the ASX shares I would buy to gain exposure to these trends.

Buy now pay later

Possibly the most hyped sector of 2019 is the credit-like product 'buy-now, pay-later' (BNPL). AfterPay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are the current 'gold standard' within the industry and we saw the Afterpay share price appreciate 150% and Zip Co 210% in 2019. This trend is not going away either – there were 3 initial public offerings in 2019 within the sector: Sezzle Inc (ASX: SZL), Openpay Group Limited (ASX: OPY), and Splitit Limited (ASX: SPT).

Looking ahead for the sector, in 2020 there will be significant work with industry regulators to secure the place of BNPL products within the current array of financial products already on offer. This has been the largest risk posed to BNPL investors. In a report in the Australian Financial Review, author James Frost examines the risks of BNPL. If regulators manage to get something done this year and it is in favor of BNPL companies, we could see a dotcom-like boom due to the large de-risking of the sector.

To get onboard the BNPL hype train, I would consider buying AfterPay or Zip Co, as both of these companies have large market shares within the BNPL sector, as well as the healthiest financials.

Full disclosure, I've owned shares in Zip Co Ltd since November 2019.

Electric vehicle primary metal producers

Electric vehicles (EV) are all the jazz throughout the Automotive sector. Almost every mainstream car manufacturer has an EV available for purchase, or at least a hybrid, and is planning on ramping up production of these vehicles throughout this coming decade. Pressure from foreign policy makers (particularly in the Euro zone) is making automotive manufacturers race for EV market share. Of course, every EV needs a battery and batteries are made from metals mined from the ground, in particular, lithium, cobalt and nickel.

The companies I would be looking at to capture the EV trend are Pilbara Minerals Limited (ASX: PLS), Galaxy Resources Limited (ASX: GXY) and Altura Mining Ltd (ASX: AJM).

Safe haven assets

Global risk remains high by any metric and as a result, safe haven assets have done extremely well this past year, with Gold and Government Bonds showing that investors are unsure about equites. Gold has appreciated 18% in 2019 and looking like it is going to stay above $1450 USD/oz in 2020. Furthermore 2019 was a record year for reserve banks buying gold.

To capture this trend, I would be buying a mix of Gold and Bond ETFs such as the SPDR S&P/ASX Australian Bond Fund (ASX: BOND) and ETFS Physical Gold ETF (ASX: GOLD). For a bit more exposure to gold I'd also consider buying a gold producer such as Newcrest Mining Limited (ASX: NCM).

Foolish takeaway

These 3 share market trends are well and truly alive and kicking and will be for some time.

BNPL is only going to see more attention this year with a large focus on the regulation of this industry. More and more electric vehicles will make their way onto roads this year, providing great opportunity for our listed battery metal producers. Finally, safe haven assets will continue to be held tightly by the big end of town until interest rates start to be lifted – which you could say with a high degree of confidence won't be until after 2020.

Happy buying!

The post ASX shares I would buy to follow 3 booming sharemarket trends in 2020 appeared first on The Motley Fool Australia.

Some of the ASX's heavyweights operate within this region alongside Pilbara Minerals, including BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO). Pilbara Minerals differs to these other companies in that it only produces lithium.

Lithium is a white metal that is extremely useful in many applications – to my surprise it's included in things other than just batteries for Elon's Teslas. It's also included in glass, air conditioning systems, grease and synthetic rubber products. Who knew?

The Pilbara Minerals share price, however, has had a bit of a hard time this year. In fact, let's look at the chart below.

Source: Tradingview.com

This year alone the Pilbara Minerals share price is down a whopping 64%. But why?

Lithium spot price dramas

Basic high school economics tells us that when supply increases, but demand remains constant, then the price must shift down. This is exactly what Pilbara Minerals is suffering from this year. In fact, this saga is apparent throughout all lithium producers. Below is a chart showing some other listed lithium producers alongside Pilbara Minerals, including Galaxy Resources Limited (ASX: GXY), Altura Mining Ltd (ASX: AJM) and Orocobre Limited (ASX: ORE).

Source: Tradingview.com

See the trend?

It all started back in 2018 when lithium analysts deemed the metal over supplied. This turned investors into bears and the great sell off started throughout the lithium sector.

Spokespersons from the International Mining and Resource Conference at the time were arguing that the lithium supply chain was much more complex than the market believed. The main issue is the lag from mining to shipping of about 12 months, which creates a lot of forecasting error and speculation within the lithium market.

Will Lithium demand pick up? Aum ?… yes. A big yes.

The most known use case for lithium is batteries and I believe the oversupply concerns are going to come to a screaming halt within the next 5 years – the reason being electric vehicle (EV) demand. The single largest and most expensive component of any EV is the battery – with no petroleum fuel the power has to come from somewhere.

The Benchmark Mineral Intelligence blog states that there are 99 Mega battery factories in the pipeline between now and 2028 – that's not even a decade away. Within the next 3 years, total global output of battery factories in gigawatt hours (like barrels of oil) will increase 3-fold and within 10 years 10-fold. Name another industry that has 10-fold future demand potential within 10 years. You be hard pushed to find one.

Foolish takeaway

The macro drivers for lithium demand are well documented – electric vehicles are the major growth factor looking forward in lithium sector. More battery and electric vehicle producers are coming online and consumer sentiment is shifting from conventional petrol vehicles to electric vehicles or hybrids. This creates a growth opportunity for raw metal providers such as Pilbara Minerals.

As for when the Pilbara Minerals share price slaughter is over, this I can't answer. However, being eternally optimistic, one can't help but see the growth potential of the company. Down 60% in a year, yes. But looking ahead, I see bags (100% profit = 1 bag). Pilbara Minerals has all the existing infrastructure and supply chain established; the hard work is over. All it has to do is weather the storm. Once it's over and the sky is blue, I think Pilbara Minerals shareholders should do well.

The post The Pilbara Minerals share price is down 11% in December. Is it a buy for 2020? appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they have tumbled lower:

The Altura Mining Ltd (ASX: AJM) share price is down 3% to 6.6 cents. Although there has been no news out of the lithium miner today, last week lithium prices sank to two-year lows amid increasing supply and softening demand. This latest decline means the Altura Mining share price is down ~74% from 25 cents over the last 12 months.

The Mayne Pharma Group Ltd (ASX: MYX) share price has dropped 3% to 56.2 cents. This decline appears to be down to profit taking after the pharmaceutical company's shares rocketed higher last week following the release of a major product announcement. Its shares raced higher after it announced a 20-year exclusive supply and license agreement with Mithra Pharmaceuticals to commercialise a novel oral contraceptive comprising estetrol and drospirenone in the United States. Management advised that the US contraceptive market is valued at US$5.4 billion.

The Nick Scali Limited (ASX: NCK) share price has fallen 2.5% to $6.97. The catalyst for this decline has been the furniture retailer's shares trading ex-dividend this morning for its fully franked final dividend of 20 cents per share. Eligible shareholders can now look forward to being paid this dividend on October 29.

The Speedcast International Ltd (ASX: SDA) share price is down 4.5% to $1.08. Investors appear to still be taking profit after the shares of the provider of remote communications and IT services rocketed higher in September. Speedcast's shares were the second-best performers on the index last month with a gain of 58.1%. They are still down materially over the last 12 months.

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Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The Altura Mining Ltd (ASX: AJM) share price has crashed 15% lower to 6.3 cents despite there being no news out of the lithium miner. However, given the outlook for the battery making ingredient after lithium giant SQM pledged to increase its production materially to win market share, I'm not overly surprised to see investors selling Altura Mining's shares.

The Australian Ethical Investment Limited (ASX: AEF) share price is down 3.5% to $2.18. I suspect that this decline could be down to profit taking after a strong rise in the ethical investment company's shares over the last two months. Prior to today, its shares had risen over 33% since the start of July.

The Avita Medical Ltd (ASX: AVH) share price has tumbled almost 6% to 45.7 cents following the release of the medical technology company's full year report. Investors appear to have been left disappointed with the company's sizeable loss despite its strong revenue growth. AVITA posted a 50% increase in revenue to $17 million, but more than doubled its loss for the year to US$34.6 million. This was driven by a 74% increase in operating costs to US$50.1 million due to investments in commercial, manufacturing, and system capabilities for the U.S. market launch of the RECELL System.

The Northern Star Resources Ltd (ASX: NST) share price has dropped 3% to $11.83 after positive trade war developments sent safe haven assets like gold sinking lower. It isn't just Northern Star Resources that has come under pressure today. At the time of writing the S&P/ASX All Ords Gold index is down 1.3%.

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In afternoon trade the lithium miners are amongst the worst performers on the local market with three of the four major local producers sinking to 52-week lows or worse.

Here's the state of play in the industry this afternoon:

The Altura Mining Ltd (ASX: AJM) share price is down 4.5% to 8.6 cents.

The Galaxy Resources Limited (ASX: GXY) share price has dropped 5% to $1.14.

The Orocobre Limited (ASX: ORE) share price has sunk 6% lower to $2.21.

The Pilbara Minerals Ltd (ASX: PLS) share price has fallen 8.5% to 35.2 cents.

Why are the lithium miners crashing lower?

Whilst some of this decline can be attributed to the market selloff, I suspect the majority of it is due to comments out of lithium giant SQM last week.

According to the Financial Times, SQM has forecast for the continued oversupply in the market for the battery making material. As a result, it expects this to weigh on prices for the remainder of the year.

The company's CEO, Ricardo Ramos, believes an increase in supply will push lithium sales prices down to US$10,000 a tonne during the third quarter, from an average first quarter price of US$14,600 a tonne.

Adding insult to injury for Australia's lithium miners, is news that the world's second largest lithium producer has its eyes on growing its market share again. Over the last few years SQM's share has dwindled from 27% to 17% according to the AFR.

But SQM intends to put a stop to that and advised that it wouldn't let falling prices and profits prevent it from lifting its production materially over the next 18 months.

I suspect that this could put a lot of pressure on some of the smaller lithium miners such as Altura and Pilbara Minerals and may spark fears over the viability of their operations.

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Strong gains were made across the industry, much to the relief of their shareholders who have had to watch their shares sink lower and lower this year.

Here is a summary of how the lithium miners performed:

The Altura Mining Ltd (ASX: AJM) share price surged over 8% higher to 10.5 cents.

The Galaxy Resources Limited (ASX: GXY) share price stormed 11% higher to $1.27.

The Mineral Resources Limited (ASX: MIN) share price rose over 2% to $14.78.

The Orocobre Limited (ASX: ORE) share price jumped 6.5% higher to $2.73.

The Pilbara Minerals Ltd (ASX: PLS) share price raced over 8% higher to 46 cents.

Why did the lithium miners surge higher?

Investors were scrambling to get hold of Galaxy, Orocobre, and the rest of the lithium miners after a rare spot of positive news in the industry.

On Wednesday night lithium giant Albemarle released its second quarter update and smashed expectations.

The world's largest lithium producer delivered second quarter revenues of US$885 million, representing a 3.7% increase on the prior corresponding. In constant currency revenue rose 6% over the same period last year. This was driven by a 2.3% lift in lithium sales and a 15.8% increase in bromine revenue.

In light of this strong second quarter, the company lifted its earnings per share guidance for FY 2019 to between US$6.25 and US$6.65 from between US$6.10 and US$6.50.

Another positive for the locally listed lithium producers was Albemarle's near term outlook for lithium. It said: "We expect strong year-over-year growth for the remainder of 2019 in Lithium, led by continued strong demand in battery-grade applications and increased conversion capacity."

Judging by the strong share price gains today, some investors appear to believe this could be a sign that lithium prices have finally reached an inflection point.

Whilst this could be the case, I would suggest investors sit tight and wait for proof before diving in.

The post Why Galaxy, Orocobre, and these ASX lithium miners surged higher today appeared first on The Motley Fool Australia.

Four shares that haven't let that hold them back are listed below. Here's why they are ending the week on a high:

The Altura Mining Ltd (ASX: AJM) share price has rocketed 18% to 13 cents. Investors have been snapping up the lithium miner's shares after it released an update on its performance during the June quarter. According to the release, June quarter sales will be 38,600 dmt, which represents a strong increase from previous quarters. In addition to this, the company advised that it continues to receive positive feedback from offtake customers regarding the quality of its product.

The Beach Energy Ltd (ASX: BPT) share price is up over 3% to $1.93 after oil prices recorded their largest daily gain of 2019. Oil prices jumped higher overnight following an escalation in tensions between the United States and Iran. The latest incident saw the United States accuse Iran of shooting down one of its drones over international waters.

The Jumbo Interactive Ltd (ASX: JIN) share price has risen 2.5% to $20.29. Today's gain appears to be in relation to news that Apple has updated its App Store guidelines and will take off gaming apps that are not specifically designed for iOS. One broker that believes Jumbo could benefit from the development is Morgan Stanley. It sees this as a positive for its U.S. ambitions and continues to rate its shares as a buy.

The New Hope Corporation Limited (ASX: NHC) share price has surged over 8.5% higher to $2.77 despite there being no news out of the coal miner. One potential catalyst for this gain could be news of a fire impacting production at a rival coal mine operated by the struggling Griffin Coal.

The post Why Altura Mining, Beach, Jumbo, & New Hope shares are pushing higher today appeared first on The Motley Fool Australia.

The lithium miner's shares were up as much as 20% to 11.5 cents in early afternoon trade. They have since dropped back a touch, but are still up almost 15% at the time of writing.

Why did Altura Mining's shares storm higher?

This morning Altura Mining advised that it has become aware that Shaanxi J&R Optimum Energy Co. Ltd has sold 251 million of the company's shares on-market this morning. This represented approximately 11.8% of the issued shares of Altura Mining.

This isn't the first time that Shaanxi J&R Optimum had sold the lithium miner's shares. Over the last few months it has been reducing its holding in the company through a series of trades.

But it will be the last time it sells Altura Mining's shares. Management advised that it understands that today's sale completes the divestment process and welcomed the development.

Whilst having one of your major shareholders and offtake partners selling their considerable interest isn't ordinarily a good thing, I suspect that its periodic selling has weighed on the company's shares and was part of the reason they have recently been trading at a 52-week low.

Investors may believe this has dragged its shares lower than necessary and left them trading at an attractive level.

Elsewhere in the lithium industry today, the Orocobre Limited (ASX: ORE) share price has pushed 3% higher and the Pilbara Minerals Ltd (ASX: PLS) share price has rebounded 5.5% higher.

The latter is starting to recover after a series of sharp declines this week following the release of an update which revealed plans to reduce its production in June and July to conserve cash flow and working capital during a period of weakening demand.

The Galaxy Resources Limited (ASX: GXY) share price is bucking the trend and has fallen 2% today.

The post Why lithium miner Altura Mining rocketed 20% higher today appeared first on The Motley Fool Australia.

Four shares that are climbing more than most today are listed below. Here's why they have surged higher:

The Afterpay Touch Group Ltd (ASX: APT) share price has raced 7% higher to $23.90 after providing an update on its U.S. operations. According to the release, Afterpay has reached 1.5 million U.S. customers, who can now use the service when shopping at more than 3,300 retailers. In addition to this, over 1,000 further merchants in the U.S. are in the process of integrating the Afterpay platform. The buy now, pay later provider also revealed new partnerships with Levi's, Ray-Ban, O'Neill, and the category-shaking brand, Tarte Cosmetics.

The Altura Mining Ltd (ASX: AJM) share price is up 5% to 11 cents after the lithium miner provided an update on the performance of its flagship Altura Lithium Project located at Pilgangoora in Western Australia. According to the update, Altura delivered record monthly production of 15,737 wmt in May, representing 86% of planned nameplate capacity.

The Bubs Australia Ltd (ASX: BUB) share price has rebounded 8% higher to $1.10. On Tuesday the Bubs share price fell heavily amid reports that Chinese regulators were aiming to grow the market share of domestic infant formula producers materially. It appears that some investors believe the selloff was overdone and have been snapping up shares today.

The Cooper Energy Ltd (ASX: COE) share price has risen 6% to 53.5 cents after it announced a new gas sales agreement with energy giant AGL Energy Limited (ASX: AGL). According to the release, the company has signed new gas supply agreements with the energy retailer for its Sole (Gippsland Basin) and Casino Henry (Otway Basin) gas operations.

The post Why Afterpay, Altura Mining, Bubs, & Cooper Energy shares surged higher today appeared first on The Motley Fool Australia.