This lithium developer's shares have been suspended from trade for what seems to be an eternity due to an ownership dispute over its Manono Lithium Project in the Democratic Republic of the Congo (DRC).

In fact, next week on 11 May, it will be the second anniversary of its suspension.

That's two years that shareholders have not been able to touch the money they invested in the company.

And there sure is a lot of wealth tied up with AVZ shares. The company had a lofty market valuation of $2.8 billion in its final session before it was suspended.

To put that into context, that's greater than the current market capitalisations of Perpetual Ltd (ASX: PPT) and Nine Entertainment Co Holdings Ltd (ASX: NEC).

Unfortunately for those shareholders, it goes from bad to worse for them.

Goodbye AVZ Minerals shares

The Australian share market operator understandably doesn't appreciate lengthy suspensions. The share market is supposed to be liquid, after all.

So, its rules state that a company's shares will be delisted if they remain suspended for two years.

As a result, AVZ shares will be kicked off the ASX boards forever when that second anniversary is reached next week.

The lithium developer revealed that it will not fight the delisting and appeared to welcome it.

Why it won't fight the delisting

The company believes that delisting is actually in the best interests of its long-suffering shareholders. It said:

After careful consideration, the AVZ board has resolved not to seek reinstatement on the basis a reinstatement at this time would not be in the best interests of AVZ shareholders.

This is based on the following reasons:

The DRC Government's failure to comply with the interim orders made in the Company's favour by the International Center for Settlement of Investment Disputes (ICSID) tribunal on 16 January 2024.

Cominiere's failure to comply with the emergency orders made against it including the grant of emergency orders in the Company's favour by the International Court of Arbitration of the International Chamber of Commerce (ICC) tribunal on 5 May 2023 and on 15 November 2023 in ICC Case 27720.

The other key disputes to which the Company or a member of its corporate group is a party are ongoing; and operating as a listed entity gives rise to inherent complications for the Company as it seeks to advance its strategy for the resolution of the key disputes and the advancement of the development of the Manono Project.

What does this mean for its shares?

Once it is delisted AVZ Minerals will be an unlisted disclosing entity and will still be required to fulfil all the obligations of the Corporations Act. This includes continuous disclosure obligations. Those announcements will just be made via its website.

As for AVZ shares, they will still exist post-delisting. However, buying and selling them becomes more complex and will need to be undertaken by an off-market transfer via Automic.

In the meantime, AVZ will continue to seek a resolution to the disputes surrounding the Manono Project with the relevant stakeholders. It will also continue to defend its rights through international arbitration in the ICC and ICSID.

Overall, this demonstrates the dangers of investing in companies operating in countries that feature high on the corruption index.

The post AVZ shares to delist along with $2.8 billion of shareholder wealth appeared first on The Motley Fool Australia.

A good number of ASX 200 lithium shares have recorded strong gains this year in a volatile stock market.

The big question now, though, is whether it is too late to invest in the industry? Let's take a look:

Should I buy ASX 200 lithium shares in 2023?

Buying ASX 200 lithium shares or not in 2023 is perhaps not as easy a choice to make as it was a year ago.

The recent online auction held by Pilbara Minerals Ltd (ASX: PLS) revealed a spot of weakness in pricing month on month. This has sparked fears that prices could soon collapse in line with Goldman Sachs' bearish estimates. As a reminder, it is forecasting:

• Spodumene 6%
  • 2022 US$4,233
  • 2023 US$4,330
  • 2024 US$800
  • 2025 US$800

These forecasts compare unfavourably to the latest Pilbara Minerals' auction price of US$8,299 per dry metric tonne. In fact, these estimates imply a whopping 90% decline in spodumene prices by 2024.

As a result of this, it will come as no surprise to learn that Goldman Sachs has a preference for producers rather than developers or explorers right now.

After all, lithium developers such as AVZ Minerals Ltd (ASX: AVZ) and Liontown Resources (ASX: LTR) could miss the boat on the high prices and commence production when prices have collapsed.

For this reason, Goldman Sachs is recommending ASX 200 lithium miner Allkem Ltd (ASX: AKE) as a buy with a price target of $15.20.

Any other buys?

This month the team at Morgans initiated coverage on Pilbara Minerals with a hold rating. However, with its shares being hammered on that day, the broker upgraded the lithium miner's shares to an add rating with a $4.70 price target the very next day. It commented:

Given the steep drop in the share price today, we see more opportunity than we did when we published our initiation yesterday. […] Sentiment towards the sector could weaken further in the very short term but we expect that strong 2Q cash flows and the potential for capital management may change investors' minds.

Morgans also recently initiated coverage on Mineral Resources Ltd (ASX: MIN) shares with an add rating and $94.00 price target. It described the company as a "formidable resource player with lithium clout." The broker adds:

MIN is a business that is transforming from being primarily leveraged to high-cost / short-life iron ore operations to low-cost / long-life iron ore and lithium assets. This transition accelerated in the September quarter 2022 post Wodgina's restart. We expect the growth planned for all segments will see MIN remain supported.

All in all, there's still plenty of support for select ASX 200 lithium shares in 2023 in the broker community. Time will tell if they have made the right call.

The post Should I buy ASX 200 lithium shares for my portfolio in 2023? appeared first on The Motley Fool Australia.

The lithium developer first requested a trading halt in relation to a legal wrangle on 9 May.

The dispute is delaying the finalisation of the mining and exploration rights for the Manono Lithium and Tin Project in the Democratic Republic of the Congo (DRC).

As my Fool colleague James reported in May, the issue centres around AVZ's ownership of the project.

Briefly, the Manono Lithium and Tin Project is owned by a company called Dathcom Mining SA.

AVZ Minerals owns 75% and Dathomir Mining Resources SARL, otherwise known as La Congolaise D'Exploitation Miniere SA (Cominiere), owns 25%.

Part of the deal for gaining a mining licence was Dathomir ceding 10% of its interest to the DRC Government.

AVZ believed it had first right of refusal to buy the remaining 15% owned by Dathomir, in accordance with binding contracts signed by both parties in 2019 and 2020.

However, in May 2021, Dathomir sent a letter to AVZ Minerals terminating the agreement. AVZ Minerals maintains this was unlawful.

In August, AVZ Minerals executed their rights under the agreement to purchase the 15% stake and made payment for it.

Dathomir is purported to have transferred its remaining 15% interest to China's Jin Cheng Mining Company Limited. Jin Cheng is a subsidiary of Zijin Mining Group Company Limited (HKG: ZJM0W).

AVZ is now fighting to claim ownership of that 15%.

What's happening with the AVZ share price today?

In short, absolutely nothing. The saga simply continues but AVZ Minerals has made a statement today.

AVZ has informed ASX investors that on 1 December, it filed the first of two arbitrations against Dathomir with the International Chamber of Commerce (ICC).

In its statement, AVZ Minerals said:

The purpose of the Dathomir Arbitrations is to seek a declaration affirming [AVZ's] legal title to the 15% stake in the Manono Project …

AVZ is already in the midst of separate ICC arbitration proceedings brought by Jin Cheng.

Jin Cheng wants the ICC to recognise that it is now the owner of the 15% stake in Dathcom.

AVZ Minerals said:

The Company considers it has strong prospects of success in the Dathomir Arbitrations and Jin Cheng
ICC Arbitration Proceedings and will vigorously pursue its claims to vindication.

What now for AVZ Minerals shareholders?

It continues to be a waiting game for AVZ Minerals shareholders.

However, those invested in the company for the long haul are probably looking on the bright side.

As my Fool colleague Brooke recently reported, AVZ Minerals is one of three ASX mining shares that have turned a $10,000 investment made 10 years ago into $500,000 today.

The AVZ Minerals share price is up a grand total of 7,700% over the past decade.

The post AVZ Minerals share price remains halted amid fresh legal action appeared first on The Motley Fool Australia.

For example, as you can see below, the Pilbara Minerals Ltd (ASX: PLS) share price has been a strong performer again in 2022 and is smashing the market.

But Pilbara Minerals isn't the best performer in the industry, not by a long shot. A number of other lithium shares have outperformed the lithium giant with significantly stronger gains over the same period.

One of those is the Core Lithium Ltd (ASX: CXO) share price, which has more than doubled in value in 2022 and is up 150% on a 12-month basis.

But will lithium prices remain strong for long enough to justify these impressive gains? Let's take a look at what Goldman Sachs is saying about the white metal.

Where are lithium prices going?

Unfortunately, the commodity team at Goldman Sachs is expecting lithium prices to start to soften from the second half of next year. This is due largely to its belief that supply will finally catch up with demand and put downward pressure on both prices and lithium stocks. It commented:

Battery expansion related restocking demand and higher EV sales kept the market tighter in 2H22 than previously expected. Our commodity team now expect lithium prices through 1H23 to reflect the near-term tightness and lagging spodumene contract price pass-through before declining over 2H23. While we see earnings support for the Australian stocks over 12-18 months on price lags, on a 12m view we expect lithium stock prices to fall as lithium prices decline from record peaks.

Ultimately, Goldman is forecasting global lithium demand to grow to ~1,300kt LCE by 2025, but expects lithium production to hit ~1,700kt LCE.

In light of the above, its analysts expect lithium to command the following (per tonne):

• Lithium carbonate
  • 2022 US$59,331
  • 2023 US$53,300
  • 2024 US$11,000
  • 2025 US$11,000
• Lithium hydroxide
  • 2022 US$67,240
  • 2023 US$58,015
  • 2024 US$12,500
  • 2025 US$12,500
• Spodumene 6%
  • 2022 US$4,233
  • 2023 US$4,330
  • 2024 US$800
  • 2025 US$800

If Goldman Sachs is on the money with its estimates, then it could be bad news for developer/explorers that aren't expected to be producing lithium for a couple of years. By the time their operations come on line, they could be dealing with wildly different lithium prices.

Therefore, it might be time to rethink the valuations of lithium shares such as AVZ Minerals Ltd (ASX: AVZ) and Vulcan Energy Resources Ltd (ASX: VUL).

The post Here's the lithium price forecast through to 2025 appeared first on The Motley Fool Australia.

However, the lithium developer has still not finalised the legal wrangle that is holding up the finalisation of the mining and exploration rights for the Manono Lithium and Tin Project in the Democratic Republic of the Congo (DRC).

As a result, the company has requested that its shares remain suspended for a further 30 days. It commented:

The Company advises that the subject of the initial trading halt request remains incomplete and requests a further extension to the voluntary suspension until the commencement of trade on 15 December 2022 or an earlier announcement to the market regarding its mining and exploration rights for the Manono Project.

What's actually happening?

AVZ is currently facing arbitration proceedings from China's Jin Cheng Mining in relation to an ownership dispute.

Jin Cheng claims it owns a portion of the Manono Project, whereas AVZ denies this.

The company provided an update on matters last month. That update revealed that the DRC Tribunal granted a request by Dathomir Mining Resources for the interim suspension of the sale of a 15% interest in the Manono Lithium Project to AVZ.

AVZ believes this action is incorrect, stating: "AVZI duly completed each of the Dathomir SPAs in August 2021, including payment within the required time period, and thereby legally acquired a further 15% interest in Dathcom."

Furthermore, as far as management is concerned, it "retains legal title to a 75% interest in the Manono Project and its pre-emptive rights over the balance of the Project."

What's next for AVZ?

On Thursday, the company is holding its annual general meeting in Perth.

It certainly will be interesting to see how shareholders vote on items such as the remuneration report.

Stay tuned for that!

The post AVZ Minerals trading halt extended again. What is going on? appeared first on The Motley Fool Australia.

The ASX lithium share has asked for a voluntary suspension until the start of trade on 15 November 2022, or earlier if an announcement is made.

The company is involved in proceedings regarding its mining and exploration rights for the Manono lithium and tin project located in the Democratic Republic of Congo (DRC) in central Africa.

The reason for the latest extension is that "the subject of the initial trading halt request remains incomplete". This refers to its previous voluntary trading halt extension request dated 10 October.

Indeed, the halt has been extended multiple times as the company attempts to finalise an ownership dispute with China's Jin Cheng Mining, which claims to own a portion of the Manono lithium and tin project.

AVZ has denied the claim, leading to a protracted arbitration proceeding between the two companies.

A second company has also made a claim to Manono, this time coming from Dathomir Mining Resources. A DRC tribunal granted Dathomir's request to suspend the sale of a 15% stake in Manono to AVZ, which makes the ongoing ownership dispute all the more complicated.

AVZ issues company updates

While all these disputes are going on, AVZ posted a number of company updates to the market on Monday, including its quarterly activities report.

One highlight is that an International Chamber of Commerce arbitrator has been appointed to hear proceedings in the Jin Cheng Mining dispute. A case management conference is due to be held between the two companies.

AVZ also said it's having "high-level discussions" with DRC officials regarding its mining and exploration rights in the country.

Its update also included initial results from its Roche Dure drilling program. The drill holes were said to have uncovered "high-grade spodumene lithium mineralisation including 226.8m @ 1.67% Li2O & 307 ppm Sn and 226.8m @ 1.67@ Li2O".

The post The trading halt on AVZ Minerals shares has been extended again. Here's the latest appeared first on The Motley Fool Australia.

Despite posting a 7% year-to-date fall, the S&P/ASX 200 Materials Index (ASX: XMJ) has gained around 50% over the last 10 years. Meanwhile, some ASX mining shares have posted gains that dwarf the index's performance.

Indeed, an investor who bought these three ASX mining shares in October 2012 would be laughing all the way to the bank today.

Keep reading to discover which ASX mining shares have turned $10,000 into more than $500,000 over the last decade.

3 ASX mining shares that turned $10,000 into $500,000

If you ever needed a reminder of the power of investing, you've come to the right place.

It's been a good 10 years for these ASX mining shares – and anyone who invested in them in 2012.

A $10,000 investment spread across the three stocks back then would have been worth $500,440 at Friday's close.

The biggest gains of the last decade came from AVZ Minerals. Interestingly, the company hasn't traded since May amid an ownership dispute over the Manono Lithium Project.

However, before the stock was frozen it was trading at 78 cents – up from around 1 cent this time 10 years ago. Back then the company was known as Avonlea Minerals. It was renamed AVZ Minerals in December 2012.

The Liontown share price was the next best performer. Stock in the lithium favourite lifted from 4 cents in October 2012 to $1.86 as of Friday afternoon.

Finally, the Chalice Mining share price has lifted from around 17 cents this time last decade to its previous close of $4.36.

The key takeaway

While volatility has reigned supreme this year, there are likely plenty of winners still to be found among ASX mining shares.

Indeed, the ASX has ultimately gained over the years, despite plenty of short-lived downturns such as that experienced in 2022.

The post 3 ASX mining shares that turned a $10,000 investment into $500,000 appeared first on The Motley Fool Australia.

But that doesn't mean nothing is happening behind the scenes at this embattled lithium explorer.

In fact, this afternoon the company revealed that its legal team have been very busy recently.

What's the latest from AVZ?

This afternoon the company released an update on the arbitration proceedings that have led to the suspension of the AVZ share price.

AVZ is facing arbitration proceedings from China's Jin Cheng Mining in relation to a dispute in the ownership of the Manono Lithium Project in the Democratic Republic of Congo (DRC). Jin Cheng claims it owns a portion of the project, whereas AVZ denies this.

According to today's update, the arbitrator has issued the Procedural Order No.1-3 ruling in favour of AVZ.

This is a small positive for AVZ but doesn't really change anything. The company notes that the arbitrator "will now proceed to hear and determine AVZI's jurisdictional challenge (around whether AVZI's pre-emption rights were breached) before dealing, if necessary, with the merits of the case."

What else?

AVZ also notes that there was a tribunal held late last month in the DRC that it wasn't invited to.

Unfortunately, the DRC Tribunal granted a request by Dathomir Mining Resources for the interim suspension of the sale of a 15% interest in the Manono Lithium Project to AVZ.

And while AVZ has dismissed Dathomir's request as "factually and legally misconceived," it certainly creates more doubt over the company's ownership.

AVZ disputes this, stating: "AVZI duly completed each of the Dathomir SPAs in August 2021, including payment within the required time period, and thereby legally acquired a further 15% interest in Dathcom."

As far as the company is concerned, it "retains legal title to a 75% interest in the Manono Project and its pre-emptive rights over the balance of the Project."

Though, given how the DRC is regarded as one of the most corrupt countries in the world (just a few places above North Korea!), it may be wise to not count your chickens before they hatch.

When will the AVZ share price return to action?

No changes have been made to its suspension request, which expires on 1 November.

However, it appears highly unlikely that this matter will be resolved within the next two weeks, so yet another an extension may be requested when the times comes.

The post AVZ share price remains on ice following legal update appeared first on The Motley Fool Australia.

Unfortunately, that won't be the case after the embattled lithium developer extended its suspension this morning.

AVZ shares remain suspended

According to the release, AVZ shares will now be suspended until the earlier of the start of November or the release of an announcement relating to its ownership of the Manono Lithium Project.

Though, as we have seen time and time again, the proposed date could be pushed further back once it arrives.

AVZ commented:

The Company advises that the subject of the initial trading halt request remains incomplete and requests a further extension to the voluntary suspension until the commencement of trade on 1 November 2022 or an earlier announcement to the market regarding its mining and exploration rights for the Manono Project.

AVZ's management will no doubt be hoping that this matter is resolved before it faces the wrath of shareholders and investors next month. It advised:

The Company will provide an update to the market on the status of its activities in the DRC ahead of its planned roadshows and AGM which are scheduled to be held next month.

What's going on?

AVZ is facing arbitration proceedings from China's Jin Cheng Mining in relation to an ownership dispute.

Jin Cheng claims it owns a portion of the project, whereas AVZ denies this. What ultimately happens, time will tell, but an unfavourable outcome could have a major impact on the company's valuation. So, these are undoubtedly uneasy times for investors.

Management remains optimistic, though. It recently stated that it is "confident of a positive outcome." We'll hopefully find out if that is the case in the near future.

The post Waiting for AVZ shares to resume trading this week? Don't hold your breath appeared first on The Motley Fool Australia.

The embattled lithium developer's shares were halted five months ago and have remained that way ever since.

Will the AVZ share price move any time soon?

As things stand, AVZ shares are scheduled to return to trade at the start of next week on 10 October.

However, the company has consistently named return dates for months, only to push them further back when they arrive.

That's because AVZ shares can only return once the ownership dispute relating to the Manono Lithum Project is resolved.

What is the dispute?

AVZ is currently facing arbitration proceedings from Jin Cheng Mining in relation to the dispute.

This has caused significant uncertainty, as there are various potential project ownership scenarios that could ultimately have a major impact on the company's valuation.

One positive, though, is that AVZ appears confident that a favourable outcome is coming. Last month it commented:

The Company is confident of a positive outcome for it's (sic) shareholders, resultiung (sic) in the re-instatement of trading in its securities.

In addition, AVZ recently hit back at a short seller report, claiming that the short seller was making misleading or deceptive statements. It said:

The Boatman Report makes a large number of false, misleading and/or deceptive statements (including through omission) regarding AVZ and its ownership in the Manono Lithium and Tin Project (Manono Project), all of which are strongly refuted. In particular, the Boatman Report falsely seeks to contend that the Company does not hold legal title to a 75% interest in the shares in Dathcom.

Time will ultimately tell what AVZ's ownership level ends up being.

The post AVZ Minerals shares are scheduled to resume trading next week. Here's what to watch appeared first on The Motley Fool Australia.

The shakeup was part of the S&P Dow Jones Indices quarterly rebalance, which seeks to maintain risks at targeted volatility levels.

The ASX 200 houses the 200 (or so) largest listed companies by market cap. As some of these companies lost a lot of ground over the past three months, they were replaced by other companies.

Below we look at the eight companies that departed the ASX 200 on Monday and how they've performed since Friday's closing bell. For context, the benchmark index is down 0.6% this week.

Leaving the ASX 200 on Monday

The first company to depart the benchmark index is Life360 Inc (ASX: 360), with a market cap of $1.0 billion. Based in the United States, the software development company allows users to keep track of family members via its apps. The Life360 share price is down 1.3% since Friday's closing bell.

Up next is AVZ Minerals Ltd (ASX: AVZ), which has a market cap of $2.7 billion. The resource explorer is focused on developing the lithium-rich Manono Project, located in the Democratic Republic of the Congo. AVZ shares last traded on 6 May, after which the company asked for a halt in trading. And it now looks like shares won't be trading again until at least October.

The third company that got kicked out of the ASX 200 on Monday is City Chic Collective Ltd (ASX: CCX), with a market cap of $377 million. The ASX retailer specialises in plus-size women's apparel, footwear and accessories. City Chic pays a 0.6% trailing dividend yield, fully franked. Shares are down 5.9% this week.

Moving on to the fourth company to exit the benchmark index, we have Clinuvel Pharmaceuticals Ltd (ASX: CUV), with a market cap of $944 million. The biotech share is engaged in developing drugs for the treatment of genetic and vascular disorders. Clinuvel pays a slender 0.2% trailing dividend yield, fully franked. The share price is down 10.5% since Friday's closing bell.

Also exiting the benchmark index

Fintech company EML Payments Ltd (ASX: EML) also departed the ASX 200 on Monday. EML payments has a market cap of $330 million. Shares are down 6.95% this week.

Next, we have Janus Henderson Group PLC (ASX: JHG), which has a market cap of $5.9 billion. The investment management services company pays a 6.2%, unfranked trailing dividend yield. The Janus Henderson share price has slipped 1.9% this week.

Coming in at number seven is Pointsbet Holdings Ltd (ASX: PBH), with a market cap of $641 million. Pointsbet, as the name implies, is a licensed corporate bookmaker with operations in Australia and the United States. The Pointsbet share price is down 2.8% since Friday's closing bell.

And the final company to exit the ASX 200 on Monday is Zip Co Ltd (ASX: ZIP). The buy now, pay later (BNPL) stock has been particularly hard hit by rising interest rates this year, leaving it with a current market cap of $535 million. The Zip share price is down 10.9% this week.

The post 8 ASX 200 shares got kicked out of the index on Monday. How are they tracking? appeared first on The Motley Fool Australia.

No, it's a big day for the ASX 200 today because the latest quarterly rebalancing has just taken effect. The ASX 200 has just had a shakeup.

Why do indexes need rebalancing?

Like most indexes, the ASX 200 is constructed through weighting by market capitalisation. This means the largest companies by size enjoy the largest weighting in the index.

So even though there are 200 or so ASX shares in the ASX 200, the largest ones have more influence than the smallest ones. So Commonwealth Bank of Australia (ASX: CBA), for example, has a far more influential presence on the ASX 200 than, say, Bank of Queensland Limited (ASX: BOQ).  

But market capitalisations are determined by a company's sales price. And, as we know, this changes every trading day. As such, the largest ASX 200 shares by market capitalisation are always in flux.

To make up for this, the ASX 200 is rebalanced every three months to ensure the index is accurately representing the Australian share market. What might have been the ASX 200's 195th largest share by market cap in one quarter might become the 205th, for example, by the time the next quarter rolls around.

As such, there are normally new companies that leave the index when this rebalancing takes place. These will be replaced by others that have seen their market capitalisation rise over the quarter in question.

So these changes to the ASX 200 Index are normally announced with a few weeks to spare. This gives index funds and other concerned parties the time to adjust and hopefully prevents no unnecessarily wild price swings on the rebalance day.

We found out what the latest rebalancing would involve a few weeks ago on 2 September. But today is the day these changes take effect. So let's go over some of the biggest changes to the ASX 200 Index that are in place from today.

A new look ASX 200

So, to get the bad news out of the way first, here is a list of the ASX 200 shares that are, well, no longer ASX 200 shares.:

• Life360 Inc (ASX: 360)
• AVZ Minerals Ltd (ASX: AVZ)
• City Chic Collective Ltd (ASX: CCX)
• Clinuvel Pharmaceuticals Limited (ASX: CUV)
• EML Payments Ltd (ASX: EML)
• Janus Henderson Group (ASX: JHG)
• Pointsbet Holdings Ltd (ASX PBH)
• Zip Co Ltd (ASX: ZIP)

In their place, here are the new faces that have just gained an ASX 200 membership card:

• Capricorn Metals Ltd (ASX: CMM)
• Charter Hall Social Infrastructure REIT (ASX: CQE)
• Johns Lyng Group Ltd (ASX: JLG)
• Karoon Energy Ltd (ASX: KAR)
• Lovisa Holdings Ltd (ASX: LOV)
• Smartgroup Corporation Ltd (ASX: SIQ)
• Spark New Zealand Ltd (ASX: SPK)
• Sayona Mining Ltd (ASX: SYA)

So some interesting names here, which perhaps some readers might be familiar with.     

ASX 200 membership can be a big deal for a company's shares. For example, as of today, any ASX 200 index fund or exchange-traded fund (ETF) that tracks the ASX 200 will have now sold any of the companies in our first list. They also would have just welcomed all of the companies in our second list in their funds.

There's also the prestige that comes along with being in the flagship index of ASX 200 shares.

So today might be a bitter day for some ASX shares that didn't make the cut this time. But it will also be a happy day for the new companies being welcomed onto the ASX 200 as of this Monday.

The post The ASX 200 is getting a shakeup today. Here's the tea appeared first on The Motley Fool Australia.

This is the day that additions and removals from major indices to reflect changes in market capitalisations and liquidity are made effective.

Earlier this month S&P Dow Jones Indices announced a sizeable eight additions and eight removals from the benchmark ASX 200 index.

For the companies entering the index, it often gives their shares a boost. That's because index funds have to buy them to reflect the change and fund managers that are only allowed to buy ASX 200 shares now have the option to invest.

Conversely, the shares that are kicked out of the ASX 200 index can come under pressure from selling from index funds and fund managers dumping shares they are no longer able to hold due to strict investment mandates.

And while most of the buying and selling is likely to be done in the two weeks between the announcement and the rebalance becoming effective, it is always interesting to see how these shares perform on rebalance day.

How are the ASX 200 evictees performing?

Let's take a look at how the eight ASX shares that have been kicked out of the ASX 200 today are performing. Here's a summary:

The AVZ Minerals Ltd (ASX: AVZ) share price has been suspended for over four months and thus has not been impacted (yet) by this rebalance.

The City Chic Collective Ltd (ASX: CCX) share price is down 4% to $1.62 on Monday. This plus sized fashion retailer's shares are now trading close to a 52-week low.

The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has dropped 5% to $20.32 today.

The EML Payments Ltd (ASX: EML) share price has tumbled 4% to 90 cents. This struggling payments company's shares are now down over 70% in 2022.

The Janus Henderson Group (ASX: JHG) share price is down 0.5% today.

The Life360 Inc (ASX: 360) share price is defying the trend and storming 6% higher to $5.64 this afternoon.

The Pointsbet Holdings Ltd (ASX: PBH) share price is also managing to push higher despite its ASX 200 exit. The sports betting company's shares are up 2% to $2.14.

The Zip Co Ltd (ASX: ZIP) share price is down 2% to 80.5 cents. This buy now pay later provider's shares are now down 81% in 2022.

The post Out in the cold: How are the ASX 200 evictees faring on Monday? appeared first on The Motley Fool Australia.

However, once again, this morning the embattled lithium developer has pushed back its return date.

What's happening with the AVZ share price?

According to today's update, the AVZ share price isn't expected to return to trade for almost a month.

It commented:

[AVZ Minerals] refers to the Company's request for an extension to its voluntary suspension dated 1 September 2022, in relation to the finalisation and release of an announcement with respect to its mining and exploration rights for the Manono Lithium and Tin Project (Manono Project).

The Company advises that the subject of the initial trading halt request remains incomplete and requests a further extension to the voluntary suspension until the commencement of trade on 10 October 2022 or an earlier announcement to the market regarding its mining and exploration rights for the Manono Project.

Though, the company has given shareholders reason for hope. It added:

The Company is confident of a positive outcome for it's [sic] shareholders, resultiung [sic] in the re-instatement of trading in its securities.

What's actually going on?

The company is currently facing arbitration proceedings from Jin Cheng Mining in relation to an ownership dispute for the Manono Lithium and Tin Project.

This has caused significant uncertainty, as there are various potential project ownership scenarios that could have a major impact on the company's valuation.

But what AVZ will ultimately be left owning is impossible to say at this stage. So, investors will just have to wait for the arbitration proceedings to complete and go from there.

AVZ and Jin Cheng will be convened to a case management conference this month with a view to setting the timetable of the arbitral proceedings and the execution of the terms of reference.

The post Will the AVZ Minerals share price ever resume trading? appeared first on The Motley Fool Australia.

The embattled lithium developer's shares have been suspended while it sorts out an ownership dispute.

When will the AVZ share price return?

As things stand, the AVZ share price is scheduled to return to trade next week on Thursday 15 September.

However, the company has been pushing back its return date periodically over the last few months. In light of this, there's no guarantee that this will be the end of its hiatus.

Particularly given what was said in its latest update.

What's the latest?

After the market close on Friday, AVZ put out an update on the arbitration proceedings in the International Chamber of Commerce in Paris (ICC) instigated by Jin Cheng Mining Company.

According to the release, the ICC has informed the two parties that it has appointed a sole arbitrator.

AVZ and Jin Cheng will be convened to a case management conference this month with a view to setting the timetable of the arbitral proceedings and the execution of the terms of reference. The specific timing of this conference is yet to be advised to the company.

So, this could mean there will still be some time to pass before the AVZ share price reappears for trade.

Short attack

In addition, the company hit back at a short seller attack by Boatman Capital. It commented:

The Boatman Report makes a large number of false, misleading and/or deceptive statements (including through omission) regarding AVZ and its ownership in the Manono Lithium and Tin Project (Manono Project), all of which are strongly refuted. In particular, the Boatman Report falsely seeks to contend that the Company does not hold legal title to a 75% interest in the shares in Dathcom.

Investors will just have to wait for the results of the arbitration to find out AVZ's ultimate ownership.

The post What's going on with the AVZ share price? appeared first on The Motley Fool Australia.

What's better is that some of these companies have had their price targets upgraded by brokers amid the demand for lithium rising globally.

One method we can use to assess a company's debt is through using the debt-to-equity (D/E) ratio. This is calculated by dividing the company's total liabilities by shareholder equity. It provides the added benefit of assessing a company's financial leverage and is easily comparable from firm to firm.

So let's cover the top five ASX lithium stocks with the lowest levels of debt and their most recent developments.

AVZ Minerals Ltd (ASX: AVZ)

AVZ Minerals has the lowest D/E ratio out of the five at 0.006.

The most recent news for the company is that it was removed from the S&P/ASX 300 Index (ASX: XKO) on Monday amid its shares being halted since May. Shares are frozen at 78 cents each.

The voluntary suspension is in relation to the finalisation and release of an announcement regarding its mining and exploration rights for the Manono Lithium and Tin Project in the Democratic Republic of the Congo.

AVZ Minerals' share price is down 11% year to date.

Liontown Resources Limited (ASX: LTR)

Liontown Resources has a D/E ratio of 0.063.

The company's share price and that of its ASX lithium peers rallied on Monday. This was amid a broker improving the price targets of several lithium shares in this list.

JP Morgan lifted its target on the Liontown share price by 45% to $1.60.

Liontown shares are currently swapping hands for $1.81 apiece, down 2.16% on the day.

The company's share price is up around 5% year to date.

Core Lithium Ltd (ASX: CXO)

Core Lithium's D/E ratio is 0.238.

The company was one of the most traded ASX shares on Thursday, with it and many of its lithium peers enjoying positive developments. This included data from the Federal Chamber of Automotive Industries (FCAI) revealing electric vehicle sales hit an all-time high in Australia.

At the time of writing, Core Lithium shares are up 2.5% to $1.64.

The company's share price is up around 160% this year to date.

Allkem Ltd (ASX: AKE)

Moving up higher now is Allkem's D/E ratio of 11.7.

This company was one of the few that received positive broker coverage this week. Macquarie gave Allkem a price target of $21 per share on Tuesday.

In early trading on Friday, its shares are up 1.85% to $15.45.

Allkem's share price is up around 38% year to date.

Pilbara Minerals Ltd (ASX: PLS)

Finally, the ASX lithium share with the most leverage on its books is currently Pilbara Minerals, with a D/E ratio of 22.6.

The Pilbara Minerals share price hit a new all-time high of $4.41 on Thursday before closing at $4.25. In early trading on Friday, it has surpassed that mark and is currently at $4.42, up 4% on the day.

The company's share price is up nearly 25% year to date.

The post 5 ASX 200 lithium shares with the lowest levels of debt appeared first on The Motley Fool Australia.

Shares of the mineral exploration company have been voluntarily halted since May. Last week, the company applied for an extension of this halt until 15 September, or until an earlier announcement is made.

Today, AVZ is making waves for a different reason: being removed from one of Australia's most important stock indexes, the S&P/ASX 300 Index (ASX: XKO).

So why was AVZ Minerals given the boot?

AVZ Minerals booted from ASX 300

S&P Global announced a rebalance of all of its S&P/ASX indices on Friday last week. As part of this process, AVZ Minerals was removed from the index containing the ASX's largest 300 companies.

Counting AVZ Minerals, 12 companies were removed from the index in total, spread across a broad range of sectors.

A company is added or removed from the ASX 300 due to changes in its market capitalisation. This means that at least 300 other companies have a higher market capitalisation than AVZ Minerals at the time of writing.

A trading halt doesn't affect whether a company is delisted from the ASX 300 directly, but a frozen share price could put it in danger of its market capitalisation being overtaken by shares in a sector undergoing a strong rally.

The S&P/ASX 200 Energy Index (ASX: XEJ), for example, is up 35.72% year to date, while most of the other indices are in the red. Since energy shares performed strongly this year, this is also likely to have pushed some of the weaker-performing shares, such as AVZ Minerals, out of the index.

AVZ Minerals share price snapshot

The AVZ Minerals share price is down 11.36% year to date. Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is also 10.19% lower.

The company's current market capitalisation is around $2.75 billion.

The post Why is the AVZ Minerals share price making news on Monday? appeared first on The Motley Fool Australia.

But occasionally stocks might get a nice boost from an unexpected circumstance.

That's exactly the great fortune Johns Lyng Group Ltd (ASX: JLG), Sayona Mining Ltd (ASX: SYA), and Lovisa Holdings Ltd (ASX: LOV) investors find themselves in this month.

That's because those three ASX shares have been named as new additions to the S&P/ASX 200 Index (ASX: XJO).

They will be welcomed into the flagship index before trading begins on Monday 19 September.

Not just prestige, but actual practical ramifications

So why is joining the ASX 200 such a boon for stocks?

That's because passive funds that follow the index are forced to buy the shares, thereby pushing up demand.

And of course, the share price heads upward as demand increases.

This will be some relief for investors of insurance building repairer Johns Lyng. The price for that stock has dipped 15.5% over the last couple of weeks.

Shareholders for lithium producer Sayona Mining will be glad too, with that stock losing about a third of its value since 19 April.

Lovisa shares have gained a whopping 71% since mid-June, so the ASX 200 addition could light another fire under the rocket.

More to watch

Those three stocks aren't the only ones entering the exclusive 200 club though.

Investors may keep an eye on these other companies to see how they might move as 19 September approaches:

• Capricorn Metals Ltd (ASX: CMM)
• Charter Hall Social Infrastructure REIT (ASX: CQE)
• Karoon Energy Ltd (ASX: KAR)
• Smartgroup Corporation Ltd (ASX: SIQ)
• Spark New Zealand Ltd (ASX: SPK)

Conversely, for each stock that's added to the ASX 200, one gets removed.

And that's potentially bad news for those companies, as passive funds that follow the index are forced to sell.

When supply increases, the share price dips.

So watch out if you're holding any of these ASX shares, which will be kicked out of the ASX 200 on the morning of 19 September:

• Life360 Inc (ASX: 360)
• AVZ Minerals Limited (ASX: AVZ)
• City Chic Collective Ltd (ASX: CCX)
• Clinuvel Pharmaceuticals Limited (ASX: CUV)
• EML Payments Ltd (ASX: EML)
• Janus Henderson Group CDI (ASX: JHG)
• Pointsbet Holdings Ltd (ASX: PBH)
• Zip Co Ltd (ASX: ZIP)

The post Why these 3 ASX shares could be in for a massive boost this month appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks likely to start the week in a similar style to how it ended the last one. This follows a disappointing end to the week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% lower this morning. On Wall Street, the Dow Jones was down 1.1%, the S&P 500 also dropped 1.1%, and the NASDAQ tumbled 1.3% lower. A solid US jobs report failed to ease concerns that the US Federal Reserve would keep aggressively hiking interest rates to fight inflation.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price was up 0.3% to US$86.87 a barrel and the Brent crude oil price rose 0.7% to US$93.02 a barrel. There's speculation that OPEC could announce production cuts this week to boost prices.

ASX 200 rebalance

The Zip Co Ltd (ASX: ZIP) share price could come under pressure today after S&P Dow Jones Indices announced that it would be dumping the buy now pay later provider out of the ASX 200 index at the next rebalance. Other shares leaving the index include the beleaguered AVZ Minerals Ltd (ASX: AVZ), location technology company Life360 Inc (ASX: 360), and sports betting company Pointsbet Holdings Ltd (ASX: PBH).

Gold price rises

A strong US jobs report could mean gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have a positive start to the week on Monday. According to CNBC, the spot gold price was up 0.8% to US$1,722.6 an ounce on Friday night. The aforementioned jobs report led to the US dollar weakening and boosting gold.

Fortescue shares go ex-dividend

The Fortescue Metals Group Limited (ASX: FMG) share price is likely to tumble deep into the red on Monday. That's because this morning the iron ore giant's shares will be trading ex-dividend for its final dividend of $1.21 per share. Based on the current Fortescue share price, this dividend alone equates to a massive 7% dividend yield. Its shares could fall in line with this yield today.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

The explorer's shares have been frozen since May and last traded at 78 cents.

So why are AVZ shares still in a trading halt?

Still on ice

AVZ Minerals shares are frozen after the company requested an extension of its voluntary suspension on the ASX.

The company is still finalising an announcement on the mining and exploration rights for the Manono Lithium and Tin Project.

This project is located in the Democratic Republic of Congo.

Today, AVZ Minerals said "the company advises that the subject of the initial trading halt request remains incomplete"

AVZ Minerals has requested to stay in a trading halt until 15 September, or earlier if an announcement is made on the Manono Project.

On 25 August, AVZ Minerals provided a drilling update on the Manono Lithium and Tin Project. The company advised, "diamond drilling is progressing smoothly". Eight new diamond drill holes all showed visual spodumene.

AVZ managing director Nigel Ferguson said:

We are happy to report that the first eight holes are mineralised with coarse crystalline spodumene present. Hole MO22DD008 is located about 300metres north-east of the current open pit design.

AVZ Minerals share price snapshot

The AVZ Minerals share price has soared nearly 206% in the past year, despite being in a trading halt since May.

In the past five years, the company's share price has gained more than 457%.

AVZ Minerals has a market capitalisation of $2.75 billion.

The post AVZ shares are still frozen. What's going on? appeared first on The Motley Fool Australia.