Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is down almost 27% to 34.5 cents. This morning, this iron ore miner announced that following a significant rockfall it would be ending production at its Koolan Island operations. The company's CEO, Peter Kerr, said: "It is extremely disappointing for the Company and its people that we must prematurely ramp down operations at Koolan Island, however the physical safety of our personnel is our prime consideration. We will now be working closely with our site team, the Dambimangari Traditional Owners and other relevant stakeholders to responsibly manage the transition and preserve a strong legacy in the region."

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is down over 3% to $128.81. This follows the release of the gold miner's quarterly update this morning. Newmont reported a 15.5% year on year decline in production to 1.42M ounces for the three months. But with its average realised gold price lifting 69.3% from a year ago to US$3,539 per ounce and its costs per ounce reducing, its adjusted EBITDA almost doubled to US$3.3 billion. Newmont CEO, Tom Palmer, said: "Newmont delivered a robust third quarter performance, producing approximately 1.4 million attributable gold ounces and generating a third-quarter record of $1.6 billion in free cash flow, marking the fourth consecutive quarter with over $1 billion in free cash flow."

Perenti Ltd (ASX: PRN)

The Perenti share price is down 2% to $2.71. This morning, this mining services company announced the refinancing of its existing syndicated debt facility. Perenti is taking on more debt, replacing its previous $445 million facility with a new $650 million facility on improved pricing and terms. Management advised that this "ensures appropriate liquidity and funding headroom to support operational requirements and growth initiatives."

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 2% to $6.88. This has been driven by the release of the coal miner's quarterly update. The company reported managed run-of-mine (ROM) coal production of 9 million tonnes, which is down 15% quarter-on-quarter. Whitehaven's CEO, Paul Flynn, said: "Whitehaven delivered a solid first quarter result. New South Wales ROM production totalled 4.4Mt for the quarter, after being modestly affected in the quarter by flooding at the open cut mines, but partially offset by improved output from Narrabri following the long wall move in the previous quarter."

The post Why Mount Gibson, Newmont, Perenti, and Whitehaven Coal shares are dropping today appeared first on The Motley Fool Australia.

This morning, the ASX mining stock has returned from a suspension and crashed 28% to 34 cents.

Why is this ASX mining stock crashing?

Investors have been hitting the sell button today after the iron ore miner released an update on its Koolan Island operations.

According to the release, there was a significant rockfall on the eastern footwall (island-side) of the main pit on the night of 16 October.

Thankfully the ASX mining stock advised that no personnel were injured by the rockfall, which had been monitored in advance with continuous radar coverage of pit walls. It highlights that an exclusion zone was implemented in the main pit and all mining remains suspended.

However, following intensive assessment since the incident, which includes input from external geotechnical specialists, Mount Gibson has determined that remediating the rockfall-affected area and resuming mining is not viable.

This is due to the safety risks of potential future instability and the time and investment required to mitigate such risks, especially in the context of the operation's limited remaining mine life. It highlights that prior to the rockfall, production from Koolan Island was scheduled to conclude around September 2026.

Further monitoring will occur during the coming wet season to assess the geotechnical stability of the adjacent footwall areas for potential future access.

For now, mining will remain suspended but processing operations will continue given the availability of ore stockpiles to meet near-term scheduled shipments. There is also the potential for additional sales from lower grade stocks, which was previously retained for blending purposes.

Unsurprisingly, Mount Gibson has withdrawn its sales guidance for FY 2026.

Job losses and rehab costs

The ASX 200 stock advised that it will retain approximately 75 site personnel for the aforementioned activities, but there will be approximately 250 redundancies and the loss of 200 contractor roles.

Net costs associated with this transition are estimated at approximately $30 million to $40 million, including progressive rehabilitation work.

But with cash and investments of $473 million, it is well-positioned to deal with these costs.

Commenting on the news, the ASX mining stock's CEO, Peter Kerr, said:

It is extremely disappointing for the Company and its people that we must prematurely ramp down operations at Koolan Island, however the physical safety of our personnel is our prime consideration. We will now be working closely with our site team, the Dambimangari Traditional Owners and other relevant stakeholders to responsibly manage the transition and preserve a strong legacy in the region.

The post Guess which ASX mining stock is crashing 28% today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up a further 4% to $3.87. This counter drone technology company's shares have been on fire this week after it announced a major increase to its research and development capabilities. Management revealed that it will make a $13 million+ initial investment into a brand new 3,000sqm production facility in Sydney's Alexandria. This will expand its own annual production capacity to $900 million by mid-2026 and a combined total annual manufacturing capacity to $2.4 billion by the end of 2026. DroneShield shares are now up over 400% since the start of the year.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 12% to 15.7 cents. This is despite there being no news out of the mineral exploration company. However, it is worth noting that rare earths shares are racing higher again today after Apple (NASDAQ: AAPL) announced a US$500 million deal With MP Materials (NYSE: MP). This will see the two parties develop a recycling line for rare earth materials. Meteoric Resources' flagship Caldeira Rare Earth Ionic Clay Project is the world's highest grade ionic absorption rare earth deposit.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is up 7% to 32.2 cents. Investors have been buying the miner's shares after it announced its expansion into gold. Mount Gibson has signed a binding conditional agreement with Northern Star Resources Ltd (ASX: NST) to acquire its 50% interest in the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory. Mount Gibson Iron is paying $50 million for the stake. The company's CEO, Peter Kerr, said: "This acquisition represents a compelling opportunity to enter the gold sector at an attractive price, with the sector having strong fundamentals. Involvement in the Central Tanami Gold Project provides Mount Gibson with an opportunity to leverage the success of its Koolan Island iron ore operation to establish the foundations of a gold production business."

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is up almost 5% to 93.7 cents. This payments company's shares are rebounding on Wednesday after tumbling yesterday amid concerns over the RBA's plan to scrap card surcharge fees. Tyro's CEO, Jon Davey, doesn't believe this is bad news. He said: "We welcome the RBA's proposed payments updates, which aim to increase transparency and lower card costs for consumers and merchants. The RBA's proposal supports a holistic view of payments reform that benefits small businesses and creates opportunities for Tyro. We encourage the RBA to move with speed."

The post Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher appeared first on The Motley Fool Australia.

Let's find out what is getting investors excited about this miner.

Which ASX mining share?

The miner that is catching the eye today is Mount Gibson Iron Ltd (ASX: MGX).

At the time of writing, the company's shares are up 10% to 33 cents.

This compares favourably to a decline of 0.9% by the ASX 200 index.

Why is Mount Gibson Iron jumping?

Interestingly, despite what its name might indicate, iron ore is not the reason for its strong rise today. Instead, it is the potential expansion into gold that has got investors excited.

This morning, Mount Gibson announced a binding conditional agreement with Australian gold producer Northern Star Resources Ltd (ASX: NST).

This will see it acquire Northern Star's 50% interest in the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory, along with an extensive wholly-owned exploration landholding adjacent to the CTPJV.

The CTPJV is a 50:50 joint venture between Northern Star and ASX-listed gold explorer Tanami Gold NL (ASX: TAM) located approximately 650 kilometres northwest of Alice Springs and encompassing a total landholding of approximately 2,100 sqkm in the Tanami region.

On a 100% basis, the CTPJV has a reported mineral resource estimate of 13.8 Mt grading 3.6 g/t gold for 1.6 Moz of contained gold.

The ASX mining share notes that it provides it with an attractive near-term development project, building on its remote-site operating strengths, with the ability to fast track permitting and technical work to position for a potential development decision within the next 12-18 months.

How much will it cost?

According to the release, the consideration for the acquisition is $50 million cash payable on completion.

Commenting on the deal, Mount Gibson's chief executive officer, Peter Kerr, said:

This acquisition represents a compelling opportunity to enter the gold sector at an attractive price, with the sector having strong fundamentals. Involvement in the Central Tanami Gold Project provides Mount Gibson with an opportunity to leverage the success of its Koolan Island iron ore operation to establish the foundations of a gold production business.

Given the substantial work that has been undertaken on the project by the CTPJV to date, we intend to work with Tanami Gold to fast track technical studies to position the project for a development decision within the next 12-18 months. We have already commenced the Foreign Investment Review Board application process and look forward to progressing to completion in the coming months.

The post Guess which ASX mining share is jumping 10% on big news appeared first on The Motley Fool Australia.

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

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is down 4% to $1.37. This follows broad weakness in the uranium industry today which has offset the company's presentation at a mining conference today. In respect to the latter, Deep Yellow has talked up its significant production capability. It notes that "once in production, Deep Yellow will be the largest pure-play uranium producer on the ASX [with] production capacity 7Mlb+ per annum. Management also highlights the "significant exploration upside with potential to develop large scale, long-life projects within the Deep Yellow portfolio."

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 17% to $1.67. Investors have been selling this counter drone company's shares after its incredible rally ran out of steam. While DroneShield is growing at a rapid rate, its market capitalisation had ballooned to approximately $2 billion. This was arguably well ahead of fundamentals and has led to a combination of profit taking and then panic selling from investors. And while there has been talk of short selling, the available data at present shows that short interest is still extremely minimal.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is down 10% to 38.7 cents. This follows the release of the iron ore miner's quarterly update. Mount Gibson reported iron ore sales of 0.9 million wet metric tonnes (wmt) for the June quarter at an average grade of 65.2%. This brought its total sales for the year to 4.1 million wmt at a grade of 65.3%. This was near the upper end of its annual guidance of 3.8 million wmt to 4.2 million wmt. However, its costs came in higher than expected and it is forecasting a sharp decline in iron ore sales volumes in FY 2025.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 9.5% to 47 cents. Investors have been selling this investment platform provider's shares following the release of its quarterly update. This is despite the company reporting a 30% increase in total funds under administration to $57.4 billion. Praemium's CEO, Anthony Wamsteker, was pleased with the quarter. He said: "The strong growth in FUA on VMAAS highlights the tremendous potential of that service. Our non-custodial capability remains market leading and represents a significant opportunity for Praemium."

The post Why Deep Yellow, DroneShield, Mount Gibson Iron, and Praemium shares are falling appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

EML Payments Ltd (ASX: EML)

The EML Payments share price is up over 21% to 90.5 cents. This follows news that the payments company is shutting down its troubled PFS Card Services Ireland Limited (PCSIL) business. Management advised that it will now be closed to new business and wound down in a professional and orderly manner. A liquidator has been provisionally appointed by the High Court of Ireland to begin the wind-down.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is up 4% to 53.5 cents. Investors have been buying the iron ore miner's shares following the release of its quarterly update. Mount Gibson revealed that quarterly ore sales revenue came in at $228 million for the quarter. This took its sales revenue for the first half of FY 2024 to $436 million. In addition, cashflow of $123 million was generated for the December quarter.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 3% to $1.65. This is despite there being no news out of the investigative analytics and intelligence software provider. Though, it is worth noting that Nuix's shares were sold off last week. Some investors may believe they were oversold and have been snapping them up today.

RAIZ Invest Ltd (ASX: RZI)

The Raiz share price is up 4% to 38 cents. This follows the release of the investment platform provider's quarterly update. Raiz reported a 6% quarter on quarter increase in revenue to $5.47 million. Management also reiterated that it is on the path to positive EBITDA.

The post Why EML, Mount Gibson, Nuix, and Raiz shares are rising today appeared first on The Motley Fool Australia.

The basic theory is that the amount of output from each person must increase for the economy, wages and standard of living to also climb upwards.

So if productivity is that important, which are the best ASX companies by that measure?

For stock investors, surely it would be useful to find out which publicly listed businesses are the most efficient on a per-employee basis?

Top 10 most productive ASX companies 

To gauge productivity, The Motley Fool turned to S&P Market Intelligence.

That service helpfully provides a listing of every ASX company's revenue per employee for the last 12 months.

The top 10 best ASX companies for productivity looks like this:

The top three are all investment companies, which are arguably not a fair comparison to other businesses.

That's because the employees don't themselves directly make the goods and services, but rather the revenue reflects the performance of the company's investments.

So for any given year, a two-staff entity like Carlton Investments could rake in tens of millions in revenue. On the flip side, they could have lost money during the year for performing the same investment work.

Therefore, if you exclude the top three from analysis, this is where it gets really interesting.

Mortgage broking seems to be a very productive venture, with $3.6 million of revenue figuratively passing through the hands of each Australian Finance Group employee.

Pointedly, with interest rates rising, the AFG share price over the past year has declined 8.4% notwithstanding this efficiency.

Industrial real estate manager Goodman Group also rakes in more than $3 million per staff member.

Perhaps the market appreciates this more, sending its shares up 31.8% over the past 12 months.

Service providers holding their own

The next two are fascinating to me personally.

Data#3 Limited (ASX: DTL) is a provider of information and communications technology services to business clients.

The stereotype is that services do not scale very well.

That is, if you have a factory making lollies, it could take the same number of employees to create 10 or 100,000.

But if you're providing a service, you can't scale it to multiple clients. Each client needs to be looked after by a particular human.

Regardless, the services that Data#3 offers its customers must be of tremendous value, seeing that a whopping $1.77 million of revenue is generated per employee.

Data#3 shares have risen 13% over the past year.

As a contrast, Suncorp is a large financial institution, which has been trying to offload its banking arm to ANZ Group Holdings Ltd (ASX: ANZ).

But even with this deal facing stumbling blocks from the competition watchdog, the business seems to be doing fine, at least by the revenue per employee productivity metric.

Suncorp shares have admittedly risen 39.2% over the past year, while each staff member has been generating $1.41 million of business.

The post REVEALED: Which ASX companies are the most productive in 2023? appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) has shaken off its early morning dip into the red to climb to a 0.6% intraday gain on Wednesday afternoon.

But these two ASX mining shares aren't joining the rebound into the green.

Here's what's happening.

What are ASX investors considering?

The first ASX mining share that's falling on the back of its half-year earnings update is Iluka Resources Ltd (ASX: ILU).

The Iluka share price is down 8.3% at the time of writing, with shares trading for $8.55 apiece. That's up from an intraday low of $8.13 a share, which put the Iluka share price down almost 13% earlier today.

Investors have been hitting the sell button on this ASX mining share following a period of increasing costs and decreasing revenue.

Iluka reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $368 million for the half year, down 22% from H1 2022.

Net profit after tax (NPAT) was down 45% year on year to $204 million.

And passive income investors will be disappointed with the fully franked interim dividend of 3 cents per share. That's down from 22 cents per share in H1 2022.

The S&P/ASX 200 Index (ASX: XJO) mineral sand and critical minerals miner's net cash holdings stood at $343 million as at 30 June, down 30% from 31 December.

Which brings us to…

ASX mining share dips on missed dividend

The second ASX mining share that's in the red following the release of its full-year financial results is Mount Gibson Iron Ltd (ASX: MGX).

The Mount Gibson share price is down 1.2% at the time of writing, with shares trading for 42 cents apiece. That's up from an earlier intraday loss of 4.7%.

The iron ore miner reported some solid metrics for the year.

Those included an 84% year on year increase in iron ore sales, which reached 3 million wet metric tonnes (Mwmt).

NPAT came in at $5 million, a strong improvement on the $174 million loss in FY22.

And the company saw its cash and investment reserves increase by some $37 million over the 12 months, to $162 million at 30 June.

But the ASX mining share looks to be finding itself under some selling pressure after management opted not to declare a dividend. Last year's 2 cents per share dividend gives the stock a fully franked trailing yield of 4.8%. This year, passive income investors will have to take a pass.

Management said they suspended the dividend due to Mount Gibson's "continuing focus on increasing shipments and profitability from Koolan Island".

The board said it intends to resume paying dividends in the future.

The post 2 ASX mining shares being battered on earnings updates appeared first on The Motley Fool Australia.

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

Ampol Ltd (ASX: ALD)

The Ampol share price is up 4% to $31.00. This follows the release of the fuel retailer's half-year update. Ampol reported unaudited replacement cost operating profit (RCOP) earnings before interest and tax (EBIT) of $575 million for the half. This was driven by strong performances from its non-refining divisions compared to the prior corresponding period.

Imugene Limited (ASX: IMU)

The Imugene share price is up 10% to 10.25 cents. This morning, this biotechnology company revealed that it has received a core patent from the United States Patent and Trademark Office. The patent protects its oncolytic virotherapy CF33 products, including VAXINIA and CHECKVacc. Both the method of composition and method of use of its licensed oncolytic virotherapy will be protected until 2037.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is up 9% to 48.5 cents. Investors have been buying this iron ore miner's shares following its quarterly update. Mount Gibson advised that it had a strong finish to FY 2023 as the operating turnaround accelerated at the Koolan Island iron ore mine. This led to record high grade shipping rates being achieved in the June quarter. For FY 2023, full-year sales exceeded guidance at 3.0 Mmwt at an average grade of 65.3% Fe.

Renascor Resources Ltd (ASX: RNU)

The Renascor Resources share price is up 2.5% to 20 cents. This has been driven by news that graphite developer has entered into a non-binding strategic cooperation memorandum of understanding with Japanese anode material manufacturer Mitsubishi Chemical Corporation. It is Japan's largest chemical corporation and one of the world's largest producers of lithium-ion battery anode materials.

The post Why Ampol, Imugene, Mount Gibson Iron, and Renascor shares are pushing higher appeared first on The Motley Fool Australia.

Instead, the baton has been passed on to oil and gas companies this year, as the world became desperate for energy in the face of crimped supply.

Due to the essential nature of energy, prices for these commodities ballooned throughout the year — with crude oil reaching US$130 per barrel after starting the year below US$50. ASX energy companies able to capitalise on the demand have witnessed eye-popping changes to their bottom lines and payouts.

Meanwhile, investors in ASX mining shares have watched on as their dividend yields have been — in many cases — squashed.

It might be painful, but let's find out which mining companies have been dealt the biggest blow to their passive income potential.

ASX mining shares with detonated dividend yields

Before we unearth the harrowing tales of dividend disappearance, it should be said that changes in the dividend yield are a function of two variables. Either the dividend per share (DPS) paid by the company has altered, or the share price may have moved — or some combination of the two.

The worst outcome as an income investor is for your juicy yield to go from hero to zero. According to data from S&P Global Market Intelligence, five ASX mining shares have succumbed to this grim fate.

Comparing the dividend yield as of 31 December 2021 to today, the following companies have experienced a 100% reduction in their yield.

While the above five ASX mining shares take the crown for the biggest reduction in dividend yield, there are several other large names that have experienced substantial yield suppression in 2022.

Which others have been hurt?

For example, Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) received a respective 55% and 29% yield slashing. Both companies feeling the effects of an iron ore price now half its 2021 highs.

Likewise, Newcrest Mining Ltd (ASX: NCM) and Evolution Mining Ltd (ASX: EVN) have taken 37% and 29% hits to their dividend yields.

According to the latest Janus Henderson Global Dividend Index report, dividends from basic materials companies globally fell 21.8% year-on-year in the third quarter.

The post Which ASX mining shares have had their dividend yields slashed the most in 2022? appeared first on The Motley Fool Australia.

Not all have been received well by investors. For example, three All Ords shares that are falling in response to their results are listed below. Here's how they performed:

City Chic Collective Ltd (ASX: CCX)

The City Chic share price has crashed a whopping 19% to $1.99 following the release of the plus sized fashion retailer's results.

While City Chic revealed a 39% increase in revenue to $369.2 million and a small increase in net profit after tax to $22.3 million, this was overshadowed by its inventories and cash flow.

The company revealed that its inventory position almost tripled year over year from $67 million to $196 million and its operating cash flow swung from positive $15.2 million to negative $51.9 million.

Mount Gibson Iron Limited (ASX: MGX)

The Mount Gibson share price is down 6% to 40.5 cents after the iron ore miner's full year results disappointed.

For the 12 months ended 30 June, the company revealed ore sales revenue of $131.1 million. However, due to an impairment and a sharp drop in volumes and the realised price of its iron ore, the company record a loss after tax that was even greater than revenue at $174.1 million. This is down from a $64 million profit a year earlier.

Excluding the $184.6 million impairment, Mount Gibson's loss before tax would still have been a disappointing $63.6 million.

SKYCITY Entertainment Group Limited (ASX: SKC)

The SkyCity share price is down over 2% to $2.61 following the release of this casino and resorts operator's full year results.

SkyCity had a tough 12 months, leading to its revenue falling 32.9% to NZ$639 million. Things were even worse on the bottom line, with the company recording a reported net loss after tax of NZ$33.6 million. Management blamed this poor performance on a material impact from COVID-19 disruptions.

Pleasingly, the company has started FY 2023 strongly and sees a clear pathway to profit.

The post 3 ASX All Ords shares sliding following earnings updates appeared first on The Motley Fool Australia.

But not all ASX All Ordinaries shares are lagging.

Below we look at 3 of today's outperformers.

ASX All Ordinaries shares bucking today's selloff

First up we have Syrah Resources Ltd (ASX: SYR).

The Syrah Resources share price is up an impressive 8.9% at time of writing, trading at $1.80 per share.

The miner's primary focus is the production and sale of natural flake graphite from its Balama Graphite Operation in Mozambique.

Syrah looks to be benefiting from some potential profit hunting after the ASX All Ordinaries share fell 4.3% yesterday.

The company also released its quarterly activities report for the 3 months ending 31 March today, with some strong results.

Among the highlights, Syrah Resources reported growth in demand for its Balama natural graphite end uses, citing an 80% year-on-year increase in global electric vehicle sales in the Q1. It also reported a "significant sales order book" with more than 90 kilotons of natural graphite sales orders in the upcoming quarters.

Moving on…

Iron ore rebound lifting miners

Our second ASX All Ordinaries share to gain strongly today is Mount Gibson Iron Limited (ASX: MGX), up 9.1%.

As the name suggests, Mount Gibson mines iron ore, primarily out of Western Australia.

The company looks to be benefiting from 2 factors helping support the price of other ASX iron ore miners today as well.

First, Mount Gibson's share price plummeted 13.5% in yesterday's trading, meaning there's likely some bargain hunting afoot.

Second, yesterday's plunge came after iron ore prices crumbled 9.7% on fears that China's zero-COVID policies could hamstring its economy and appetite for Australian iron ore.

Today, iron ore prices lifted 2.4% to US$138.95 per tonne, likely helping boost the Mount Gibson Iron share price.

Another strong ASX All Ordinaries share on Wednesday

Finally, we move on to Downer EDI Limited (ASX: DOW).

The integrated services company was up a notch over 5% earlier this afternoon and is currently up 4.9% from yesterday's closing price of $5.09 per share.

Like our other 2 ASX All Ordinaries shares above, Downer looks to be partly benefiting from some bargain hunting, after its shares fell 7.6% yesterday.

Downer also released its investor day presentation this morning.

Potentially driving ASX investor enthusiasm, the company forecasts a weighted average compound annual growth rate (CAGR) of 7-8% in its urban services portfolio. The company also reported on new energy and decarbonisation opportunities across its customer base.

The post 3 ASX All Ordinaries shares leaping 5% or more on Wednesday appeared first on The Motley Fool Australia.

Here are the 5 worst performing ASX shares (with a market capitalisation greater than $300 million) that wound up in the bargain bin last month.

5 worst performing ASX shares in September

1. Jindalee Resources Ltd (ASX: JRL)

The Jindalee Resources share price comes in as one of the worst performing ASX shares last month, tumbling 38% to $2.34.

The company's preliminary scoping study for its McDermitt Lithium Project was a major catalyst behind its sharp declines.

The announcement, released on 16 September, struggled to provide investors with enough tangible metrics to determine the feasibility of its lithium project.

The preliminary scoping study cautioned that it was "based on an indicated and inferred mineral resource … there is a low level of geological confidence associated with inferred mineral resource".

Jindalee shares tumbled 10.95% to $3.01 on the day of the announcement.

2. Marley Spoon AG (ASX: MMM) 

The Marley Spoon share price took a major hit in early September when Woolworths Group Ltd (ASX: WOW) decided to sell its stake in the company.

On 6 September, the supermarket giant offloaded 28,026,000 Chess Depository Interests (CDIs) or 9.87% of the company at $1.91 per CDI.

Marley Spoon shares plunged 10.34% on the day. They finished last month down 30.6% to a 15-month low of $1.47.

3. Fortescue Metals Group Ltd (ASX: FMG)

The Fortescue share price has wound up between underperforming small caps, tumbling 28% in September to a 15-month low of $14.96.

Unlike its peers, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) that have diversified mining portfolios, Fortescue copped the brunt of the selling as iron ore prices hit as low as US$92 a tonne.

4. BlueBet Holdings Ltd (ASX: BBT)

Sports betting shares like BlueBet, Betmakers Technology Group Ltd (ASX: BET), and PointsBet Holdings Ltd (ASX: PBH) have fallen out of favour in recent months.

The BlueBet share price took a 21% dive on 6 September after the company withdrew its application for a Sports Betting Permit in the US State of Virginia.

The company advised that the decision "follows an exhaustive licence application process comprising 18 applications for only 5 available permits".

The BlueBet share price tumbled 27% in September to a 2-month low of $1.83.

5. Mount Gibson Iron Ltd (ASX: MGX)

Mount Gibson is another iron ore name winding up in September's worst performing ASX shares list.

Iron ore prices reversed so fast that Mount Gibson made the tough call to ramp down and suspend operations at its Shine project.

Mount Gibson said that "given recent significant adverse movements in iron ore prices, product discounting and shipping freight rates, the Company will implement a staged suspension of operations at the Shine mine site to reduce expenditure and preserve the value of the deposit, as well as to provide time to assess the outlook for the iron ore market".

Its shares tumbled 24% in September, close to 2-year lows of 48 cents.

The post These were the 5 worst performing ASX shares in September appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why these ASX shares are dropping:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 4% to $99.96. This appears to have been driven by a market selloff, which has been particularly bad in the banking sector. All the big four banks are falling heavily today and are weighing greatly on the ASX 200. This may have been driven partly by the release of data out of the ABS.

Mount Gibson Iron Limited (ASX: MGX)

The Mount Gibson Iron share price has sunk 7% to 44.5 cents. This morning the iron ore miner announced that its Shine operations will be ramped down and suspended after the next planned shipment. Management advised that this decision reflects a rapid deterioration in iron ore prices, particularly for lower and medium grade ores.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 5% to $1.94. This decline appears to have been driven by profit taking from some investors amid the market volatility. After all, even after this pullback, the lithium miner's shares are up over 120% since the start of 2021.

Virgin Money UK CDI (ASX: VUK)

The Virgin Money UK share price is down 8% to $3.72. As well as weakness in the banking sector, an announcement out of the UK bank appears to be weighing on its shares. Virgin Money UK has decided to accelerate its digital strategy in order to enable greater efficiency and drive up levels of digitisation across the bank. This will see it close a fifth of its branches in the coming months at a cost of GBP25 million.

The post Why CBA, Mount Gibson, Pilbara Minerals, & Virgin Money shares are dropping appeared first on The Motley Fool Australia.

This follows a weak overnight performance from Wall Street, with its major indices the Dow Jones Industrial Average, S&P 500 and Nasdaq sliding 1.78%, 1.70% and 2.19% respectively.

The ASX 200 has managed to claw its way back into positive territory, supported by encouraging bounces from the depressed energy and materials sector.

Resources bump ASX 200 into positive territory

The ASX 200 is holding onto a small gain as the S&P/ASX Energy (INDEXASX: XEJ) and S&P/ASX Materials (INDEXASX: XMJ) bounce a respective 1.60% and 0.93%.

Iron ore bounces after Monday selloff

Today's resilient performance is headlined by iron ore majors BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO), up between 1.28% and 1.91%.

The bounce-back has defied the overnight performance of iron ore, which plunged to below US$100 a tonne for the first time since July 2020.

Benchmark iron ore prices fell another US$8.98 a tonne or 8.8% to US$92.98 a tonne, according to Fastmarkets.

Smaller iron ore players are also catching bids, with the Mount Gibson Iron Ltd (ASX: MGX) and Champion Iron Ltd (ASX: CIA) share price rallying 7.9% and 4.8% higher respectively.

Gold miners trade higher, but still around March 2020 lows

ASX 200 gold miners have struggled to find upside as spot prices trade at around March 2020 levels.

Despite going nowhere in the past 18 months, gold majors are propping up the ASX 200 materials index on Tuesday, with heavyweights Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NCM) and Evolution Mining Ltd (ASX: EVN) up 1.44%, 1.86% and 1.62% respectively.

Oil shares lift ASX 200, eyes on Fed meeting

The energy sector is struggling to push above recent highs, despite OPEC forecasting oil demand will exceed pre-pandemic levels in 2022.

At the time of writing, ASX 200 oil and gas players are edging higher with Woodside Petroleum Limited (ASX: WPL) up 2.04% to $21.00, Santos Ltd (ASX: STO) up 0.65% to $6.16 and Oil Search Ltd (ASX: OSH) adding 0.67% to $3.74.

Oil and gas investors should pay attention to the US Federal Reserve Open Market Committee meeting taking place over 21-22 September.

According to S&P Global, "Fed Chairman Jerome Powell signalled last month that it would be appropriate for the tapering to occur by the end of this year, which would buoy interest rates and strengthen the US dollar, putting downward pressure on energy prices."

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Mineral Resources Limited (ASX: MIN) 

The Mineral Resources share price has retreated 4% to $46.25 at the time of writing. Despite the sharp move down, its shares are still sitting within record territory with year-to-date returns of around 20%.  

Mineral Resources could represent the best of both worlds, eyeing a significant ramp up in iron ore production while diversifying into lithium. 

Over the next five years, the company plans to double the revenue of its mining services, which currently account for approximately one-third of the company's revenues, and ramp up its iron ore production from 20Mtpa to 90Mtpa. 

Mineral Resources has partnered with one of the world's largest lithium producers, Jiangxi Ganfeng Lithium Co Ltd to operate the Mt Marion Spodumene project. 

Mount Gibson Iron Limited (ASX: MGX) 

Mount Gibson operates the Koolan mine, located in the Buccaneer Archipelago, Western Australia. The former BHP mine boasts one of Australia's highest-grade hematite ore reserves which average 65.5% Fe.

The company is eyeing a FY21 guidance of 2.8 to 3.3 million wet metric tonnes (Mwmt). This comprises of 1.2 Mwmt of material sold from its now-completed low-grade sales program in its Mid-Western Australia projects and the remainder comprising of its Koolan Island fines products, which are expected to total approximately 1.8 Mwmt. 

BCI Minerals Ltd (ASX: BCI) 

BCI Minerals is another iron ore junior that has soared more than 25% in the last two weeks. The company's main iron ore asset is its Iron Valley Mine which is mined under royalty payments from Mineral Resources. 

The company is targeting an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $37 million between Q1 to Q3 FY21 from its Iron Valley royalties. The company has used its cash proceeds from iron ore to help drive its Mardie salt and sulphate of potash fertilities project in Western Australia. 

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The company is hoping to emerge as Western Australia's next significant iron ore producer and has advanced quickly from project construction back in August 2020 to its maiden shipment on 15 February 2021. 

Fenix share price sinks on production ramp-up

Fenix has been focused on ramping up the production of its 100% owned flagship Iron Ridge iron ore project. Today, the company announced that road haulage rates from the Iron Ridge mine to the port storage facility have reached nameplate levels of 1.25 million tones per annum (Mtpa).

The update notes that Fenix is now able to schedule two bulk shipments of approximately 60,000 wet metric tonnes (wmt) per month for the foreseeable future. This milestone was achieved approximately one month ahead of the company's schedule. 

Managing director Rob Brierley congratulated the Fenix team on its successful journey from explorer to producer.  

I'm proud of the achievements of the Fenix team, in collaboration with our keys service providers Fenix-Newhaul, MACA Mining, Alpha and Champion Bay Electrical. We have built a sustainable iron ore export business in a short space of time and have done so with due respect for the heritage value of the area around Iron Ridge, the environment and the health and well-being of our people.

How does Fenix's production stack up in the iron ore space?

Fenix and its Iron Ridge project are in its early days, but the company's nameplate capacity is significant when compared to existing ASX-listed iron ore producers. 

Mount Gibson Iron Ltd (ASX: MGX) for example, boasts a market capitalisation of $1 billion with 2.35 million wet metric tonnes (Mwmt) mined in FY20. Mount Gibson is also ramping up production with its half-year results highlighting 1.4 Mwmt mined for the half year ended 31 December. 

This towers over Fenix which currently has a market capitalisation of just $113 million with its 1.25 Mpta nameplate capacity and capacity to schedule two bulk shipments of ~60,000 wmt per month for the foreseeable future. If things go to plan, Fenix could be shipping an annualised 1.44 Mwmt per annum despite fetching just one-tenth of Mount Gibson's valuation.

That said, Fenix is in its early days without a history of production excellence. It is positive to see that in the company's quarterly activities report on 20 January 2021, it highlights sales agreements in place for 100% of projected iron production from Iron Ridge.

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The futures market is pointing to a 0.6% jump in the  S&P/ASX 200 Index (Index:^AXJO) at the open as risk taking fuelled another big jump in the iron ore price.

The price of the steel making ingredient surged 5.8% to US$145.01 a tonne on Friday evening, reported the Australian Financial Review.

Why iron ore prices are surging

It isn't only promising COVID‐19 vaccine news that's bringing out the animal spirits for the commodity. The US federal government appears closer to unleashing a new round of economic stimulus that could be worth around US$1 trillion before year end.

Then there is the economic rebound in China, which is the largest buyer of Australian iron ore. The Asian giant is about the only major economy that can boast about a V-shaped recovery.

Rally favours smaller ASX iron ore stocks near-term

That only means more good news for the BHP Group Ltd (ASX: BHP) share price, the Rio Tinto Limited (ASX: RIO) share price and the Fortescue Metals Group Limited (ASX: FMG) share price.

But I won't be surprised to see the smaller marginal ASX miners benefit more. Rising commodity prices tend to favour these stocks more. These stocks include the Mount Gibson Iron Limited (ASX: MGX) share price and Deterra Royalties Ltd (ASX: DRR) share price.

On the flipside, the big run up in the iron ore price over a short timeframe is causing some to question if the rally is sustainable.

After all, what goes up quickly has a tendency to tumble suddenly.

Why the iron ore price can go higher

But the iron ore run may be more enduring than sceptics believe. Firstly, Vale SA's production guidance downgrade for 2020 and 2021 clears the way higher for Australian producers. The Brazilian rival is struggling to restore output to pre-COVID levels because of the pandemic.

Even if a vaccine is available today, it will take considerable time for it to be available to the masses.

Meanwhile, demand for iron ore, particularly from China, is likely to increase as its economic recovery gathers pace. Also, the Chinese government needs the ore to build its military capabilities. Thank goodness it doesn't have alternative suppliers for iron ore as Australia supplies around 60% of its market.

Other tailwinds supporting ASX iron ore stocks

Thirdly, currency forecasters are tipping further weakness in the US dollar in 2021. The massive stimulus that the US will have to undertake under new President Biden to restore growth will weaken the greenback.

A weaker US dollar usually means higher commodity prices as commodities are priced in the US currency.

Finally, history bodes well for the iron ore price. Analysts have repeatedly underestimated the strength in the commodity. There's no reason to think the pessimists have got it right this time – at least not in the shorter-term.

The post Why ASX iron ore stocks are set to rally today appeared first on The Motley Fool Australia.

La Nina will bring cooler than average temperatures to the east coast of Australia and is expected to last till March 2021.

This means we can expect summer to be a wetter than normal season. This is welcomed relief for shareholders of drought-stricken agri-stocks.

Unexpected ASX stocks affected by La Nina

But these aren't the only ASX stocks affected from the La Nina weather phenomenon. Macquarie Group Ltd (ASX: MQG) identified 49 ASX stocks that will be impacted in both a good and negative way.

"Cooler than average temperatures are also typical across most of mainland Australia south of the tropics between Jul-Dec," the broker.

"South East Asia also typically experiences higher than average rainfall. Conversely, drier than normal weather can be experienced in Argentina and southeastern China.

"La Niña can also bring drier and warmer conditions to the southern tier of the United States."

The ASX miners that may benefit from La Nina tailwind

Among the winners outside of the agriculture sector include the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price.

This is because La Nina will bring heavier rainfall to Brazil and that could impede production at iron ore miner Vale SA. The Brazilian miner is already struggling to meet production targets due to COVID‐19, much to the benefit of Australia miners.

Our iron ore majors operate on the west coast of Australia, which won't be affected by the wetter conditions.

If Vale's operations are further impacted by La Nina, it won't only be BHP's and Rio Tinto's shareholders that will be smiling. The Fortescue Metals Group Limited (ASX: FMG) share price and Mount Gibson Iron Limited (ASX: MGX) share price are also set to benefit.

Cold weather beneficiaries

We can also expect to see winners emerge in the ASX energy sector, according to Macquarie. Of course, this assumes their operations aren't affected by floods.

"A colder winter will increase North Asia LNG demand," explained the broker.

"And a cooler Aussie summer means less work for heat exchangers and therefore tends to drive higher efficiency rates in LNG liquefaction facilities."

The winners in this instance include the Oil Search Limited (ASX: OSH) share price, Santos Ltd (ASX: STO) share price and Woodside Petroleum Limited (ASX: WPL) share price.

Washed up by La Nina

However, La Nina may also create losers on our market. One group are companies that supply or sell beverages here as cooler weather lowers demand for soft drinks and bottled water.

On that front, the Coca-Cola Amatil Ltd (ASX: CCL) share price, the Orora Ltd (ASX: ORA) share price and Ampol Ltd (ASX: ALD) share price could suffer.

Luckily for CCL shareholders, the takeover offer for the group will negate this risk (assuming the deal goes through).

The post How La Nina will create unexpected ASX stock winners and losers appeared first on The Motley Fool Australia.

At the time of writing, the Mount Gibson share price is swapping hands for 74 cents, up 2.76% in early morning trade. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.1% at 6,308 points.

How did Mount Gibson perform in Q1?

Mount Gibson reported a solid Q1 FY21 result for the period ending September 30. The iron ore producer reached sales of 1.4 million wet metric tonnes (mwmt). This comprised of 0.7 mwmt of high-grade ore at its Koolan Island, and 0.7 mwmt of low-grade material from Mid-West.

Total ore sales revenue equated to $129 million free on board (FOB), reflected upon a stronger Australian dollar against the greenback.

Mount Gibson recorded cash on hand for the ending period at $445 million, compared to $423 million from the prior period.

Group cash flow for the quarter came in at $32 million, mostly operating expenses from Koolan Island's advanced waste stripping investment.

Unit cash costs stood at $56/wmt FOB, an improvement from the $66/wmt recorded prior its waste stripping project.

The company also completed a new airstrip in Koolan Island, with first flights schedule this month. The new infrastructure is expected to deliver significant efficiency and cost reduction benefits to its Koolan Island operations.

What did management say?

Mount Gibson CEO Peter Kerr welcomed the results, saying:

Mount Gibson has made a positive start to the new financial year with improved quarterly ore production and sales, completion of the new Koolan Island airstrip, ongoing low-grade ore sales in the Mid-West and, recently, declaration of Ore Reserves for the initial stage of the Shine Project.

We are also tracking to achieve first ore sales from the Shine Project in mid-2021, subject to finalising the last commercial and permitting requirements, which will extend our Mid-West business by at least two years and potentially longer should market conditions remain supportive.

Outlook

Mount Gibson advised it would focus on increased mining movements at Koolan Island to complete its planned open pit waste stripping phase. In the Mid-West, the company will look to finalise its low-grade sales from Extension Hill.

Mount Gibson expects ore sales guidance for 2020/21 of 2.8-3.3 mwmt at a group cash cost between $60-$65/wmt FOB.

In addition, the company is pushing ahead for stage 1 of the Shine Iron Ore project, targeting first sales in mid-2021.

About the Mount Gibson share price

It has been a bumpy road for Mount Gibson shareholders, with its share price swinging in the past 6 months. The company reached a 52-week high of $1.03 at the start of the year and fell to a year low of 54 cents.

The post Why the Mount Gibson (ASX:MGX) share price is moving higher today appeared first on The Motley Fool Australia.