BHP share price rises as miner strikes deal with Tesla

Liam Roche
-
0

BHP Share Price

The BHP share price (LON:BHP) is up by 0.51% on Tuesday morning in London, as the mining giant confirmed it will be supplying nickel to Tesla. The news comes on the back of what has been a poor showing so far this week for the BHP share price, which is still down by 0.73% over the past five days.

Going back further, it has been a volatile 2021 for the FTSE 100 company. BHP has added 11% since the beginning of year. With news of the deal with Tesla, in addition to rumours over a bumper shareholder payout and a potential departure from oil and gas, now is a pivotal time for the company. Investors in the miner will be curious as to what the ongoings surrounding the firm mean for the BHP share price in the near-term and further ahead.

Tesla

BHP confirmed on Thursday that it reached an agreement with Tesla for the car maker to supply nickel, as well as working alongside the company to reduce carbon emissions along the battery supply chain.

“Demand for nickel in batteries is estimated to grow by over 500 per cent over the next decade, in large part to support the world’s rising demand for electric vehicles,” BHP Chief Commercial Officer Vandita Pant said in a statement.

Tesla confirmed last month that it expects to spend more than $1bn per year on battery raw materials from Australia due to the country’s reliable mining sector.

BHP reiterated its claim to be one of the most sustainable and lowest carbon emission nickel producers across the world.

Nickel and copper could be two key commodities in de-carbonising the global economy. Therefore this move could prove to be beneficial to the long-term outlook of the BHP share price.

Dividend

Investors will be paying attention to BHP’s dividends ahead of its result statement on 16 August. In positive news for shareholders, Berenberg, the broker, is expecting a sizeable payout.

Berenberg is forecasting a dividend payment of $3.05, up from US$1.20 the year before, which would be a yield of around 10%.

“We believe this is achievable given our forecast US$4.5bn reduction in net debt over FY21 to US$7.5bn, which remains well below the US$12- 17bn guidance range,” Berenberg said in a note.

Additionally, in further positive news for curious investors, Berenberg set a 2,700p price target for the BHP share price.

Oil and Gas

BHP has been weighing up the possibility of selling its oil and gas assets, as the miner looks to focus itself on commodities better suited to the future. With pressure coming from investors, climate campaigners and the Paris climate agreement, the mining giant considers now a good time to review its oil and gas operations.

On the other hand, there is a financial incentive to invest in the industry in the shorter-term, due to the lack of investment. With investors and major companies increasingly focused on ESG concerns, an opportunity has been left behind.

While most of its revenue comes from iron ore and nickel, the company has a decision to make, which could upset its shareholders and the BHP share price.

Bitcoin climbs as Musk makes a series of revelations

Liam Roche
-
0
Bitcoin climbs as Musk makes a series of revelations

The digital currency has now traded above the £23,000 mark for the last 24 hours

Bitcoin climbed higher on Wednesday as Elon Musk made a series of revelations regarding his rocket company SpaceX, bitcoin and a potential u-turn by Tesla.

The digital currency has now traded above the £23,000 mark for the last 24 hours as the billionaire mogul divulged for the first time that SpaceX holds bitcoin.

He also said at the ‘B’ Word Conference, alongside JackDorsey and Cathie Wood, that Tesla would consider accepting bitcoin as a payment method again after the electric car maker famously stopped doing so, citing concerns over the energy consumption of the digital currency.

Musk said he personally owned bitcoin, ether and dogecoin as his tone was generally positive around bitcoin, despite previously outspoken tweets.

“We’re not selling any bitcoin, nor am I selling anything personally. I would like to see bitcoin succeed,” he said.

Musk appeared to respond to detractors who accused him of manipulating the price of crypto for his own personal gain. However, he reaffirmed his loyalty to bitcoin and reiterated the fact that he continues to have skin in the game. “If the price of Bitcoin goes down, I lose money. I might pump, but I don’t dump,” Musk said.

Earlier in the year, a number of Tesla investors and environmental campaigners criticised the car company’s decision to accept bitcoin payments.

The Tesla share price closed 0.79% down yesterday following the virtual conference.

The fall-out drew attention to the ESG credentials of bitcoin. While some said it incentivises the production of renewable energy, others bemoaned that its consumption was akin to that of a small nation.

Next shares, Zenova IPO and an African growth story with Alan Green

UK Investor Magazine
-
0
Next shares, Zenova IPO and an African growth story with Alan Green

This week’s UK Investor Magazine Podcast with Alan Green covers Next shares (LON:NXT), the Zenova Group (LON:ZED) IPO and an under appreciated African growth story in AirTel Africa (LON:AAF).

The FTSE 100 has suffered bouts of volatility over the last week as COVID cases rise globally and concerns about inflation persist. We question whether we could see more meaningful downside in markets in the third quarter and look at the potential buying opportunities in such a circumstance.

Next shares gave a boost to the FTSE 100 following a strong trading update that demonstrated the successful shift to online sales during the pandemic. With such bumper sales figures, it does raise the possibility it is simply a result of pent up demand that diminishes through the rest of 2021.

We discuss Zenova Group – which popped higher on its IPO – and what the future holds for the innovative fire protection company.

Finally there is attention paid to a very fairly priced African growth company that may have flown under the radar.

FTSE 100 pauses to catch a breath

Liam Roche
-
1
FTSE 100 pauses to catch a breath

Following a strong showing on Wednesday the FTSE 100 is more reserved today, up by 0.10% to 7,005 during the morning session.

“The FTSE 100 was pausing for breath on Thursday having done its best to pick itself off the canvas after being felled by Covid and inflation concerns at the start of the week,” says AJ Bell investment director Russ Mould.

With the European Central Bank meeting taking place later today, the market could be given some direction as inflationary pressures will likely be high on the agenda.

US weekly jobless figures will also be closely monitored later given “US central bankers have long signaled that the jobs market is pretty much their lodestar” when it comes to making decisions on monetary policy, according to Mould.

“Part of the narrative behind the market rebound in the last couple of days has been the idea that support for economies might be sustained for longer as the world stares down the barrel of rising Covid infections linked to the Delta variant,” Mould said.

FTSE 100 Top Movers

IAG (3.9%), Flutter Entertainment (3.82%) and 3i Group (3.57%) have each made solid gains this morning as the week draws to a close.

At the bottom end of the FTSE 100 on Thursday morning is Unilever (-4.53%), Persimmon (-3.25%) and Reckitt Benckiser (-2.29%).

Greatland Gold reports ‘excellent’ growth drilling results

Liam Roche
-
0
Greatland Gold reports ‘excellent’ growth drilling results

Greatland Gold says results from Growth Drilling continue to support the potential for resource expansion

Greatland Gold (AIM:GGP) reported continued ‘excellent’ growth drilling results at its Havieron gold-copper project in the Paterson region of Western Australia.

The AIM-listed company said drilling activities since the last update include new results from the Growth Drilling programme, which continue to support the potential for resource expansion of the Havieron gold-copper project.

The latest results involve seven new drill holes with each one intersecting significant mineralisation.

Newcrest Mining (ASX:NCM), its partner in the project, has completed a total of 184,081 metres of drilling from 212 holes so far.

Growth Drilling continues to confirm extensions to the high grade South East Crescent and the Northern Breccia mineralisation below and around the initial Inferred Mineral Resource estimate, the company said. HAD138 (Northern Breccia) reported 84.5m @ 2.0 g/t Au & 0.05 % Cu from 683m, including 12.7m @ 6.0 g/t Au & 0.01 % Cu from 685.3m.

Additionally, 2021 Growth Drilling is progressing into full-year 2022. A further 15 Growth drill holes have been completed with samples awaiting assay, anticipated to be received and reported in the next update.

Shaun Day, Chief Executive Officer of Greatland Gold plc, commented: “There is a tremendous amount of activity and excitement with the progress across the Havieron gold-copper project. In addition to the intensity of the drilling programme, the decline development is now maintaining 24- hour operations and the surface support infrastructure is nearing completion.”

“The drilling programme keeps on delivering with every hole continuing to hit significant mineralisation while also growing the scale of the Project. Drilling has identified several exciting results from the South East Crescent, extending the high grade mineralisation beneath the initial Inferred Resource estimate.”

“The ongoing success from each set of drill results builds confidence in the world class nature of the Havieron gold-copper project and its potential to expand. This de-risks the project as we progress it towards potential production and adds further upside to the value of the deposit.”

“With 15 intersections awaiting assay, the volume of information available is expected to significantly expand with our next update as we continue to grow our understanding and scale of the Havieron gold-copper project.”

The Greatland Gold share price is down by 2.27% during the morning session on Thursday.

Cost pressures weigh on Unilever’s margin guidance

Liam Roche
-
0
Cost pressures weigh on Unilever’s margin guidance

Unilever’s underlying sales rose by 5% during the quarter ending in June

Unilever surpassed its expectations on Thursday with its Q2 sales growth which was helped by rising prices and its sales of ice-cream and teas.

However, the soaring price of commodities could narrow its operating margin at the end of the year.

This was reflected by investors this morning as the Unilever share price dropped by 4.34% in early trading.

The FTSE 100 company’s underlying sales rose by 5% during the quarter ending in June, 0.2% above analysts expectations.

Having previously expected an increase, Unilever is now expecting its operating profit margins to be flat for 2021.

Chris Beckett, head of equity research at Quilter Cheviot, gave further context to the news:

“Unilever’s sales growth matched market expectations, while earnings growth exceeded market expectations due to low tax and interest payments. Underlying sales grew 5% in the quarter with slowing volumes (+3%) being supported by accelerated pricing (+2%),” said Beckett.

“All product categories broadly matched market expectations with the strongest growth being recorded in Foods & Refreshment which benefited from increased European ice cream sales. Asian and emerging markets were top performing regions for Unilever, led by double digit performance in China and South Asia.”

“Of concern, however, is the reduction in operating margins and lowering of the full year margin guidance as a result of cost increases. These result from higher input costs across the supply chain affecting a number of product lines. Operating margins should now only be maintained – whereas Unilever previously expected a slight improvement.”

UK Treasury reveals plan to sell-off more NatWest shares

Liam Roche
-
0
UK Treasury reveals plan to sell-off more NatWest shares

NatWest chairman says London office culture will never be the same

The UK Treasury is set to sell more of its stake in NatWest over the coming 12 months as it confirmed a trading plan to decrease its holding in the bank.

NatWest was rescued by the government on the back of the financial crisis over ten years ago. It remans 54.7% owned by the UK Treasury despite continued efforts to sell-off its holding.

However, the government reaffirmed that it would only sell the shares for a price it deems fair for taxpayers.

Its sales of NatWest shares have up until now represented a hefty loss on what was paid for them in the aftermath of the financial crisis.

The NatWest share price was valued below 200p as markets closed on Wednesday, meaning the FTSE 100 bank has a valuation of £23bn.

The latest trading plan has been permitted by chancellor Rishi Sunak on the advice of UKGI.

“The implementation of a trading plan represents continued progress towards the government’s plan to return this shareholding, acquired as a result of the 2007-2008 financial crisis, to private ownership,” the Treasury said.

Additionally, the chairman of NatWest, Howard Davies, said office culture in London is unlikely to ever be the same as it was before the pandemic.

Davies said that he expects the changes to remain even once the pandemic is a thing of the past: “The days when 2,500 people walked in through our office door on Bishopsgate at 8:30 and then walked out again at 6 o’clock, I think that is gone. I suspect there won’t be that many people who will be doing five long days in the office.”

While some of the company’s workers, especially traders, will continue to operate from company desks, most of the bank’s staff will be required to enter the workplace on an intermittent basis. “I suspect there won’t be many doing five long days in the office,” Davies said.

Morrisons shareholders will vote on Fortress offer in August

Liam Roche
-
0
Morrisons shareholders will vote on Fortress offer in August

The offer on the table by Fortress stands at 254p per share

Morrisons (LON:MRW) confirmed on Thursday that its shareholders will be able to vote on the proposed £6.3bn takeover from a consortium led by Fortress Investment Group on August 16.

A court meeting and a general meeting will be held on August 16, it was revealed by a scheme document outlining Fortress’ offer.

While the supermarket group’s directors are recommending acceptance, the offer remains subject to approval by shareholders.

The offer on the table by Fortress stands at 254p per share. 252p is in cash plus a 2p share dividend.

The special dividend would be paid two weeks after the takeover is completed.

“Discussions are continuing with the trustees to agree appropriate mitigation and the trustees have stated their intention to issue their opinion on the Fortress Offer in due course,” Morrisons said.

Back in June, Morrisons rejected an offer of £5.5bn from a different consortium, adding that it was an undervaluation of the company.

The business consists of just under 500 stores and over 110,000 employees across the UK.

In addition to Fortress’ offer, which has been deemed acceptable, the investor promised to support the supermarket’s exit strategy, keep its head office in Bradford and protect employees’ pension rights.

Morrisons first existed as a market stall in Bradford in 1899 owned by William Morrison. His son then took over the company and opened the first supermarket in the 1960s.

During the morning session on Monday, the Morrisons share price is pretty much unchanged.

New AIM admission: Microlise Group

Andrew Hore
-
0
New AIM admission: Microlise Group

Microlise Group is a SaaS-based transport management technology company that has more than 400 customers with over 500,000 vehicles using its software. Although hardware is supplied, it is the software that provides the long-term cash generative ability of the company.
One of the most impressive things is that the churn rate is around 1%. The software focus probably helps but it is an indication that the software is well thought of by the end customers and it is useful to them. Signing customers up on multiyear deals also helps.
Cash generation outstrips revenues because many of the customers ...

Hurricane Energy share price rises as Crystal Amber increases holding above 25%

Liam Roche
-
0
Hurricane Energy share price rises as Crystal Amber increases holding above 25%

Hurricane Energy Share Price

The Hurricane Energy share price (LON:HUR) jumped by 16.01% on Wednesday following news that Crystal Amber, the activist fund, raised its holding in the oil company above 25%. At the beginning of July, UK Investor Magazine reported that Crystal Amber had raised its stake by nearly 9% to 23.09%. At that point the Hurricane Energy share price climbed as high as 4.09p per share. However, it has somewhat retreated before today’s surge, which brought the company’s stock value to 3.26p per share. With high levels of debt and a failed financial restructuring, the Hurricane Energy share price appeared to be in a precarious position, however investors will be hoping today’s news provides a sustained boost.

Crystal Amber

It appears that investors are happy about Crystal Amber’s latest signal of intent as the investor increased its control over Hurricane Energy. Some key changes have already been made to the business by Crystal Amber, which could serve to influence the performance of the Hurricane Energy share price over the coming months. Firstly, it successfully ousted two non-executive directors, replacing them with Crystal Amber’s nominees, John Wright and David Craik. They also stopped Hurricane Energy in its efforts to implement a financial restructuring that could have wiped out its shareholders.

Ongoing Issues

Hurricane Energy’s troubles stem from the downgrade of the company’s reserves at its Lancaster oil field, which poses a significant threat to the company’s future as its output estimates plummeted dramatically. The AIM-listed company is weighing up proposals to drill new wells to boost output at the Lancaster oil field. However, its hands are tied somewhat due to its obligation to pay back a £163m convertible bond in a year’s time.

Crystal Amber’s job, now that it has a 25% holding, is to overcome these obstacles to secure the oil company’s future. Investors with an interest in the Hurricane Energy share price will be keeping a close eye on Crystal Amber’s strategy going forward.

1...886887888...1,780Page 887 of 1,780