Investors of the ASX banking shares might be in for a treat in 2021. The ASX banks have proven to be great shares to own so far this year.

My, how the times change. Sure banks recovered nicely last year from the COVID-induced lows we saw back in March. But they were somewhat left in the dust by other ASX growth shares, especially those like Xero Limited (ASX: XRO) and Afterpay Ltd (ASX: APT) in the tech space. But 2021 has proven to be not such a great year for ASX tech shares. And that has opened the door for the ASX banks to come roaring back.

Just this week, Commonwealth Bank of Australia (ASX: CBA) hit a new all-time high of $98.84 a share. CBA shares are up close to 15% year to date and more than 60% over the past 12 months.

The other major ASX banks aren’t quite at their all-time highs. But all 3 have given investors solid performances so far in 2021. National Australia Bank Ltd. (ASX: NAB) shares are up 13% year to date. Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) are up 18.5% and 28% year to date respectively.

Investors can largely thank the ASX banking shares for the new all-time high that the S&P/ASX 200 Index (ASX: XJO) hit last week. With some help from the miners like BHP Group Ltd (ASX: BHP) of course. Credit where credit’s due.

Bank share prices have recovered, are dividends next?

But could things get even better for ASX bank shareholders? Whilst bank shares have more or less got back to the pricing they were at just before the COVID crash last year, investors are still waiting for bank dividends to follow suit.

Well, according to reporting in the Australian Financial Review (AFR) this morning, indeed they can.

The AFR quotes Daniel Moore, co-portfolio manager of the Investors Mutual Australian Share Fund on the matter. Mr Moore reckons 2021 is shaping up to be  a great year for banking dividends:

We now have a strong platform going forward for economic activity and company earnings. All this indicates that the outlook for dividends in 2021 and beyond is strong, and payout ratios are likely to improve.

The AFR also spoke to Nathan Zaia, banking analyst at Morningstar. Mr Zaia expects bank investors might be able to enjoy some special dividends or share buybacks in the back half of 2021. That’s because the banks are still holding more capital than what the regulator APRA is demanding right now, as a result of the economic uncertainties of last year. He added the following:

I think the ordinary dividend payout ratios will be lifted across all the banks. For ANZ probably to around 65 per cent and 70 per cent, to 75 per cent for National Australia Bank and Westpac… The Commonwealth Bank could kick-start things in, but it isn’t a sure bet.

Foolish takeaway

ASX bank shareholders will no doubt be hoping that the predictions of these gentlemen come to pass. 2020 was a very sparse year for bank dividends (Westpac ended up cancelling its interim dividend entirely). It seems 2021 might just make up some of that shortfall if these predictions are to be believed.

More reading

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Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The market may be a sea of red on Wednesday but that hasn’t stopped the Appen Ltd (ASX: APX) share price from rocketing higher.

In afternoon trade, the artificial intelligence (AI) data services company’s shares are up a sizeable 16% to $13.07.

However, despite this strong gain, the Appen share price is still down a massive 70% from its 52-week high.

Why is the Appen share price rocketing higher today?

The catalyst for the rise in the Appen share price today was the release of a business and trading update this morning.

In respect to the former, Appen is restructuring its business to align to its product-led growth strategy and distinct customer propositions.

This will see the company operate with four customer-facing business units – Global, Enterprise, China, and Government.

Management believes the changes will provide greater visibility of the drivers and performance of the business. Furthermore, it notes that the changes reflect Appen’s evolution from being the leading provider of AI data annotation services to a provider of a broad range of AI data annotation products and solutions that unlock growth in new markets.

What else?

While the above is a positive move, the main driver of the Appen share price performance today is likely to have been its trading update.

Analysts were very disappointed recently when the company neglected to provide an update on its performance while presenting at the Macquarie Group Ltd (ASX: MQG) conference. Particularly given comments about changing behaviour from its customers and fears over increasing competition.

Positively, this morning the company provided the market with what it wanted and, as you might have guessed from the Appen share price, the news was positive.

According to the release, Appen is on track to achieve underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$83 million to US$90 million in FY 2021.

This is in line with its previous guidance of A$120 million to A$130 million (based on constant currency of 1 AUD = US$0.6904) and adjusted into US dollars to reflect a change in its reporting currency. It also represents growth of 18% to 28% year on year.

Shareholders will no doubt be hoping it is onwards and upwards for the Appen share price now things are becoming a little less uncertain.

More reading

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in BPM Minerals Ltd (ASX: BPM) have rocketed upwards on news of an acquisition and placement. At the time of writing the BPM share price is up an incredible 145.24%, with shares in the company swapping hands for 51.5 cents apiece.

BPM announced this morning it has entered into a binding heads of agreement to purchase all shares in Recharge Resources Pty Ltd, which holds 3 projects on the boundary of the Earaheedy Basin.

Market watchers might remember the announcement of a major lead and zinc discovery at the Earaheedy Basin by Rumble Resources Ltd (ASX: RTR) last month.

The BPM acquisition will be supported by a proposed $1.5 million private placement.

Let’s take a closer look at today’s news from mineral explorer.

Acquisition and placement

From its acquisition of Recharge Resources, BPM will gain the Hawkins, Ivan Well, and Rhodes projects.

Mining licenses for Hawkins and Rhodes are yet to be granted by the Western Australian Government.

The Hawkins project is just 40 kilometres from Rumble Resources’ Chinook Discovery.

According to BPM, Recharge’s Earaheedy Basin projects, together, cover 280 square kilometres of the same stratigraphic target zone as the Chinook Discovery.

Previous to the recent discovery of lead and zinc at Chinook, the Earaheedy Basin was known for its potential for iron ore and base metals.

Most previous drilling and soil sampling done at the Hawkins Project’s Pinnacles prospect hasn’t been assayed for iron or zinc. Meanwhile, drilling and soil sampling previously done at Ivan Well and Rhodes hasn’t been assayed for base metals. Though, surface sampling at Rhodes has found areas of high-grade iron.

Recharge also holds a single project in southern Western Australia.

BPM states it’s fully funded to complete 15,000 metres of drilling across the 3 Earaheedy Basin projects and 2 of its existing projects – an estimated cost of $5.2 million. It plans to conduct the drilling during the second half of 2021.

It’s also planning a $1.5 million private placement to support the acquisition and its future ventures. The placement will involve 7.5 million shares sold at 20 cents apiece, each with one free option with an exercise price of 25 cents. The options must be exercised by September 2025.

Cost of the acquisition

For the acquisition of Recharge Resources, BPM will provide its current holder, Borg Geoscience Pty Ltd, with 1.875 million shares in BMP at a deemed issue price of 20 cents apiece. It will also provide the same number of options with an exercise price of 25 cents, expiring in September 2025.

Borg Geoscience will also receive 2 million performance shares in BPM, subject to various vesting conditions, and 1% of the net smelter return on all products of Recharge’s tenements.

There will also be deferred payments given to Borg Geoscience 6 months after settlement or when Hawkins and Rhodes are granted exploration licenses, whichever is later. Upon those milestones, BPM will issue Borg Geoscience with the same amount of shares and options, with the same conditions, as before.

BPM Minerals share price snapshot

BPM executed its initial public offering (IPO) on 30 December 2020 and, before today, the company had not had a great start on the ASX.

Its shares were down 16% year to date when they entered a trading halt before the market opened on Monday.

Now, thanks to today’s rally, the BPM share price has gained around 108% since the start of the year. 

The company has a market capitalisation of around $12 million, with approximately 24 million shares outstanding.

More reading

• Up 760% in a year, the Rumble Resources (ASX:RTR) share price is falling today
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The CSL Limited (ASX: CSL) share price is wobbling today despite picking up steam over the past few months. This follows the global biotech giant’s steady recovery in plasma collections, particularly in the United States.

At the time of writing, CSL shares are swapping hands for $272.86, down 1.57%. It’s worth noting that, regardless of today’s drop, CSL shares have continued to gain ground when looking at its performance from early March.

Plasma collections normalising

A possible catalyst pushing the CSL share price higher more recently is investor confidence in the company’s plasma levels.

CSL’s efforts to restore its critical ingredient for producing life-saving therapies has taken a positive turn. The company believes that plasma collections are beginning to normalise due to its increased marketing spend on incentivising new and lapsed donors.

Particularly, centres across the United States and Mexico border have seen a good response rate, nearing pre-COVID plasma collection numbers.

However, university donation centres have slowed to a standstill. This is due to the shift in remote online studying. CSL predicts that these levels will return when COVID-19 vaccinations become more available to mass populations.

The company has undertaken a range of initiatives to entice people to donate blood. This includes using social media influencers, speeding up the donation sign-up and check-in process, and paying donors more for blood. The latter has increased from US$825 to US$1,100 for each new donors first 8 blood donations. Existing donors are also receiving higher payments to attract people coming back.

Local vaccine production opportunity

In other news also helping support CSL shares, the company has signalled its interest in producing next-generation vaccines in Australia.

As COVID-19 has highlighted, Australia is vulnerable to international companies producing mRNA vaccines and delivering them here onshore.

As a result, the federal government is in discussions with CSL about how to establish local mRNA manufacturing capacity.

Currently, the company is producing 1 million doses of the AstraZeneca vaccine per week. So far, 3.2 million Australians have been vaccinated from COVID-19, with CSL noting that 5.5 million vials have been released as of last week.

This comes in the backdrop of the Australian government signing a deal with Moderna Inc (NASDAQ: MRNA) for its COVID-19 vaccine.

CSL share price performance review

Since hitting a 52-week low of $242 in March this year, CSL shares have rebounded over the last few months. Interestingly, the company’s share price is at the same level the day it released its half-year results for FY21.

On valuation grounds, CSL is the third-largest company listed on the ASX, with a market capitalisation of $126 billion. That puts it just behind Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd(ASX: BHP).

More reading

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Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Moderna Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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