Month: October 2022

The Chalice Mining Ltd (ASX: CHN) share price is having a day to remember.

In afternoon trade, the mineral exploration company’s shares are up 10% to $4.38.

This makes the Chalice Mining share price the best performer on the ASX 200 today.

Why is the Chalice Mining share price racing higher?

Investors have been bidding the Chalice Mining share price higher today following the release of an update on exploration activities at the Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia.

According to the release, exploration activities are continuing across the 30km-long Julimar Complex, with four diamond drill rigs currently working across the 10km-long Hartog-Baudin strike length and two rigs continuing resource definition drilling at the Gonneville PGE-Ni-Cu-Co-Au Deposit.

Positively, drilling to date supports the interpretation of the Gonneville intrusion (and Julimar mafic-ultramafic Complex) as having a rare chonolith-like geometry, which is similar to other major ultramafic-mafic orthomagmatic systems worldwide that host significant nickel-copper+/-PGE deposits. These include deposits such as Norilsk-Talnakh, Kabanga and Jinchuan.

Furthermore, Chalice recently made an important breakthrough in its exploration of the project, with the previously elusive northern extension of the Gonneville intrusion interpreted at depth in an effective 2D seismic survey. Previous drilling in this area had failed to intersect the prospective maficultramafic horizon, which drilling has now confirmed to be faulted ~650m to the west-north-west.

This essentially means that a new segment of the Julimar Complex can now be targeted with follow-up drilling, providing a substantial pathway for growth in the resource.

Strategic interest

Also potentially giving the Chalice Mining share price a lift today was news of strategic interest in the project from several large international trading houses, downstream battery, and auto manufacturers.

The release notes that interest in the large nickel sulphide endowment has increased significantly following the passing of the US Inflation Reduction Act (IRA) bill.

As a result, Chalice is currently considering securing a strategic minority joint venture partner (or partners) to assist in developing a potential mine at Gonneville.

The post Why is the Chalice Mining share price up 10% and the best performer on the ASX 200 today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Yes, the ASX is open today, and here’s what’s happening
• Here are the top 10 ASX 200 shares today
• Why has the Chalice Mining share price crashed 40% in 4 months?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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Like many growth-focused funds, it’s been a very tough 12 months for the Hyperion Global Growth Companies Fund (ASX: HYGG).

The fund consists of “a high-conviction portfolio of quality global listed equities from a research driven, bottom-up investment philosophy”. It’s looking for companies that have predictable earnings, low debt, sustainable competitive advantages, organic growth options and experienced and proven management teams. 

The September 2022 monthly update shows the fund has declined 31.8% over the past 12 months. The biggest detractors to performance were some of the largest and most popular global tech stocks.

Even for those of us who are somewhat numb to just how far these fallen heroes have tumbled, when the numbers are laid bare, you see just how brutal this market has been for a number of large-cap tech stocks.

Block (NYSE: SQ) – down 74%

Roku (NASDAQ: ROKU) – down 80%

Spotify (NYSE: SPOT) – down 57%

Meta Platforms (NASDAQ: META) – down 55%

How the mighty have fallen. 

Yet Hyperion are sticking to their guns, confident in what they believe will be a low-growth inflationary environment, that such an environment is best for their investing style.

Hyperion says that while short-term performance has been unpredictable, and acknowledging it has been a difficult period for investors, the fund believes it has allocated capital to businesses that will produce superior long-term results. 

The top five holdings at the end of September were all large-cap US tech stocks, namely Tesla (NASDAQ: TSLA), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), ServiceNow (NYSE: NOW) and Airbnb (NASDAQ: ABNB). Combined, they made up over half the Hyperion Global Growth Companies Fund portfolio.

Hyperion went on to say its “global portfolio continues to produce strong short-term financial results which are consistent with the assumptions that underpin our long-term valuations,” saying it believes its portfolio “should perform relatively well in an economic downturn”.

The Hyperion Global Growth Companies Fund share price has fallen 31.7% over the past 12 months, in line with the underlying performance of the fund.

The post Tough year for leading global growth fund laid bare with brutal fall in tech stocks appeared first on The Motley Fool Australia.

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More reading

• Why Microsoft stock is down 29% this year
• Why Tesla stock was surging at the market open today
• Tesla and Netflix will make or break the Nasdaq this week
• Why Tesla shares started trading this week up 8%
• Buy Amazon stock for AWS, get the e-commerce business for ‘free’

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bruce Jackson has positions in Amazon, Block, Inc., and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Inc., Amazon, Block, Inc., Meta Platforms, Inc., Microsoft, Roku, ServiceNow, Inc., Spotify Technology, and Tesla. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Airbnb, Inc., Amazon, Meta Platforms, Inc., and ServiceNow, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Limited (ASX: QAN) share price has breached the $6 mark for the first time since the pandemic hit in 2020.

In early morning trading, the ASX travel share is flying high, up 2.2% to $6.03.

The Qantas share price hit a new 52-week high of $6.075 shortly after the market open.

The share price gain comes despite no price-sensitive news being released by Qantas today.

Why is the Qantas share price up?

There’s been a buzz around Qantas following an update last week that sent its share price soaring 12%.

Qantas told the market it expects to report an FY23 half-year underlying profit before tax of $1.2 billion to $1.3 billion. According to The Australian, analysts expected this to be the company’s full-year result.

Qantas also expects net debt to drop to between $3.2 billion and $3.4 billion. This is big because it’s below the bottom of the target range of $3.9 billion.

These results are largely due to “strong” domestic travel demand and improving international demand.

Qantas said its revenue intakes for business purposes are above 100% of pre-COVID levels. Leisure intakes are above 130%.

The airline expects group domestic capacity to be 94% of pre-COVID levels in Q1 FY23 and 100% in Q2 FY23. Group international capacity is expected to be 61% in Q1 FY23 and 77% in Q2 FY23.

Before the COVID-19 market crash, Qantas hit an all-time high of $7.46 on 20 December 2019.

The Australian says the Bloomberg consensus 12-month target for the Qantas share price is $7.21.

What about other ASX travel shares?

Qantas shares are up 17% in the year to date.

The Air New Zealand Limited (ASX: AIZ) share price is up 2.2% today and down 23% in 2022.

The airline is vastly outperforming other ASX travel sector stocks.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 0.07% today and down 18% in 2022.

The Webjet Limited (ASX: WEB) share price is up 0.6% today and down 4.6% in 2022.

The post Qantas share price surges to post-COVID high appeared first on The Motley Fool Australia.

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More reading

• Has the Qantas share price finally left COVID in its contrail?
• Top brokers name 3 ASX shares to buy next week
• Why Jumbo, Origin, Qantas, and Woodside shares are racing higher
• Brokers name 3 ASX shares to buy today
• Is the Qantas share price fully valued following this week’s surge?

Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group Limited, Qantas Airways Limited, and Webjet Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lithium Energy Ltd (ASX: LEL) share price has returned from its trading halt and stormed higher on Wednesday.

In morning trade, the lithium explorer’s shares are up 18% to $1.32.

At one stage, the Lithium Energy share price was up as much as 27% to $1.42.

Why is the Lithium Energy share price storming higher?

The catalyst for the rise in the Lithium Energy share price today has been the release of very positive drilling results.

In fact, the company believes the first hole of the maiden 10-hole drilling programme has confirmed a “major new lithium discovery” at the Solaroz Lithium Brine Project in the Lithium Triangle in Argentina. This project is in close proximity to one operated by lithium giant Allkem Ltd (ASX: AKE).

According to the release, significant levels of lithium brine concentrations in excess of 400 mg/l were hosted in the porous sandstones encountered between ~55 to ~228 metres depth in the first drillhole at the project.

Management advised that it is highly encouraged by these early assay results. It highlights that the significant lithium concentrations and low Mg/Li ratios are positive in relation to future potential processing options.

Drilling is now advancing in the first hole to test this primary target beneath a thick mudstone unit.

Significant resource potential

Lithium Energy’s executive chairman, William Johnson, commented:

To confirm the discovery of high concentrations of lithium in the brines in the upper aquifer of our first drill hole at Solaroz is a watershed moment for Lithium Energy. It further confirms the potential for the Solaroz Project to host a significant resource of lithium brines in what is probably the best location globally to have a lithium discovery.

With assay results showing that lithium concentrations in this first hole increase at depth, the Company is now looking forward to assay results from sampling the target lower aquifer, as drilling continues to its target depth of 400 metres.

The post Lithium Energy share price surges 27% on ‘major’ discovery appeared first on The Motley Fool Australia.

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More reading

• Can the BrainChip share price continue its growth run this quarter?
• Beach Energy share price sinks 6% as production tumbles
• Guess which ASX lithium share is rocketing 30% on ‘very significant results’
• Has ‘growth at all costs’ been the undoing of Zip shares and what now?
• Northern Star share price dips as quarterly performance ‘slightly below plan’

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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At a time when positive returns from technology shares have been few and far between, the BrainChip Holdings Ltd (ASX: BRN) share price has carried the tech torch honourably.

The artificial intelligence chipmaker posted an impressive 8.75% in the September-ending quarter. Similarly, the company’s share price is up a considerable 17.1% since the beginning of the year. Whereas, the S&P/ASX 200 Index (ASX: XJO) is 10.3% in the hole.

While the past performance of BrainChip shares is noteworthy, what matters most for shareholders now is: what happens next?

Could inflation dampen the BrainChip share price?

Where BrainChip goes in the short term is anyone’s guess, especially in terms of company-specific developments. However, we can make a general assessment of how macroeconomics could influence the valuation.

As per ANZ Research’s estimates (shown below), Australia’s cash rate could be heading for a peak above 3.5% at some stage next year. This would suggest a 1% or so increase made by the Reserve Bank of Australia in the near term.

We now expect the RBNZ to deliver 75bp hikes in November and February, compared with a more conservative RBA policy path. The result is a much wider policy differential going forward in 2023. @mahjabeen_zaman @macroJB pic.twitter.com/chharn2av1

— ANZ_Research (@ANZ_Research) October 18, 2022

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Now, this might be a concern for a company strapped with a lot of debt. Higher interest rates ultimately would mean increased interest expenses. However, BrainChip is fortunate to not hold a cent of debt on its balance sheet as of 30 June 2022.

In fact, BrainChip holds approximately US$28.43 million in cash and equivalents denominated in a strengthening currency. This would suggest that any further interest rates could result in higher interest income, assuming the company maintains its lack of debt.

Conversely, higher interest rates would also imply persisting inflation. This could weigh on the BrainChip share price as payments to suppliers and employees make up the bulk of the company’s operational expenses.

For the latest half-year, BrainChip paid out US$9.4 million to employees and suppliers. If this figure were to increase due to inflationary pressures, it could deepen the losses on the company’s bottom line.

What about recent activity?

As we chart a course for the last quarter of the 2022 calendar year, short-sellers are counting on the BrainChip share price to fall.

Recently reported by my colleague James, short interest has reached 6.66% in the chipmaker. While this isn’t enough to place the company in the top 10 most shorted ASX shares, it is notable.

For those shorting BrainChip, the narrative might be based on the company’s unprofitable nature. Despite holding a stack of cash, at the current rate, BrainChip only has roughly one year and five months’ worth of runway left until it would need to either take on debt or raise capital.

If we’re still in a cold market at that time, the company might find it difficult to raise capital. At the same time, debt costs could be much higher due to increased interest rates.

Either way, it will be an interesting 12 to 18 months ahead for the BrainChip share price.

The post Can the BrainChip share price continue its growth run this quarter? appeared first on The Motley Fool Australia.

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More reading

• Warning: BrainChip shares are being targeted by short sellers
• Why BrainChip, Emeco, Harvey Norman, and Pilbara Minerals shares are dropping
• Why is the BrainChip share price underperforming on Friday?
• BrainChip share price flat despite ‘new milestone’
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Beach Energy Ltd (ASX: BPT) share price is in the red on Wednesday after the company revealed its production slumped 8% in the first quarter of financial year 2023.

The S&P/ASX 200 Index (ASX: XJO) oil and gas producer’s activities were hampered by natural field decline, Cooper Basin flooding, and unplanned outages.

Right now, the Beach Energy share price is $1.4525, 5.68% lower than its previous close.

Beach Energy share price falls 6% as production, sales tumble

Here are the key takeaways from the energy giant’s quarterly report:

• Production fell 8% on the prior quarter to 5.2 million barrels of oil equivalent
• Sales revenue dropped 20% to $405 million
• Sales volumes fell 10% to 5.3 million barrels of oil equivalent
• Realised oil price dropped 6% to $157.10 a barrel
• Realised gas price fell 3% to $8.5 per gigajoule

Beach Energy’s quarterly production was dinted by flooding in the Cooper Basin, which caused shut-in of some wells and delays of well connections.

Meanwhile, national field decline continued in the Otway Basin amid continued high gas demand.

The company also recognised a one-off, non-cash revenue impact of $32 million due to aligning the Cooper Basin joint venture (JV) revenue recognition accounting treatment.

It ended the quarter with $638 million of liquidity and $38 million net cash. Its cash position was lower due to the timing of receipts, payment of full-year dividend, and higher tax and capital expenditure.

What else happened in Q1?

Beach Energy pushed forward with its financial year 2023 drilling campaigns in the first quarter.

So far, it’s clocked up one Western Flank oil discovery and four cased and suspended oil appraisal and development wells. It currently boasts a 100% success rate from 29 Cooper Basin JV oil and gas wells. Finally, five of six Waisia stage 2 development wells are now drilled and completed.

It also signed a sale and purchase agreement with bp [BP Singapore Pte. Limited, a BP subsidiary] for all Waitsia Stage 2 LNG volumes.

The Beach Energy share price fell nearly 14% over the quarter just been.

What did management say?

Beach Energy CEO Morné Engelbrecht commented on the news driving the company’s share price lower today, saying:

Beach has started the new financial year with strong momentum on delivery of our major projects, with production in the field being challenged from flooding in the Cooper Basin and unplanned production outages.

We achieved key milestones for our major growth projects in the Otway and Perth basins. These projects differentiate Beach by delivering material growth in production and free cash flow in the near-term.

[T]his quarter we will commence gas exploration drilling in the Perth Basin, the most exciting exploration play in Australia. We look forward to communicating the results over the next 12-18 months of drilling.

What’s next?

The company is progressing its major growth projects, expected to grow its East Coast gas market share by more than 30% and transform its LNG revenue in financial year 2024.

The company has also recently announced a new equity emissions reduction framework, targeting a 35% reduction in scope 1 and 2 emissions intensity by 2030.

Beach Energy share price snapshot

The Beach Energy share price has been outperforming of late.

It has gained 9.5% since the start of 2022. It’s also trading 4.3% lower than it was this time last year.

Meanwhile, the ASX 200 has fallen 10.5% year to date and 7.9% over the last 12 months.

The post Beach Energy share price sinks 6% as production tumbles appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• It’s a good day on the ASX 200. So why is the Woodside share price getting beaten up?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BP. 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 Scott Phillips.

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The Azure Minerals Ltd (ASX: AZS) share price has been a standout performer on Wednesday.

In morning trade, the lithium explorer’s shares were up as much as 30% to 28 cents.

The Azure Minerals share price has since pulled back a touch but currently remains up 22% at 26.2 cents.

Why is the Azure Minerals share price rocketing higher?

Investors have been bidding the Azure Minerals share price higher today after the company released promising assay results.

According to the release, the company has received further high grade lithium assay results from the pegmatite exploration program on the Andover Project, located near the town of Roebourne in the West Pilbara region of Western Australia.

One of the samples contained a significant amount of coarse grained visible spodumene and returned the highest lithium grade received to date from the project of 3.32% Li2O. The release notes that it was collected from a pegmatite outcrop located 150m from historical artisanal mines and shallow surface workings from which beryl, tin, and tantalum were mined in the 1960s.

‘Very significant results’

Azure Minerals’ managing director, Tony Rovira, was very pleased with the results. He said:

It’s pleasing to report that our lithium-focused exploration program at Andover continues to deliver very significant results. The latest batch of assays returned high grades of lithium up to 3.32% Li2O, which is the highest lithium grade reported to date. Encouragingly, our geological mapping is identifying the presence of the preferred lithium-bearing mineral, spodumene, in many of the outcropping pegmatites.

We’re planning for the first drilling program to target the pegmatites and will commence as soon as we have received the necessary approvals. The lithium exploration continues in parallel with our Ni-Cu-Co exploration where drilling is currently in progress on the Seaview and Pipeline prospects.

The post Guess which ASX lithium share is rocketing 30% on ‘very significant results’ appeared first on The Motley Fool Australia.

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More reading

• 3 ASX mining shares rocketing higher on big news

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Zip Co Ltd (ASX: ZIP) share price opened at 66 cents this morning, down 1.34%. The S&P/ASX All Ordinaries Index (ASX: XAO) is up slightly by 0.33% in early trading.

Joseph Koh, a senior analyst at Schroders, writes on Livewire that Zip has been a “cash burner” that has “pursued growth at just about any cost”.

He reckons the buy now, pay later (BNPL) company has been too caught up in chasing its large total addressable market (TAM). In the meantime, the Zip share price has absolutely tanked.

What’s next for the Zip share price?

Koh says “the cohort of cash-burning stocks in the ASX has significantly underperformed the broader market year-to-date”.

And how. The Zip share price is down 85% while ASX All Ords shares are down 12%.

Koh also said that “gains made in the false dawn of July have been relinquished”.

The Zip share price rose by 159% over the month of July. It reached $1.14 at the close on Friday 29 July. It’s dropped 42% since then, so not all gains have been relinquished in the case of Zip shares.

The stock is still trading 50% above its 52-week low of 44 cents.

Zip vs CSL vs REA

Koh compares Zip’s performance since it was founded in 2013 to that of ASX darlings CSL Limited (ASX: CSL) and REA Group Limited (ASX: REA) in their early days.

He said CSL and REA “did not have to incur many years of large losses and equity injections in their early days to achieve their strong growth and high returns (and dominant market positions)”.

Koh explains:

Based on Bloomberg figures, CSL, a year after listing in June 1994, made a net profit of US$18m in FY95, with US$7.4m of free cash flow.

REA incurred just over $18m of losses in the 3 years after its listing in 1999, with cumulative free cash flow of negative $8m – cash flows that were more than recouped in the subsequent 3 years.

Zip was founded in 2013 and has regularly incurred losses which have grown to more than $1.7bn in the last two years (FY21 and FY22), with negative free cash flows of more than $700m. 

Is Zip changing course from ‘growth at all cost’?

In short, yes.

As we’ve previously reported, Zip has announced various changes in its business. This includes abandoning some markets and targeting positive cash flow and profitability instead.

Zip is closing its Singapore and United Kingdom businesses, which form part of its non-core ‘rest-of-world’ market. In July, Zip and Sezzle Inc (ASX: SZL) mutually agreed to abandon plans to merge.

The company is now focused on its two core markets — Australia and New Zealand, and the United States.

Zip management sees the US as ‘a significant opportunity’. So much so that Zip CEO Larry Diamond has relocated to the US with his family, as reported last week.

Zip mapped out its strategy to become cash flow positive in its annual report in late September.

Zip will report its Q1 FY23 results tomorrow. A positive report will likely boost the Zip share price.

The post Has ‘growth at all costs’ been the undoing of Zip shares and what now? appeared first on The Motley Fool Australia.

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More reading

• If I’d bought $1,000 of Zip shares at their all-time high, here’s how much I’d have left
• After a horror year, what’s next for ASX BNPL shares in the new quarter?
• ‘Significant opportunity’ Zip share price turns red as CEO packs his bags for the United States
• Macquarie says Zip share price has further to fall
• Zip share price sinks 5% to 3-month lows

Motley Fool contributor Bronwyn Allen has positions in CSL Ltd., REA Group Limited, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Schroders (Non-Voting). The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Northern Star Resources Ltd (ASX: NST) share price is down 1% in early trade on Wednesday.

Northern Star shares closed yesterday trading for $8.09 and are currently trading for $8.01 apiece.

This comes as investors mull over the September quarterly results from the S&P/ASX 200 Index (ASX: XJO) gold share, released this morning.

Quarterly performance ‘slightly below plan’ pressures Northern Star share price

The Northern Star share price is in the red after the miner reported its September quarterly performance was slightly below intentions. But it expects the delayed production to be recovered in the upcoming quarters.

According to the release, gold sold over the three months reached 368,956 ounces at an all-in sustaining cost (AISC) of AU$1,788 per ounce.

Breaking that down by production centre, Northern Star said Kalgoorlie saw 215,224 ounces of gold sold at an AISC of AU$1,762 per ounce; Yandal had 102,562 ounces of gold sold at an AISC of AU$1,584 per ounce; and Pogo saw 51,170 ounces of gold sold at an AISC of US$1,581 per ounce.

Northern Star’s Australian mines accounted for 86% of quarterly gold production,

During the quarter, Northern Star spent AU$182 million on growth capital and AU$37 million on exploration.

As at 30 September, the miner had net cash (which includes bullion and deducts bank debts) of AU$173 million. Cash and bullion totalled AU$473 million, while the company held a $300 million corporate bank debt.

Over the quarter, Northern Star paid AU$155 million in stamp duty and AU$132 million in final dividend payouts, fully franked. At the current Norther Star share price, the miner trades at a trailing dividend yield of 2.8%.

What did management say?

Commenting on the results, Northern Star managing director, Stuart Tonkin said:

The September quarter has delivered a solid platform to leave us on track to achieve our FY23 targets…

While labour and cost pressures have stabilised in Western Australia, they remain at elevated levels and supply chains – globally – are still under pressure. Northern Star is positioned well with a highly dedicated and professional team to navigate what remains a challenging operating environment…

It has been another busy and successful start to FY23 as we work on executing our profitable growth strategy to create superior value for shareholders. This included the first share buy-back in Northern Star’s history, which we announced during the quarter and started implementing. Our focus remains on safety and sustainably producing profitable ounces from our world class gold assets in the tier-1 locations of Western Australia and Alaska.

What’s next?

The Northern Star share price could be getting some support after the company maintained its guidance for FY23 of 1.56 to 1.68 million ounces of gold, which it forecasts will be sold at an AISC of AU$1,630 to $1,690 per ounce.

The gold miner also maintained its FY23 growth capital budget outlook of AU$650 million, with an exploration budget of AU$125 million.

Northern Star share price snapshot

The Northern Star share price has outperformed most of the ASX gold shares in 2022 but is still down 15% for the calendar year. That compares to a year-to-date loss of 11% posted by the ASX 200.

The post Northern Star share price dips as quarterly performance ‘slightly below plan’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Weak demand after two years of solid growth is taking a toll on personal computer (PC) sales in 2022, and market research firm IDC’s latest report suggests that the situation won’t get better anytime soon.

IDC reports PC shipments fell 15% year over year in the third quarter of 2022. Aside from Apple, all the major PC original equipment manufacturers (OEMs) saw a big decline in shipments last quarter. Market leader Lenovo, for instance, had a 16% decline in shipments over the prior year, while HP and Dell saw greater declines of 28% and 21%, respectively.

The sharp drop in PC shipments doesn’t bode well for Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Intel (NASDAQ: INTC). These chipmakers are reeling under the impact of already weak PC shipments that have led to a drop in the demand for their processors. IDC’s report indicates that things could be about to get worse for these semiconductor giants and their stock prices could drop further.

Nvidia, AMD, and Intel could see further sales declines

Nvidia sells graphics processing units (GPUs) that are used in PCs for content creation and gaming. Intel is the leading supplier of central processing units (CPUs). AMD, meanwhile, supplies both CPUs and GPUs for the PC market.

The sharp decline in PC shipments this year has weighed heavily on these companies. Intel’s revenue, for instance, dropped 17% year over year in the second quarter to $15.3 billion. Nvidia’s gaming revenue fell 33% year over year in the fiscal second quarter to $2.04 billion. The graphics specialist estimates that gaming revenue will drop further in the current quarter, and IDC’s latest report suggests why that’s going to be the case.

AMD, which seemed insulated from the PC market’s troubles in the first half of the year, has also succumbed to the end market’s weakness. The chipmaker slashed its Q3 revenue guidance by $1.1 billion to $5.6 billion. It expects year-over-year revenue growth of 29% now instead of the prior expectation of 55%. The company blamed “reduced processor shipments due to a weaker than expected PC market and significant inventory correction actions across the PC supply chain” for the massive reduction in its guidance.

IDC estimates that PC sales could drop nearly 13% for the full year to 305 million units, which points toward another year-over-year drop in sales during the fourth quarter. Total PC shipments stood at 226 million units in the first three quarters of 2022, which means that 79 million units are forecasted to be shipped in Q4. That would translate into a decline of nearly 15% over the year-ago quarter’s shipments of 92.7 million.

As a result, Nvidia, AMD, and Intel’s guidance for the final quarter of 2022 may not be up to investors’ expectations as the PC market’s contraction will limit their opportunities to boost sales or stage a recovery.

Analysts expect Intel’s revenue in the quarter that ends in December to decline 14% year over year to $16.7 billion. Nvidia’s revenue for the fiscal fourth quarter (which coincides with the final two months of 2022) is anticipated to drop 19% year over year. AMD is still expected to clock 26% year-over-year growth in Q4, which the company may be able to achieve thanks to strength in other areas such as gaming consoles and data centers.

However, it won’t be surprising to see a tempered forecast from AMD on account of lower processor sales and a drop in the average selling prices of CPUs, the two factors that affected its performance in Q3.

What should investors do?

Intel is trying to turn its business around and prevent more share losses to AMD. But that looks unlikely thanks to the latter’s advantage on the technology front. So, there’s a strong chance of Intel stock falling further. The stock is already down about 49% so far in 2022, which is why investors may want to hold off on the stock right now.

Nvidia stock is down about 59% in 2022. Given that gaming is one of its biggest businesses and produced 30% of the top line last quarter, the oversupply in GPUs on account of weak PC demand and higher inventories is likely to weigh on this segment as the company has been forced to reduce prices to sell its chips.

Additionally, the government-imposed restrictions on sales of Nvidia’s data center chips to China have knocked the wind out of the sails of its data center segment. As Nvidia stock trades at a rich 38 times earnings even after its sharp decline in 2022, a turnaround in its fortunes appears to be difficult since it may not be able to clock the high levels of growth required to justify the valuation.

AMD, meanwhile, looks like the only stock that may be worth buying amid the PC market weakness. The stock is not only cheap at 24 times trailing earnings and 12 times forward earnings, but AMD is also managing to post impressive growth despite the headwinds. As such, investors may want to accumulate AMD stock if it falls further due to negative investor sentiment as it is becoming more of a value play thanks to its impressive growth and cheap valuation.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tech sell-off: These Nasdaq stocks could drop further, but one looks like a screaming buy appeared first on The Motley Fool Australia.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Apple, Dell Technologies Inc., Intel, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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