https://go.arena.im/public/js/arenalib.js?p=motley-fool-australia&e=g3cs

More reading

• My ASX share for the week
• Why the Super Retail share price is in a trading halt
• Is the Webjet share price ridiculously cheap?
• Gold mining shares – these are the facts and myths
• Propel Funeral share price climbs higher after providing FY20 guidance

The post Live Coverage of The Australian Share Market – 15 June 2020 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Arppiz

Gold mining shares are widely misunderstood. Myths abound and many investors lose money. However, investors can protect their stake if they understand a few basic truths about gold and the companies that mine it.

Trying to work out which gold explorer is likely to see explosive growth is not for the faint-hearted. It takes considerable years of experience. You need to understand markets, currencies, metallurgy, as well as understanding who is who in the gold mining game.

Buy the breakout not the speculation

Instead of trying to pick winners before the event, invest in gold mining shares during the event. The investing community is filled with very smart and knowledgeable people. When they move, you should consider moving, too. In other words, the point where a gold mining share starts to rise is, perhaps, the perfect time to buy-in.

For example, within 1 month of its low point on 16 March, Gold Road Resources Ltd (ASX: GOR) had risen by more than 118%. At least double most other S&P/ASX 200 (INDEXASX: XJO) gold miners. Recognition of the company’s value as the newest producing gold company on the ASX.

Bellevue Gold Ltd (ASX: BGL) likewise burst forth from its COVID-19 low on 19 March to be 100% up within 1 month. The Bellevue share price, in particular, has risen another 71% up to last Friday. I personally expect Bellevue to be one of the great ASX performers over the next decade. 

Gold mining shares go up when everything goes down

Between 8 January 2010, and 10 January 2010, the ASX 200 rose by around 41% in a nearly continuous upward trend. During this exact same period, the gold price rose by 84% despite the absence of a sharp or prolonged downturn.

In fact, the best-performing ASX investment of the decade was Northern Star Resources Ltd (ASX: NST). The Northern Star share price rose by 375 times the initial investment between 10 January 2010 and 2 January 2020. The core truth here is that a good company is always a good company regardless of the commodity prices.

Over 90% of the world’s gold has been mined

This is definitely true given what we know of the disclosed gold reserves. Unfortunately, though the exact location and trading of most above-ground gold is a bit of a mystery. In addition, there are signs that several large central banks have been building their positions in gold recently.

As investors turn their interest to gold as part of a more balanced portfolio we will see more and more money chasing lower and lower levels of available gold. In addition, it pays to remember that gold doesn’t come from the earth.

Foolish takeaway

For me, physical gold is savings not investing. When I want to invest in gold I buy gold mining shares. The facts above should help to understand the gold market. For instance, buy the breakout, not the speculation. A good company is always a good company. Lastly, gold is becoming increasingly rare with much of it coveted and held by institutions and central banks. 

More reading

• Is the Transurban share price a secret bargain?
• 3 ASX shares with 6% dividend yields to buy for income
• 50% off: these ASX 200 shares are dirt cheap today
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

Motley Fool contributor Daryl Mather owns shares of Bellevue Gold Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Gold mining shares – these are the facts and myths appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2MYl350

The Propel Funeral Partners Ltd (ASX: PFP) share price is climbing this morning after the company delivered a trading update and provided FY20 guidance.

At the time of writing, Propel Funeral shares are up 4.51% to $3.01, reducing the company’s year-to-date share price loss to 11.47%.

What did Propel Funeral announce?

As previously disclosed, COVID-19 restrictions in Australia and New Zealand affected Propel’s ability to offer a full range of services to its clients.

As a result, the company’s comparable average revenue per user (ARPU) in the month of April fell by approximately 10% on the prior corresponding period.

However, the easing of funeral attendee limits in both countries contributed to an ~8% increase in ARPU in May compared to the previous month.

Propel expects ARPU to continue to increase as attendance limits at funeral services are progressively eased in Australia. Funeral attendance limits have now been increased to at least 50 mourners in most Australian states. Meanwhile, limits have been removed altogether across the pond in New Zealand.

As for funeral numbers, Propel’s total funeral volumes were approximately 1% higher in May compared to April. Additionally, the company expects to exceed 13,000 funerals in FY20, up from 11,304 in FY19. This includes part contribution from the acquisitions of Gregson & Weight and Grahams Funeral Services which were completed in November 2019.

In terms of cost-cutting, Propel’s previous trading updates in late March and early May detailed a number of strategies intended to mitigate the potential financial impacts of COVID-19. These measures included the deferral of non-essential capital expenditure, managing staff costs, and raising its liquidity position. Accordingly, at the end of April, Propel had $49 million cash on its books compared to just $6.7 million as at 31 December 2019. 

The company also revealed this morning that some of its businesses have received government subsidies.

FY20 guidance

Along with the trading update, Propel also shed some light on FY20 guidance this morning.

Stating it is on track for another record year, Propel quantified its expectations by providing revenue guidance of approximately $110 million. This compares to $95.1 million revenue achieved in FY19.

The company also provided guidance for earnings before interest, tax, depreciation and amortisation (EBITDA). It is expecting full-year operating EBITDA of approximately $32 million, up from $23.8 million in FY19.

Propel is set to release its FY20 full-year results in late August 2020. In the meantime, the company stated it will continue to monitor the impacts of COVID-19 on its teams, trading and suppliers.

More reading

• 3 ASX shares to buy and hold for the 2030s

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Propel Funeral Partners Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Propel Funeral share price climbs higher after providing FY20 guidance appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YAEh63