Author: therawinformant

While I think that Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks remain great options for income investors in this low interest rate environment, not everyone is a fan of them.

For those investors, I have picked out three ASX dividend shares which I think could be great alternatives to the big four banks. Here’s why I like them:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust with a focus on commercial properties throughout Australia. The vast majority of BWP’s warehouses are leased to the Bunnings business, which is owned by Wesfarmers Ltd (ASX: WES). I believe Bunnings is the highest quality retailer in the country and well positioned for growth. In light of this, I feel it is a great tenant to have in these uncertain times.

In fact, its quality was on display for all to see during BWP’s recent full year results. At a time when retail properties are being devalued, BWP’s properties appreciated materially in value. Overall, I believe the company is well-placed to continue growing its distribution at a steady rate over the coming years. Based on the latest BWP share price, I estimate that it offers investors a forward 4.6% yield.

Coles Group Ltd (ASX: COL)

Another dividend share to consider buying is Coles. I’m a big fan of the supermarket giant due to its solid long term outlook and defensive qualities. The latter has been on show this year during the pandemic. Coles has been experiencing a surge in sales during the crisis and looks set to deliver a very strong profit result later this month.

I expect more of the same in FY 2021, especially given recent lockdowns. After which, I’m confident its growth will continue over the next decade and beyond, albeit at a more modest rate. Another positive is its favourable dividend policy which sees it pay out between 80% and 90% of its earnings to shareholders. Based on the current Coles share price, I estimate that this will mean a 3.1% fully franked dividend yield in FY 2021.

More reading

• Metcash share price and these ASX stocks just got upgraded by leading brokers
• If an ASX share announces a demerger, here’s why you should listen
• Top brokers name 3 ASX shares to sell today
• Fiji Kava share price soars 90% on Blackmores subsidiary agreement, trade paused
• Brokers have upgraded 3 ASX shares to the buy zone. Here’s why

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped lower again. The benchmark index fell 0.7% to 6,091 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to edge lower.

The ASX 200 looks set to edge lower this morning after a disappointing night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is set to edge a single point lower at the open. In the United States the Dow Jones fell 0.3%, the S&P 500 dropped 0.2%, and the Nasdaq index rose 0.3% higher.

Newcrest results.

The Newcrest Mining Limited (ASX: NCM) share price will on watch today when it releases its full year results. Expectations are high for the gold miner after the recent spike in the gold price. According to a note out of Goldman Sachs, it expects Newcrest to post EBITDA of $1,816 million and net profit after tax of $744 million.

Oil prices fall.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure on Friday after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.75% to US$42.35 a barrel and the Brent crude oil price is down 0.8% to US$45.06 a barrel. Oil prices dropped lower after the IEA lowered its demand forecast.

Mesoblast FDA update.

The Mesoblast limited (ASX: MSB) share price could return from its trading halt later today. It requested the halt on Thursday ahead of its meeting with the Oncologic Drugs Advisory Committee (ODAC) overnight. This meeting is to discuss its remestemcel-L product candidate as a treatment for paediatric steroid-resistance acute graft versus host disease (paediatric SR-aGvHD).

Gold price rebounds.

Gold miners Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) could push higher today after the gold price rebounded. According to CNBC, the spot gold price is up 0.75% to US$1,963.60 an ounce. A weakening U.S. dollar and underwhelming economic data helped lift the price of the precious metal.

More reading

• Why Tabcorp is the latest “conviction buy” recommendation from this top broker
• ASX 200 drops 0.7%, Telstra falls 7.7%
• Metcash share price and these ASX stocks just got upgraded by leading brokers
• Woodside share price edges lower on half year results
• Broker reveals its expectations for the Mesoblast FDA meeting

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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The Navigator Global Investments Ltd (ASX: NGI) share price skyrocketed 39.35% in Thursday’s trading. That came on a day where the All Ordinaries Index (ASX: XAO) slumped 0.6%.

That will come as welcome news to shareholders, who watched the Navigator share price plummet 67% from17 February through 28 April. Since then, the share price of the alternative investment manager has regained 63%, though year-to-date Navigator shares remain down 31%.

At its current price of $1.93 per share, Navigator Global has a market cap of $312 million.

What does Navigator Global do?

Navigator Global Investments provides alternative investment management products and services to investors around the world via Lighthouse Investment Partners, LLC. Based in the United States, Lighthouse creates and manages global hedge fund solutions with a focus on diversification and absolute return.

What sent the Navigator share price flying today?

Navigator released an announcement to the ASX on Thursday morning stating that it had entered into a definitive agreement to acquire a portfolio of strategic investments from funds managed by Dyal Capital Partners. Dyal is a division of Neuberger Berman.

The portfolio is comprised of a diversified group of established firms with a history of delivering results through numerous market cycles. The firms manage a combined US$35 billion (AU$49 billion) of assets under management across 26 diversified investment strategies.

Management commentary

Navigator’s chair Michael Shepherd said:

We believe this is a compelling transaction with strong commercial logic. The acquisition is an important development in the evolution of Navigator. We have long targeted high-quality opportunities to grow and diversify our holdings to generate strong long-term shareholder returns. We are excited to be invested with these six excellent businesses.

Dyal has established themselves as the pre-eminent partner to growing alternative asset managers globally. We are excited to partner with the Dyal team and welcome their expertise as we grow the company over time.

Michael Rees, head of Dyal Capital, added:

Dyal looks forward to an ongoing involvement with Navigator as a long-term partner of the company. We are happy that these six managers will remain part of the Dyal ecosystem and view our indirect interest in the Lighthouse business as an attractive addition which is expected to contribute positively to our investment in the years to come.

Navigator stated that it expects to complete the transaction between December 2020 and January 2021. It remains subject to shareholder approval.

After gaining nearly 40% on the announcement, the Navigator share price will be one to keep an eye on throughout Friday.

More reading

• 3 ASX shares that could grow rapidly during the 2020s
• Why Tabcorp is the latest “conviction buy” recommendation from this top broker
• Should you invest in Splitit shares?
• Could these exciting ASX shares be future stars?
• Xero share price higher following AGM update

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 Here’s why the Navigator Global share price surged 39% today appeared first on Motley Fool Australia.

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One thing the Australian share market certainly isn’t short of is growth shares. But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down for you, I have picked out three ASX growth shares which I think would be top options for investors today. They are as follows:

Appen Ltd (ASX: APX)

The first ASX growth share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Appen has been growing at a very strong rate over the last few years thanks to the growing importance of machine learning and artificial intelligence for big businesses. The good news is that these markets are expected to continue their rapid growth for many years to come. I feel this bodes well for Appen’s industry leading Content Relevance services.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another growth share that I would buy is Domino’s. I think the pizza chain operator’s shares could climb notably higher over the next decade thanks to its positive long term outlook. This is thanks to its strong market position, positive sales targets, and its expansion plans. In respect to its sales targets, Domino’s is targeting same store sales growth of 3% to 6% per annum over the next 3 to 5 years. But even better, over the same period the company is aiming to grow its global store network by 7% to 9% per annum. If it can deliver on both these targets, the company’s earnings growth should be very strong.

Nanosonics Ltd (ASX: NAN)

A final growth share to consider buying is infection prevention company Nanosonics. Although the company has been a bit of a one trick pony with its trophon EPR disinfection system for many years, it won’t be for much longer. Management is planning to launch a series of new products targeting unmet needs in the coming years. If they are anywhere near as successful as the best in class trophon product, then it could have a very bright future ahead of it.

More reading

• Brokers have upgraded 3 ASX shares to the buy zone. Here’s why
• Is BetaShares Australia 200 ETF the best ASX ETF?
• Whatever happened to WAAAX shares?
• 3 stellar ASX tech shares to buy for the long term
• 5 quality ASX shares to buy in August

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 Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and Nanosonics Limited. 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.

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There’s big upside to the embattled Tabcorp Holdings Limited (ASX: TAH) share price, according to UBS which added the stock to its “APAC key call list”.

Shares in the wagering and lotteries slumped by 22% since the start of the year when the S&P/ASX 200 Index (Index:^AXJO) shed a more modest 9%.

The fallout from the COVID-19 pandemic hit the sector hard with social distancing impacting on gaming venues and the curtailment of key sporting events limiting betting opportunities.

Tabcorp isn’t the only one in the sector that’s suffering. The Crown Resorts Ltd (ASX: CWN) share price and Star Entertainment Group Ltd (ASX: SGR) share price also taking a battering.

Tabcorp share price to jump in recovery

But Tabcorp might be better leveraged to the eventual COVID-19 recovery and UBS is urging investors not to worry about its full year results next Wednesday.

“While the upcoming result will be negatively impacted by the closures of pubs and clubs (and a difficult comp in lotteries), the next 2-3 years should see higher profit than what was experienced in FY19,” said the broker.

“We also see little chance of a negative surprise in the short term, with the company pre-releasing its results and the management and board changes already underway.”

Smaller than expected COVID impact

Further, the impact of coronavirus on customer behaviour hasn’t been as bad as initially feared. Gaming spend is already recovering and there’s little sign of negative “structural” changes. That’s more than what we can say for other sectors like office or retail property.

This isn’t to say that punters may shun physical venues either by choice or otherwise in the post pandemic world.

But only 5% of the group’s earnings before interest and tax is related to retail wagering. Also, Tabcorp’s digital business seems to be gaining good traction thanks to aggressive promotions.

Digital gaining market share

These promotions have driven new punters to Tabcorp’s digital platform in recent times, according to UBS.

“The pandemic has highlighted the resilience of Lotteries (where revenue trends have not changed),” said the broker.

“This adds to strong business fundamentals arising from its monopoly licences, online margin expansion and potential for changes to game maths/pricing.”

Growth and income boost for the TAH share price

In other words, investors may not need to wait long to see Tabcorp’s earnings recover to FY19 levels with the broker predicting this will happen in the next financial year.

UBS’ 12-month price target on Tabcorp is $5 a share. This implies a 41% upside for the stock, which closed at $3.54 on Thursday.

If that isn’t enough to excite investors, the broker is forecasting a 22 cent a share dividend for the stock in FY21. That puts the stock on a yield of nearly 9% in that year if you included franking credits.

More reading

• ASX 200 drops 0.7%, Telstra falls 7.7%
• Metcash share price and these ASX stocks just got upgraded by leading brokers
• ASX down 0.55%: Telstra maintains its dividend, Treasury Wine shoots higher, AMP’s special dividend
• Why the Telstra share price has tumbled 5% this morning
• Northern Star share price falls 1.6% on trading update

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. 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.

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With the share prices of buy now, pay later (BNPL) financial services companies like Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P) both soaring to new all-time highs in July, many investors may now be looking around for the next hot stock in the consumer lending space.

Along with Zip and Afterpay, there are a number of other junior players currently trading on the ASX that offer alternatives to the traditional forms of personal lending offered by the major banks. One such industry disruptor is New York-based BNPL fintech Splitit Payments Ltd (ASX: SPT).

Compared to Afterpay and Zip, which both now have market caps in the billions, Splitit is still relatively small potatoes, with a market cap barely touching $500 million. However, it is already a global company with operations in Europe and North America. The June quarter saw rapid growth across all the company’s key financial metrics, with gross revenue a record US$2.4 million, an increase of 460% year-on-year and 246% quarter-on-quarter.

What is Splitit?

Splitit operates differently to both Afterpay and Zip, in that it doesn’t actually provide customers with new lines of credit. Instead, it operates more like a budgeting tool, allowing customers to use their existing credit cards to make online purchases and then setting up automated repayment plans. Customers can tailor these plans so that they can pay for their purchases in smaller, more manageable instalments over time.

With Splitit, there are no credit applications for the customer to complete – because it utilises existing credit – and approvals are instantaneous. Additionally, Splitit charges no additional interest or late fees to the customer. Essentially, Splitit finances customer purchases and helps them repay them using plans that better suit their individual circumstances.

As it charges no interest to the customer, Splitit makes money by charging merchants a fee for its services. It markets itself as a service that can help business grow by expanding their potential customer-base, increasing checkout conversions and maximising average order value. Similar to the marketing for Afterpay or Zip, the idea is that customers will buy more when they have the option to manage their repayments over time.

Should you buy Splitit shares?

Splitit’s business model is fairly unique amongst the BNPL crowd. It seeks to market itself as a more responsible alternative to other short-term lenders as it doesn’t offer customers new forms of credit. Instead, it simply helps them manage their repayments.

It already has key strategic partnerships with both Mastercard and Visa, and its service is offered at a range of global online stores. This makes it well-positioned to benefit from consumer trends towards ecommerce emerging out of the COVID-19 pandemic.

But while there’s a lot to recommend about Splitit over the short-term – its growth trajectory is hard to ignore – it still feels like it could easily be superseded by a similar offering from one of the major credit card companies themselves.

While it does offer a nifty, unique service, I think Splitit shares are a risky investment in the already crowded buy now, pay later sector. Personally, I’d stick with the bigger companies that already have the market penetration and brand name recognition.

More reading

• 2 exciting high-growth ETFs to buy for high returns today
• Is BetaShares Australia 200 ETF the best ASX ETF?
• 4 ASX shares to buy now for a post-coronavirus world
• Whatever happened to WAAAX shares?
• 3 stellar ASX tech shares to buy for the long term

Rhys Brock owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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Although a company like Ramsay Health Care Limited (ASX: RHC) seems to have been a blue chip share forever, it is worth remembering that it was a small cap at one point.

The private hospital operator hit the ASX boards back in September 1997 and has gone onto become one of the largest companies on the local market.

Given that its shares were trading at $1.15 shortly after listing and are now fetching $66.99, early investors have done incredibly well. I believe this demonstrates why having a little exposure to the small side of the market can be a very good thing for a portfolio.

With that in mind, here are three small cap ASX shares I think have a lot of potential:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a fast-growing provider of enterprise mobility software. Its Bigtincan Hub’s AI-driven real-time automation enhances the customer experience, and gives sales and marketing teams the tools they need to deliver stronger results. Demand for its software has been growing strongly in recent years and this has continued to be the case during the pandemic. As a result, the company expects to deliver on its 30% to 40% organic revenue growth target in FY 2020.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a medical imaging data management solutions provider. Its software helps inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. It has been a positive performer in FY 2020 and expects to report revenue of at least $18 million and its first positive EBITDA result. Looking ahead, its future looks very bright. Especially after its recent acquisition of leading provider of enterprise image viewing technology Client Outlook. This acquisition has increased Mach7’s total addressable market from US$0.75 billion to US$2.75 billion.

Whispir (ASX: WSP)

A final small cap to look at is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir enables businesses to improve their communications and ensures that people everywhere receive timely, useful, and actionable content in a manner that reflects their individual needs and preferences. Its platform has been experiencing incredible demand during the pandemic. This appears to have positioned Whispir to deliver a very strong full year result this month. Given the quality of its offering and its large market opportunity, I expect more of the same in FY 2021 and beyond.

More reading

• These soaring tech shares are making savvy investors rich
• 2 exciting ASX tech shares to buy and hold till 2025
• Are these small cap ASX shares future stars?
• 2 exciting small cap ASX shares to watch
• Why Sezzle and these ASX shares recorded huge gains in July

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 and recommends BIGTINCAN FPO, MACH7 FPO, and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, MACH7 FPO, Ramsay Health Care Limited, and Whispir 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.

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The Xero Limited (ASX: XRO) share price was a positive performer on Thursday. This  follows the release of its annual general meeting presentation.

The business and accounting software provider’s shares rose 0.5% to $89.31.

What happened at the annual general meeting?

As well as providing investors with a breakdown on its performance over the last 12 months, Xero provided an update on its recent performance.

According to the release, operating conditions remain uncertain for Xero and it continues to anticipate an impact from COVID-19 on its FY 2021 results.

However, this hasn’t stopped the company from adding to its subscriber count during the pandemic.

Since the start of April and through to 31 July, Xero recorded 96,000 net subscriber additions to its platform. This lifted its subscribers to a total of 2.38 million at the end of the period.

Management notes that its subscriber additions were stronger in the Australia and New Zealand segment compared to the International segment. Though, positively, while these additions and churn trends have varied by region, all geographies achieved positive net subscriber additions during the four months.

No commentary was provided on its financial performance. Though, it has advised that it is deferring price increases to help customers through the crisis.

Outlook.

Xero’s view on FY 2021 hasn’t changed since the release of its full year results. It continues to believe that the COVID-19 uncertainty makes forecasting difficult. As a result, it won’t be providing guidance at this stage and instead is focusing on the future.

It commented: “Xero’s ambition is to be a long-term oriented, high-growth business. We continue to operate with disciplined cost management and targeted allocation of capital. This allows us to remain agile so we can continue to innovate, invest, support our customers, and respond to opportunities and changes in our operating environment.”

More reading

• 2 exciting high-growth ETFs to buy for high returns today
• 4 quality ASX shares to buy in August
• Is BetaShares Australia 200 ETF the best ASX ETF?
• Whatever happened to WAAAX shares?
• Why I think the Xero share price is a futureproof buy

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 Xero. 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.

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The S&P/ASX 200 Index (ASX: XJO) fell by 0.67% today to 6,091 points.

It was a busy day for reports today. Here are some of the main highlights:

Telstra Corporation Ltd (ASX: TLS)

Telstra’s share price fell 7.7% in reaction to the FY20 result announcement.

The telco announced that its total income fell by 5.9% to $26.2 billion and net profit after tax (NPAT) declined by 14.4% to $1.8 billion.

Telstra said that it had another year of subscriber growth. It added 240,000 retail postpaid handheld mobile services, including 154,000 from Belong. It also added 171,000 retail prepaid handheld unique users, 347,000 whole services and 652,000 internet of things services.

Overall mobile revenue for the ASX 200 share declined $461 million in FY20. Reported postpaid handheld average revenue per user (ARPU) declined 8.2%. The fixed business’ revenue continues to be impacted by the NBN migration.

During the year the company reduced its underlying fixed costs by $615 million. It said it’s on track to achieve its $2.5 billion net cost reduction target in FY22.

In FY20 COVID-19 hurt Telstra’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) by approximately $200 million.

Telstra declared a final dividend of 8 cents per share. The total dividends per share for FY20 was 16 cents, the same as FY19.

For FY21 the ASX 200 telco is expected to be between $23.2 billion to $25.1 billion. Underlying EBITDA is expected to be in the range of $6.5 billion to $7 billion. Free cashflow after operating lease payments is expected to be between $2.8 billion to $3.3 billion.

Treasury Wine Estates Ltd (ASX: TWE)

The biggest rise in the ASX 200 today belonged to Treasury Wine Estate’s share price which grew 12.3%.

Treasury Wine Estates reported that its net sales revenue (NSR) fell 6% to $2.65 billion. This reflected the challenging conditions in the US wine market and the impact of the COVID-19 pandemic which hurt trading in all geographies. However, the NSR per case increased thanks to portfolio premiumisation.

The company’s EBITS dropped 22% to $533.5 million over the year with the EBITS margin dropping to 20.1%, down from 24.1%.

Treasury Wine Estates reported that its net profit after tax (NPAT) fell 25% to $315.8 million and earnings per share (EPS) dropped 26% to 43.9 cents.

The board declared a final dividend of 8 cents per share, bringing the full year payout to 28 cents per share. This equated to 64% of net profit.

Pleasingly, the wine business said there are positive signs of recovery in China. It’s implementing key changes with its US operating model and supply chain which should deliver annualised cost savings of $35 million from FY21 and $50 million by FY23.

Due to the continuing levels of uncertainty across its key markets, the ASX 200 company said it wouldn’t provide earnings guidance.

AMP Limited (ASX: AMP)

The AMP share price rose 10.9% in reaction to the FY20 first half result.

It reported an underlying profit of $149 million, down from $256 million in the prior corresponding period. This drop reflected the impacts of COVID-19. The actual net profit was $203 million.

The diversified financials business said that it had a strong capital position after the sale of AMP Life. It had surplus capital of $1.4 billion at 30 June 2020.

The ASX 200 share is going to return up to $544 million to shareholders. There will be $344 million paid to shareholders with a special dividend of 10 cents per share and there will also be up to $200 million returned to shareholders via an on-market share buy-back during the next 12 months.

However, the AMP board doesn’t expect to declare a final FY20 dividend.

AMP is on track for its target of $300 million of annual run-rate savings by FY22. The client remediation is on track to be 80% complete by the end of FY20 and fully complete in 2021.

More reading

• Why Tabcorp is the latest “conviction buy” recommendation from this top broker
• 2 blue chip ASX dividend shares to buy
• Metcash share price and these ASX stocks just got upgraded by leading brokers
• Earnings: AMP share price soars despite $107 million drop in profits
• Telstra just announced its dividend! Are Telstra shares now a buy?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Treasury Wine Estates Limited. 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.

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Bardoc Gold Ltd’s (ASX:BDC) share price has climbed today after the company announced the start of a major drilling program to boost gold reserves. The gold miner’s share price rose to 8.4 cents, an increase of 7.69% from yesterday’s close.

What does Bardoc do?

Bardoc is an Australian gold company planning to build a substantial long-term gold business in Western Australia’s Eastern Goldfields. The company aims to do this through exploration, acquisition and strategic consolidation.

Bardoc owns multiple gold projects, the largest of which is the Bardoc gold project.

What is driving the Bardoc share price rise?

Bardoc today announced the start of a major drilling program at its flagship Bardoc project to increase gold reserves. This comes as the company’s definitive feasibility study (DFS) makes strong progress.

The new 7,000m resource in-fill drilling program targets additional mining reserves at cornerstone deposits. The drilling will target and unlock potential revealed during recent successful open-pit optimisations conducted as part of the DFS.

In addition, Bardoc reported excellent progress with metallurgical testwork programs. They inform the company about the quality of gold in the area, and give grounds to short-list preferred off takers.

Bardoc’s CEO Robert Ryan said: “The recently completed mining studies show exceptional potential to grow the current reserve and mine plan within the current resource.”

Foolish Takeaway

The gold price has been surging higher, recently topping US$2,000 per ounce recently. With strong demand in the sector, now is a good time to mine gold, and Bardoc is seeking to benefit from this trend. The Bardoc share price has seen a strong resurgence since lows in late March this year, closing today at 8.4 cents, up 7.69%.

While gold miners right now are experiencing serious tailwinds, Bardoc share holders should be aware that like any investment, gold is not a sure thing. Experts have warned that gold may soon face facing a painful correction after its record breaking run.

More reading

• 3 ASX shares that could grow rapidly during the 2020s
• Why Tabcorp is the latest “conviction buy” recommendation from this top broker
• Should you invest in Splitit shares?
• Could these exciting ASX shares be future stars?
• Xero share price higher following AGM update

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. 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.

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