Author: therawinformant

The Oz Minerals Limited (ASX: OZL) share price rose 4.24% to $13.53 on Wednesday following the release of the company’s quarterly report.

What was in the announcement?

In the second quarter of 2020, Oz Minerals produced 24,577 tonnes of copper at an all-in sustaining cost of US 50.5 cents per pound. The company lifted its financial year 2020 production guidance from 83,000-100,000 tonnes of copper to 88,000-105,000 tonnes.

Oz Minerals produced 68,740 ounces of gold in the second quarter of the 2020 financial year. It also lifted its financial year 2020 production guidance from 207,000-234,000 ounces of gold to 227,000-249,000 ounces.

The company had $15 million in net cash (unaudited) at 30 June and had a $480 million revolving credit facility. During the quarter, Oz Minerals repaid $50 million in debt and invested $30 million in its Carapateena asset. 

The company did not undertake any significant exploration during the quarter due to the coronavirus pandemic.

About the Oz Minerals share price

Oz Minerals is a copper and gold producer with assets in Australia, South America and Sweden.

In June, the company released a scoping study that suggested there was potential to improve shareholder value at its Carapateena asset. This was based on a pre-feasibility study that was also released. The Carapateena ore reserves were updated to 220 million tonnes at 1.1% copper, 3,100,000 ounces of gold at .44 grams per tonne and 31,000,000 ounces of silver at 4.5 grams per tonne.

Also in June, Oz Minerals announced it had acquired Cassini Resources. This took its ownership in the West Musgrave project to 100%. Oz Minerals paid with scrip in the form of one Oz Minerals share for every 68.5 Cassini Resources shares. Additionally, Oz Minerals may have to pay up to $20 million cash to Cassini shareholders if it sells the West Musgrave project for a higher value in the future. Two other projects held by Cassini were spun off into another company with shares given to Cassini shareholders.

The Oz Minerals share price is up 132% from its 52-week low of $5.83. It has risen 27.88% since the beginning of the year and is up 32.52% since this time last year.

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• The latest ASX stocks to be upgraded by brokers to “buy”

Motley Fool contributor Chris Chitty 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 S&P/ASX 200 Index (ASX: XJO) fell 1.3% today to 6,075 points.

Australia recorded the highest number of daily COVID-19 cases today, with another 484 new cases in Victoria. There were also 16 new cases in New South Wales.

Resolute Mining Limited (ASX: RSG) share price glitters

The Resolute Mining share price jumped 12.9% after the company announced its quarterly activities report.

The company saw total quarterly gold production of 107,183 ounces at an all-in sustaining cost of US$1,033 per ounce.

An updated life of mine plan for the Mako mine saw 39% more gold and an extra two years of mine life.

The resources business had US$88 million of cash and bullion at 30 June 2020.

The ASX 200 gold miner maintained its FY20 guidance of 430,000 ounces at an all-in sustaining cost of US$980 ounces.

Baby Bunting Group Ltd (ASX: BBN) sales are booming

The baby product retailer announced a June 2020 update today. The Baby Bunting share price rose 11.1% in response.

The company said that in the second half of FY20 it achieved comparable store sales growth of 10.5%, with full year comparable store sales growth of 4.9%. Online sales grew by 39% and made up 14.5% of FY20’s total sales.

Baby Bunting achieved total sales of approximately $405 million, this represents growth of around 12% compared to the prior corresponding period.

Management expect a gross profit margin of 36.2%, an improvement of 120 basis points compared to FY19.

Statutory net profit after tax (NPAT) is expected to be between $9.5 million to $10.5 million. In FY19 it generated $11.6 million of NPAT when restated for AASB 16. However, this FY20 reported profit includes employee equity incentive expenses, significant transformation project expenses and the impairment of the carrying value of the company’s investment in its digital commerce technologies.

Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $33 million to $34 million, up between 22% to 25%.

Pro forma NPAT is expected to be between $18.5 million to $19.5 million – this is growth of 29% to 35% compared to FY19.

Beach Energy Ltd (ASX: BPT) share price rises

The ASX 200 oil and gas business released its fourth quarter activities report today.

Fourth quarter production was 6.8 million barrels of oil equivalent (MMboe), bringing the full year production to 26.7 MMboe, an increase of 2% on FY19’s pro forma figure.

The effects of COVID-19 hurt the pace of new well connections and gas demand during the quarter, resulting in FY20 production being 1% below guidance.

The FY20 fourth quarter sales revenue of $320 million was 26% lower than the last quarter, largely because of lower oil prices. The price was $46.90 per barrel, which was down 37%.

FY20 capital expenditure of $863 million was lower than the lower end of its guidance. This was in response to lower oil prices. It is also reducing its operating costs.

Beach ended FY20 with $50 million of net cash.

FY21 guidance will be released with its FY20 result, but FY20 underlying EBITDA is expected to be marginally below prior guidance of $1.175 billion. Lower oil prices, COVID-19 impacts on production and exploration costs were the main causes of the lower profit.

Inghams Group Ltd (ASX: ING) closes a factory due to COVID-19

The ASX 200 poultry business has announced that five employees at its Thomastown processing plant in Victoria have tested positive for COVID-19. Therefore the site has been temporarily closed.

The company said that contingency plans have been in place for a number of months. It will work with customers to minimise supply chain disruptions.

Inghams doesn’t expect the temporary closure to materially impact the FY21 result.

More reading

• Top brokers list the latest ASX small cap stocks to buy today
• The ASX sector that’s heading for a V-shape recovery
• QBE share price rises despite expected half year loss
• Are ASX tech shares in a bubble?
• Top brokers name 3 ASX 200 shares to buy today

Motley Fool contributor Tristan Harrison 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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Do you have $1,000 to invest into ASX shares? I think there are still several investment opportunities on the ASX, we just have to be more picky than a few months ago when the COVID-19 selloff caused there to be lots of good value opportunities.

But I still think there are some wonderful investment ASX share ideas if you have $1,000 to invest today:

Exchange-traded fund (ETF)

BetaShares Global Quality Leaders ETF (ASX: QLTY)

I think it’s worthwhile investing in quality companies during this difficult COVID-19 period. This ETF only invests in businesses which rank highly on return on equity (ROE), debt to capital, cash flow generation ability and earnings stability metrics.

This ETF costs a bit more than the cheapest ETFs out there, but its annual fee is still only 0.35%. It has performed very strongly since inception in November 2018, returning an average 19.76% per annum after fees.

Past performance is not a guarantee of future performance, but quality usually does well over time. Its current top holdings are shares like Nvidia, Apple, Adobe, Accenture, Alphabet and L’Oreal.

Growth shares 

Pushpay Holdings Ltd (ASX: PPH)

I think Pushpay is a great ASX growth share. It’s one of the businesses that is seeing accelerated growth due to the unfortunate circumstances. Its an electronic donation business that helps facilitate digital giving. At the moment most of its current earnings and potential growth is from the large and medium church sector in the US.

Pushpay now expects that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) will at least double in FY21. That would be impressive after the strong FY20 result.

It’s the rising profit margins and long-term growth runway that make me particularly excited about the company. The Pushpay share price has dropped back over the past couple of weeks to be better value.

Bubs Australia Ltd (ASX: BUB)

Bubs is another exciting ASX growth share in my opinion. It’s riding the infant formula wave of demand from Asia. It specialises in goat milk products, which is seeing rapidly rising demand from countries like Vietnam and China.

As long as there aren’t any more trade disputes between Australia and China, I think Bubs has a good chance of delivering a lot of revenue growth and an improving gross profit margin over the next five years.

Bubs was cashflow positive in the quarter ending 31 March 2020. This bodes well for profitability in FY21.

I’d be very happy to buy Bubs shares at the current price. 

An eternal investment house

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts has been listed in Australia since 1903. There are very few ASX shares in Australia that can point to that type of long-term history.

An investment conglomerate has a major advantage to most other businesses because it can alter its investment holdings over time. Being able to shift towards new growth opportunities – and divest old ones – is much better than being stuck as something in a low growth environment like a bank or telco.

I like to invest in ASX shares that I can see myself holding for many years. I want to minimise capital gains tax events and transaction costs as much as possible. Soul Patts definitely counts as a long-term idea. 

The current Soul Patts share price is still down more than 10% compared to its February 2020 high. I think it’s a good time to buy shares for the long-term.

Listed investment companies and trusts

Magellan High Conviction Trust (ASX: MHH)

This listed investment trust (LIT) is run by Hamish Douglass and his well-respected investment team. The trust only invests in businesses that it has a high conviction in, hence the name. There are quality shares on the ASX, but many of the world’s best blue chips are listed overseas.

Names like Alibaba, Alphabet, Microsoft, Tencent and Facebook feature in they trust’s holdings. Those names have extremely strong economic moats. I’m not sure you could displace those businesses even if you were given $50 billion to try to do it.

At the current Magellan High Conviction Trust share price it’s trading at a 5.6% discount to the net tangible assets (NTA) per share.

WCM Global Growth Ltd (ASX: WQG)

This ASX share is a listed investment company (LIC) that aims to invest in businesses with strengthening economic moats. One of the main measures of this is improvement is a rising return on invested capital. For investment manager WCM, the direction of the ‘moat’ is more important than the size of the moat.

The LIC has performed strongly, its investment portfolio has returned an average of around 20% per annum, after fees, over the past three years.

At the end of June 2020 some of its largest positions included internet and ecommerce related shares like Shopify, Tencent and MercadoLibre.

WCM Global Growth’s share price is trading at a 13% discount to the pre-tax net tangible assets (NTA) at 17 July 2020.

Foolish takeaway

I really like each of the above shares. If I had $6,000 then I’d love to invest $1,000 into all six of them. At the current prices I think WCM Global Growth, Bubs and Pushpay are the three most likely to deliver the best returns over the next five years, so they would be the ones I’d go for first.

More reading

• 3 of the best mid cap ASX shares you can buy right now
• Here are two ASX shares I’ve recently bought
• 3 Warren Buffett dividend shares you can buy today
• The smartest ASX shares to buy if you have $2,000
• My top 5 ASX growth shares to buy in FY 2021

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited and WCM Global Growth Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 Got $1,000? You should buy 1 of these 6 ASX shares appeared first on Motley Fool Australia.

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The Tinybeans Group Ltd (ASX: TNY) share price has been one to watch following its June quarterly report release. The ASX tech share reached 96 cents by the close, an increase of 6.1% for the day.

What is Tinybeans?

Tinybeans is a free social media platform developed in Australia and targeted to parents globally who want to share photos and videos of their children within a secure community. The company’s platform is designed to boost online safety by creating a contained, invite-only environment. This allows parents to upload photos and videos of their kids and securely share the content within an approved network.

How did Tinybeans perform in the fourth quarter?

Tinybeans performed very well in the fourth quarter despite the negative impacts of COVID-19. This was seen as users increased by 39%, compared to the prior corresponding period, to reach 4.65 million. Monthly active users also grew to over 3.7 million, an increase of over 160,000 new active users.

Strong performance across the board saw revenues for Q4 reach a record high of $2.36 million, an increase of 93% on the prior year. This record result, however, was adversely affected by reduced advertising spend and the deferment of key campaigns. Also, Tinybeans has $4.3 million in forward booked contracts which, by comparison, is 300% higher than 12 months earlier. This was significantly aided by the successful integration of the Red Tricycle operations.

Another highlight for the company was new advertising wins with great brands including Amazon, Apple, Penguin Random House, General Mills and YouTube Kids. Tinybeans recorded cash receipts of $1.93 million for the quarter with cash burn of $582,000, not including loans from the United States. Tinybeans’ cash balance sits at $5.22 million.

Tinybeans CEO, Eddie Geller, spoke of the results saying: “I’m pleased to report that we delivered strong growth for the quarter despite COVID disruptions to our operations and our brand partners. Despite market conditions, the platform saw an increase in new member sign ups and engagements as ‘stay at home orders’ across the US encouraged more interaction across the platforms.”

What’s next for this ASX share?

This quarterly report is much needed good news for the ASX micro cap. Its share price has been plummeting in 2020, down 57% for the year. However, while advertisers in the US have begun to resume spending, there is still some uncertainty in relation to the pace at which spending will recover. Tinybeans investors will be hoping for a faster than expected recovery to the pandemic to get this spending back on track.

More reading

• How you can take advantage of the surging Australian dollar
• 3 of the best mid cap ASX shares you can buy right now
• Why I would buy these fully franked ASX dividend shares
• Top brokers list the latest ASX small cap stocks to buy today
• Is the BHP share price in the buy zone?

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tinybeans Group Ltd. The Motley Fool Australia has recommended Tinybeans Group 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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