Category: Stock Market

The BetaShares Global Sustainability Leaders ETF (ASX: ETHI) is a leading exchange-traded fund (ETF) that I think can provide almost everything an investor might want in a fund.

Typically, I look for an ETF that can provide strong investment returns, good diversification, and reasonable fees. I also want to invest my hard-earned money in sectors that match my ethics.

Here’s why I think this Betashares ETF satisfies these criteria.

Strong investment returns

Ultimately, investing is about generating returns. How we go about making those returns is another matter.

According to fund provider BetaShares, the ETHI ETF delivered an average annual return of 17% over the last five years and 11.8% over the prior three years to 30 April 2024.

Considering the long-term return of the ASX share market is around 10% per annum, anything above that is appealing. The BetaShares Global Sustainability Leaders ETF has done materially better than the ASX.

Currently, some of its biggest holdings are US heavyweights Nvidia, Apple, Visa and Mastercard. These stocks have performed admirably and I think the ASX ETF’s portfolio is capable of producing ongoing good returns.

Diversification

I suggest investors avoid putting all of their eggs in one basket. Diversifying a portfolio across different businesses and industries can lower investment risks by reducing concentration.

The ETHI ETF is invested in 200 businesses, which is a good amount of diversification in terms of holding numbers.

I believe this fund is diversified enough when it comes to sector allocation. At the end of April 2024, the biggest weightings were in information technology (35.4%), financials (23.2%), healthcare (14.4%), consumer discretionary (13.6%), and industrials (5.5%).

IT has a relatively high weighting in the ASX ETF’s portfolio, but I believe that’s a good thing because many high-performing stocks have come from there in the past five years. Tech stocks typically achieve strong growth and good margins because of the digital nature of their services.

Reasonable fees

The ethical construction of this ETF requires a lot of work, which I’ll discuss in a moment.

I believe the fees of this ETF are very reasonable, considering the screening that occurs and the high level of returns it has delivered.

BetaShares has an annual management fee of 0.59%, which is materially cheaper than what plenty of active fund managers might charge.

Ethical screening

The ETHI ETF starts by looking at the global share market and then makes a number of exclusions.

It excludes businesses that are involved in the activity of fossil fuels, gambling, tobacco, uranium and nuclear energy, armaments and militarism, the destruction of valuable environments, animal cruelty, chemicals of concern, mandatory detention of asylum seekers, pornography, payday lending and alcohol.

BetaShares Global Sustainability Leaders ETF excludes businesses with no women on the board of directors and companies with human rights concerns, including child labour, forced labour, sweatshops, bribery, and corruption.

The remaining 200 businesses in the ASX ETF, after that screening process, are 200 of the biggest, most ethical companies worldwide.

The post I think this excellent ASX ETF ticks all the boxes appeared first on The Motley Fool Australia.

More reading

• Warren Buffett’s sister uses this simple method for passive income without dividends
• With $1,000 to invest, should I buy ASX growth stocks or income shares?
• Why this is one of the top ASX ETFs I’d buy in 2024

Motley Fool contributor Tristan Harrison 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 Apple, Mastercard, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has recommended Apple, Mastercard, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week positively and record a solid gain. The benchmark index rose 0.8% to 7,761 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday after a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 10 points or 0.15% lower. On Wall Street, the Dow Jones was down 0.3%, the S&P 500 was up 0.1%, and the Nasdaq rose 0.55%.

Life360 launches US IPO

The Life360 Inc (ASX: 360) share price will be one to watch today after the location technology company launched its Nasdaq IPO. Life360 estimates that it will receive net proceeds from the offering of approximately US$84.4 million. Management advised that the principal purposes of this IPO are to increase its capitalisation and financial flexibility and create a public market for its common stock in the United States. It currently intends to use the net proceeds for general corporate purposes, including working capital, operating expenses, and capital expenditures.

Oil prices sink

It could be a very tough session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.8% to US$74.05 a barrel and the Brent crude oil price is down 3.6% to US$78.18 a barrel. This follows news that OPEC+ plans to phase out its voluntary production cuts.

Iron ore price tumbles

BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) shares could act as a drag on the ASX 200 index on Tuesday. That’s because the iron ore price has continued its decline with a sharp pullback overnight. According to the AFR, the iron or price in Singapore fell 4.2% to US$110.65 per tonne. An inventory buildup in China appears to be behind the steel making ingredient’s latest decline.

Gold price rises

ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.85% to US$2,365.7 an ounce. Traders were buying the precious metal after weak economic data in the United States boosted interest rate cut hopes.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• How ASX shares vs. property performed in May
• Here are the top 10 ASX 200 shares today
• What a pay rise for 2.6 million Aussies could mean for ASX shares
• I think this is the best ASX artificial intelligence (AI) stock to buy right now
• The BHP share price crushed the benchmark in May. Here’s how

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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.

In May, the S&P/ASX 200 Index (ASX: XJO) managed to carve out a small gain for investors despite a selloff late in the month due to inflation concerns.

Unfortunately, Pilbara Minerals Ltd (ASX: PLS) shares didn’t fare as well and dropped into the red during the month.

How did Pilbara Minerals shares perform in May?

The lithium miner’s shares started the month positively and were up as much as 3.5% month to date at one stage.

But all that was forgotten by the end of the month when Pilbara Minerals shares finished the period almost 7% below where they started it. This was despite there being no news out of the company in May.

Though, it is worth noting that it wasn’t the only ASX lithium stock to tumble last month. Core Lithium Ltd (ASX: CXO) shares lost approximately 10% of their value during the period.

What else?

A bearish broker note out of Morgan Stanley could also have weighed on Pilbara Minerals shares.

Last month, it put an underweight rating and $3.35 price target on it shares. This implies potential downside of 12.3% for investors from current levels over the next 12 months.

Its analysts continue to believe that its shares are overvalued at current levels.

Should you buy the dip?

Unfortunately, Morgan Stanley isn’t alone in believing that Pilbara Minerals shares are overvalued at current levels.

The team at Goldman Sachs, for example, believes that they could fall significantly more than what its rival investment bank is predicting.

According to a recent note, the broker has a sell rating and lowly $2.80 price target on its shares. This implies potential downside of 27% for investors between now and this time next year. It commented:

Our 12m PT is down to A$2.80/sh, where PLS (Sell) remains at a premium to peers (1.2x NAV & pricing ~US$1,300/t LT spodumene (including a nominal value of A$1.1bn for growth); peer average ~1.05x & ~US$1,210/t (lithium pure-plays ~US$1,110/t; GSe US$1,150/t LT real)), with near-term FCF continuing to decline on lithium prices and increasing growth spend (c.-10% FCF yield in FY24E, and c.0% in FY25-27E). We also continue to see risk that a Beyond P1000 expansion disappoints vs. market expectations on a combination of capex, size, or timing.

Overall, based on what the broker community is saying, it might be best for investors to keep their powder dry and wait for a better entry point. Though, of course, brokers don’t always make the right call. Time will tell with this one.

The post What happened to Pilbara Minerals shares in May? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Higher or lower: Where next for Pilbara Minerals shares?
• Here is the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares
• ASX 200 shares vs. property: Which has performed better since the COVID crash?

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 positions in and has recommended Goldman Sachs Group. 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.

ASX dividend shares that provide a good dividend yield and a high level of reliability could be excellent investments for people about to enter retirement. However, some ASX shares aren’t very consistent.

There is plenty to like about the large ASX iron ore shares of BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG). These companies are increasing their exposure to decarbonisation and usually offer high dividend yields. Nonetheless, their payouts can bounce around significantly depending on what’s happening with the iron ore price.

Hence, I’d rather invest in ASX dividend shares that can provide more consistent payouts, which is why I like the ones below.

GQG Partners Inc (ASX: GQG)

GQG is one of the largest listed fund managers. It’s based in the US and has four main investment strategies – US shares, international shares, global shares and emerging markets.

Impressively, all of its main strategies have outperformed their respective benchmarks since inception. This level of performance organically helps the funds under management (FUM) grow and is an appealing selling point to attract more client FUM.

In its monthly update for April 2024, the company revealed net inflows of US$6.3 billion for 2024 to date, helping bring its FUM to US$142 billion.

The ASX dividend share has committed to a dividend payout ratio of 90% of distributable earnings. FUM growth is a significant input and driver of revenue and earnings, so FUM growth is integral to GQG’s success.

At December 2023, the business had US$120.6 billion of FUM and it had grown over 17% to US$142 billion, suggesting further dividend growth over the 12 months. The estimates on Commsec suggest an annual dividend yield of over 7% for 2024 and more than 8% for 2025.

Woolworths Group Ltd (ASX: WOW)

Woolworths is the biggest retailer of food in Australia, with its national supermarket network. It also owns BIG W, a majority stake in PETstock, a food distribution business, and other smaller companies.

Food is obviously one of the most vital purchases a household makes. Therefore, the ASX dividend share has very defensive earnings, which we saw during 2020 and 2021 as Australia grappled with COVID-19.

Australia’s population continues to grow, which is a useful tailwind for increasing overall food demand.

In the most recent quarterly update, the FY24 third quarter, Woolworths reported total sales growth of 2.8% despite 0.7% deflation in the supermarkets of shelf prices (excluding tobacco). I think this shows the ability of the business to keep growing even in tougher conditions.

Woolworths increased its annual dividend in FY23 and grew the FY24 half-year payout by 2.2%.

According to the estimate on Commsec, Woolworths is projected to pay a grossed-up dividend yield of around 5% in FY24.

The post About to retire? I’d buy these ASX dividend shares for income appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• How I’d try to turn an empty portfolio into $300k by buying cheap ASX shares, starting now
• 3 ASX 200 blue-chip shares to buy now
• Here’s how I’d target a $2,000 second income by investing $35 a week
• 3 reasons this broker thinks Woolworths shares are a cheap buy

Motley Fool contributor Tristan Harrison has positions in Fortescue. 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.

The big news in shares vs. property is Brisbane overtaking Canberra as Australia’s second-most expensive city, with the median home value in the Sunshine State’s capital rising 1.4% last month.

The last time Brisbane was the second highest-value capital city in Australia was 27 years ago, in 1997.

The national median home value, which reflects all types of property in a single data point, rose for a 16th month, up 0.8%, according to CoreLogic data. The median house and apartment prices lifted 0.8% as well.

Meantime, the S&P/ASX 200 Index (ASX: XJO) rose 0.49%, thus recovering only a sliver of its 3% loss in April. But as usual, some stocks shot the lights out, including an ASX biotech that screamed 20.6% higher.

CoreLogic research director Tim Lawless said the May increase in the median home value was the strongest monthly gain since October 2023.

A lack of stock for sale in the strongest markets, which continue to be the mid-sized capital cities, once again powered the national benchmark increase.

Lawless commented:

The number of properties available for sale in Perth and Adelaide remain more than -40% below the five-year average for this time of the year while Brisbane listings are -34% below average.

Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year.

Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices.

Perth, Adelaide and Brisbane recorded the highest home value growth in May at 2%, 1.8%, and 1.4%, respectively.

Among the regional markets, regional Western Australia dominated with 1.8% growth, followed by regional South Australia with 1.4%, and regional Queensland with 1.1%.

Shares vs. property price growth in May

Here’s how shares vs. property performed in terms of house price growth and share price growth in May.

Property market	Median house price	Price growth in April	12-month price growth
Sydney	$1,441,957	0.5%	8.2%
Melbourne	$937,289	0%	1.9%
Brisbane	$937,479	1.4%	16%
Adelaide	$811,059	1.7%	14.3%
Perth	$769,691	2%	22.2%
Hobart	$697,770	(0.5%)	(0.1%)
Darwin	$584,538	0.7%	3.8%
Canberra	$961,403	0.5%	2.8%
Regional New South Wales	$762,506	0.4%	4.2%
Regional Victoria	$603,432	(0.3%)	(0.6%)
Regional Queensland	$634,988	1%	11.7%
Regional South Australia	$430,389	1.5%	10.7%
Regional Western Australia	$519,311	1.8%	15.2%
Regional Tasmania	$534,801	0.1%	0.1%
Regional Northern Territory	$450,431	0%	(6.1%)

Top 5 risers of the ASX 200 in April

The S&P/ASX 200 Index (ASX: XJO) lifted 0.49% in May.

According to CommSec data, these 5 ASX 200 shares were the outperformers.

ASX 200 share	Share price growth in May
Telix Pharmaceuticals Ltd (ASX: TLX)	20.6%
PEXA Group Ltd (ASX: PXA)	19.3%
Alumina Ltd (ASX: AWC)	16.6%
Pinnacle Investment Management Group Ltd (ASX: PNI)	16.3%
A2 Milk Company Ltd (ASX: A2M)	16.1%

What drove the Telix Pharmaceuticals share price higher?

News released by Telix Pharmaceuticals on the final day of the month pushed the biotech share to the top of the ASX 200 group. The Telix Pharmaceuticals share price soared 15.31% on 31 May alone.

Telix is a commercial-stage biopharmaceutical company. It develops diagnostic and therapeutic products to treat cancer with new precision using targeted radiation.

Its diagnostic imaging can precisely locate the cancer. Its therapeutics can then deliver isotopes directly to affected cells, thereby protecting healthy tissue.

On 31 May, the company announced additional positive data from its ProstACT SELECT trial of TLX591.

TLX591 is a treatment for adult men with PSMA-positive metastatic castrate-resistant prostate cancer.

Telix said the study reported a median radiographic progression-free survival (rPFS) of 8.8 months.

This builds on prior data from the trial showing a favourable safety profile and biodistribution.

Dr Nat Lenzo, a nuclear oncologist and lead recruiter for the SELECT trial, said:

We are encouraged by this rPFS result …

This is a compelling signal of the potential efficacy of TLX591 in this heavily pre-treated population.

The results further support the development of this candidate in an earlier mCRPC patient population which is the focus of the ProstACT GLOBAL7 Phase III trial and where there remains significant unmet need for effective treatment.

Telix shares also rose by 2.53% on 22 May when the company held its annual general meeting.

In a speech, Telix Chair Kevin McCann said:

Despite all that we have achieved, there is plenty more to come. Indeed, it is the view of Management that 2024 is going to be the biggest year yet for Telix.

By the end of the year, we expect to have launched new products and territories, reported several key development milestones for our therapy programs and progressed some of our very exciting “next generation” assets – such as TLX592 and TLX300.

The post How ASX shares vs. property performed in May appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• What a pay rise for 2.6 million Aussies could mean for ASX shares
• Sell in May and go away? Not for these top 3 ASX 200 stocks!
• Up 80% in 2024, here’s why the Telix Pharmaceuticals share price is marching higher again on Monday
• Should you buy this defensive ASX 200 stock on a pullback?

Motley Fool contributor Bronwyn Allen has positions in Alumina. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group, Pinnacle Investment Management Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended A2 Milk and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Galileo Mining Ltd (ASX: GAL) share price was a very strong performer on Monday.

The small-cap mineral exploration company’s shares ended the day 12% higher after announcing a deal with ASX 200 mining giant Mineral Resources Ltd (ASX: MIN).

Why has it signed a deal with this ASX 200 mining stock?

According to the release, Galileo Mining has entered into a farm-in and joint venture agreement (JVA) with Mineral Resources.

Under the agreement, the company will sell 30% of all lithium rights held by Galileo on the Norseman tenement to Mineral Resources for a $7.5 million cash consideration.

The release notes that Mineral Resources has already completed comprehensive due diligence prior to execution. As a result, there are no conditions precedent to completion of the transaction with the ASX 200 mining stock and the deal is expected to close within five business days of the execution of the JVA.

From completion, Mineral Resources and Galileo will form a 30%/70% unincorporated joint venture. However, Mineral Resources has the ability to increase its stake to 55% by sole funding an additional $15 million of exploration expenditure on the tenements over the four years following completion.

The ASX 200 mining stock also has the further ability to elect to increase its stake to 70% by sole funding expenditure through to a decision to mine. At that point, Galileo Mining must elect to either remain in a joint venture and contribute to development costs or convert its interest into a royalty.

‘Excited’

Galileo’s managing director, Brad Underwood, was very pleased with the deal. He commented:

We are excited to add a lithium exploration joint venture to our ongoing exploration programs for PGEs and nickel at our Norseman Project. The Norseman project has excellent lithium potential and is strategically located in the world’s most prospective region for lithium. The project’s outstanding location relative to existing infrastructure provides a short cut to development for any lithium resources discovered through the joint venture.

Galileo will benefit from a focussed program of lithium exploration by MinRes, one of Australia’s pre-eminent lithium companies, as well as increasing our cash reserves to aggressively pursue other high value resource discoveries at both our Norseman and Fraser Range projects. With $5 million of additional funding to be received within five days of execution of the agreement, a further $2.5 million to be received within 12 months, and $10 million in the bank, Galileo is fully funded to undertake all of its planned exploration programs.

The post Mineral Resources is joining forces with this micro-cap lithium share appeared first on The Motley Fool Australia.

More reading

• Buy these ASX 200 blue-chip stocks for 20% returns
• Up 51% from their 52-week low, is it too late to buy Mineral Resources shares?
• 4 founder-led ASX 300 shares that have helped this fund outperform
• Here are the top 10 ASX 200 shares today

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.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• The worst three performing ASX 200 shares in May unmasked
• What a pay rise for 2.6 million Aussies could mean for ASX shares
• Why APM, Fletcher Building, Navigator Global, and Strike Energy shares are storming higher
• Should you buy this defensive ASX 200 stock on a pullback?
• These are the 10 most shorted ASX shares

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Challenger and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was only a few days ago that we learned that Gina Rinehart retained her spot as Australia’s richest person for 2024. With a fortune worth over $40 billion, Rinehart saw her wealth rise a healthy 8.5% since the 2023 rich list was released. So it goes without saying that investors are going to be paying close attention to any ASX shares (usually ASX mining shares) that Rinehart might be buying or selling.

We’ve documented a few of Rinehart’s ASX mining shares in recent years, including Azure Minerals Ltd (ASX: AZS) here and Titan Minerals Ltd (ASX: TTM) here.

But today, let’s talk about Vulcan Energy Resources Ltd (ASX: VUL).

Rinehart’s interest in this lithium stock first emerged back in 2021. Rinehart’s Hancock Prospecting also took a big stake in Vulcan’s $120 million capital raising program that year.

It appears Rinehart is doubling down on this ASX mining share this week.

Rinehart buying up ASX mining share

According to an ASX filing released this morning, Vulcan confirmed that a number of institutional investors have just made a large investment in the company. This was done via a private share placement program.

The filing states that CIMIC Group, Victor Smorgon Group and Hancock Prospecting have all been issued with additional Vulcan shares. CIMIC made a 25 million euro investment and was issued with 10 million shares as a result. Victor Smorgon invested 2.5 million Euros and was awarded 1 million shares.

Hancock came right in the middle, investing 12.5 million Euros ($20.41 million) and receiving 5 million shares for its efforts.

These investments were executed at a price of 2.50 Euros per share, or $4.08. That’s reportedly a 9% discount to Vulcan’s 30-day volume weighted average price as of last Friday.

Collectively, they have raised 40 million Euros (approximately $65 million) for Vulcan.

Vulcan stated the following in light of these cash injections:

The Investments demonstrate commitment from strategic investors to support the lithium value chain globally and the construction of Phase One of Vulcan’s integrated renewable energy and ZERO CARBON LITHIUM Project (the Project) in Germany…

These strategic Investments will materially contribute to the funding of pre-execution activities during the final stage of Project financing and protection of the Project’s deterministic execution schedule.

Specifically in relation to Hancock Prospecting, Vulcan expanded:

HPPL [Hancock Prospecting Pty Ltd] is Australia’s most successful private company and has maintained a significant shareholding in Vulcan since January 2021. Through its [12.5 million Euro] Investment, HPPL has increased its substantial shareholding to ~7.5% of the outstanding share capital of Vulcan. HPPL will become Vulcan’s second largest shareholder…

HPPL and Vulcan have shared a supportive, long-term relationship, with HPPL maintaining a top-5 shareholding position in the Company since January 2021. Today’s investment builds upon this, with HPPL increasing their ownership to ~7.5% of Vulcan’s issued capital. Vulcan welcomes HPPL’s increased investment and looks forward to a further continuation of the strong partnership between the two companies.

Investors lap up Hancock’s buy

It’s clear that the markets approve of this announcement from Vulcan today. The Vulcan Energy Resources share price closed at $4.74 last Friday afternoon and opened at $4.62 this morning. But at market close today, those same shares finished trading at $5.08, up 7.17% for the day.

That puts this ASX mining share up a huge 80.78% in 2024 to date. Vulcan is also up 34.75% over the past 12 months.

However, Rinehart might still be underwater from some of Hancock’s 2021 investments in the company. Back in 2021, Vulcan shares got as high as $16 each. As such, some long-term investors would remain down on their investments at the current share price.

The post Which ASX mining share did Gina Rinehart inject another $20 million into? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX All Ords stocks turned $500 into at least $16,500 in less than a decade!
• Why AIC Mines, Bendigo and Adelaide Bank, Patriot Battery Metals, and Vulcan Energy are racing higher today
• Guess which ASX lithium share just leapt 13% on major financing news!

Motley Fool contributor Sebastian Bowen 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.

Guzman y Gomez (GYG) is planning to become an ASX business by the end of the month, through an initial public offering (IPO).

GYG sells Mexican-inspired, made-to-order food across drive-through restaurants and outlets on shopping strips, food courts and universities. The quick-service restaurant (QSR) has been thinking about an IPO for years and it is finally making the jump.

GYG aims for $2.2 billion valuation

The company is aiming to raise approximately A$242.5 million in the ASX IPO, by selling 11.1 GYG shares at a price of $22 per share. This includes existing shareholders selling $42.5 million of shares during the process.

Guzman y Gomez plans to use the $200 million of primary proceeds to fund its growth strategy over the coming years, with a focus on the “significant expansion” of its corporate restaurant network in Australia. The funds will provide flexibility to accelerate its growth strategy if “appropriate opportunities arise”.

If GYG is successful with its ASX IPO, the offer price will value the company at approximately $2.2 billion.

There is no offer for the general public. However, GYG shares are available to institutional investors, clients of some brokers, other eligible GYG shareholders and certain investors, eligible employees of GYG in Australia and eligible franchisees. The general public can buy GYG shares on the market once shares are trading later in June.

GYG has received “considerable support” and demand from existing shareholders including Aware Super, Cooper Investors, Hyperion Asset Management, Firetrail Investments and QVG Capital.

According to Guzman y Gomez, the board, senior management and existing substantial investors will own 62% of the business after the ASX IPO.

The offer is reportedly fully underwritten by Barrenjoey and Morgan Stanley Australia.

GYG shares are expected to start trading on 20 June 2024, initially on a conditional and deferred settlement basis under the ticker ‘GYG’.

Guzman y Gomez’s plans for growth

The business opened its first restaurant in Sydney in 2006, and it now has 210 restaurants across four countries, with 185 restaurants in Australia, 16 in Singapore, five in Japan and four in the US.

GYG expects to open 30 new Australian restaurants in FY25 and believes it can increase this to opening 40 restaurants per year within five years. GYG thinks it can grow its Australian network to more than 1,000 restaurants over the next two or so decades.

Of Guzman y Gomez’s 185 Australian restaurants, 62 are corporate restaurants and 123 are franchise restaurants. The Singapore and Japan restaurants are owned and operated by separate master franchisees, while the four in the US are corporate restaurants.

Between FY15 and FY23, GYG’s global network sales have increased from $101 million to $759 million. The Mexican food business is expecting global sales of $1.14 billion in FY25 thanks to “strong comparable sales growth and ongoing network expansion.”

It’s expecting to improve the guest experience and leverage the benefits of scale to enable its underlying/pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) to grow from $29.3 million in FY23 to $59.9 million in FY25.

Management believes there is a large growth opportunity in the US fast food market, but it will adjust the pace of restaurant expansion to ensure “robust restaurant economics”. All four of its US stores are in the suburbs of Chicago.

GYG said the health and profitability of its franchisees are “fundamental.” According to GYG, its Australian franchisee return on investment is 51%.

Management comments

The GYG founder and co-CEO Steven Marks said:

Over the last 18 years, the team at GYG have been obsessed with providing our guests with the freshest, cleanest and fastest made-to-order Mexican-inspired food. I am incredibly proud to say that we now do this across more than 200 restaurants in Australia, Singapore, Japan and the US. And the most exciting part is that we are just getting started.

As we commence the next chapter as an ASX-listed company, our vision to reinvent fast food and change the way the masses eat will remain central to what we do. We truly believe that fast food doesn’t have to be bad food and we look forward to sharing our food with more guests across Australia and overseas as we look to realise the opportunity we have to grow our network to more than 1,000 restaurants over the next 20+ years.

What next for the potential GYG shares?

The Guzman y Gomez ASX IPO offer opens on 10 June 2024, and GYG shares are expected to start trading on 20 June 2024 on a conditional and deferred settlement basis. Normal trading is expected on 25 June 2024.

The post Guzman y Gomez (GYG) is set for an ASX IPO. Here’s what we already know appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Which ASX mining share did Gina Rinehart inject another $20 million into?
• Here’s why the Newmont share price is making big ASX news today
• The worst three performing ASX 200 shares in May unmasked
• Guess which ASX All Ords stock is leaping 10% on a $1.3 billion bid

Motley Fool contributor Tristan Harrison 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.

It’s a big day for ASX gold share Newmont Corporation (ASX: NEM) this Monday. Not that you’d know it from looking at the Newmont share price right now.

This gold miner is having a decent, if uninspiring, session so far this Monday. At the time of writing, Newmont shares are up 0.1% at $62.51 each. That’s a gain of a fraction of the size of the S&P/ASX 200 Index (ASX: XJO)’s lift of 0.81%.

But that’s not why it’s a big day for Newmont shares, if that isn’t obvious. No, today is the day that Newmont stock has traded ex-dividend for its upcoming quarterly shareholder dividend payment.

Because Newmont is a US-domiciled company with its ASX shares only a secondary listing, it adheres to an American-style dividend policy. That means its dividends come without franking credits, but are paid out every three months. That’s instead of the six-month interval that is common on the ASX.

The latest dividend from Newmont will be worth 25 US cents per share (worth around 38 cents at today’s exchange rates). It will be doled out later this month on 27 June. This dividend will come in right between Newmont’s previous two ASX payments. These were worth 41.6 cents (paid out in December) and 26.5 cents per share (March) respectively.

However, as we warned last week, today is the day that Newmont has traded ex-dividend for this upcoming payment. This means that anyone who didn’t own Newmont shares as of market close on Friday is now ineligible to receive this dividend. So even if you buy Newmont stock today, you’ll miss out on this latest payment. Instead, you’ll have to wait until the company’s next dividend is declared to receive any cash flow.

What about the Newmont share price?

As many ASX dividend investors would know, it is normal to see a dividend share fall substantially in value upon its ex-dividend date. This reflects the inherent loss of value for the investors buying the stock without the rights to receive the latest dividend attached.

However, this doesn’t seem to be occurring today. The Newmont share price closed at $62.45 each last Friday but opened at $62.88 this morning. The gold miner is currently sitting at $62.51. That’s up 0.1% for the day thus far, as we touched on earlier.

All we can conclude from this strange stock price movement is that Newmont shares would be even higher today if not for the company trading ex-dividend.

Newmont investors can all now look forward to bagging the company’s dividend payment on 27 June.

The post Here’s why the Newmont share price is making big ASX news today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Newmont shares are about to trade ex-dividend. Time to buy?
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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.