Category: Stock Market

The S&P/ASX All Ordinaries Index (ASX: XAO) is edging higher this morning amidst a flurry of ASX reporting season activity. 

But while the ASX All Ords index rises, some shares are struggling to keep up.

For some, lacklustre reports are driving this underperformance.

But for others, it’s because their shares are turning ex-dividend. This means they’re no longer trading with the upcoming dividend payment attached to it.

When a company’s shares turn ex-dividend, they typically drop. After all, these dividends are being paid out of the company’s cash reserves.

While the extent of the fall is usually in proportion to the size of the dividend, it varies based on market sentiment.

So, here are three ASX All Ords shares trading ex-dividend today. Unsurprisingly, their share prices are in the red.

Codan Limited (ASX: CDA)

This ASX tech share is trading without its final dividend today. At the time of writing, the Codan share price is sliding 4.1% to $6.97.

Last week, Codan declared a fully franked final dividend of 15 cents. 

Investors who held Codan shares when the market closed yesterday should see the payment land in their accounts on 7 September.

Codan’s total FY22 dividends come in at 28 cents, up slightly from 27 cents in FY21.

This puts Codan shares on a trailing dividend yield of 4.0%, which amps up to 5.7%, including franking credits.

Baby Bunting Group Ltd (ASX: BBN)

ASX retailer Baby Bunting is another ASX All Ords share going ex-dividend today.

Baby Bunting shares are now trading without the company’s fully franked final dividend of 9 cents. 

This is likely contributing to the 3% fall in the Baby Bunting share price at the time of writing.

Investors who were on the company’s share register by the time the market closed yesterday should pencil in a payment date of 9 September.

Baby Bunting achieved another year of dividend growth, with total FY22 dividends coming in at 22.3 cents. 

This means Baby Bunting shares are currently flaunting a trailing dividend of 4.9%. Throwing franking credits into the mix bumps up this yield to 7%.

HT&E Ltd (ASX: HT1)

Rounding out this trio of ASX All Ords shares going ex-dividend today is media and entertainment business HT&E.

The company recently announced its first-half FY22 results, declaring a fully franked interim dividend of 5 cents per share. 

This is up 43% compared to HT&E’s interim dividend in FY21. 

At the time of writing, the HT&E share price is down 4.58%, trading at $1.355.

If you owned HT&E shares when the market closed on Wednesday, you should be entitled to this dividend. Keep your eyes peeled for the funds to land in your account on 15 September.

HT&E shares are currently trading on a trailing 12-month dividend yield of 6.5%, or 9.3% grossed up.

The post 3 ASX All Ordinaries shares going ex-dividend today appeared first on The Motley Fool Australia.

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More reading

• Why I’m watching these ASX All Ordinaries shares like a hawk
• Guess which ASX share is soaring 11% after dividends doubled?
• 3 ASX All Ordinaries shares trading ex-dividend today
• Experts name 2 top ASX dividend shares to buy with 4%+ yields
• Here are 2 All Ords ASX dividend shares with yields above 6%

Motley Fool contributor Cathryn Goh 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 recommended Baby Bunting. 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 Nine Entertainment Co Holdings Ltd (ASX: NEC) shares have surged higher in early trade Thursday after the company announced a “record” result and dividend payout, as well as a $341 million buyback.

At the time of writing the stock is up 5.5% to go for $2.11.

What did the company report?

• Revenue up 15% to $2.7 billion
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 24% to $700.7 million
• Statutory net profit including specific items up 71% to $315.3 million
• Dividend per share up from 10.5 cents to 14 cents
• On-market buyback of up to 10% of shares, which is about $341 million. 

What else happened in FY22?

With Australia’s two largest cities in lockdown for much of the first half of the financial year, Nine Entertainment’s television business thrived with a captured audience.

That arm was also boosted in December with a new broadcast deal with the NRL worth $650 million for the 2023 to 2027 seasons.

What did management say?

Nine chair Peter Costello said: 

2022 has been a record year for Nine, on many levels. From a profit perspective, we have reported the highest ever group EBITDA as well as total TV and publishing EBITDA and margin. At the same time, our ambition to accelerate profitable growth from our digital businesses is being realised, with more than 50% of EBITDA now attributed to our digital expansion, tracking ahead of the long-term targets we have previously communicated.

For our shareholders, from our FY22 profit, we have also paid or announced a record, fully franked dividend of 14 cents per share.

Chief executive Mike Sneesby said:

Whilst broader economic factors are beginning to impact some areas of the market, Nine’s strong competitive position and balance sheet stands us in good stead. We have successfully diversified our earnings base, with more than 30% of our revenue now from subscription and licensing.

What’s next?

Nine Entertainment forecasts EBITDA between $380 million and $400 million for the first half of financial year 2023.

Sneesby said:

Across all of our advertising-based businesses, we are confident that we will continue to grow our share, reflecting our content and distribution capabilities, as well as our focused approach to sales and the associated use of our extensive data pool. We expect any market softness will create opportunities for Nine to further strengthen its position as Australia’s media company.

Nine Entertainment share price snapshot

Nine shares have lost about one-third of their value since April as fears about the economy repelled investors from advertising-driven businesses.

The stock has recovered somewhat in recent weeks, with a 10.5% gain since mid-June.

The dividend yield, after the 14 cent payout was announced, is now at a juicy 7%.

The post Nine Entertainment share price takes off after 71% profit boost and ‘record’ dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are plenty of ASX bank shares in the S&P/ASX 200 Index (ASX: XJO). At the moment, National Australia Bank Ltd (ASX: NAB) shares would be my pick out of that sector.

It can be hard to choose because there are so many different names including Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

But there are a few key reasons for my preference for NAB over the other big four ASX 200 bank shares, so I will outline them below.

Growth

Banks are not known for being growth shares. But, I believe that it’s important that the investments we choose offer a bit of growth, even if it’s only a relatively small amount.

I think that NAB is demonstrating an impressive amount of growth (for a big bank) and it’s doing it profitably.

The bank and its management have been working hard at improving the business and “getting the basics right”. NAB has also been working on improving “customer and colleague outcomes to deliver sustainable growth and improved shareholder returns.”

In the FY22 third quarter, NAB reported cash earnings of $1.8 billion and statutory net profit after tax (NPAT) of $1.85 billion. The cash earnings represented a year-over-year growth of 6%. Before tax and credit impairment charges, cash earnings increased 10%.

Excluding the Citi acquisition, and before credit impairment charges and tax, NAB’s third quarter cash earnings grew by 2% compared to the FY22 first half quarterly average.

While there are plenty of other ASX shares that will have reported much stronger growth this reporting season, I think NAB is looking good, particularly as the benefits of higher interest rates will start to show on its profit margins. However, it will be worthwhile keeping an eye on the level of loans arrears in 2023 and beyond.

Valuation

Based on estimates on Commsec, NAB is projected to generate $2.39 of earnings per share (EPS) in FY23. That puts the current NAB share price at under 13 times FY23’s estimated earnings.

Compare that to CBA, which is valued at over 17 times FY23’s estimated earnings, according to CommSec. The price/earnings (p/e) ratio isn’t the only way to compare banks, but I think it can show how much cheaper NAB is compared to CBA. It’s the better value ASX 200 bank share out of the two.

It’s true that ANZ is valued at under 11 times FY23’s estimated earnings and Westpac is valued at just over 11x FY23’s estimated earnings. But, I like the quality that NAB is demonstrating and how it’s delivering profit growth.

Dividend yield

I am also attracted to the dividend income that NAB is paying and could pay.

In FY23, NAB is predicted to pay an annual dividend per share of $1.63 per share, according to Commsec. That would represent a grossed-up dividend yield of 7.8% at the current NAB share price.

Then, in FY24, the ASX 200 bank share could grow its annual dividend by 4.4% to $1.70 per share. This would be a grossed-up dividend yield of 8.1%.

I think the combination of rising earnings, a strong starting dividend yield and a growing dividend will lead to solid total returns in the coming years.

The post NAB is the ASX 200 bank share I’d buy today appeared first on The Motley Fool Australia.

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More reading

• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
• The NAB share price has gained 5% since last week’s update. What’s next?
• These top ASX dividend shares have been tipped as buys by analysts
• Why this leading fund manager’s favourite ASX 200 bank share is NAB
• What does CommBank’s latest update mean for NAB shares?

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 recommended Westpac Banking Corporation. 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 Whitehaven Coal Ltd (ASX: WHC) share price is in the red this morning after the company posted its results for FY22.

Shares of the company are currently trading for $7.54 each, down 4.56% on Wednesday’s closing price.

Let’s go over the highlights of the report.

Whitehaven Coal share price dips despite record earnings

• Revenue up 216% year-over-year (YoY) to $4.92 billion
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 1,396% YoY to $3.06 billion
• Record net profit after tax (NPAT) of $1.95 billion, up from a $543.9 million loss in FY21
• Net cash of $1.03 billion, up from net debt of $808.5 million in FY21
• Fully franked dividend of 40 cents per share

The total cash generated from Whitehaven’s operations for FY22 stood at $2.6 billion.

Due to the company’s robust operating cash flows in FY21, it is returning value back to investors through the issuance of a fully-franked dividend and completing its share buyback program that commenced in February last year.

A fully franked dividend of 40 cents per share will be paid on 16 September. This takes the full-year dividend to 48 cents per share.

Whitehaven bought back 76.37 million shares in FY22, or around 7% of its shares outstanding, for a total value of $362.6 million. In FY23, the company seeks to complete its commitment to buy back 10% of its shares within the cap of $550 million.

What else happened in FY22?

Whitehaven’s CEO and managing director Paul Flynn said results were buoyed in FY22 due to an asymmetry in supply and demand for coal. This was said to be caused by energy shortages and sanctions against Russia for their initiation of the war in Ukraine.

The result of these tailwinds was the price of coal reached “record levels”, with an average price of $325 per tonne in FY22, up from $95 per tonne in FY21, or a 242.10% increase.

Whitehaven said its strong performance was delivered in the face of numerous headwinds throughout the year; these included “COVID-related absences, labour constraints, and weather interruptions”.

The influx of cash Whitehaven reported was used to pay down its debt on its balance sheet. Net cash ended at $1.03 billion, up from net debt of $808.5 million in FY21.

The company also spent $34 million on development projects during this period. The company spent money on land and engineering its existing sites throughout Australia.

What did management say?

Commenting on the results, Flynn said:

Coal prices are at record levels and customers are focused on energy security now more than ever before.

We have worked hard to position ourselves to maximise the opportunity arising from historically high prices. We achieved a record realised average price of A$325 per tonne in FY22, compared with A$95 per tonne in the prior year.

Demand for high-quality seaborne thermal coal is expected to remain strong throughout FY23 and high-CV coal prices should continue to be well supported.

What’s next?

The company notes that high demand for coal is expected throughout FY23 and that it is positioned to keep up with its production rate. Guidance total run-of-mine coal is expected to be between 20 and 22 metric tonnes. In FY22, this figure stood at 20 metric tonnes.

Managed and equity coal sales are also expected to fall in line with numbers seen in FY22. Managed coal sales are expected to be between 17.5 and 18.85 metric tonnes, and equity coal sales between 14.1 and 14.9 metric tonnes.

Whitehaven expects its capital expenditures to just about double in FY23, as it posted guidance of $287 to $360 million for this period, up from $154 million in FY22. Funds will be used to grow and maintain its development projects.

Whitehaven Coal share price snapshot

The Whitehaven Coal share price is up 177% year to date and 245% over the past 12 months. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 37% and 49%, respectively, over those same timeframes.

Whitehaven Coal has a market capitalisation of $7.41 billion.

The post Whitehaven Coal share price slips despite record $1.95 billion profit appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today
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• Why ASX 200 energy shares could still have decades of prosperity ahead: broker

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Perpetual Limited (ASX: PPT) share price is slipping after the company dropped its full-year earnings and announced a previously speculated takeover plan.

The S&P/ASX 200 Index (ASX: XJO) financial services company has proposed to acquire fellow ASX 200 constituent Pendal Group Ltd (ASX: PDL) in a part-scrip deal worth around $2.3 billion as of Wednesday’s close.

The Perpetual share price opened Thursday’s session 0.5% higher at $30.44  before tumbling into the red.

Right now, the financial services provider’s stock is swapping hands for $28.99, representing a 4.39% fall.

Perpetual share price falls on FY22 results and takeover plan

Here are the key takeaways from the company’s financial year 2022 earnings:

• Revenue of $767.7 million – a 20% improvement on that of the prior corresponding period (pcp)
• Net profit after tax (NPAT) lifted 39% to $101.2 million
• Average assets under management (AUM) lifted 41% to $107.2 billion
• Delivered earnings growth in all four of its divisions
• Declared a 97-cent fully franked final dividend, bringing full-year dividends to $2.09 per share – a 16% improvement

Looking to the company’s individual segments, Perpetual Asset Management International, encompassing the Trillium and Barrow Hanley businesses, brought in $218.8 million of revenue in FY22 – a 57% increase.

Perpetual Asset Management Australia saw revenue lift 2% to $169 million, while Perpetual Private delivered $211.2 million of revenue – a 15% increase.

Finally, Perpetual Corporate Trust saw $158.5 million of revenue – an 18% improvement.

Perpetual proposes acquisition of Pendal

In other news driving the Perpetual share price today, the company has announced its plan to snap up ASX 200 investment management services provider Pendal.

Perpetual has proposed to provide Pendal investors with 1 Perpetual share and $1.976 in cash for each stock they hold in the takeover target.

That implies an offer price of $6.02 per share based on Perpetual’s previous close. It also represents an offer price of $6.545 based on Perpetual’s last undisturbed close. That’s a 46.0% premium on Pendal’s previous close.

The takeover would see Perpetual boast more than $201 billion of AUM. It could also realise $60 million of annual pre-tax synergies within the first two years and deliver double-digit earning per share (EPS) accretion for Perpetual shareholders in the first 12 months after implementation.

Pendal’s board has recommended the offer to shareholders.

What did management say?

Perpetual CEO and managing director Rob Adams commented on today’s news from the company, saying:

Perpetual has delivered a robust financial result in FY22, driven by strong earnings growth across all four of our business units.

The group has maintained a strong balance sheet position, enabling us to drive organic growth and pursue inorganic opportunities with conviction, when they are in line with our strategic ambitions and future growth potential such as our announcement today of the proposed acquisition of Pendal Group.

This defining acquisition is strategically and financially compelling, allowing us to realise our strategic ambitions significantly sooner than would otherwise occur individually, bringing forward years of growth potential.

What’s next?

If all goes to plan, Perpetual will implement its Pendal acquisition by late 2022 or early 2023.

Meanwhile, Perpetual hasn’t provided new earnings guidance today. Adams commented on the company’s outlook:

While the macroeconomic and geopolitical conditions pose challenges for the global financial services industry, the outlook for Perpetual remains positive.

Perpetual’s unique combination of businesses provides the group with diversification of earnings and growth opportunities, and a level of downside protection in times of market volatility through our nonmarket linked revenues in PCT and PP.

In addition, the strength of the Perpetual brand, built over generations as a leading provider of fiduciary services, has created a confidence and trust that gives the group a strong foundation for future growth.

Perpetual share price snapshot

This year has been a rough one for the Perpetual share price.

Today’s plunge included, it’s fallen 22% since the start of 2022. It has also dumped almost 30% since this time last year.

For comparison, the ASX 200 is currently down 7% year to date and 6% over the last 12 months.

The post Perpetual share price tumbles on full-year earnings and takeover news appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Regis Resources Limited (ASX: RRL) share price is up 4.1% in early trade.

Regis Resources shares closed yesterday trading for $1.59 and are currently trading for $1.67.

This comes following the release of the ASX gold miner’s full-year results for the 12 months ending 30 June (FY22).

Highlights below.

Regis Resources share price leaps higher on gold sales

• Record gold sales of $1.02 billion, up 24% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA), after adjustments, of $336 million, down from $403 million in FY2021
• Statutory net profit after tax (NPAT) $14 million, down from $146 million the prior year
• Final fully franked dividend of 2 cents per share declared
• Cash and bullion of $231 million as at 30 June

What else happened during the year?

Regis Resources recorded 439,310 ounces of gold sales fetched at an average price of $2,312 per ounce.

The miner reduced its hedging by 100,000 ounces over FY22 to 220,000 ounces as at 30 June. Approximately 75% of gold sold is exposed to the spot gold price.

Atop record sales, the Regis Resources share price also could be getting a lift as the miner reported achieving record gold production over the 12 months of 437,000 ounces at an all-in sustaining cost (AISC) of $1,556 per ounce.

The company said the decline in EBITDA and the EBITDA margin of 33% was partly due to $74 million of non-cash cost adjustments relating to its stockpile inventory.

Statutory NPAT, meanwhile, was hit by $60 million of non-cash post tax cost adjustments relating to stockpile inventory and surrendered exploration leases.

Regis had a net debt position of $69 million as at 30 June.

Investors wanting to grab the final dividend have until 12 October, when the stock trades ex-dividend.

What did management say?

Commenting on the FY22 results sending the Regis Resources share price higher today, managing director, Jim Beyer said:

FY22 was a year of consolidation for Regis. We invested heavily at both Tropicana and Duketon to set the company up for its growing production and cash flow profile. The financial performance was significantly impacted by a combination of the ongoing impacts of COVID and inflationary cost pressures in particular during the second half of the financial year.

The considerable investments made in FY22 across both mining and processing, positions the company to further increase production and operating cash flow going forward.

What’s next?

Regis Resources provided guidance for FY23 of 450-500,000 ounces of gold at an AISC of $1,525 to $1,625 per ounce.

Looking ahead, Beyer said, “In FY23, underground production at Duketon will increase with commissioning of the Garden Well South underground operation, while at Tropicana, completion of the Havana cutback will expose higher grade open pit ore.”

Regis Resources share price snapshot

The Regis Resources share price is down 13% in 2022, compared to a year-to-date loss of 8% posted by the All Ordinaries Index (ASX: XAO).

Comparing apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 21% this calendar year.

The post Regis Resources share price charges higher on record gold sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The City Chic Collective Ltd (ASX: CCX) share price took a deep dive this morning on the back of a challenging set of full-year results for FY22.

The City Chic share price closed at $2.46 per share yesterday and plummeted 13.4% to a low of $2.13 at the open today. After regaining some ground this morning, shares in the company are now trading 11.3% lower at $2.18.

Let’s dive into the FY22 results for the ASX-listed plus-sized apparel global retailer.

What did City Chic report for FY22?

Here are the key highlights from the City Chic FY22 results.

• Revenue grew 39% to $369.2 million relative to FY21
• Net profit after tax increased slightly from $21.6 million to $22.3 million
• The inventory balance nearly tripled from $67 million to $196 million
• Operating cash flow plummeted from $15.2 million to negative $51.9 million

In Australia and New Zealand, revenue rose by 11% despite the adverse impact of mandated COVID-19 store closures. Online growth sales of 27.5% helped with offsetting the store closures.

Americas contributed a significant 53.9% jump in revenue, mainly due to solid website traffic growth of 31% and 42% growth in customer numbers.

Europe, the Middle East and Africa regions recorded $45.1 million in sales but reeled in lower gross margin and earnings before interest, taxation and amortisation (EBITDA) margin. This was down to supply chain and logistics issues, in particular across the second half of FY22.

City Chic ramped up its inventory levels heavily to mitigate the impact of supply chain issues in FY23. As a result, the current inventory balance sits at $195.9 million.

This would appear the biggest reason why operating cash flow reversed dramatically as management anticipates greater macroeconomic and consumer spending uncertainty. Given the challenging environment ahead, management decided not to declare a dividend for FY22.

City Chic’s balance sheet appears stable, with a net debt position of $4 million.

FY23 update

Management advises the first seven weeks of trading in FY23 have been consistent with FY22, with some positive momentum in August.

Both physical stores and online are performing above expectations in Australia. In the United States, the City Chic website outperforms last year, while the Avenue website is trading below over the same period. However, there are signs of week-on-week improvement.

Cyclical issues are still present in the UK, but the region continues to signs of growth.

Management commentary

City Chic CEO and managing director Phil Ryan said management was focused on delivering free cash flow in FY23. He said:

To support this growth and ensure sustained growth into the future, we established a
sophisticated global distribution network through our own websites and a global partner
network. This included diversifying our global supply chain into new sourcing regions and
investing in inventory ahead of the curve.

This investment will unwind in FY23 as accelerated inbounding reduces and we leverage new supply chain relationships. This will deliver strong free cash flows into FY23 which, along with our expanded debt facility, provides good funding flexibility to execute on our growth plans.

City Chic outlook

Management appears confident in producing another year of profitable growth. However, this is dependent on the level of geopolitical uncertainty.

To counter the risk of margin reductions, management has flagged it will raise retail prices where appropriate and aim to grow market share simultaneously.

The plus-size retailer also indicated inventory levels will return to a more normal level, targeting $125 million to $135 million in FY23. Management hopes to generate a positive net cash position in the second half.

City Chic share price snapshot

The ASX hasn’t been kind to the City Chic share price in the last year, plummeting by 60%, but there are signs of recovery as it rallied 3% higher in the past month.

The S&P/ASX 200 Index (ASX: XJO) suffered a drop of 7% and is rebounding in tandem with the City Chic share price, lifting by 3% in the last month.

Based on the current share price, City Chic has a market capitalisation of around $535 million.

In terms of valuation, City Chic is trading at a price-to-earnings multiple of 27x.

The post City Chic share price plummets 13% as cash flow blows out in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Raymond Jang has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fortescue Metals Group Limited (ASX: FMG) shares could be impacted by the latest plans of Fortescue Future Industries (FFI).

While Fortescue may be best known as a large iron ore miner, it now has plans to turn itself into an integrated resources and green energy business. It’s aiming to take a global leadership position in green energy and technology and is committed to producing zero carbon green hydrogen.

While FFI has been working on a global portfolio of energy projects, the Australian Financial Review has reported on the potential latest project that could be closer to home — in Western Australia.

Wind farms for Esperance?

Fortescue Future Industries has reportedly signed exclusivity agreements with some farmers as it tries to gain access to land. It wants to build “hundreds” of wind turbines near Esperance and “turn the region into a green hydrogen hub”. Another part of the plan is looking for port sites near Esperance.

According to the AFR, if farmers agree to give FFI access to a portion of their land, they could receive annual fees of “$15,000 or more” per wind turbine. They will also get a “low-cost” supply of green ammonia to fertilise their land.

One of the people looking to make this happen is Maia Schweizer. She’s in charge of FFI’s work in Western Australia, South Australia, and the Northern Territory.

She said the company needs a new port so it can import construction materials and export green ammonia, and potentially green hydrogen.

The AFR quoted Schweizer, who said:

The short answer is we will almost certainly need a new facility somewhere along the coastline.

We’ve done a desktop review to identify some potential sites. That’s not a simple matter so now the real work begins of engaging with the local community and First Nations and finding a suitable location for that to happen.

How much will this cost?

One of the hurdles that Fortescue Future Industries may need to clear is the cost of this project.

The AFR reported that it could cost “tens of billions of dollars” to build the port, at least one desalination plant, an electrolyser, an ammonia production plant, and a network to connect all the wind turbines across all the farms involved.

Is there local interest in the plans?

Schweizer suggested that the project will need to be large enough to export to other markets. She thinks the reception from the community has been “really, really quite positive”.

There was feedback that farmers being able to diversify their revenue and reduce their carbon footprint in a decarbonised world market was “really promising”.

The AFR also quoted Karl Raszyk, who farms between Cascade and Scaddan.

Raszyk said:

I think most of the farmers are on the same page looking to reduce their emissions long-term and this project allows them to do that in a big way in the form of green fertiliser, or green ammonia.

One day we’d like to be able to sell green food like Andrew Forrest is trying to sell green steel.

The attraction of green ammonia for Raszyk is that it would provide nitrogen. This would replace fossil fuel-produced fertiliser, which makes up about 70% of the carbon footprint of the grain farms.

Fortescue share price snapshot

Since the beginning of 2022, Fortescue shares have fallen 3.7%.

The post Could the winds of change be blowing for Fortescue shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The South32 Ltd (ASX: S32) share price is climbing after the miner’s FY22 results broke a few records and it declared a special dividend.

The diversified miner said its FY22 underlying earnings of US$2.6 billion and free cash flow from operations of US$2.6 billion were the highest they have ever been.

The US$139 million set aside for a special dividend, on top of the US$648 million for its final dividend, takes the total shareholder return to US$1.3 billion for FY22. This is also the most South32 has ever paid to shareholders.

The news sent the South32 share price jumping 4% to a high of $4.44 this morning, while the S&P/ASX 200 Index (ASX: XJO) is up 0.52% in morning trade.

Summary of South32’s FY22 results

• Group revenue jumped 69% in FY22 over FY21 to US$9.3 billion
• Statutory net profit after tax (NPAT) swung to US$2.7 billion (FY21 NPAT was a loss of US$195 million)
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 156% to US$4.8 billion
• Underlying EBITDA margin increased to 47.1% in FY22 compared to 26.4% in FY21
• Ordinary dividends per share increased by 363% year over year (yoy) to US22.7 cents
• The special dividend was increased by 1 US cent yoy to 3 US cents per share.

Other highlights from South32’s FY22 results

It wasn’t only high commodity prices that helped South32 deliver the strong FY22 results. The miner also managed to increase production at several of its mines.

While some ASX mining shares were complaining of a margin squeeze due to higher prices, the double tailwind allowed South32 to expand its profit margin even though it was also dealing with the same price inflation issues.

Management also credited the change in its mining portfolio towards minerals needed for a low-carbon future for the good result. The transition gave South32 greater exposure to higher-margin businesses.

Meanwhile, its ability to navigate logistical bottlenecks to ship more of its commodities also helped.

What South32 said

The CEO of South32, Graham Kerr, said:

We achieved record production at Worsley Alumina, while Hillside Aluminium and Mozal Aluminium continued to test maximum technical capacity. At Cannington we exceeded production guidance as we transitioned to a new mine configuration.

Looking forward, we are well positioned to navigate the current economic uncertainty. We have a strong balance sheet with net cash of US$538 million after funding our new investments during the year, while our ongoing focus on cost management and an expected 14% increase in production will mitigate industry-wide cost inflation.

Outlook

South32 presented a positive outlook as it guided for increased FY23 output from most of its mines. This includes Worsley Alumina and Brazil Alumina, Hillside Aluminium, Sierra Gorda, Cannington, and Cerro Matoso.

The miner is also looking to further its cost-cutting exercise. It has so far clawed back US$50 million in annualised savings.

Shareholders will be hoping that South32 can beat its record-breaking FY22 results in the current year.

South32 share price snapshot

The South32 share price has been one of the better performing large-cap ASX mining shares. The shares have gained 44% over the past year when the ASX 200 fell 7%.

Other major miners are also struggling to keep up. The BHP Group Ltd (ASX: BHP) share price fell 8% while the OZ Minerals Limited (ASX: OZL) share price gained 14% over the same period.

The post South32 share price gains ground on record FY22 earnings and special dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has positions in BHP Billiton Limited, OZ Minerals Limited, and South32 Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The last few months has been a difficult period for the Newcrest Mining Ltd (ASX: NCM) share price.

After touching a 52-week high of $28.96 in April, the gold miner’s shares sunk to a multi-year low of $18.26 at market close yesterday. To put that into context, it represents a fall of more than 35% in the space of 4 months.

The company released its full-year results last Friday, climbing 3.64%, but provided little relief to shareholders.

At the time of writing, the Newcrest share price is trading at $18.35, down 1.45%.

While the share price has lost its shine, investors can look forward to the company’s dividend that was recently declared.

Here are all the details you need to know about the upcoming final dividend.

Newcrest shares near ex-dividend date

There could be a short-term boost for the Newcrest share price today as gold prices are currently up 0.32% to US$1,751 per ounce.

In addition, investors may look to secure the company’s latest dividend as the ex-dividend falls on Friday 26 August.

This means if you buy the gold miner’s shares today and hold them until tomorrow morning, you’ll be eligible for the dividend.

It is however worth pointing out that on Friday, Newcrest shares will likely fall in proportion to the dividend paid out. This is because investors who have locked in the dividend will quickly sell to gain a quick profit.

When can Newcrest shareholders expect payment?

If you’re going to collect Newcrest’s final dividend, you’ll receive a payment of 20 US cents per share on 29 September. That equates to around 29 Aussie cents, but the final amount will be determined on 30 August.

The dividend is fully franked.

In addition, it brings the total dividends paid out for the 2022 financial year to 27.5 US cents per share.

Newcrest’s policy is to target a total annual dividend payout of 30-60% of free cash flow generated for any financial year. Annual total dividends must be at least US 15 cents per share on a full year basis.

Newcrest share price snapshot

Since the start of 2022, the Newcrest share price has tanked 25% as the price of gold continues to retreat.

Newcrest commands a market capitalisation of approximately $16.38 billion and has a dividend yield of 3.58%.

The post Hoping to bag the next Newcrest dividend? Here’s what you need to do appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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