Category: Stock Market

It’s been an awful start to the trading week for the Evolution Mining Ltd (ASX: EVN) share price this Monday. At the time of writing, Evolution shares are down a nasty 4.4% at $2.39 each.

That’s a far worse performance than that of the S&P/ASX 200 Index (ASX: XJO), which has lost a less severe but still depressing 2.07% at present.

This drop for gold miner Evolution Mining comes despite some positive conditions for gold, which my Fool colleague went through this morning.

Earlier this month, we covered Evolution’s full-year earnings for FY2022.

As we went through at the time, these earnings saw Evolution post total revenues of $2.06 billion, up 11% year on year.

But a 6% slide in statutory net profit after tax (NPAT) to $323.3 million and a 2% drop in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $898.814 million didn’t exactly inspire investors.

Evolution shares dropped 1.56% on the day the earnings were posted, and the company is now down around 7% since.

Everything you need to know about Evolution’s dividend

But let’s talk about Evolution’s upcoming dividend. So the gold miner declared a final and fully franked dividend of 3 cents per share for FY22.

That was consistent with the company’s last interim dividend. But a 40% drop from FY21’s final dividend of 5 cents per share.

Evolution shares will trade ex-dividend for this payment on 30 August (tomorrow). This means that any investor wishing to receive this dividend must own Evolution shares by the end of this trading day.

When the shares trade ex-div tomorrow, it will lock any new investors out of this dividend. As such, we can expect the typical ex-dividend share price drop during tomorrow’s trading session.

Investors will then have to wait until 30 September to receive the dividend in their bank accounts. Evolution shares are not currently operating a dividend reinvestment plan (DRP), so Evolution shareholders have no choice but to receive this payment in cash.

The Evolution Mining share price today has a fully franked dividend yield of 2.51%, which includes this upcoming payment.

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

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More reading

• 3 ASX 200 shares trading ex-dividend on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• Can the gold price outshine sticky inflation?
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Dividends are payouts to shareholders from a company’s profits. Growth stocks and younger companies typically don’t pay out dividends because they need to reinvest profits to continue growing at a high rate. However, once a company reaches a certain size, its room for high growth typically decreases, so companies will pay out dividends to incentivise investors to continue investing in them.

Dividend stocks aren’t as flashy or get the attention that growth stocks tend to but there’s no denying they’re just as, if not more, lucrative for investors.

It pays to hold onto dividend stocks

A large part of the appeal of dividends is that they’re close to guaranteed income, and investors don’t have to worry as much about a stock’s price movements because they’ll be getting paid their dividend regardless. Is the stock price up 10%? Expect your dividend. Is the stock price down 10%? Expect your dividend. The stock price flat? Expect your dividend.

There are situations where a company may cancel its dividend — like Delta (NYSE: DAL) during the start of the COVID-19 pandemic — but if you’re investing in Dividend Aristocrats, you don’t have to worry too much about that problem. Dividend Aristocrats are S&P 500 companies that have managed to increase their yearly dividend payout for at least 25 consecutive years. The title of Dividend Aristocrat gives investors confidence that a company has the financial resources to weather broader economic problems and still produce good returns.

Dividends add to the effects of compound earnings

Looking to build wealth in the stock market? Learn to appreciate the power of compound earnings. Compound earnings occur when the money you earn on your investments begins to earn money on itself. Compound earnings by themselves are powerful, but the effects increase when you reinvest your dividends into the stock that paid them. And it doesn’t take much effort; you can enrol in your broker’s dividend reinvestment program to have it automatically done for you.

Let’s take the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) as an example. Since its inception in 2006, the ETF has returned just over 8% annually. Imagine if you invested $500 monthly into the fund, receiving those same returns for 20 years. At the end of that span, your investment would be worth over $274,500. If we assume its current 3% NYS stayed constant during that span and you reinvested the dividends, your investment would increase to over $385,200 after 20 years.

It’s usually better to delay your dividend payouts in cash until retirement so you can give it time to compound and increase your stake in the stock that’s paying it. A 3% dividend yield may not be much today ($300 per $10,000 in value), but once you’ve accumulated a sizable stake throughout a career, it can be great supplemental income in retirement.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Ignoring dividend stocks in your investment portfolio? You’ll regret that appeared first on The Motley Fool Australia.

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More reading

• Ramelius share price slips following 90% profit plunge
• Why is the Block share price plunging 8% today?
• Tyro Payments shares surge as gross profit lifts 34% in FY22
• Adore Beauty share price plunges 7% despite profit boost
• 3 ASX All Ords shares going ex-dividend today

Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard High Dividend Yield ETF. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Ramelius Resources Limited (ASX: RMS) share price is sliding into the red today following the release of its FY22 earnings results.

At the time of writing, the Ramelius share price is 4% down at 86.5 cents apiece.

Ramelius slides as profits get a haircut

Key takeaways from the company’s results include:

• Gold production of 258,625 ounces down 5% year on year
• All-in sustaining cost (AISC) of A$1,523 per ounce, up 16% from FY21
• Revenue from ordinary activities of $603.9 million down 5% year on year
• EBITDA of $208.1 million for the year, down 39% from last year’s result
• Statutory net profit after tax (NPAT) of $12.4 million down 90% year on year
• Underlying NPAT of A$73.0 million, down 40% from FY21
• Fully franked dividend of 1.0 cent per share

What else happened last period for Ramelius?

The company recognised a step backwards on the growth front. Gold production was lower at Mt Magnet due to lower grade and higher input costs.

Although, higher gold prices mitigated some of these negative factors, backed by higher production at Edna May following the introduction of ore from Tampia.

Ramelius has also introduced a Dividend Reinvestment Plan (DRP). Shareholders can now choose to reinvest their dividends into buying additional RMS shares.

“The reinvestment price is based on a 2.5% discount to the 10-day volume weighted average price after the date of election,” the company said.

Management commentary

Speaking on the results, Ramelius Managing Director, Mark Zeptner said:

Despite the challenges faced across the industry last financial year, Ramelius has posted a solid set of underlying results for the period and remains in a secure, debt free, financial position.

While FY23 continues to present some uncertainty in terms of local and global inflationary pressures, we expect both our production centres to generate positive operating cashflows which will fund the exciting prospects we see at Penny, Rebecca and at Mt Magnet where the development pipeline continues to grow.

What’s next for Ramelius?

For the 2023 financial year, Ramelius is forecasting gold production of 240,000–280,000 ounces. It hopes to achieve this at an ASIC of A$1,750–$1,950 per ounce.

In the past 12 months the Ramelius share price has slipped more than 43% into the red.

The post Ramelius share price slips following 90% profit plunge 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

Motley Fool contributor Zach Bristow 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 Block Inc (ASX: SQ2) share price is tumbling hard today, down 8.21% in morning trade.

Block closed on Friday trading for $105.80 per share and is currently trading for $97.11 per share.

It’s not just the Block share price sliding today either.

Fellow ASX BNPL share Zip Co Ltd (ASX: ZIP) is down 7.22%, while Sezzle Inc (ASX: SZL) shares have fallen 6.11% since the opening bell.

The tech sector is facing a sharper selloff than the broader market, with the S&P/ASX 200 Index (ASX: XJO) down 2.09% compared to a 3.76% decline in the S&P/ASX All Technology Index (ASX: XTX).

Still, the Block share price, alongside its BNPL rivals, is leading the charge lower. What’s going on?

Jerome Powell’s hawkish words

As you’re likely aware, Block shares are listed on both the NYSE and ASX. Block began trading on the ASX on 20 January after completing its acquisition of Afterpay.

And in Friday’s trade in the US, the Block share price closed down 7.7% on the NYSE, with futures currently down another 1%.

The fall was part of a sweeping selloff that saw the tech-heavy NASDAQ finish Friday down 3.9%.

Investors were hitting the sell button after US Federal Reserve chair Jerome Powell delivered his much-awaited speech at the Jackson Hole central banking summit in the US state of Wyoming.

And investors hoping for some dovish signals were left wanting.

Powell reiterated the central bank’s full intentions to bring inflation back into its target range, acknowledging this will bring some pain to the economy.

According to Powell:

Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labour market conditions. While higher interest rates, slower growth, and softer labour market conditions will bring down inflation, they will also bring some pain to households and businesses…

Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy.

US Treasury yields increased following Powell’s speech.

Commenting on the market’s reaction, which included the sharp selloff in the Block share price, Joe Gilbert, portfolio manager at Integrity Asset Management said (courtesy of Bloomberg):

Powell wants financial conditions to tighten further and wanted the market to know that the Fed is not ready to declare victory over inflation yet. He also renounced any prospects of interest rate cuts soon. The market is repricing this prospect.

Tech shares are particularly vulnerable to rising rates, as they’re often priced with future earnings growth in mind. With higher rates, the present cost of those future earnings rises.

The Block share price likely took a bigger hit than many, because BNPL shares are especially vulnerable to the monetary tightening environment.

With rates looking to rise into 2023 across most of the developed world, a growing cohort of analysts is sounding warnings on the rise of bad debts amongst the BNPL players, already an Achilles heel for the sector.

Block share price snapshot

With today’s intraday loss factored in, the Block share price is down a painful 45% since listing on 20 January. Over that same period, the ASX 200 had dropped 5%.

The post Why is the Block share price plunging 8% today? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why is the Block share price tumbling 6% today?
• These are the 10 most shorted ASX shares
• How does Zip’s ‘Operation Blue Sky’ stack up against Block’s battening down of the hatches?
• Could Block’s ‘superpower’ be an Achilles’ heel for Zip shares?

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 positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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 Tyro Payments Ltd (ASX: TYR) share price is lifting in late morning trade on Monday following the release of the company’s FY22 earnings results.

At the time of writing, the Tyro shares are trading 7.5% higher at $1.075.

Tyro grows payments revenue 39% in FY22

Key takeouts from the company’s results include:

• Payments revenue of $318.8 million, up 39% from $229.2 million in FY21
• Payments statutory gross profit of $147.7 million, a year-on-year gain of 34%
• A total of 109,248 terminals reached in FY22, up 4%
• Merchant loan originations reached $99.1 million, a staggering 283% year-on-year gain
• Total merchant deposits of $83.3 million at 30 June 2022, up from $75.5 million in June FY21
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $10.7 million vs $14.2 million the same time last year
• Statutory loss after tax of $29.6 million, slightly down from $29.8 million in FY21
• Finished FY22 with $123 million in total cash and financial investments

What else happened last period for Tyro?

Tyro says that its collaboration with Bendigo Bank generated over $5.2 billion in transaction value in its first full year of operation.

The company was also appointed as an exclusive partner of Telstra Corporation Ltd (ASX: TLS) offering merchant-acquiring solutions to the telco giant’s business customers.

Management has been active on cost management as well, by reducing headcount and increasing its merchant service fee in H2 FY22.

Furthermore, online sales generation accounted for 1.5% of transaction value. This created around $520 million in transactions processed, up from $70 million in FY21.

Management commentary

Speaking on the results sending Tyro shares skywards today, CEO and managing director Robbie Cooke said:

Despite the challenges of 2022 with Covid, tight labour markets, market de-ratings of payment companies and inflationary pressures – we responded strongly with focused cost management, tight margin management, and a continuing focus on serving our customers while delivering new products and services to our merchants.

These actions started to positively contribute in the last quarter of the year and remain a key focus in FY23. They are expected to yield further operating leverage improvements in parallel with our continuing focus on driving strong top line growth and new merchant acquisition.

What’s next for Tyro?

The company says it has made a strong start to FY23 already. While transaction values for July lifted 46% year on year to $3.4 billion, August values are also up 70% from FY22 to $2.9 billion.

Tyro forecasts transaction value between $40m billion and $42 billion, stemming normalised gross profit of between $175 million and $185 million.

It is also aiming to be free cash flow positive “on exiting FY23”.

Tyro share price snapshot

In the last 12 months, Tyro shares are down 71%.

The post Tyro Payments shares surge as gross profit lifts 34% in FY22 appeared first on The Motley Fool Australia.

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More reading

• Adore Beauty share price plunges 7% despite profit boost
• 3 ASX All Ords shares going ex-dividend today
• Mineral Resources share price slides as dividend drops 43%
• Liberty Financial share price slips despite $219 million profit
• Johns Lyng share price sinks despite full-year EBITDA surging 59%

Motley Fool contributor Zach Bristow 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 Tyro Payments. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Tyro Payments. 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 Adore Beauty Group Ltd (ASX: ABY) share price is sinking after the company posted its earnings results for financial year 2022 (FY22).

The online retailer’s shares opened in the red before tumbling to an intraday low of $1.55 apiece, marking a 15.7% fall.

They have since regained some ground. The Adore Beauty share price is currently $1.71, 7.07% lower than its previous close.

Adore Beauty share price sinks despite posting $200m revenue

Here are the key takeaways from the online beauty retail pureplay’s FY22 results:

• Revenue came to $200 million – an 11% increase on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) slumped 30% to $5.3 million
• EBITDA margin of 2.7%
• After-tax profit lifted 181% to around $2.4 million
• Basic earnings per share (EPS) came to 2.53 cents
• Active customers increased 7% to 872,000.

FY22 saw Adore Beauty push forward with longer-term strategic initiatives, driving its topline growth.

Its mobile app contributed 7.7% of its revenue in the first quarter. That figure had doubled to 15.5% by the final quarter. Additionally, its loyalty members accounted for 60% of revenues in FY22.

The company ended the period with $29.8 million of cash and no debt. Its inventory levels are slightly higher than the pcp in a bid to support growth.

What else happened in FY22?

The Adore Beauty share price tumbled 75% over the course of FY22.

Meanwhile, it launched its own skincare brand Viviology. Sales in the first month of its launch exceeded internal expectations.

What did management say?

Adore Beauty CEO Tennealle O’Shannessy – who will step down from the role in February – commented on the company’s full-year results, saying:

FY22 has been another successful year for Adore Beauty, one in which we delivered record revenue, multiple record trading days, and strong growth across key customer metrics, while continuing to re-invest in the business.

Our changing active customer base now has a higher proportion of returning than new customers, with subscription-like retention rates after just two years on the platform.

Our investments in strategic priorities are contributing to improved customer retention and lifetime value, and will drive sustainable, long-term growth as online adoption in Australia’s beauty and personal care market catches up to the UK, USA, and China. The online leader in each of these markets has taken a disproportionate share of growth as e-commerce penetration increases. As Australia’s incumbent, we are best placed to grow customers, revenue, and margins as our market matures.

What’s next?

Adore Beauty’s FY23 outlook is likely weighing on its share price today.

It warned it’s cycling off a period of significant growth in the first half of FY22, leaving growth comparisons volatile.

That’s reflected in the company’s revenue for the first seven weeks of FY23, which has slipped 28% on that of the pcp. Adore Beauty expects to post double-digit revenue growth for the second half of FY23 as it finishes cycling COVID-19 lockdown growth.

It also warned its facing inflationary pressures and subdued consumer sentiment. It’s working to implement cost control measures as a result.

Given such impacts, the company doesn’t expect to achieve an EBITDA margin of between 2% and 4% in FY23. Though, it expects to remain profitable and return to its targeted EBITDA margin range in FY24.

Adore Beauty share price snapshot

It’s certainly been a rough 12 months for the Adore Beauty share price.

It has fallen 57% since the start of 2022. It’s also currently 64% lower than it was this time last year.

For context, the All Ordinaries Index (ASX: XAO) has dumped 9% year to date and 7% over the last 12 months.

The post Adore Beauty share price plunges 7% despite profit boost appeared first on The Motley Fool Australia.

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More reading

• Are the stores themselves on sale?
• 50% off: Why I think this ASX All Ords share could be a sparkling buy
• Adore Beauty share price slips 12% following ASX speeding ticket
• Why is the Adore Beauty share price rocketing 19% on Tuesday?
• Adore Beauty share price volatile following CEO resignation

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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited. 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 All Ordinaries Index (ASX: XAO) is having a rough start to the week.

Following a negative lead from US markets, the All Ords index is down 1.7% at the time of writing.

But some ASX All Ords shares are falling more than most.

Here are three All Ords shares going ex-dividend today. 

Shares in these companies are no longer trading with an entitlement to the latest dividend payment. 

So, on top of the broader market decline, this is putting even more downwards pressure on their share prices today.

Worley Ltd (ASX: WOR)

Worley shares are trading today without an unfranked final dividend of 25 cents.

At the time of writing, Worley shares have tumbled by 5.5% or 85 cents.

The industrial engineering solutions company recently reported its FY22 results, keeping dividends steady as revenue climbed 2% to $9.7 billion.

Investors holding Worley shares at the closing bell on Friday should see the payment come through on 28 September.

Worley declared total FY22 dividends of 50 cents, in line with the prior period. This spun up a trailing dividend yield of 3.2% when the market closed on Friday. 

Ingenia Communities Group (ASX: INA)

Ingenia is another ASX All Ords share going ex-dividend today, with shares down 4.9% or 22 cents at the time of writing.

The ASX property group released its FY22 results last week, declaring an unfranked final dividend of 5.8 cents.

This takes the company’s full-year payout to 11 cents, up 5% compared to the dividends seen in FY21.

If you held Ingenia shares when the market closed on Friday, keep your eyes peeled for the payment to land in your account on 22 September.

Ingenia shares closed on Friday with a trailing dividend yield of 2.4%.

Hansen Technologies Limited (ASX: HSN)

Finally, ASX All Ords share Hansen is also trading without its partially franked final dividend today.

At the time of writing, Hansen shares have dropped 3.6% or 18 cents.

Hansen handed in its FY22 results last week, maintaining a final dividend of 5 cents, 30% franked.

The company has pencilled in the payment date for 21 September.

Across the financial year, Hansen declared record total dividends of 12 cents. This put Hansen shares on a trailing dividend yield of 2.4% at Friday’s close.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Ingenia share price slips despite record home settlements and 38% profit bump in FY22
• Hansen Technologies share price plunges 7% despite record dividend
• Worley share price surges as FY22 revenue reaches $9.7b

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 positions in and has recommended Hansen Technologies. 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 Mineral Resources Limited (ASX: MIN) share price is falling today amid the company’s FY22 results.

The mining company’s share price is currently trading at $63.63, a 2.29% drop. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.77% today. The S&P/ASX 200 Materials Index (ASX: XMJ) is 2.26% in the red.

Mineral Resources is an iron ore and lithium producer. Let’s take a look at what the company reported to the market today.

Mineral Resources share price falls on profit drop

Highlights of Mineral Resources FY22 results include:

• Underlying net profit after tax (NPAT) fell 64% on FY21 to $400 million
• Statutory NPAT fell 72% to $351 million
• Underlying EBITDA dropped 46% to $1.024 billion
• Revenue slid 8% on FY21 to $3.4 billion
• Operating cash flow of $344 million
• Fully franked final dividend of $1, down 42.8% from $1.75 in 2021
• Diluted earnings per share (EPS) of 184.87 cents per share

What else did the company report?

Underpinning the drop in earnings was the sharpest iron ore price in history and a broadening of discounts.

On a positive note, Mineral Resources delivered “a strong second half performance” on the back of record lithium prices. Spodumene concentrate from Mt Marion was converted into lithium hydroxide.

A jump in working capital from the restart of Wodgina and higher receivables amid the higher lithium pricing contributed to a 79% drop in the operating cash flow.

Mineral Resources shipped a record 19.2 million tonnes of iron ore in FY22. The Mining Services division produced a record 274Mt.

Looking at lithium, joint venture partner Ganfeng approved the next stage of the Mt Marion expansion to 900,000 tonnes per annum.

This was the first earnings that Mineral Resources reported lithium hydroxide production.

Management comment

Commenting on the results, managing director Chris Ellison said he is incredibly proud of what the Mineral Resources team delivered. He added:

Against the headwinds of iron ore price and inflationary cost pressures and the pandemic still affecting our everyday operations, we achieved the second-best financial performance in our history while investing in major development projects that will set us up for the next 30 to 50 years.

MinRes began building a world-class, long-life lithium business in Western Australia more than a decade ago. Our foresight and investment are starting to bear fruit – today, we already are the largest ASX-listed spodumene concentrate producer and one of the first to derive earnings from lithium hydroxide.

What’s else

Today, Mineral Resources announced Red Hill Iron Joint Venture parties have made a final investment decision on the Onslow Iron Project in Western Australia. Mineral Resources has a 40% stake in this project, while API Management Pty Ltd (APIM) has a 60% stake.

Stage one will target a yearly capacity of 35 Mtpa. Mineral Resources will continue as manager of the joint venture. In return for a $1.3 billion capital expenditure, Mineral Resources will earn an extra 17% participating interest in the joint venture. Iron ore shipment is targeted for early 2023.

Mineral Resources share price snapshot

The Mineral Resources share price has jumped 16% in the past year, while it has climbed 7% in the year to date.

In the past month, Mineral Resources shares have leapt 13%.

For perspective, the benchmark ASX 200 Materials Index has lost 0.04% in the past year and 1.58% in the year to date.

The post Mineral Resources share price slides as dividend drops 43% appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price rises as Macquarie tips 54% upside
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Motley Fool contributor Monica O’Shea 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 Silver Lake Resources Limited (ASX: SLR) share price is in the red after the company announced a drop in profits even as sales increased in FY22.

Shares in the Australian and Canadian gold miner are down 3.52% to $1.3025 at the time of writing. By comparison, the All Ordinaries Index (ASX: XAO) is also 1.75% lower in morning trade.

It isn’t only Silver Lake’s FY22 result that’s weighing on its shares. The 0.2% dip in the gold price to US$1,747 an ounce and the broader market sell-off is also weighing on ASX gold shares today.

Let’s take a closer look at the company’s FY22 details below.

Summary of Silver Lake’s FY22 results

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $267.6 million (-8% vs FY21) at an EBITDA margin of 42% (-13% vs FY21)
• Net profit after tax (NPAT) of $77.7 million (-21% vs FY21)
• Gold produced 256,538 ounces (+3% vs FY21)
• Averaged realised gold price A$2,482 an ounce (+7% vs FY21)
• All in sustaining cost (AISC) A$1,756 (+18% vs FY21)

Silver Lake’s FY22 results highlights

Management blamed the drop in earnings and profits on increased depreciation and amortisation. It also mentioned non-cash mining costs associated with the treatment of stockpiles at Mount Monger and the inclusion of the Sugar Zone operation post 18 February 2022 to explain the year-over-year (yoy) movement in its financials.

Inflationary pressure also weighed on margins, but management pointed to the resilience of its Western Australian operations where free cash flow increased 20% yoy to $89.2 million.

A new processing circuit and a second high grade ore source was introduced at its Deflector gold-copper mine in WA. This led to a 24% increase in production and a 19% lift in sales.

The miner took advantage of Silver Lake’s share price volatility during FY22 as it bought back shares on market. Silver Lake can purchase up to 10% of its ordinary shares through to 23 February 2023.

What management is saying

Silver Lake said in its ASX announcement:

Silver Lake executed several operational and strategic objectives through FY22. Our business demonstrated a high level of resilience to manage the prevailing operating climate and allowed Silver Lake to strengthen its operations and the growth outlook, in parallel with the commencement of capital returns to shareholders.

Outlook

The miner gave a positive outlook for FY23 but noted that cost pressures will rise. It is forecasting sales of 260,000 to 290,000 ounces at an AISC of A$1,850 to A$2,050 per ounce.

Silver Lake’s total gold sales in FY21 was 255,994 ounces. The midpoint of its FY23 sales guidance represents a 9% yoy sales growth on an absolute basis and 6% growth on a sales per share basis.

The contribution from the newly acquired Harte Gold Corp and its Sugar Zone mine in Canada will undoubtedly help.

Silver Lake share price snapshot

The Silver Lake share price has held its value relatively well over the past year as it only dipped 4% before today’s trade.

In contrast, its larger peers have fared worse. The Newcrest Mining Ltd (ASX: NCM) share price has tanked 27% and Northern Star Resources Ltd (ASX: NST) share price lost 22% over the period.

This compared to a 6% decline in the All Ordinaries over the past year to last Friday.

The post Silver Lake share price tumbles on weaker FY22 results appeared first on The Motley Fool Australia.

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More reading

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brendon Lau has positions in Newcrest Mining 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted share after its short interest rose to 15.2%. With living costs rising and squeezing budgets, short sellers appear to believe the travel market recovery could falter.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12.8%. Last week this betting technology company posted a 371% increase in revenue to $91.7 million but a whopping $89.2 million loss.
• De Grey Mining Limited (ASX: DEG) has leapt into the top ten out of nowhere after its short interest surged to 11%. Short sellers seem to believe the market is too optimistic on the development of the Mallina Gold Project.
• Block Inc (ASX: SQ2) has short interest of 10.8%, which is down slightly week on week once again. However, the remaining short sellers will be pleased to learn that the payments company’s shares are expected to crash lower on Monday following a selloff on Wall Street.
• Nanosonics Ltd (ASX: NAN) has short interest of 10.6%, which is down slightly week on week. This infection prevention company’s shares sank deep into the red last week after the release of a disappointing result. Rising costs and delays to a new product launch weighed on sentiment.
• Lake Resources N.L. (ASX: LKE) has short interest of 10%, which is flat week on week. Short sellers aren’t giving up on this lithium developer despite a significant rally recently. There are doubts over the validity of its DLE technology.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 9.6%. Short sellers will have been pleased to see this buy now pay later provider’s shares tumble last week after it reported another large loss.
• Inghams Group Ltd (ASX: ING) has short interest of 8.4%, which is up week on week. Short sellers have been loading up on this poultry company’s shares after the release of a disappointing result driven by higher input costs.
• Regis Resources Limited (ASX: RRL) has short interest of 8.3%, which is down week on week again. Production issues have been weighing on this gold miners shares this year.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 7.7%. Concerns over this network as a service provider’s valuation could be behind this high level of short interest. Based on Macquarie’s estimates, Megaport’s shares trade at ~88x FY 2024 earnings.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Here’s what brokers are saying about the Flight Centre share price
• ASX 200 reporting season weekly wrap: Top risers and fallers
• Here are the top 10 ASX 200 shares today
• Here’s why UBS tips the Zip share price to halve
• BetMakers share price pops then drops as full-year revenue leaps 370%

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 Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. 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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