Key points

• Telstra shares have had an impressive run over the past 12 months or so
• But even so, the company is still trading at around half of its all-time highs
• Can the Telstra share price ever hit close to $9 again?

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The Telstra Corporation Ltd (ASX: TLS) share price has been a bit of a crowd pleaser over the past year or so. Since reaching a low under $2.70 a share back in October 2020, Telstra shares have been on quite the run. At today’s price of $4.12 (at the time of writing), Telstra is now a healthy 53.5% above that low watermark. It was better just a few days ago too, when the company hit a new 52-week high of $4.31 a share. Take these gains and add them to Telstra’s hefty dividend payments and you have an ASX 200 blue-chip share that has been very kind to investors over this period.

But those investors with a longer memory might not be as pleased with this telco. Telstra, after all, used to be a government-owned company prior to its gradual privatisation over the late 1990s and early 2000s. As it happens, the highest share prices Telstra has ever commanded occurred around the time the government was offloading it to the private sector. Although it’s hard to picture in light of recent history, Telstra was going for close to $9 a share back in the glory days of 1999. That’s more than double its current share price.

So is it possible for Telstra to ever reclaim those highs?

Can Telstra shares ever hit close to $9 again?

Well, the answer is yes, only because the future is unlimited in its scope, and at some point from here to judgement day, we can’t rule out a $9 share price for Telstra. But let’s take a look at what some experts are saying about this telco’s prospects over the next 12 months, which is probably what most investors today are most concerned about.

As my Fool colleague James covered earlier this week, one broker who has high hopes for Telstra is Morgans. This broker reckons Telstra shares have a good chance at hitting $4.55 over the next 12 months (just over a 10% potential upside). It is also anticipated that Telstra’s annual 16 cents per share dividend will continue to flow into investors pockets without too much interruption.

Fellow broker Goldman Sachs is also very bullish on Telstra right now. Goldman currently rates the company as a buy, this time with a 12-month share price target of $4.40. Goldman likes Telstra’s fundamentals and dividends right now, as well as its recent acquisition of Digicel Pacific.

So it appears that these top ASX brokers, while bullish on Telstra shares over the next 12 months, don’t see the company coming close to its all-time highs anytime soon. But you never know with investing. Perhaps we’ll one day see Telstra with a near-$9 share price again. But only time will tell.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $48.4 billion, with a trailing dividend yield of 3.88%

The post Will Telstra (ASX:TLS) shares ever hit their $9 record high again? appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX dividend shares with grossed-up yields over 5%
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• 2 killer ASX shares to buy for a volatile 2022
• 2 excellent ASX shares for a retirement portfolio
• Why the Telstra (ASX:TLS) share price zoomed 43% higher in 2021

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The Genex share price is down today, and has dropped 24% in 12 months
• The energy utility company has hit a construction milestone at its K2-Hydro project
• Today’s announcement indicates the project is on track for use in Q4 2022

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The Genex Power Ltd (ASX: GNX) share price is down today, but that doesn’t mean its operations are.

This morning, the clean energy generation company announced it had made ground-breaking progress with the construction of its flagship Kidson project.

At the time of writing, the Genex share price has fallen 2.63%, trading at 18.5 cents apiece.

Let’s take a closer look…

K2-Hydro construction on-track

The 250MW Kidson Pumped Storage Hydro Project, or K2-Hydro for short, is the flagship project of Genex’s Kidson Clean Energy Hub in far north Queensland.

Once constructed, it will be the third-largest electricity storage device in the country — with a capacity of 2,000 megawatt hours [MWh] — producing and delivering on-demand renewable energy during high periods.

With a totally-funded construction cost of $777 million, its the first of its kind to be privately developed, according to the company, and will have an overall lifespan of 80 years.

In this morning’s announcement, Genex Power advised that the project’s construction was on track, with a chunk of the to-do list already checked off ahead of schedule.

Major construction in the main access tunnel has been underway over the past two months. Now, the company has pushed ahead with two manned shifts per day delivering round-the-clock underground tunnelling.

This will progress the construction stage by 8 metres per day for the next 6 months — pushing towards the project’s goal of first power generation by the fourth quarter of 2024.

What did management say?

Commenting on the update, Genex CEO James Harding said:

Following an intense period of site establishment and preparation works, I am delighted that the EPC Contractor JV of McDonnell Dowell and John Holland has formally commenced the underground excavation works for the Kidson Pumped Storage Hydro Project.

This represents a significant milestone in the project construction timeline which was achieved ahead of schedule.

We look forward to working alongside the EPC JV and keeping the market updated as the program continues to push ahead over the course of this year.

Genex share price snapshot

The Genex share price has seen a volatile 12 months, dropping overall by almost 21%.

In late November, the Genex share price saw its 52-week-low of 18 cents, though no company news was released.

The company has a market capitalisation of $197 million at the time of writing.

The post Genex Power (ASX:GNX) share price is sinking today despite project milestone appeared first on The Motley Fool Australia.

More reading

• ASX travel shares are nosediving today amid border opening delays
• Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’
• Investing in crypto? ASIC chairman sounds warning
• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• Why is the Regis Resources (ASX:RRL) share price frozen today?

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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Key points

• Qantas, Webjet and Flight Centre shares are all falling today
• Interstate and international border opening delays could impact ASX travel shares
• COVID-19 Omicron fears have led to Western Australia keeping its border closed

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It’s proving to be a tough day for ASX travel shares, which are sinking in a sea of red at the time of writing.

The Qantas Airways Limited (ASX: QAN) share price is currently down 1.88% to $4.94, Flight Centre Travel Group Ltd (ASX: FLT) shares are falling 2.07% to $16.99 apiece, while the Webjet Limited (ASX: WEB) share price is slipping 1.06% to $5.15.

The Helloworld Travel Ltd (ASX: HLO) share price is down 0.87% to $2.28 while Corporate Travel Management Ltd (ASX: CTD) shares are dropping 3.56%, currently swapping hands at $20.32 apiece.

Let’s take a look at what might be impacting these travel companies today.

Border opening delay

ASX travel shares are falling again today after a tough 24 hours. Qantas fell around 1% yesterday, Flight Centre dropped almost 3% and Webjet descended 3.5%.

Today, travel shares are in focus after Western Australian Premier Mark McGowan delayed the opening of Western Australia’s border indefinitely.

Further, the arrival of international tourists into Australia could be delayed due to the COVID-19 Omicron variant. Hopes the borders will be fully open by Easter have now been dashed, according to a report in the Australian Financial Review. It suggests reopening could now be months away.

Quarantine free interstate and international travel to Western Australia was due to start on February 5, but now the border will remain closed indefinitely.

The West Australian reported 6,000 interstate and international passengers were earmarked for arrival at Perth Airport on the first day of the border reopening.

Some 80,000 interstate and international travellers were due to arrive within the first two weeks, the publication added.

Mr McGowan said in a social media post:

Allowing hundreds or thousands of Omicron infected people to fly straight into Perth from 5 February, with no testing, no quarantine and no public health measures, would cause a flood of COVID-19 across our State.

So, from 12:01am on Saturday February 5, a new hard border will be in place with a focus on both safety and compassion.

The Qantas share price may be under added pressure given the direct impact of border closures on its flight routes. As Motley Fool Australia reported earlier this week, Qantas was planning to resume its Perth to London long-haul flight on March 27. The airline was also considering Perth to Johannesburg flights.

With international arrivals caps in Western Australia to remain, it is unclear if these flights will go ahead.

ASX travel shares price recap

The Flight Centre share price has returned around 8% in the past year. Meanwhile, Webjet has ascended 2.4% in the same period and Qantas has risen 1.3%. Helloworld has slumped almost 4% over the past 12 months, while Corporate Travel has skyrocketed by more than 20%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned around 6% in the past year.

The post ASX travel shares are nosediving today amid border opening delays appeared first on The Motley Fool Australia.

More reading

• Own Qantas (ASX:QAN) shares? Here’s why the airline is fronting up to the Fair Work Commission
• Why did the Flight Centre (ASX:FLT) share price gain 7% in a month?
• What could help the Qantas (ASX:QAN) share price take flight soon?
• Will the Webjet (ASX:WEB) share price travel higher in 2022?
• Why are ASX 200 travel shares down today?

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 Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Whitehaven released its quarterly update today
• The miner says bad weather and COVID-19 played havoc on operations
• Production and sales were lower, alongside 12-month rolling yield
• Management has downgraded guidance in response to ongoing uncertainties
• The Whitehaven share price is trading down in the trenches on Friday

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Shares in Whitehaven Coal Ltd (ASX: WHC) are drilling lower today and are trading 8% down at $2.71 apiece.

The Whitehaven share price is on its way down after the mining giant released its quarterly update for the period ending 31 December 2021.

The coal giant collapsed out of the gate and sunk to an early low of $2.65 this morning before recovering somewhat to its current level.

Whitehaven share price slides due to lowered production

The company gave a broad overview of its progress and challenges this quarter, including:

• Whitehaven managed total ROM coal production of 3,235 thousand tonnes (kt), down from 5,138kt year-on-year (YoY)
• 12-Month rolling yield 82% down from 88% in the prior year
• Total coal sales 3,971kt for the quarter, down from 4,646kt last quarter and down 11% YoY
• Average coal price on own sales $211/tonne, a 145% YoY gain
• December quarter realised average thermal coal price of US$155/tonne
• Heavy rain and COVID-19 had material impacts to coal production and income during the quarter
• La Nina and COVID-19 are creating uncertainty on expected ROM production and earnings outlook

What else happened last quarter?

The company says that “unusually heavy rain” throughout the quarter saw road access to the mines and Gunnedah CHPP cut off for up to 2 weeks.

Flooding from the rain is estimated to have deferred 600 kt to 700kt of production at Maules Creek and 100kt to 200kt of production at Gunnedah.

Not only that, but COVID-19 had an impact on labour shortages across all sites “with associated production impacts of 200kt in the December quarter”.

As such, production at Maules Creek was 39% behind the previous year at approximately 2,000kt, Whitehaven says.

The company also realised an average thermal coal price of US$155/tonne throughout the quarter.

Whitehaven says this is because around 50% of Whitehaven’s thermal coal book in the December quarter was priced in prior periods, and “approximately 27% of thermal coal sales were priced with reference to sub gC NEWC 6000 CV pricing structures”.

Equity coal sales came in at 3.3Mt, including purchased coal, 11% down on the same time last year. Due to coal price strength, Whitehaven achieved an average price of $211/tonne for sales of its own coal. This was 144% higher than the prior corresponding period.

With this momentum compounding late in 2021, the Whitehaven share price hit a 52-week high of $3.64 in October.

Management commentary

Speaking on the announcement, Whitehaven CEO Paul Flynn said:

Coal prices continued at attractive levels through the December quarter and remain well supported for the near future given strong underlying demand and persistent supply-side disruptions. Cash generation has been strong, with the business expected to be net cash in the March quarter. Whitehaven has unfortunately not been immune
to recent heavy rains that impacted large parts of regional NSW and QLD as La Niña made its presence felt for the second Australian summer in a row.

What’s next for Whitehaven?

The company notes that as of January 2022, the impact of La Nina and COVID has caused an approximate 5% decrease in expected ROM production, which management has reflected in its guidance.

Management now forecasts managed ROM coal production of 19Mt to 20.5Mt, down from 20Mt to 21.5Mt on the previous forecast.

It also sees a higher cost of coal in FY22, estimating $79/tonne to $84/tonne, whereas it had previously forecasted $72/tonne to $76/tonne.

Whitehaven also expects to complete 17.2Mt to 17.8Mt in managed coal sales, a substantial down-step from previous modelling showing 18Mt to 18.6Mt.

Updated unit cost guidance per tonne includes many variables such as increasing diesel prices, increased demurrage costs, volumetric impacts of flooding and “COVID related absenteeism”.

Management notes the “bottom end of guidance reflects the continuation for the remainder of FY22 of recent COVID labour related impacts” whereas the “top end of guidance reflects a return to more usual activity within Q3 FY22”.

Whitehaven share price summary

After a strong performance in 2021, the Whitehaven share price is up 64% over the past 12 months. It broke away from the benchmark index back in May of last year in line with coal pricing.

The post Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• Goldman tips Whitehaven (ASX:WHC) share price to jump 25%
• Why has the Whitehaven Coal (ASX:WHC) share price rallied 20% in a month?

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 Bruce Jackson.

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Key points

• S&P/ASX 200 Index (ASX: XJO) down 4.8% in 2022
• Bitcoin (CRYPTO: BTC) down 14.4% in 2022
• Ethereum (CRYPTO: ETH) down 20.1% in 2022
• Don’t put all your eggs in 1 basket!

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Crypto investor take heed.

While investing in crypto assets like Bitcoin and Ethereum can deliver some outsized returns, those gains are far from guaranteed.

Indeed, after hitting record highs in November last year, the world’s top 2 cryptos by market cap are deep in the red so far in 2022.

Bitcoin is currently trading for US$40,976 (AU$56,926). That’s down 2.1% over the past 24 hours and down 14.4% for the day, according to data from CoinMarketCap.

Ethereum is faring even worse. The number 2 crypto is down 3% since this time yesterday and has lost 20.1% since 1 January.

Which brings us to this word of warning from Australian Securities and Investments Commission (ASIC) chairman, Joseph Longo.

Crypto investors take heed

With more than 2 million Aussies already having invested in cryptos, Longo is cautioning investors they could lose some or all of their investment due to scams or other misconduct in the industry.

As the Australian Financial Review reports, Longo said, “I’m worried about consumer harm and the number of people in Australia exposed to crypto.”

Longo continued:

We know from anecdotal and factual evidence between us and the ACCC, there is definitely an uptick in the number of scams and misconduct leading to people losing money by attempting to invest in cryptocurrencies and assets.

My personal warning to people is to be careful and don’t put all your money into crypto.

Limited intervention powers

Unlike its broad powers to regulate the share market, ASIC has far less oversight over the crypto world. That’s because the decentalised nature of cryptocurrencies means they aren’t officially financial products and so aren’t subject to the Corporations Act.

Addressing the potential risk of investing in crypto or other high-risk assets, Longo advised investors to be well informed:

This whole issue of financial literacy is a significant issue. We still have too many people who are making poor decisions around their finances. If you’re putting a big proportion of your wealth into a single investment, you really need to be careful.

The post Investing in crypto? ASIC chairman sounds warning appeared first on The Motley Fool Australia.

More reading

• Can Ethereum reach $5,000?
• Is Ethereum losing steam in 2022?
• Bitcoin (CRYPTO:BTC) takes most popular crown, here are 3 cryptos hot on its heels
• This under-the-radar cryptocurrency stock could outpace Bitcoin in 2022
• Crypto is crashing: Should you invest now?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very disappointing note. The benchmark index is currently down 1.6% to 7,223.2 points.

Here’s what is happening on the ASX 200 today:

Whitehaven shares tumble on guidance downgrade

The Whitehaven Coal Ltd (ASX: WHC) share price is tumbling lower today after downgrading its production guidance. The coal miner revealed that it now expects coal production of 19 to 20.5 Mt in FY 2022. This is down from 20 to 21.5 Mt previously. In addition, coal sales have been downgraded and costs have been upgraded. This has been driven by La Niña and COVID impacts.

BHP shareholders approve unification

The BHP Group Ltd (ASX: BHP) share price is falling on Friday despite announcing the results of its unification vote. According to the release, the Big Australian will scrap its dual listing after shareholders voted overwhelmingly in favour of its unification. BHP has been tipped to go on a buying spree post-unification to boost its future growth.

Allkem shares fall on broker downgrade

The Allkem Ltd (ASX: AKE) share price is falling on Friday after being downgraded by the team at UBS. According to the note, the broker has downgraded the lithium miner’s shares to a neutral rating with a price target of $11.20. While UBS is positive on lithium prices and expects Allkem to benefit greatly, it doesn’t see enough value in its shares now to maintain a buy rating.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Boral Limited (ASX: BLD) share price with a 2.5% gain on no news. Going the other way, the worst performer has been the Whitehaven Coal share price with an 8% decline following its guidance downgrade.

The post ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant?
• 5 things to watch on the ASX 200 on Friday
• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Thursday

Motley Fool contributor James Mickleboro owns Orocobre 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 Bruce Jackson.

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Key points

• Regis Resources has placed its shares in a trading halt pending an announcement in relation to the Rosemont gold mine
• A statement is expected to be made on or before Tuesday 25 January
• The company’s shares have accelerated in a month as the price of gold rises

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The Regis Resources Limited (ASX: RRL) share price won’t be going anywhere on Friday. This comes as the gold miner requested its shares be placed in a trading halt before market open.

As such, Regis shares are frozen at $2.10 apiece. It’s worth noting the company’s shares have gained more than 13% in value in the past month.

Why is the Regis Resources share price halted?

Prior to the market open, the company requested the Regis Resources share price be halted while it prepares an announcement.

The company says it is planning to release a statement on or before Tuesday 25 January.

This is in regards to its FY22 guidance after a geotechnical incident occurred at the company’s Rosemont open pit in Western Australia.

What’s the latest?

At this stage, details remain unknown about what exactly occurred at the company’s underground gold mine.

Located in Bandya, WA, Rosemont and its associated surface deposits are mined using conventional open-pit mining truck and shovel methods.

Commercial production commenced in June 2020, with 721,000 tonnes of ore mined and 8,000 lineal metres of development achieved during the year, according to the company’s results for FY 2021.

Deep drilling continued at Rosemont to explore the high-grade shoots which extend at depth beneath existing underground infrastructure.

The company said about 24,000 metres of diamond drilling was completed to test down-plunge extensions of high-grade gold mineralisation. It also announced an updated mineral resource of 2 million tonnes at 5.2g/t Au for 340,000 ounces.

Interestingly, the company had this to say in its report for the quarter ended September 2021.

“Lower mill feed grades were largely a result of the treatment of low-grade stockpiles while pits were rescheduled as a result of unplanned geotechnical issues in Rosemont North and Main pits.

“These issues resulted in delays while adequate controls were put in place to manage the risk and allow access to ore. This work has now been largely completed and while it is not expected to be an ongoing issue, it is being carefully monitored as these pits are completed as planned during FY22.”

Earlier this week, the company’s non-executive director Russell Barwick resigned from the board with immediate effect. While citing personal reasons, Regis shares wobbled in the days following.

About the Regis Resources share price

Since this time last year, Regis Resources shares have lost more than 40% in value. In 2022 alone, the company’s shares are up by 7% after the price of gold sharply rose yesterday.

Based on valuation grounds, Regis has a market capitalisation of roughly $1.59 billion, with approximately 754.78 million shares on issue.

The post Why is the Regis Resources (ASX:RRL) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why has the Regis Resources (ASX:RRL) share price risen 10% in a week?
• 5 things to watch on the ASX 200 on Thursday
• These were the 5 worst ASX 200 mining shares to hold in 2021
• 5 things to watch on the ASX 200 on Thursday

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 Bruce Jackson.

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Key points

• Silver Lake declared successful bidder for Canada’s Harte Gold
• Company to acquire 2% net smelter royalty on the entire Sugar Zone Property
• Transaction expected to finalise by end of February

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The Silver Lake Resources Limited. (ASX: SLR) share price is in the red at time of writing, down 0.8%.

It’s not just the ASX gold explorer dipping lower though. The All Ordinaries Index (ASX: XAO) is down 1.3% at this same time.

Below we take a look at the company’s bidding update.

What bidding update was announced?

Silver Lake’s share price is dipping despite the company reporting that its bid for Harte Gold Corp has been declared successful.

Listed on Canada’s Toronto Stock Exchange (TSX), Harte Gold is a gold mining company that owns and operates the Sugar Zone mine in Ontario with 81,287 hectares of associated land.

The sale and investment solicitation process (SISP) was given the green light by the Ontario Superior Court of Justice on 20 December. That process was completed on 14 January, with Silver Lake’s bid declared successful on 19 January.

According to the release, the agreement comprises:

• Approximately US$74.5 million (AU$103.0 million) in credit bid consideration reflecting the value owed to Silver Lake under the Credit Facilities acquired from BNP Paribas and the full amount of the Court-approved Debtor in Possession Loan subsequently made available to Harte Gold during the Proceedings
• Applicable liabilities (including the ~US$22 million out of the money hedge book and accounts associated with the operation of the Sugar Zone operation to allow for a transition of operation under Silver Lake ownership)
• The full and final satisfaction of finance facility obligations owed by Harte Gold to Appian Capital Advisory by way of the issuance of ~25 million Silver Lake shares
• Cash consideration for payment of certain priority claims and for the purposes of completing the CCAA Proceedings and certain ancillary matters (estimated to be not more than US$3 million)

Silver Lake expects the transaction to close in the latter half of February.

Separately, the company reported that it’s entered an agreement for the acquisition of a combined 2% net smelter royalty on the entire Sugar Zone Property from an affiliate of Appian. The acquisition price was reported to be US$22 million, which Silver Lake will pay for in shares.

This acquisition, which will reportedly reduce operating costs, remains subject to the completion of its acquisition of Harte Gold.

Silver Lake share price snapshot

Over the past year the Silver Lake share price has gained 7%. That’s right about in line with the 6.5% gain posted by the All Ords over that same time.

Silver Lake shares are up 4% so far in 2022.

The post Silver Lake (ASX:SLR) share price drops today following this bidding news appeared first on The Motley Fool Australia.

More reading

• Why is the Regis Resources (ASX:RRL) share price frozen today?
• Senex (ASX:SXY) share price higher on 20th consecutive quarter of record production
• What to expect from the CBA (ASX:CBA) half year result next month
• Why is the Little Green Pharma (ASX:LGP) share price in the green today?
• Broker tips A2 Milk (ASX:A2M) share price to rise over 50%

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 Bruce Jackson.

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Key points

• Senex reports earnings today for the quarter ended 31 December 2021
• Sales revenue gained 9% whereas net sales revenue gained 5%
• Capital expenditures were far higher reflecting drilling and expansion projects
• The company forecasts higher capital expenditure in FY22 by bringing forward projects, otherwise guidance remains unchanged.
• Senex has climbed 57% in the last 12 months.

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Shares in Senex Energy Ltd (ASX: SXY) are inching forwards today following the release of its report for the quarter ended 31 December 2021.

Shares opened at $4.60 and have held the fort since, now trading less than 1% in the green on thin volume, having traded sideways all week.

Senex share price gains on “continued growth in production”

The company outlined several investment highlights this quarter, including:

• Quarterly production up 5% to 5.2 PJ, with growth at both Roma North and Atlas
• Sales revenue up 9% to $38.7 million before hedging impacts.
• Domestic gas sales agreement signed with Shell Energy Australia starting in 2022.
• Total sales volumes of 4.9 PJ were 3% higher than the previous quarter.
• Net sales revenue increased 5% on the prior quarter to $34.7 million.
• As at 31 December 2021 Senex had cash reserves of $62.8 million and a net debt position of $12.2 million.

What else happened for Senex this quarter?

Growth in total sales volumes reflected increased sales from production due to increased production rates at Roma North and Atlas alongside reduced third-party gas purchases.

Capital expenditure was 193% higher for the quarter at $36.1 million, compared to Q1 FY22 at $12.3 million. The increase in cost base came from drilling programs and expansion projects throughout the half.

The company also finalised its agreement with Australia Pacific LNG to acquire undeveloped gas fields adjacent to the Atlas site.

These new fields “provide additional optionality to Senex’s development portfolio”. As a result, Senex is “reviewing the sequencing of its Surat Basin developments”.

With respect to the Surat Basin, Senex notes that daily production “reached a peak of 59 TJ/day during the quarter”.

Gas production was 5% higher than the prior quarter, signifying the “20th consecutive quarter of Surat Basin production growth”, Senex says.

Senex also entered into a binding Scheme Implementation Agreement with Posco International Corporation on 13 December.

The agreement will see 100% of Senex’s shares acquired for a cash offer price of $4.60 per share. In addition to the cash offer price, Senex’s “current intention is to pay a dividend of up to A$0.05 per share” for the half year ending 31 December 2021.

Senex expects a Scheme Meeting to occur in March 2022 and, if approved, the transaction is expected to be complete in late March 2022.

What’s next for Senex?

The company reiterated its previously announced guidance for FY22, albeit forecasting higher capital expenditures (CAPEX) for the year.

Senex now provides CAPEX guidance of between $120-$140 million, up from $70-$80 million at the last report.

Although, the upward revision in CAPEX comes as Senex aims to bring forward some of its production targets into cash flow.

For instance, some drilling activity – previously planned for FY23 – has been brought forward to FY22 to “fill available additional gas processing capacity at both Atlas and Roma North”.

It also aims to commit to “certain compression facility long-lead items for planned production expansion projects”.

The company forecasts production of 21-23 PJ and sales of its own product of 19–21 PJ in FY22. This should result in an EBITDA of $75–$85 million and free cash flow conversion of $50–$60 million.

Senex share price summary

As seen on the chart below, the Senex share price took off from the benchmark S&P/ASX 200 Index (ASX: XJO) in August and has since plateaued in the new year.

Nevertheless, it has still climbed over 57% in the last 12 months.

The post Senex (ASX:SXY) share price higher on 20th consecutive quarter of record production appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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All eyes will be on the Commonwealth Bank of Australia (ASX: CBA) share price next month when it releases its half year results.

Ahead of the release, let’s take a look to see what the market is expecting from the banking giant on 9 February.

What is expected from CBA in the first half?

The team at Morgans is bearish on the CBA share price and has a reduce rating and $74.00 price target. In light of this, it will come as no surprise to learn that the broker is forecasting a half year result that falls short of the market’s expectations.

According to the note, the broker expects CBA to report a first half cash net profit after tax of $4.32 billion. This is 2% lower than the Visible Alpha consensus estimate of $4.406 billion and compares to $4.785 billion during the second half of FY 2021. This is being driven by its belief that CBA’s net interest margin (NIM) will be softer than the market is forecasting.

Morgans commented: “Our 1H22 NIM forecast of 186bps compares with Visible Alpha consensus of 191bps. We therefore see risk that the market will be disappointed on the NIM front.”

What else?

One item that Morgans is actually more positive on than the market is the bank’s expenses. It doesn’t expect them to increase as much as consensus estimates.

It commented: “CBA reported a 3% increase in the run-rate of operating expenses (excluding remediation costs) from 2H21 to 1Q22. We expect this increase to be 2% from 2H21 to 1H22 as a result of our expectation of greater annual leave usage in 2Q22. However, we are more optimistic than consensus on this front as consensus appears to be factoring in a 3% increase from 2H21 to 1H22.”

One final item that the broker will be looking for commentary on is the Omicron impact on its operations.

Morgans concluded: “By way of outlook for asset quality, we will be particularly interested to hear about what CBA is seeing on the SME front with the spread of Omicron.”

Food for thought for investors over the next couple of weeks before the big day.

The post What to expect from the CBA (ASX:CBA) half year result next month appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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