Category: Stock Market

What a year it’s been for the Fortescue Metals Group Limited (ASX: FMG) share price.

Shares in the iron ore major have rallied by around 54% in the last 12 months, but remain relatively flat in terms of year-to-date performance, up less than 2%.

With reporting season right around the corner, what should investors be looking out for?

Fortescue share price slides despite record shipping

Fortescue’s March quarterly production report highlighted a strong operating performance with record year-to-date shipments.

Fortescue CEO Elizabeth Gains said:

Fortescue’s excellent operating performance continues to drive strong results, with shipments of 42.3mt in the third quarter contributing to a record shipping performance for the first nine months of the financial year

Overall, the company said that “guidance for FY21 shipments and C1 costs remain unchanged”.

Interestingly, on the morning of its March quarterly production report, the Fortescue share price tumbled 3.49% before a stronger finish, down 0.44%.

Iron Bridge expenditure

There have been a lot of question marks around Fortescue’s Iron Bridge Magnetite Project, with concerns of potentially higher than expected CAPEX expenditure.

Back in May, Fortescue advised it will need to fork out its share of US$2.5 million to US$2.7 billion of the total US$3.3 billion to US$3.5 billion of capital expenditure.

On top of the base capital expenditure, Fortescue will need to front up an additional US$1.3 billion in capital expenditure as at 30 April 2021.

The Motley Fool has previously reported increasing concerns for the Fortescue share price from brokers Shaw and Partners, Goldman Sachs and Morgan Stanley about blowout costs from the Iron Bridge project.

Dividends on watch

Fortescue dividends have surged in the last two years, from $1.14 in FY19 to $1.76 in FY20.

In February, Fortescue announced a significant interim dividend of $1.47 in its half-year results.

At the current Fortescue share price, the interim dividend alone would represent a yield of about 5.8%.

According to the half-year results, the company has a dividend policy to pay out 50% to 80% of its full-year net profit after tax, targeting the top end of the range.

Key dates for Fortescue share holders

According to Fortescue’s website, its FY21 full-year financial results will be announced on 30 August.

At the time of writing on Friday, the Fortescue share price is trading 0.08% higher at $25.21.

The post Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

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• How big will the Fortescue (ASX:FMG) dividend be over the next 12 months?
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Motley Fool contributor Kerry Sun 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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The Woolworths Group Ltd (ASX: WOW) share price has been a strong performer in 2021.

Since the start of the year, the retail conglomerate’s shares are up a sizeable 16%.

In fact, adjusting for the demerger of Endeavour Group Ltd (ASX: EDV), the Woolworths share price has just reached a record high of $39.39.

What is the outlook for the Woolworths share price?

Given their strong performance this year, investors will no doubt be wondering where its shares are heading from here.

Unfortunately, the outlook for the Woolworths share price is not overly positive in the near term based on recent broker notes.

For example, a recent note out of Citi reveals that its analysts have a neutral rating and $37.60 price target on its shares. This implies potential downside of 4.5% over the next 12 months.

In addition to this, at the start of the month, the team at Morgan Stanley downgraded Woolworths shares to an equal-weight rating with a $36.50 price target.

According to the note, the broker made the move on valuation grounds. Though, on a positive note, its analysts believe the Woolworths post-demerger capital management will come in at the high end of its $1.6 billion to $2 billion range. It suspects that these funds will be returned to shareholders via an off-market buyback.

Finally, another broker that recently downgraded the Woolworths share price to a neutral rating was Goldman Sachs. It has put a $36.80 price target on its shares. Once again, valuation was the key driver of this downgrade.

The broker explained at the end of June: “While the short-term catalyst of an off-market buyback remains in play, we are taking advantage of the current strength in WOW to downgrade to Neutral. Since we upgraded WOW to a Buy rating on 7 March 2021 the share price has appreciated 14.1% prior to the demerger vs. the market up +8%.”

The post What is the outlook for the Woolworths (ASX:WOW) share price? 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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The Argosy Minerals Limited (ASX: AGY) share price rose wildly in the first 30 minutes of market trade today. The lithium miner’s shares jumped to an intraday high of 13 cents — a gain of 8% — before falling back to 12 cents.

At the time of writing, Argosy shares are changing hands for 12.5 cents — up 4% on yesterday’s closing price. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.18% to 7,672 points.

What’s up with the Argosy Minerals share price?

It is proving a rollercoaster day for Argosy shares. This comes after the company released an update about its Rincon lithium project, located in Salta Province, Argentina.

According to the release, Argosy has submitted an environmental impact assessment (EIA) for its expansion operation at Rincon.

The company is seeking to expand lithium carbonate production at the plant by 10,000 tonnes per annum (tpa). This will add to the 2,000tpa operation currently under construction.

The department of the Salta Province Secretary of Mining and Energy is responsible for assessing the report. This is the final hurdle Argosy needs to clear before beginning construction of the additional lithium carbonate production operation.

The company is targeting final approval of the EIA report in late 2021.

Argosy managing director Jerko Zuvela commented:

With lithium market sentiment and lithium carbonate prices continuing their strong upward momentum, and continued progress toward the fully funded 2,000tpa scale production operation, we are excited as Argosy transforms into a battery quality lithium carbonate producer and cashflow generator.

With further progress toward the 10,000tpa enlarged commercial scale development, this enhances Argosy’s strategic value to all end-user customers across the battery and EV industry supply chain.

The company’s Puna Mining operations management team met with Flavia Royon – the recently appointed Salta Province Secretary of Mining and Energy. The team’s purpose was to ensure the EIA approval process progresses. Royon also toured the company’s industrial scale pilot plant operation.

The Argosy Minerals share price has surged over the past year by more than 120%, and by 50% year to date.

The post Argosy Minerals (ASX:AGY) share price climbs following Rincon update 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 Bruce Jackson.

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The Botanix Pharmaceuticals Ltd (ASX: BOT) share price is dipping after the company released its latest quarterly report.

The cannabinoid-focused pharmaceutical dermatology company’s quarter seemed to be a good one, but the market has reacted poorly.

Right now, the Botanix share price is 7.8 cents – 3.7% lower than its previous close.

Let’s take a closer look at today’s news from Botanix.

The news driving the Botanix share price

The Botanix share price is sliding despite the company’s productive quarter that ended on 30 June. Let’s take a look at what it was up to over the period.

Financial update

Botanix provided a brief financial update on its performance this quarter.  

The company stated it had $21.6 million in cash at the end of the quarter. That’s enough to fund an estimated 12.8 future quarters.

During the quarter, it had net cash outflows of around $1.7 million and it invested roughly $1.2 million in research and development activities.

New drugs

The Botanix share price is dipping despite plenty of productivity over the 3 months ended 30 June.

Botanix launched the Phase 1B rosacea clinical study trial for its BTX 1702 product in June.

The trial is investigating the safety and tolerability of different concentrations of BTX 1702 over an 8-week period.

It’s currently being hampered by COVID-19 restrictions. The company’s looking at adding more trial sites to minimise the impact of potential future lockdowns.

Additionally, Botanix announced positive results from its BTX 1204A pilot study in canines with atopic dermatitis during the quarter.

The company said atopic dermatitis in canines is similar to that in humans and that the study’s results are a good indication the treatment could be transferable.

Also, during the quarter Botanix launched the next phase of its BTX 1801 development program.

The program is aiming to help the nasal decolonisation of Staphylococcus aureus in haemodialysis patients.

It hopes BTX 1801 will help to prevent bloodstream infections in those undergoing haemodialysis, of which the company says there’s an “urgent need and significant market opportunity”.

Botanix Pharmaceuticals share price snapshot

The Botanix share price hasn’t been having a great year so far on the ASX.

It is currently 39% lower than it was at the start of 2021. However, it has gained 58% since this time last year.

The company has a market capitalisation of around $78 million, with approximately 973 million shares outstanding.

The post Here’s why the Botanix (ASX:BOT) share price is slipping today 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 Bruce Jackson.

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Investors will be keenly watching the Weebit Nano Ltd (ASX: WBT) share price today.

The extra attention comes after the company released its 4th quarter FY21 activities report this morning.  

At the time of writing, the Weebit Nano share price is up 6.91% to $2.32.

Let’s take a look at the tech company’s news and how the Weebit share price has performed recently.  

Weebit Nano’s quarterly report

Weebit develops next-generation memory technology for the global semiconductor industry.

The company’s flagship ReRam technology is based on silicon oxide, which makes semiconductor memory elements cheaper, faster and more energy efficient.

The company’s report highlighted a key milestone in the development of ReRAM.

In June, Weebit created the industry’s first commercial integration of an oxide-based ReRAM (OxRAM) cell with an ovonic threshold switching (OTS).

Weebit also completed its embedded ReRAM memory module. In addition, the company taped-out (released to manufacturing) a test chip that integrates the module.

For the quarter, Weebit reported approximately $2 million in operating cash flow, courtesy of the French Government. Funds were used for research and development and delivered income of $1.8 million for the quarter.

Commenting on the fourth quarter, Weebit Nano CEO Coby Hanoch noted:

“Weebit Nano made significant steps towards productisation and commercialisation during the quarter, achieving key technical milestones within both the embedded and discrete memory markets. The embedded market remains our key priority at this point, and we successfully completed the tape-out of our memory module design in July.”

What’s the outlook for Weebit?

In its report, Weebit noted that it is focussing on securing its first commercial agreement.

The company highlighted that it is in advanced discussions with multiple potential customers and production partners.

Weebit said that ongoing global semiconductor shortages are impacting the company’s ability to enter into a production agreement.

Other key technical priorities include ongoing improvements to Weebit’s baseline ReRAM technology.

More on the Weebit share price

The Weebit share price received a boost recently after the company announced it had completed the design of its ReRam module.

Despite today’s bullish price action, the Weebit share price remains about 12% lower for the year.

The post All eyes on the Weebit (ASX:WBT) share price after 7% jump in early trade appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) has fought back from an early decline and is trading broadly flat. The ASX 200 is currently trading at 7,388.5 points.

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

Crown-Star merger talks end

The Crown Resorts Ltd (ASX: CWN) share price is trading lower today after Star Entertainment Group Ltd (ASX: SGR) revealed that it is walking away from takeover talks with its rival. Although Star remains interested in a potential merger, it notes that there is too much uncertainty at present. Particularly given concerns that Crown could lose its Melbourne casino licence.

Evolution completes institutional placement

The Evolution Mining Ltd (ASX: EVN) share price is charging higher today after returning from its trading halt. This follows the completion of its $400 million institutional placement to fund the acquisition of the Northern Star Resources Ltd (ASX: NST) assets in the Eastern Goldfields of Western Australia. Credit Suisse responded positively to the news, upgrading its shares to an outperform rating with a $4.70 price target.

IAG results disappoint

The Insurance Australia Group Ltd (ASX: IAG) share price is under a spot of pressure today after its preliminary full year results fell short of expectations. The insurance giant revealed that it expects gross written premium (GWP) growth of 3.8% and cash earnings of $747 million. This compares to Goldman Sachs’ estimates of GWP growth of 4% and a cash profit of $764 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Evolution share price with a 5% gain. This follows a positive reaction to its acquisition announcement. The worst performer on the ASX 200 has been the Silver Lake Resources Limited (ASX: SLR) share price with a 10% decline. Investors have been selling the gold miner’s shares following the release of its quarterly update.

The post ASX 200 midday update: Crown-Star merger talks end, Evolution jumps 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 owns shares of and has recommended Insurance Australia Group 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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An ASX share that only listed a few weeks ago is being ignored by investors, even though next month’s reporting season could light a fire under it.

That’s according to Wilson Asset Management portfolio managers Matthew Haupt, Catriona Burns and Oscar Oberg, who reckon the pathology services provider has bright long-term prospects.

“Australian Clinical Labs Ltd (ASX: ACL) continues to benefit from record levels of testing due to the coronavirus, which have extended further given the spread of the more infectious Delta variant,” they wrote in a memo to clients.

“The company has 86 accredited laboratories and services in approximately 90 public and private hospitals.”

Both the WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX) listed investment companies hold shares in Australian Clinical Labs.

IPO-weary market underestimating ACL’s potential

The company floated on the ASX in May with an initial public offer price of $4 a share. It has since disappointed IPO-weary investors.

The stock is trading at $3.64 around midday on Friday. 

“Australian Clinical Labs has underperformed as the market rotated away from companies perceived as coronavirus beneficiaries,” read the Wilson memo.

“However, we think the market is underestimating the underlying earnings power of the business given the substantial work undertaken to drive automation of systems and processes prior to listing, which is not readily visible to investors.”

The portfolio managers thought that the short-term success would allow the company to scale and expand its market share in the longer term.

The improving balance sheet would provide it with a chance to acquire earnings-accretive assets in Australia and in overseas markets like the US.

“White-labelling of lab services also presents further growth opportunities,” said the memo.

“And over time, we expect superior organic growth rates and successful inorganic expansion to drive a re-rating in Australian Clinical Labs’ valuation towards peers, versus its current discount of greater than 30%.”

The trio said the company was a classic example of an ASX share that’s “overlooked and under-researched” by investors.

“We view the upcoming reporting season as a catalyst for investors to revisit these companies.”

The Melbourne-headquartered company currently has a market capitalisation of $727 million, according to the ASX. Australian Clinical Labs employs more than 3,800 staff.

The post New ASX share everyone’s ignoring is ready to skyrocket: analysts 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 Bruce Jackson.

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It is not all too uncommon for a chief executive officer to be invested in the company they are running. However, there are not all too many CEOs of ASX-listed companies that can say they are a multi-billionaire from that investment. Well, WiseTech Global Ltd (ASX: WTC) CEO Richard White can shout it from the rooftops, as he takes out the top spot on The AFR’s Rich Bosses list this year.

At the time of writing, the WiseTech share price is trading 0.66% higher to $30.55. The cloud-based logistics company is accompanied by a $9.86 billion market capitalisation.

Let’s take a closer look at the details of Mr White’s riches and how WiseTech has delivered plentiful returns for its shareholders.

ASX-listed WiseTech the logistical wealth creator

According to the publication, White’s stake in WiseTech amounted to $4.23 billion at the end of the financial year. The far majority of this being the roughly 125.8 million shares held by Realwise Holdings Pty Ltd, which is another company owned by the CEO.

It has been a long road for the former muso turned tech tycoon. WiseTech was originally founded by White in 1994, after recognising inefficiencies within the logistics industry. It wasn’t until after the company was listed on the ASX in 2016 that he cracked his first billion.

Since then, Richard White has gone on to lead the company through an enormous period of growth. Revenue has grown from $102.8 million in 2016 to $462.2 million, an increase of 4.5 times. Meanwhile, earnings have soared from $2.17 million to $145.3 million.

The meteoric growth has been on the back of increased demand for the company’s CargoWise service, in addition to multiple acquisitions.

As a result, the Wisetech share price has ascended 664% over its five short years of being publicly traded. Undoubtedly creating immense wealth for shareholders in the process.

The post WiseTech (ASX:WTC) CEO tops rich bosses list 5 years on from listing appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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The Silver Lake Resources Limited. (ASX: SLR) share price has slipped into the red this morning after the company released its quarterly results.

Silver Lake shares are now exchanging hands at $1.60, a 9% drop from the market open.

Let’s comb over Silver Lake’s results in finer detail.

Quick recap on Silver Lake Resources

Silver Lake is in the gold exploration and production business. It produces gold bullion and gold-copper concentrate.

The company has three major projects located in Western Australia at Mount Monger, Deflector and Rothsay.

Silver Lake has a market capitalisation of $1.5 billion at the time of writing.

Silver Lake’s quarterly results

Silver Lake reported quarterly production of 62,126 ounces of gold and 445 tonnes of copper. This translated to gold and copper sales of 60,617 ounces and 516 tonnes, respectively.

Overall, gold sales were down about 1% this quarter, whilst copper sales increased 85% from the previous quarter.

Gold sales were realised at a higher price of $2,275 and at all-in sustaining costs (AISC) of $1,478 an ounce.

Progress this quarter propped FY21 sales of 248,781 ounces of gold and 1,724 tonnes of copper. Silver Lake realised an average gold price of $2,315 on this volume, which is in line with previous guidance.

Specifically, Mount Monger produced the most gold at 36,757 ounces. Deflector produced 25,369 ounces of gold.

The company also allocated about $34 million in capital expenditure towards exploration during the quarter. This is balanced by a $10 million increase in cash and bullion to $330 million.

Silver Lake also mentioned it had a 17,000 ounce increase in ore stockpiles to 115,000 ounces at Mount Monger. The company said this “provides project scheduling optionality for FY22” amid a tough labour market.

The company also provided some colour on guidance and expectations for FY22 in the report.

Silver Lake sees a FY22 gold sales volume of 235,000 – 255,000 ounces, with AISC of $1,550 – $1,650 an ounce.

It also foresees copper sales of 600 – 1,000 tonnes within the same AISC ranges over the next year.

Silver Lake share price snapshot

The Silver Lake share price has underperformed the broad index in 2021 with a loss of 16.5%. This extends the previous 12 month loss to 38% in total.

Meantime, the S&P/ASX 200 Index (ASX: XJO) has gained 10.5% in 2021 and 21% over the past year.

The post Silver Lake Resources (ASX:SLR) share price slides 9% on quarterly results appeared first on The Motley Fool Australia.

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The author Zach Bristow 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 Bruce Jackson.

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Shares in Youfoodz Holdings Ltd (ASX: YFZ) aren’t finding much traction so far on Friday after the company announced a June quarterly business update.

At the time of writing, the Youfoodz share price is wobbling between its previous close of 91.5 cents and 92 cents.

The standstill comes against the backdrop of its recent 93 cents per share takeover offer from competitor HelloFresh.

Youfoodz share price flat on quarterly update

Despite the Youfoodz share price stalling around the takeover offer price, the company continues to make headway in its financial and operational performance.

In its quarterly update for the period ended 24 June 2021, Youfoodz advised that gross revenue increased 19.5% on the prior corresponding period (pcp) to $53.9 million. This was underpinned by growth across both business-to-consumer (B2C) and business-to-business (B2B) segments.

Youfoodz highlighted B2C orders increasing 16.5% on pcp to 384,683, translating to a strong 25.7% uplift in gross revenue to $37.6 million.

Similarly, B2B performance has been improving, with gross revenues up 7.2% to $16.2 million.

With FY21 coming to a close, the company expects unaudited gross revenue of $203.8 million, hitting the mid-point of its $201 million to $205 million guidance.

In addition, unaudited net revenue should come in at $146.4 million, towards the lower end of its $146 million to $148 million guidance.

And finally, unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) is also expected to be at the lower end of guidance, between $1 million to $2 million.

Youfoodz advised that the development of its new facility continued to progress, with the design finalised and agreed with the landlord. The company has completed early discovery works and submitted relevant development applications.

In addition, the company said that it was “well capitalised to fund its growth objectives”, with a cash balance of $27.4 million as at 24 June.

Management commentary

Youfoodz CEO Lance Giles commented the company’s continued growth, saying:

It is pleasing to see the business continuing to deliver top-line growth. B2C has again performed strongly, delivering a significant uplift in order volumes and revenue vs pcp and on a quarter-on-quarter basis.

Our B2B business, which experienced challenging trading conditions during FY2021, saw an improvement in order volumes and revenues vs pcp and on a quarter-on- quarter basis. This reflected strong customer engagement efforts and range expansion with key retail customers.

About the Youfoodz share price

Youfoodz debuted on the ASX in December 2020 at a listing price of $1.50 per share.

Despite the tailwinds behind the meal kit market, the Youfoodz share price tumbled as low as 37.5 cents in May this year.

The HelloFresh takeover offer saw an 80% surge in Youfoodz shares last Tuesday. Despite that upswing, investors who participated in the company’s initial public offering would still be down almost 40% on their initial investment.

The post What’s with the Youfoodz (ASX:YFZ) share price today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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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