The Australian aviation could be heading for a major overhaul in 2020 because of the coronavirus pandemic.

At present Virgin Australia Holdings Limited (ASX: VAH) is in administration after failing to gain the required financial support to keep its operations running.

While there are a number of suitors rumoured to be interested in taking over the struggling airline, if it fails to find a buyer it won’t necessarily mean Qantas Airways Limited (ASX: QAN) has the market to itself.

This morning Regional Express Holdings Ltd (ASX: REX) confirmed reports that it is looking into the feasibility of commencing domestic airline operations.

In response to the news, the regional airline operator’s shares rocketed 45% higher this morning.

What did Regional Express announce?

Regional Express revealed that it has been approached by several parties that are interested in providing the equity needed for it to start domestic operations in Australia.

The preliminary estimate of equity required is in the vicinity of $200 million, though the structure of any potential equity raising is yet to be determined.

The company’s board is now exploring this opportunity and has begun talks with potential equity partners. At this point, the board believes that with sufficient capital injection the start of domestic operations would be a particularly compelling proposition.

Though, it warned that if the company were to go ahead with the launch, it would take some time before the first flights took off. It intends to make a decision within the next eight weeks, with operations expected to commence on March 1 2021 if it chooses to go ahead with it.

The Qantas share price is pushing higher today despite the news. It would appear as though shareholders are not overly concerned by the potential competition from Regional Express.

More reading

• Up 140% since March: the ASX airline share flying under the radar
• In a post-COVID world, could Australia be the next superpower?
• 3 ASX 200 pandemic winners and 3 losers
• Are there any safe havens in ASX aviation shares?
• These ASX 200 shares saw the biggest falls last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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ASX shares have been smashed in 2020. Some sectors, like travel and retail, have seen companies shed billions in value amid the COVID-19 shutdown. But it’s not all doom and gloom on the markets right now.

There are definitely buying opportunities for savvy investors at the moment. There has been a lot of panic selling while many growth and value shares have outperformed the S&P/ASX 200 Index (ASX: XJO) over the last 6 weeks or so.

Here are a couple of the smartest ASX shares to buy if you have $2,000 to spare right now.

What are the smartest ASX shares to buy?

If you’re more of a passive investor, the Vanguard Australian Shares Index ETF (ASX: VAS) may be one to buy. Sure, this means you’re not going to realise the upside of a growth share like NextDC Ltd (ASX: NXT). But it does mean your risk is diversified and you’re investing in a broad basket of high-quality ASX shares for the long-term.

In fact, the laziest investors can sometimes do the best. According to an article in the Australian Financial Review (AFR), many investors were buying and selling in March and April. However, those who bought and held a broad market index like Vanguard Australian Shares Index ETF rode the ASX down and then back up again.

Having said that, I think those Fools looking specifically for undervalued shares could look elsewhere. Individual stock picking is more speculative than buying ETFs but there’s no doubt it can pay off. That’s especially the case in uncertain times like we’re experiencing right now.

As such, ASX shares like CSL Limited (ASX: CSL) and Webjet Limited (ASX: WEB) could be in the buy zone.

CSL has been a solid growth and dividend share for a number of years. In fact, the CSL share price is up more than 40,000% since its IPO in 1994. Furthermore, I think there’s a solid outlook for the biotech giant this year. CSL’s non-cyclical earnings and strong research and development (R&D) pipeline could pay dividends (literally) in 2020 while its ASX 200 peers slash theirs.

Webjet shares could be undervalued after falling 65.93% in 2020. The Aussie economy is starting to come back to life as COVID-19 restrictions are eased. This means domestic travel could soon follow, resulting in the possibility of the ASX travel share outperforming in the near future.

More reading

• ASX gold shares steady: Can gold provide your portfolio with defensive and safe returns?
• Is $1,000 of A2 Milk shares a good investment?
• How can the ASX 200 soar with rising unemployment?
• Safe dividend stocks to buy today for the COVID-19 world
• 2 quality ASX shares to buy for long-term growth

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 gold spot price has remained steady at 8-year highs of around US$1,704 per ounce. Furthermore, the combination of a weak Australian dollar and an elevated gold spot price has created very healthy margins for Aussie gold miners.

Given its safe haven and hedging characteristics, could gold shares in the S&P/ASX 200 Index (ASX: XJO) provide investors with both a defensive asset and safe returns?

Let’s take a look at 3 mid to top-tier ASX gold miners.

Saracen Mineral Holdings Limited (ASX: SAR)

Mid-tier producer Saracen has largely been unaffected by COVID-19. Proactive control measures including longer fly-in fly-out rosters, additional charter flights and buses to support social distancing, and reduced capital works have allowed the company to operate in a business as usual manner.

In the company’s March quarter update, it highlighted record quarterly production thanks to its first full quarter contribution from its KCGM acquisition. I believe Saracen is in a strong position moving forward given its 7-year track record of meeting or beating guidance and is currently tracking ahead of FY20 guidance.

With a globally renowned Super Pit acquisition under its belt and a moderate price-to-earnings ratio of 34, Saracen may represent good value at today’s prices.

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources is likewise a growth engine following the joint acquisition of KCGM. Some of its COVID-19 related measures resulted in temporary reductions in production, leading to increases in unit costs in the March quarter. However, Northern Star expects improved performance in the June quarter.

That said, it still experienced quarter-on-quarter improvements in both gold production and costs per ounce. As it stands, the March quarter had an average all-in sustaining cost (AISC) of A$1,590/oz, with the current spot price at the time of writing at A$2,637.5.

If investors feel uneasy buying Saracen which is currently at record all-time highs, Northern Star may be the alternative growth-orientated gold miner to consider. 

Evolution Mining Ltd (ASX: EVN)

Evolution Mining is widely regarded as the lowest cost producer alongside Newcrest Mining Limited (ASX: NCM). In its March quarterly report, it highlighted no material impact from COVID-19, but group gold production had declined 3% quarter on quarter.

The company remains confident that it will meet its FY20 gold production guidance of around 725,000 ounces at an AISC at the top end of guidance of A$990/oz.

Evolution noted that should current spot metal prices be maintained during the June quarter, net cash flow is expected to be $90 million to $95 million higher, but AISC would be negatively impacted by A$20 to $25/oz due to higher royalties and lower by-product credits. 

More reading

• The smartest ASX shares to buy if you have $2,000
• Is $1,000 of A2 Milk shares a good investment?
• How can the ASX 200 soar with rising unemployment?
• ASX 200 down 0.9%: CBA reveals $1.5bn COVID19 provision & gold miners charge higher
• Why CBA, CSR, Fortescue, & Northern Star shares are pushing higher

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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