The share price of ASX infant products retailer Baby Bunting Group Ltd (ASX:BBN) has been a solid performer so far this year.

The company’s shares have risen by about 12% in 2021, increasing from $4.84 to $5.32 at the time of writing.

However, just looking at the year-to-date movement in shares doesn’t tell the full story. The Baby Bunting share price has been volatile in 2021, with lockdowns in various parts of the country continuing to cause disruptions.

Company background

Baby Bunting is a leading Australian nursery retailer, stocking a wide range of baby and infant products.

It has grown from a single store in suburban Melbourne in the 1970s to become a major national brand. It now has at least 50 superstores located across the country and more than 700 employees.

Recent financials

Baby Bunting recently released its FY21 full-year results on 13 August. The company reported a 15.6% year-on-year jump in total sales (to $468.4 million). In addition, proforma net profit after tax (NPAT) surged 34.8% higher (to $26 million).

The result was underpinned by strong growth in online sales, which helped to offset some of the disruptions caused by lockdowns. Online sales grew by 54.4%, and made up 19.4% of total sales for the year.

After the results were released, the Baby Bunting share price sunk 10%.

Baby Bunting didn’t provide any firm outlook for FY22, citing continued uncertainty around the trajectory of the COVID-19 pandemic. Despite this, Baby Bunting CEO and managing director Matt Spencer struck an upbeat tone on the company’s near-term outlook.

He stated: “While the new financial year has started with some disruptions from ongoing lockdowns, our experience has been that any short-term sales impact is recovered quickly once lockdowns have eased.

“While FY22 may have more surprises, our operating strength in our category and our transformation plans should see us well placed in the period ahead.”

Movement in the Baby Bunting share price

Despite these reassurances from the company, the Baby Bunting share price fell sharply following the release of its full-year results. Shares are now down about 10% since its results were announced.

This continues a downward trend in the Baby Bunting share price that started back in late April. After surging to a new 52-week high of $6.65 on 26 April 2021, it has now fallen by 20%.

Today, Baby Bunting shares are changing hands for $5.32 — down 1.39% on yesterday’s closing price.

While the shift towards online sales in FY21 is a positive trend, lockdowns and social restrictions are still hurting retailers.

As an example, Baby Bunting reported comparable-store sales as of 12 August 2021 (a day prior to the company’s results release) was down 6.4% year-to-date. This could be a reflection of the strict lockdown restrictions still imposed across Australia’s two most populous cities.

Shareholders will be hoping for some good news on lockdown restrictions easing – and that this might arrest the fall in the Baby Bunting share price.

The post What has happened to the Baby Bunting (ASX:BBN) share price this year? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Leading brokers name 3 ASX shares to buy today
• Baby Bunting (ASX:BBN) share price hit by broker downgrades
• The ASX reporting wrap-up: Baby Bunting, the week ahead
• Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking

Motley Fool contributor Rhys Brock owns shares of Baby Bunting. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is off its lows but still trading lower. The benchmark index is currently down 0.1% to 7,484.4 points.

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

Wesfarmers delivers strong growth and $2.3bn capital return

The Wesfarmers Ltd (ASX: WES) share price is sinking on Friday following the release of its full year results. While the conglomerate delivered strong profit growth in FY 2021 and announced a proposed $2.3 billion capital return to shareholders, its FY 2022 trading update appears to have spooked investors. Management revealed that Bunnings sales are down 4.7% financial year to date, whereas combined Kmart and Target sales are down 14.3%.

Pilbara Minerals shares fall

The Pilbara Minerals Ltd (ASX: PLS) share price is under pressure today after investors responded negatively to its full year results. Although the lithium miner doubled sales in FY 2021, it still recorded a statutory net loss after tax of $51.4 million. Also potentially weighing on its shares is its costs guidance for FY 2022 and FY 2023. Management expects higher unit cash operating costs due to elevated strip ratios, Pilgan production ramp up, and the restart of the Ngungaju operation. In response, Ord Minnett downgraded its shares to a hold rating with a reduced price target of $2.40.

NEXTDC share price tumbles

It has been a disappointing day for the NEXTDC Ltd (ASX: NXT) share price. The data centre operator’s shares are tumbling lower despite a record result in FY 2021. NEXTDC reported a 23% lift in revenue to $246.1 million and a 29% increase in EBITDA to $134.5 million. Looking ahead, management has guided to revenue growth of 16% to 20% and EBITDA growth of 19% to 23% in FY 2022.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the Clinuvel Pharmaceuticals Limited (ASX: CUV) share price with a 15% gain. This appears to be a delayed reaction to its full year results release on Thursday morning. The worst performer has been the Appen Ltd (ASX: APX) share price with a 7.5% decline. This morning the team at Credit Suisse responded to yesterday’s half year update by retaining their neutral rating but slashing their price target down to $11.00.

The post ASX 200 midday update: Wesfarmers’ $2.3bn capital return, Appen & Pilbara Minerals fall appeared first on The Motley Fool Australia.

More reading

• The Wesfarmers (ASX:WES) dividend has jumped by 17%
• What you need to know about Wesfarmers (ASX:WES) $2.3bn capital return
• NextDC (ASX:NXT) share price on watch after record FY21 performance
• Wesfarmers (ASX:WES) share price on watch after strong profit growth and $2.3bn capital return
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Wesfarmers 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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The Secos Group Ltd (ASX: SES) share price is lifting after the company released its earnings for the financial year 2021 (FY21).

Right now, the Secos share price is trading at 34 cents, up 6.25% on its previous closing price.  

Secos share price jumps on $2.5 million profit

Here’s how the producer of sustainable packaging performed over FY21:

• Net profit after tax of $2.5 million, up 318% on FY20’s $1.1 million loss
• $30.8 million of revenue, a 43% increase of that of FY20
• No dividend

The company reported $30 million worth of sales, with year-on-year sales growth of 126.6%.

The company’s traditional film business saw weaker sales due to COVID-19 impacts on demand and a line breakdown in January which was resolved in March. 

Secos’ compostable resins, films, and bags recorded double-digit growth. Its compostable bags segment grew well as a result of councils implementing household ‘food organics garden organics’ (FOGO) programs and demand for dog waste bags.

Secos ended the period with $11.3 million of cash and no debt.

What happened in FY21 for Secos?

FY21 was a busy period for Secos. The company increased its film and bag production capacity at its plant in China and installed more equipment at its operation in Malaysia.

It also increased its asset utilisation rates in its current compostable operations and added more compostable resin capacity at its Malaysian bio-resin plant. Finally, it secured a new facility in Malaysia to meet the demands of an expanding compostable market.

Secos also completed a $15 million placement in FY21. The funds were to go towards equipment and working capital to expand its biopolymer capacity in Malaysia and China.

In July 2020, Secos announced Woolworths (ASX: WOW) was to stock its products in 82 select stores. 

Secos also entered into a supply contract with Jewett-Cameron Trading Company Limited to supply its dog waste bags to big-box retail stores in the Americas. 

What did management say?

Secos chair Richard Tegoni commented on the results, saying:

​​The momentum to solve the world’s plastic waste crisis is building and has resulted in strong demand for compostable packaging and products globally. SECOS has delivered vastly improved results in 2021 but most importantly… has established itself as one of the key global participants in the bioplastics and environmental packaging space…

The company’s excellent results were achieved despite very difficult global trading conditions hampered by COVID-19 restrictions and the impact the virus has had on the world economies generally. During the year, SECOS experienced significant worldwide shipping challenges. However, SECOS staff managed its supply chain well and maintained strong customer service levels to deliver on its growth targets.

What’s next for Secos?

Here’s what those interested in the Secos share price might want to keep an eye on in FY22:

Secos has already announced some news that might boost its bottom line in FY22. 

In July, Secos announced Woolworths will stock some of Secos’ products in 203 of its stores.

Additionally, the company’s council business has continued to expand. 

Secos expects more growth in biopolymer resin and film sales in FY22. The growth is expected to be delivered through new opportunities and expanded manufacturing capacity. 

It will also work on growing its MyEco branded products’ market share in both Australia and the United States. 

Finally, the company recently announced it has invested in a new Australian Research and Development centre for bio-based products. 

Secos share price snapshot

The Secos share price has gained 61% in 2021. It is also 142% higher than it was this time last year.

The post Secos (ASX:SES) share price soars 6% on FY21 earnings  appeared first on The Motley Fool Australia.

More reading

• Leading brokers give their verdict on the A2 Milk (ASX:A2M) share price
• Immutep (ASX:IMM) share price jumps 5% on Chinese patent grant
• MGC Pharmaceuticals (ASX:MXC) share price rockets 40% on supply deal
• Why the Dreadnought (ASX:DRE) share price is rocketing 7% today
• The Wesfarmers (ASX:WES) dividend has jumped by 17%

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. owns shares of and has recommended SECOS Group Limited. 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 A2 Milk Company Ltd (ASX: A2M) share price is under pressure again on Friday.

At the time of writing, the struggling infant formula company’s shares are down 2% to $5.91.

This means A2 Milk’s shares are now down almost 50% since the start of the year.

Is the weakness in the A2 Milk share price a buying opportunity?

Brokers have been running the rule over the company’s full year results and have given their opinion on whether there’s an investment opportunity here.

One broker that wasn’t impressed with its result was Macquarie Group Ltd (ASX: MQG). This morning the broker retained its underperform rating and cut its price target down to $5.40.

Based on the current A2 Milk share price, this implies potential downside of almost 9%.

Macquarie is expecting another tough year in FY 2022 and has downgraded its near term earnings estimates materially to reflect a softer revenue and margin recovery.

A bullish broker

The bulls at Bell Potter disagree and believe the A2 Milk share price is still in the buy zone.

According to the note, the broker has retained its buy rating but cut its price target to $7.70. This implies potential upside of 30% over the next 12 months for its shares.

The broker commented: “Our Buy rating remains unchanged. Sell-in rates materially lagged sell-out rates in 2H21, implying steps to reduce channel inventories have been effective. As revenues more closely align to point of sale trends we would expect top line growth to return, which could well be complemented by internalising supply chain costs in FY23-25e.”

Surprisingly, Bell Potter isn’t alone. The team at Citi has actually upgraded A2 Milk’s shares to a buy rating and increased their price target on them to $7.20.

Its analysts were pleased with the company’s inventory position and brand health in the key China market. Citi believes the latter may be an indication that the A2 Milk brand is much stronger and resilient than previously thought.

Time will tell which broker has made the correct call.

The post Leading brokers give their verdict on the A2 Milk (ASX:A2M) share price appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: A2 Milk, Woolworths, Appen
• ASX 200 drops, A2 Milk sinks, Appen plummets
• Here are the 3 heaviest trading ASX 200 shares this Thursday
• Why A2 Milk, Appen, Jumbo, & Link shares are sinking
• Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22

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 recommended A2 Milk. 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 Immutep Ltd (ASX: IMM) share price has stepped into the green from the opening of trade on Friday.

Immutep shares are on the move as the company announced it had been granted a Chinese patent on one of its antibody molecules.

Let’s investigate further.

A bit of background to set the scene

Immutep advised that Chinese health authorities had granted the company a new patent on Friday. The company was awarded the approval to develop its “LAG-3 immunotherapeutic products”.

In humans, the “lymphocyte activation gene-3”, also known as LAG-3, acts like an “immune checkpoint” in the internal highways of our body. That means it is important to regulate our immune system so that it only destroys the foreign and nasty cells inside of us. And not our own.

Immutep has developed a “therapeutic antagonist antibody” called IMP701 to target this LAG-3 molecule. It claims that IMP701 “removes the brakes” that prevent our immune system from “responding to and killing cancer cells”.

To achieve this result in humans, Immutep has teamed up with global healthcare giant Novartis AG to further develop the IMP701 antibody.

Together, the pair have created a compound called LAG525, a “humanised form” of IMP701 which is currently being investigated in three separate clinical trials.

What did Immutep announce?

From today’s announcement, the patent is particularly “directed to” LAG525. This covers how the antibody is made, and its application in treating illnesses.

In fact, the patent was granted under the specific heading of “Antibody molecules to LAG-3 and uses thereof” from the Chinese Patent Office, to demonstrate this point.

As such, the approval follows the “corresponding” Australian, US, European and Japanese patents that have been previously granted on this molecule from 2018 to 2020.

Obtaining patent approval effectively protects the company’s compound, and prevents others from making similar copies. Therefore, it stands to reason that Immutep has gained some competitive advantage with the grant of this patent.

Investors seem to think so too, driving the Immutep share price around 5% higher from the market open on Friday.

Immutep shares are now exchanging hands at 52 cents apiece, down from their intraday high of 54 cents each.

Immutep share price snapshot

The Immutep share price has posted a year to date gain of 27%. This extends the previous 12 month’s gain of 171%.

Immutep shares have also climbed around 9% in the green over the last month. Moreover, in the last week, the Immutep share price is up 16%.

These results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the past year.

The post Immutep (ASX:IMM) share price jumps 5% on Chinese patent grant appeared first on The Motley Fool Australia.

More reading

• Why the Immutep (ASX:IMM) share price is charging higher today
• Capital keeps flowing into ASX Biotech shares in 2021

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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The MGC Pharmaceuticals Ltd (ASX: MXC) share price has bolted more than 40% higher in morning trade today.   

Investors are bidding shares in the pharmaceutical company higher after it released an announcement earlier today. At the time of writing, MGC shares are swapping hands for 5.5 cents, up 41%.

Let’s take a look at what MGC Pharmaceuticals announced.

MGC Pharma share price bolts on US supply agreement

Earlier today, MGC Pharma informed shareholders the company has entered a binding, 3-year US supply and distribution agreement.

The agreement with US-based company, AMC Holdings Inc (AMC), includes a minimum supply order of US$24million.

A range of MGC’s phytomedicine products is included in the agreement, namely; CannEpil, CogniCann, and CimetrA.

Under the agreement, AMC will act as a licenced distributor and undertake all marketing activities in the US. In addition, the company will also manage the importing and warehousing of MGC Pharma’s products.

In addition to supply, AMC will also be responsible for coordinating relevant clinical trial processes for MGC Pharma’s products.  

The agreement also outlines a minimum US$3 million of sales in Year 1.

Additionally, MGC Pharma can terminate the agreement if AMC fails to secure regulatory approval for at least 1 of the listed MGC products by 30 September 2021.

What did management say?

MGC Pharmaceuticals’ management highlighted the importance of the company’s milestone of expanding into the US. 

Co-founder and managing director Roby Zomer commented:

This is an important milestone agreement for MGC Pharma, as it provides MGC access to the largest healthcare market in the world. We look forward to working with our new partners at AMC and utilising their expertise and network to widen patient access to MGC’s phytomedicine products.

Snapshot of the MGC Pharmaceuticals share price

The MGC Pharma share price has had an extremely volatile year thus far. Shares in the company bolted to record highs earlier in the year after listing on the London Stock Exchange (LSE).

Since then, the MGC Pharmaceuticals share price has whittled away from its highs throughout the year.

At the time of writing, MGC shares are trading 41% higher for the day. The MGC Pharmaceuticals share price was up more than 50% earlier today, after hitting an intra-day high of 6 cents per share.

Including today’s bullish price action, shares in MGC are trading around 118% higher year to date.

The post MGC Pharmaceuticals (ASX:MXC) share price rockets 40% on supply deal 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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The Dreadnought Resources Ltd (ASX: DRE) share price is rocketing in morning trade, up 7% to 4.5 cents per share, having earlier posted gains of more than 9%.

Below we take a look at the ASX resource explorer’s latest mineral results that appear to be spurring investor interest.

Why is Dreadnought’s share price gaining on the report?

Dreadnought’s share price is surging after the company reported bonanza grade results from follow up rock chip sampling at its Rough Triangle project in Western Australia.

Initial rock chip samples were taken at several historical prospects. Dreadnought is unaware of any historical records of sampling results from these prospects, which date back to tenement maps from the early 1900s.

The results of the sampling confirmed “high tenor polymetallic mineralisation”. This include critical minerals Antinomy (Sb) and Bismuth (Bi), as well as Copper (Cu), Gold (Au) and Silver (Ag). The positive results were reported across numerous prospects.

According to the release, significant results include:

• 7% Cu, 142g/t Ag
• 6% Cu, 75g/t Ag, 0.1 g/t Au
• 2% Cu, 197g/t Ag, 14.5% Sb, 1.6% Bi
• 3% Cu, 291g/t Ag, 15.0% Sb, 3.1% Bi
• 4% Cu, 1.4 g/t Au, 0.2% Co, 5.0% Bi
• 9% Cu, 272g/t Ag, 8.8% Sb, 1.9% Bi

Six major lode systems have been sampled to date.

Dreadnought’s share price may also be getting a boost from the report that more than half of the known outcropping lodes have yet to be sampled.

What did management say?

Commenting on the results, Dreadnought’s managing director, Dean Tuck said:

With less than half of the known lodes sampled to date, we are continuing to identify high tenor Cu-Au-Ag-Bi-Sb-Co mineralisation across Tarraji-Yampi. As we continue to sample these systems, a geochemical pattern is developing which may allow us to vector in towards larger, undercover mineralisation like we have recently seen at Orion. We will continue to assess additional targets while undertaking our drilling programs at Orion, Fuso and Grant’s Find.

Dreadnought share price snapshot

The Dreadnought share price is up 350% over the past 12 months, well outpacing the 23% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date, Dreadnought’s share price has continued to outperform, up 125% in 2021.

The post Why the Dreadnought (ASX:DRE) share price is rocketing 7% today appeared first on The Motley Fool Australia.

More reading

• Why is the Dreadnought Resources (ASX:DRE) share price down 7% today?
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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 Wesfarmers Ltd (ASX: WES) dividend is on the rise after the company released its FY21 results this morning.

Wesfarmers growth momentum continues in FY21

Wesfarmers delivered a well-rounded result despite concerns that sales would moderate significantly in the second half. Key financial highlights include:

• Revenue rose 10% to $33,941 million
• Earnings before interest and tax (EBIT) lifted 18.8% to $3,776 million
• Net profit after tax increased 16.2% to $2,421 million
• Basic earnings per share (EPS) up 16.2% to 214.1 cents per share
• Final ordinary dividend of 90 cents per share
• Full-year ordinary dividend of 178 cents per share

Wesfarmers managing director Rob Scott commented on the company’s core retail businesses saying:

Bunnings, Kmart Group and Officeworks delivered strong sales and earnings growth for the year. While customer demand remained resilient, sales growth in Bunnings, Officeworks and Catch moderated from mid-March as the businesses began to cycle elevated demand following the onset of COVID-19 in the prior year.

Pleasingly, sales growth from mid-March remained strong on a two-year basis across all of the Group’s retail businesses.

However, the Wesfarmers growth trajectory might face some hurdles in the near term, with management noting:

Given the impact of lockdowns in recent months and the prospect of continued trading restrictions, earnings in the Group’s retail businesses during the first half of the 2022 financial year may be below the prior corresponding period.

Wesfarmers dividend jumps 17%

Wesfarmers’ directors determined the company would pay a full-franked final ordinary dividend of 90 cents per share, reflecting the company’s strong profit performance and dividend policy of distributing franking credits to shareholders.

This brings the company’s total FY21 fully-franked ordinary dividend for the full year to 178 cents per share, up 17.1% on FY20.

At today’s prices, this represents a dividend yield of approximately 2.78%.

Wesfarmers also announced a proposed return of capital to shareholders of $2.00 per share, subject to approval by Wesfarmers shareholders at its October annual general meeting.

Key dates for Wesfarmers dividend

The Wesfarmers share price will go ex-dividend on Wednesday, 1 September and be paid out on Thursday, 7 October.

The post The Wesfarmers (ASX:WES) dividend has jumped by 17% appeared first on The Motley Fool Australia.

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• The Wesfarmers (ASX:WES) share price fell 10% last time the company reported
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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 owns shares of and has recommended Wesfarmers 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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The Resolute Mining Limited (ASX: RSG) share price is under pressure again on Friday following the release of its half year results.

At the time of writing, the gold miner’s shares are down 4.5% to 42.5 cents.

This leaves the Resolute share price trading within a whisker of its multi-year low of 41.5 cents.

Resolute share price tumbles after posting US$220 million first half loss

• Production down 25.1% to 163,118 ounces
• Gold sales fell 29% to 151,503 ounces
• Average realised gold price up 20.7% to US$1,723 an ounce
• Revenue down 14.5% to US$261.3 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) down 23.1% to US$77.7 million
• Net loss after tax of US$219.8 million

What happened in FY 2021 for Resolute?

It certainly was a difficult half for this gold miner, which has been reflected in the abject performance of the Resolute share price over the last six months.

For the six months ended 30 June, Resolute recorded a 14.5% decline in revenue to US$261.3 million. This was driven by a 25.1% reduction in production to 163,118 ounces, which impacted gold sales volumes and offset a 20.7% increase in its average gold price received of US$1,723 an ounce.

Things were much worse for its earnings due to a 25% increase in its all-in sustaining cost (AISC) to US$1,277 an ounce and non-cash charges of US$172.4 million. The latter reflects the previously announced impairment expense relating to its Syama operation. This ultimately led to Resolute reporting a net loss after tax of US$219.8 million.

What did management say?

Resolute’s Chief Executive Officer, Stuart Gale, commented: “Our organisation has been through significant change during the first half of 2021 which has seen renewed enthusiasm and focus. Operational performance over this period is reflective of this as the Syama underground mine achieved record production in the June quarter which was matched by throughput at both the Syama sulphide and oxide processing circuits.”

“Unfortunately, this performance was offset by lower mined grades at the Syama sulphide and oxide operations. The team at Mako continue to deliver in line with expectations as they undertake a cut-back of the main pit to extend the mine life.”

“We remain focussed on capitalising on our investments, unlocking the significant value within our operations to generate cash and strengthen the balance sheet. With a number of key initiatives progressed during the half and the implementation of significant changes to people, processes and systems, we expect to see improvements to both our operating and financial results.”

What’s next for Resolute?

Resolute has held firm with its recently updated gold production and cost guidance for FY 2021.

This is for total gold production within the range of 315,000 ounces to 340,000 ounces with an AISC of between US$1,290 and US$1,365 an ounce inclusive of corporate overheads.

The Resolute share price is down 50% in 2021.

The post Resolute Mining (ASX:RSG) share price tumbles 4% on US$220m half year loss appeared first on The Motley Fool Australia.

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• Why the Resolute Mining (ASX:RSG) share price is racing 6% higher today

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 Lynas Rare Earths Ltd (ASX: LYC) share price is down 3.15% in morning trade, to $6.45 per share.

Below we take a look at the ASX rare earths producer’s full year financial results for the year ending 30 June, 2021 (FY21).

Lynas share price lifts on record results

• Revenue of $489.0 million, an increase of 60% from $305.1 million in FY20
• Net profit after tax (NPAT of $157.1 million, compared to a loss of $19.4 million the previous year
• Earnings before interest taxes, depreciation and amortisation (EBITDA) of $235.3 million, up from $59.7 million in FY20
• Cash and cash equivalents as at 30 June of $680.8 million, compared to $101.7 million the prior year

What happened during the reporting period for Lynas Rare Earths?

Lynas achieved record sales in the June quarter of FY21.

The company said it managed to keep costs well controlled as it benefited from “favourable market conditions” for rare earths. It noted that global governments are taking action to diversify rare earths supplies, aware of the current supply chain vulnerabilities. Countries taking action include Japan, India, the United States, the European Union and Australia.

The company signed 2 separate funding contracts with the United States during the reporting period.

Lynas also had a successful $425 million capital raise during the year. It plans to use the funds on its Lynas 2025 foundation projects, with a focus on its Kalgoorlie Rare Earths Processing plant and related upgrades for its Lynas Malaysia plant.

Early works have started at its Kalgoorlie site, and the first Kalgoorlie-based employees have been hired.

What did management say?

Commenting on the results, Lynas Rare Earths’ CEO, Amanda Lacaze said:

We are pleased to have delivered a record profit for our shareholders. This has been achieved whilst maintaining COVID-19 health and safety protocols for our people and communities, responding to logistics challenges and managing inventory to meet our customers’ needs…

Throughout the year, we reached a number of milestones related to our Lynas 2025 growth strategy which is focused on building capacity to meet forecast demand growth.

What’s next for Lynas?

Like most industries, Lynas cautioned that the pandemic continues “to present significant operational challenges”. It said this is especially true in Malaysia, but noted that 94% of its Malaysian staff have now had 2 doses of vaccine.

Looking ahead, Lacaze said, “Lynas is focused on serving customer demand and developing sustainable Rare Earths supply chains as we continue to progress our growth plans to meet future demand from high growth industries”.

The Lynas share price is up 184% over the past 12 months.

The post Lynas (ASX:LYN) share price down after record FY21 profits appeared first on The Motley Fool Australia.

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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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