Are you looking for a way to beat low interest rates in 2020? Then you might want to take a look at the ASX dividend shares listed below.

They both offer attractive yields and appear well-positioned for growth over the coming years. Here’s why I would buy them:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to consider buying this week is Dicker Data. It is a wholesale distributor of computer hardware, software, and cloud solutions to a growing partner base of over 5,500 resellers. Dicker Data distributes a portfolio of products from the world’s leading technology vendors, including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, Microsoft, and other Tier 1 global brands.

The company has been experiencing robust and growing demand for its offering in recent years. This was particularly the case in the first half of FY 2020, when Dicker Data delivered record sales and profits. Pleasingly, management appears confident that this form will continue in the second half and expects to increase its full year dividend materially. It is guiding to a 31% increase in its dividend to 35.5 cents per share. Based on the latest Dicker Data share price, this equates to a fully franked 4.1% yield.

Vitalharvest Freehold Trust (ASX: VTH)

Another ASX dividend share I would buy is agricultural property company Vitalharvest. It provides investors with access to quality agricultural property assets with exposure to the nutritious and healthy food trend. Its assets comprise four berry properties and three citrus properties, and count horticulture giant Costa Group Holdings Ltd (ASX: CGC) as a tenant.

I believe the company’s exposure to healthy eating trends means that these properties are well-placed for rental growth in the coming years. I expect this to underpin solid earnings and distribution growth over the next decade. For now, based on the current Vitalharvest share price, I estimate that it offers investors a forward ~6% distribution yield.

More reading

• Is the Domino’s (ASX:DMP) share price a buy?
• Forget term deposits and buy these ASX dividend shares instead
• My 3 favourite ASX dividend shares to buy this year
• 2 quality ASX dividend shares to buy before the RBA meeting
• 3 alternative ASX shares to buy for defensive income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Dicker Data Limited. 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.

The post Why I would buy these ASX dividend shares right now for income appeared first on Motley Fool Australia.

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One area of the market which I think is filled with a number of quality options for growth investors is the mid cap space.

But with so many to choose from, which ones should you consider buying?

Three top mid cap ASX shares I believe could be long term market beaters are listed below. Here’s why I rate them:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is the financial technology company behind the Sonata wealth management platform. This platform allows financial advisers to connect and engage with clients via computers, tablets, or smartphones. It counts a number of large financial institutions as customers, which I believe is a testament to its quality. In addition to this, Bravura has been on a bit of an acquisition spree over the last 18 months and has bolstered its portfolio significantly. In fact, just this morning it announced another earnings accretive acquisition in the UK. Combined, I believe the company’s portfolio has positioned it perfectly for growth over the 2020s.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a leading operator of KFC restaurants. It has a growing network across Australia and also in the under-penetrated European market. In addition to this, the company has been rolling out the Taco Bell brand across Australia. If this rollout and its KFC expansion at home and abroad continues successfully, it should underpin solid earnings and dividend growth in the coming years. I think this makes it a great buy and hold option for growth investors.

Jumbo Interactive (ASX: JIN)

Jumbo is the online lottery ticket seller behind the Oz Lotteries website and the Powered by Jumbo software as a service platform. It is the latter business which I expect to be the main driver of its growth in the future. Management certainly appears to believe this will be the case, noting that it is expecting this business to play a key role in the company achieving its target of $1 billion in ticket sales through the Jumbo platform by FY 2022. This will be a significant lift on what it achieved in FY 2020. The good news is that this target is still only a fraction of its assessable opportunity. Earlier this year management estimated that just 7% of the US$303 billion global total addressable market was currently online. And considering how much more efficient it is to sell lottery tickets online instead of in physical locations, I expect more and more lotteries will make the shift over the next decade. This puts its Powered by Jumbo platform in a great position to profit.

More reading

• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• Why the Bravura Solutions (ASX:BVS) share price is one to watch today
• Is the Domino’s (ASX:DMP) share price a buy?
• These were the worst performing shares on the ASX 200 last week

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Jumbo Interactive Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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 Azure Minerals Limited (ASX: AZS) share price went ballistic today, gaining more than 70% in intraday trading before some profit taking appears to have taken place.

In late afternoon trading, Azure’s share price is up 61.7% to close for the day at 38 cents. This comes after the company emerged from Friday’s trading halt, requested by Azure pending today’s release of the drill results at its Andover project in Western Australia.

Although the Azure Minerals share price fell 64% from mid-February through to mid-March, patient investors have had nothing to complain about this year. Since 26 March, the share price is up 660%, for a year-to-date gain of 171%.

In comparison, the All Ordinaries Index (ASX: XAO) is down 7.0% since 2 January.

What does Azure Minerals do?

Azure Minerals is a minerals explorer primarily focused on its portfolio of projects in Mexico. The company’s flagship project is the Oposura project, containing zinc, lead and silver resources. It’s situated in the northern Mexican state of Sonora.

The company also undertakes early-stage exploration for new greenfield’s prospects. And it partners with major resource companies to develop projects with the potential for large-scale, long-life mining operations.

Azure Minerals has a market cap of $627 million.

What’s driving the Azure Minerals share price up today?

Friday’s trading halt preceded Azure’s announcement today on the results of its first drill hole at the Andover project in the West Pilbara region of Western Australia. Azure owns 60% of the project and Creasy Group owns the other 40%.

The company reported significant nickel and copper sulphide mineralisation, with the drill hole intersecting 4.0 metres of massive nickel-copper mineralisation at 94.5 metres. Azure’s onsite geologist verified the results, which were confirmed by portable x-ray fluorescence.

The company reported that the “massive, semi-massive and matrix sulphides coincide with the interpreted position of a strong electromagnetic conductor identified by surface and downhole surveying”.

Azure is currently drilling a second hole to test the down-dip extension of the newly reported mineralised interval and the electromagnetic conductor.

Commenting on the first drill hole, Azure’s managing director Tony Rovira called it “an outstanding result and a great start to our maiden drilling program at Andover”.

Rovira added:

Importantly, this mineralised intersection coincides with the interpreted position of the downhole EM (DHTEM) conductor, providing support that the conductors represent significant accumulations of sulphide mineralisation. The Andover project area does not appear to host sulphide-rich sediments, graphitic shales, conductive overburden or other characteristics that may generate false signatures for the EM surveys, and their absence is exciting given the size, depth and intensity of the conductors we have identified and are targeting.

With drilling continuing through the end of the year, Azure’s share price is one to keep an eye on.

More reading

• Why the Mount Gibson (ASX:MGX) share price is moving higher today
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• Optiscan (ASX:OIL) share price flat on FDA update
• What’s driving the PayGroup (ASX:PYG) share price higher today
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Motley Fool contributor Bernd Struben 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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The Zip Co Ltd (ASX: Z1P) share price outperformed after a top broker predicted a better than expected quarterly update from management.

The Z1P share price jumped 5.7% to $7.99 on Monday when the S&P/ASX 200 Index (Index:^AXJO) recorded a 0.5% gain.

Zip’s strong showing also left its rivals in the dust. The Afterpay Ltd (ASX: APT) share price gained 2.8% to $92 while the Splitit Ltd (ASX: SPT) share price added 4.6% to $1.59.

Near-term catalyst for the Zip share price

Investors got excited about the Zip share price after Citigroup tipped further upside for the stock at the company’s upcoming September quarter update as its US subsidiary Quadpay could add to the sizzle.

“Zip’s website visits accelerated +11% mom [month-on-month] in September, while app downloads (Android only) in Australia increased +33% mom,” said the broker.

“Our analysis of Similar web data points to a record month for Quadpay on the back of adding GameStop, which should also be positive for [average] order values.”

Z1P share price getting boost from US

The Quadpay website visits increased by 55% in September compared to the same month last year.  Its Android app downloads also jumped by increased 54% to 166,000.

The addition of Gamestop and the launch of new Xbox and PS consoles is a key drive, according to Citi.

“Further, the game console orders should also increase average order value given the higher ticket price but note that there will be a lagged impact on GMV given customers need to only pay 25% upfront, with the balance paid post shipping (in November),” added Citi.

Afterpay website visits decline

Investors have a habit of comparing the Zip share price with Afterpay. The latter could hit a soft patch. While Citi estimated that Afterpay’s website visits from Australia and New Zealand increased 32% over the year, website visits dropped 11% mom.

However, this doesn’t bother Citi much. The softness in September is due to Afterpay’s major sales event in August.

In fact, the broker thinks Afterpay could also beat expectations thanks to improving momentum in its US operations last month. Its US website visits improved 7% mom – taking its first quarter website hits to 246% yoy – while Android app downloads jumped 25% to 438,000.

If there’s one area investors should pay attention to, it’s merchant switching. Citi noted that Afterpay stole Deckers Brands from Quadpay, while another rival, Klarna, won Haus Labs from Afterpay.

If the Zip share price doesn’t excite you, the experts at the Motley Fool is recommending this other group of ASX stocks for 2021.

Follow the link below to find out more.

More reading

• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher
• Why ASX oil stock laggards are well placed to bounce in the COVID recovery trade
• Ignore EBITDA and P/E ratios? This fundie does
• The Cann Group share price getting smoked after a strategic shareholder exits
• The valuable lesson Dr Takao Inui has for every ASX investor

Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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Investors looking for value best stay away from Woolworths Group Ltd (ASX: WOW), according to one fund manager.

Pengana Capital Group Ltd (ASX: PCG) portfolio manager Chris Tan told The Motley Fool that the share price for the supermarket giant was expensive.

“If you look at it from a historical price-to-earnings point of view, it does look expensive,” he said.

Woolworths closed at $37.94 today, up more than 4% since the start of the year. The price to earnings (P/E) ratio is 41.

The Woolworths share price was trading as low as $20.56 in 2016.

But Woolworths is still a high quality business

Even though he thought it’s not currently good value, Tan would never bet against Woolworths.

“The thing is, it has really an unrivaled position in Australia in terms of it’s network, it’s ability — it’s the leader,” Tan said in this week’s Foolish Q&A.

“For a long time there were price wars with Aldi coming in, Coles Group Ltd (ASX: COL), and Woolworths — and now we believe there’s equilibrium in that market. Everyone’s in their lane.”

Tan also believed Woolworths has already made the necessary investments into its operations, while its rivals have to play catch-up.

“Their competitors need to invest a lot more heavily than Woolworths do and this whole COVID-19 episode has really played into their strengths,” he said.

“We can see some food inflation coming back and just stronger demand for longer for groceries.”

Supermarkets will have a merry Christmas

Research firm IBISWorld this week forecast that Australian retailers would struggle in the coming Christmas season. 

But supermarkets would buck this trend.

“Families are expected to go all-out on their Christmas feasts this year, with many Australians celebrating their ability to reunite with family after states reopen borders and ease social distancing regulations,” said IBISWorld senior industry analyst Yin Yeoh.

The reasoning is that almost all Australians would stay in the country rather than head overseas for a holiday. 

Spending would hit $11.1 billion in December, according to IBSWorld, which is a 2.8% increase year-on-year.

Hotels business sell-off could be on again

Woolworths’ attempt to sell off its hospitality arm in the second quarter this year was scuttled. But Tan sees this as an eventuality, and a potential upside for investors.

“That will be back on track sometime next year, probably in calendar year ’21. (This) will leave Woolworths much better, more focused. And there could be a capital return to shareholders there,” he said.

“So it’s optically expensive, but it’s a very, very high quality franchise.”

Read The Motley Fool’s full exclusive interview with Chris Tan right here.

More reading

• Ignore EBITDA and P/E ratios? This fundie does
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• 5 things to watch on the ASX 200 on Monday
• 3 top ASX shares to buy and cash in on the Federal Budget
• Why I would buy these ASX dividend shares in October

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. 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 Event Hospitality and Entertainment Ltd (ASX: EVT) share price was down today, falling 3.45% to close the day’s trading at $9.24 per share. This came as the company released an update about the sale of its German cinemas business ‘Cinestar’.

What was in the announcement?

Event Hospitality previously entered into an agreement for the sale of its German Cinema operations, ‘Cinestar’, to Vue International Bidco. The transaction was subject to approval by the German Federal Cartel Office (FCO).

In order to obtain approval from the FCO, Vue was required to divest 6 sites, of which only 1 has been divested. According to Event Hospitality, the sale of a further 5 sites is in the late stages with 3 already approved by the FCO. However, according to the announcement, Vue has put a pause on the divestment process and is seeking to renegotiate the terms of the transaction. 

On 21 August 2020, Event Hospitality announced that Vue had been granted an extension by the FCO until 13 November 2020 to divest a further 5 of the 6 sites as required by the FCO. 

Event Hospitality sold its Cinestar business to Vue with an enterprise value of up to $358 million with an upfront payment of $210 million and the rest of the transaction value subject to ticket sales. The transaction was announced on 22 October 2018.

According to Event Hospitality,  it is currently in discussion with Vue in relation to the transaction.

About the Event Hospitality share price

Event Hospitality and Entertainment is an operator of hotels, resorts and cinemas. The company operates in Australia New Zealand and Germany with history dating back to 1910. Event Hospitality was previously known as Amalgamated Holdings and has been listed on the ASX since 1962.

In the year to 30 June 2020, Event Hospitality had revenue of $410.64 million, this was a decline of 24.1% compared to the prior year. In FY2020, Event Hospitality had earnings before interest, tax, depreciation and amortisation (EBITDA) of $26.32 million, down 74.9% compared to FY2019. In the year to 30 June 2020, the company reported a loss of $11.37 million.

The Event Hospitality share price is up around 68% since its 52-week low of $5.44, however, it has fallen more than 33% since the beginning of the year. The Event Hospitality share price is down 30.4% since this time last year.

More reading

• Why Event, Flight Centre, Oil Search, & Orica shares are dropping lower today
• 3 ASX trends to watch in budget week

Motley Fool contributor Chris Chitty 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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The Austal Limited (ASX: ASB) share price has moved higher today after the completion of acceptance trials for its newest ship.

At the time of writing, the Austal share price is trading at $3.50, up 1.74%

Acceptance trials complete

Austal has successfully completed acceptance trails in the Gulf of Mexico for littoral combat ship (LCS), USS Mobile. The new naval vessel will be delivered for the United States Navy this month.

The 13th independence-class warship was built in Austal’s USA facility in Mobile, Alabama. Named after the home city of its American operations, it is the third vessel to successfully complete acceptance trials at Austal USA in 2020.

The new combat ship is a high-speed, shallow-draft surface combatant with an aluminium trimaran hull that provides class leading, multi-mission capability. The ship is designed to defeat growing littoral threats and provide access and dominance along coastal waters. In addition, the vessel has operational flexibility to execute surface warfare, mine warfare and anti-submarine warfare missions.

Austal’s USA LCS program is at full rate production, with five ships currently under construction, including Mobile. The future USS Savannah has launched and is preparing for trials. Final assembly is under way for future USS Canberra and USS Santa Barbara. Modules for the future USS Augusta are under construction in the module manufacturing facility.

Austal chief executive officer David Singleton said the delivery of the new warship was an outstanding achievement for the company. He said:

Acceptance trials involve the execution of a number of tests by the Austal USA-led industry team while the vessel is under way; demonstrating to the United States Navy the successful operation of the ship’s major systems and equipment. The trials are the last significant milestone before delivery of the ship.

About the Austal share price

The Austal share price is up 56% since falling to its 52-week low of $2.25 in March. Although materially higher of late, the Austal share price is down almost 7% since the start of the calendar year and 30% from its 52-week high achieved in February.

More reading

• Top brokers name 3 ASX shares to buy today
• Potential ASX winners from government’s $1.5bn manufacturing blueprint
• Why the Austal (ASX:ASB) share price is moving today
• Why now is a good time to buy ASX defence shares

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. 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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The Hot Chili Ltd (ASX: HCH) share price is on the move today. Hot Chili’s shares were up 19% earlier in the day before giving back some of those gains. In later afternoon trading the share price is up 10.81%.

This follows on from the company’s ASX release this morning detailing the promising results of its first mineral resource estimate for its Cortadera project in Chile.

The big gains will come as welcome news to long time shareholders, who witnessed a 75% collapse in the share price from late January through to early April. Since 2 April, the Hot Chili share price has surged 310%. That’s enough to put shareholders up 2.5% year to date.

For comparison the All Ordinaries Index (ASX: XAO) is down 7.2% since 2 January.

What does Hot Chili do?

Hot Chili is primarily a copper explorer, though the company keeps a keen eye on its gold and silver resources as well. As its name implies, Hot Chili’s projects are located in Chile, in what the company labels Region III along the coastal range.

The company’s stated goal is to establish a central copper hub named Costa Fuego. This hub would encompass its 3 projects, Cortadera, Productora and San Antonio.

Hot Chili has a market cap of $89 million.

What did Hot Chili announce to the ASX to see its share price soar?

This morning Hot Chili announced promising results from the first mineral resource estimate (41% indicated and 59% inferred) for its Cortadera project. This represents one of only two major copper discoveries reported across the globe in the past 4 years.

The results indicated 724 million tonnes grading 0.48% copper equivalent for 2.9 million tonnes of copper; 2.7 million ounces of gold; 9.9 million ounces of silver; and 64,000 tonnes of molybdenum.

The company noted that the maiden Cortadera resource adds 451 million tonnes grading 0.46% copper equivalent. It said this now positions Hot Chili with the largest copper mineral resource and amongst the largest gold mineral resources for any emerging ASX companies.

Addressing the results, Hot Chili’s Managing Director Christian Easterday said:

The Cortadera resource estimate is a strong achievement given the company only executed a deal to acquire the privately owned discovery in February 2019… Generating a 451Mt maiden Resource for Cortadera a mere 14km away from our established Productora deposit (273Mt Resource) demonstrates the sheer scale of Hot Chili’s Coast Fuego copper hub.

Cortadera has a high grade core of 104Mt grading 0.74% copper equivalent and this has strong potential to continue growing rapidly with further drilling… We look forward to an exciting 12 months ahead with further drilling results and resource growth.

With the company planning a second mineral resource estimate for Cortadera in 2021, Hot Chili’s share price is one to watch.

More reading

• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher
• Pilbara Minerals (ASX:PLS) share price edges higher on operational update
• Why the Xtek (ASX:XTE) share price is shooting 9% higher today
• The Redbubble (ASX:RBL) share price is up 320% in 2020: Can it go higher?
• Why ASX oil stock laggards are well placed to bounce in the COVID recovery trade

Motley Fool contributor Bernd Struben 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.

The post Hot Chili (ASX:HCH) share price up 11% following this announcement appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) finished the day higher, rising by 0.5% to 6,132 points.

Here are the highlights from the ASX 200 today:

Takeover play for Link Administration Holdings Ltd (ASX: LNK)

The Link share price soared 24.5% higher today after the financial administration business announced a takeover play to acquire it.

Link said that it has received a conditional, non-binding indicative proposal from a consortium comprising Pacific Equity Partners (PEP), Carlyle Group and their affiliates to acquire 100% of Link in a takeover.

The indicative cash price offered to shareholders under the proposal is $5.20 per share. That offer would be a premium of around 30% compared to the closing price last week on Friday.

However, Link’s share price didn’t rise to $5.20 today. The proposal is still subject to a number of conditions including due diligence, negotiation and the execution of transaction documentation, securing debt financing, final investment committee approval from the relevant consortium committees and certain regulatory and other approvals, including the Foreign Investment Review Board (FIRB).

Existing substantial shareholder Perpetual Limited (ASX: PPT) has indicated it intends to vote in favour of the takeover, subject to it remaining a shareholder and there being no superior proposals.

The Link board said it will consider the proposal, including obtaining advice from its financial and legal advisers. The ASX 200 share said shareholders didn’t need to take any action.

Bapcor Ltd (ASX: BAP) drives higher

The Bapcor share price went up by 3% today after the automotive business announced a trading update for the quarter ending 30 September 2020.

The ASX 200 business said that during the first quarter of FY21, the government-imposed restrictions in Victoria and Auckland have had negative impacts on trading operations in those places. However, despite that, Bapcor’s businesses have continued to perform extremely well.

Compared to the three months to 30 September 2019, Burson Trade revenue grew by 10% with same store sales (SSS) up 7.7%, or up 17% excluding Victoria.

New Zealand revenue rose by 6% with SSS of 4%.

Retail revenue surged 47%, with Autobarn SSS rising 36% and AB Company SSS jumping 50%.

Specialist wholesale revenue grew by 45%, though excluding acquisitions it increased by 18%.

Putting all that together, Bapcor’s total revenue went up 27%.

Bapcor CEO Darryl Abotomey shared some thoughts about the rest of FY21:

“The automotive aftermarket is a resilient industry and historically has performed strongly in difficult circumstances. Recent trading is another example of its resilience assisted by the increase in sales of second hand cars, reduction in use of public and shared transport modes as well as government stimulus of second hand cars, reduction in use of public and shared transport modes as well as government stimulus. We envisage that the impacts of COVID-19, including the expected increase in domestic tourism and increased use of vehicles will continue to drive the Bapcor businesses.

“Bapcor is continuing to invest in its various businesses, including through information technology, marketing, process and system upgrades and capital investment in facilities to increase our footprint and to drive improved efficiencies. These investments do increase the cost base but will assist driving profit growth in the future.”

The ASX 200 share is expecting a strong first half, but the second half remains unclear and there are still uncertainties, so it couldn’t provide a forecast of earnings for FY21.

Bravura Solutions Ltd (ASX: BVS) acquisition

Bravura announced an acquisition today.

It’s acquiring Delta Financial Systems for a total consideration of up to £23 million, which is $41.5 million in Australian dollar terms.

Bravura has targeted this UK acquisition because it will complement Bravura’s core Sonata offering and broadens Bravura’s ecosystem of products and services.

The ASX 200 share said that Delta Financial Systems’ FY20 pro forma revenue was £6 million and is forecast to achieve revenue growth in the range of 20% to 30% with profit margins similar to Bravura’s wealth management segment.

It’s expected to add to earnings per share (EPS) in FY21 and it will be funded from existing cash reserves.

More reading

• Why ASX oil stock laggards are well placed to bounce in the COVID recovery trade
• Ignore EBITDA and P/E ratios? This fundie does
• The Cann Group share price getting smoked after a strategic shareholder exits
• The valuable lesson Dr Takao Inui has for every ASX investor
• ASX 200 down 0.1%: CBA’s COVID-19 loan deferrals improve, Link receives takeover approach

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor and Bravura Solutions Ltd. The Motley Fool Australia has recommended Link Administration Holdings 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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Pilbara Minerals Ltd (ASX: PLS) provided an operational update to the market today for the September 2020 quarter. The news sent the Pilbara Minerals share price to an intra-day high of 38.5 cents. This was followed by a slight pullback to 37.75 cents by the market’s close, representing a 0.67% gain.

This compares to the All Ordinaires Index (ASX: XAO) which hasn’t moved much today, up 0.12% to 6,338 points.

Business update

Pilbara Minerals announced its progress on its Pilgangoora Lithium-Tantalum project, continuing mining and processing operations. The company said while production strategy was achieved, several improvements over the September quarter were made.

Pilbara Minerals saw an increase of plant run-time and utilisation. This roughly represented between 70% to 75% utilisation, compared with 40% achieved in the June quarter.

The higher plant utilisation and high product recovery contributed to a lower average unit cash operating cost of US$355 per dry metric tonnes (dmt).

Production increased with a total of 62,404/dmt of spodumene concentrate, compared to 34,484 in the prior period. This led to an increase of sales, with shipments exporting 43,630/dmt, in line with the previous June guidance.

The company said that, despite the improvement of sales volumes, the price of lithium remains weak in the current climate. This reflects the lower pricing and demand being experienced across the entire supply chain.

However, Pilbara Minerals acknowledged it’s made strong progress and can quickly take advantage of a turnaround in the lithium market. The miner expects the production surplus to flow into contracted customer sales for the new quarter.

Pilbara Minerals will further update the market with its sales guidance for the September quarter in late October.

What did management say?

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, credited the hard work of his team and business partners at Pilgangoora. Mr Brinsden went on to talk about the strategic direction of the company. He said:

We are very pleased to see continued improvement in important key metrics like plant utilisation and run-time and sustained product recoveries, which collectively translated into a continued downward trend in unit operating costs towards our long-term targeted level of US$320 – 350/dmt.

Pilgangoora is a Tier-1, long-life asset that is ideally placed to capitalise on the turnaround in the lithium market. While we fully expect that turnaround to eventuate in the not too distant future, we are still seeing soft market conditions persist across the entire lithium-ion supply chain.

Commenting on the future, Mr Brinsden said the recent refinancing will give the company confidence to weather current market conditions. Pilbara Minerals looks to ramp-up production and shipments as demand and prices recover.

Should you invest?

While I think that Pilbara Minerals is making significant progress within its operations, personally, I’d be inclined to hold off for now. The lithium market isn’t expected to make a full recovery until the mid 2020’s.

As such, I will be looking for other opportunities in the market that present a safer investment.

More reading

• 3 reasons why ASX lithium shares can surge in 2021
• Is the run over for ASX lithium shares after Tesla’s battery day? 
• How Elon Musk’s Tesla delivered a body blow to these ASX stocks
• Elon Musk’s ‘Battery Day’ could see these ASX mining shares soar, and volatility hits the markets
• ASX shares Tesla (NASDAQ:TSLA) needs to survive

Motley Fool contributor Aaron Teboneras 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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