If you’re searching for generous dividend yields, then you might want to look at the dividend shares listed below.

Here’s what is expected from them in FY 2021:

Rural Funds Group (ASX: RFF)

The first dividend share to look at is Rural Funds. It is an agriculture-focused property group that owns a number of properties across five agricultural sectors. These properties are leased to some of the biggest operators in the industry, such as wine giant Treasury Wine Estates Ltd (ASX: TWE), on long term rental agreements.

These long leases have rental increases built into them, giving the company great visibility on its future earnings. So much so, management aims to increase its distribution each year by approximately 4%.

Pleasingly, it plans to do exactly this in FY 2021 and is forecasting an 11.28 cents per share distribution. Based on the current Rural Funds share price, this equates to a 4.55% yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Telstra. While the telco giant has been a big disappointment for income investors over the last five years, the dividend cuts finally appear to be over and its dividend now looks sustainable for the foreseeable future.

And thanks to its T22 strategy, it may not be too long before a return to both earnings and dividend growth is possible.

Analysts at Goldman Sachs are forecasting a 16 cents per share fully franked dividend through to FY 2023. Based on the current Telstra share price, this represents a 5.15% dividend yield.

The broker has a buy rating and $3.75 price target on the company’s shares at present. It is positive on Telstra’s prospects and supports its decision to look to monetise its TowerCo assets. It also appears to be a fan of its overall plan to split the company up into separate entities to unlock value.

More reading

• Telstra furious about freebies to Optus, TPG
• This ASX company’s in a comfy duopoly with NBN
• Broker lists the best ASX stocks to own for an up to 30% gain in 2021
• Think you saw growth in 2020? Just wait for 2021: fundie
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED, Telstra Limited, and Treasury Wine Estates 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index sank 0.8% to 6,663 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound.

The Australian share market looks set to bounce back from yesterday’s decline. According to the latest SPI futures, the ASX 200 is poised to open 34 points or 0.5% this morning. This follows a largely positive night of trade in Europe on Monday. US markets were closed for Martin Luther King Jr. Day.

NAB rated conviction buy.

Goldman Sachs has been running the rule over the banking sector. It appears much more positive on the banks and particularly National Australia Bank Ltd (ASX: NAB). The broker has put a conviction buy rating on NAB’s shares and increased the price target on them to $24.72. It has, however, downgraded Bendigo and Adelaide Bank Ltd (ASX: BEN) shares to a sell rating with a $9.24 price target.

Oil prices slide.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 0.5% to US$52.09 a barrel and the Brent crude oil price has fallen 0.65% to US$54.74 a barrel. Concerns over rising COVID cases has been weighing on oil prices.

Gold price rises.

It could be a better day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday after the gold price recovered slightly. According to CNBC, the spot gold price is up 0.4% to US$1,836.80 an ounce. Investors have been buying gold after COVID cases surged globally.

JB Hi-Fi given neutral rating.

The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued now according to analysts at Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target on the retailer’s shares to $51.60. Although its performance in FY 2021 is well ahead of the broker’s forecasts, Goldman expects its earnings to normalise over the next couple of years.

More reading

• 3 ASX 200 shares that keep growing their dividends
• Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO
• ASX 200 drops 0.8%
• RBA warns that low rates don’t come without cost
• ASX dividends: Are miners the new bank shares?

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. 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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There are some S&P/ASX 200 Index (ASX: XJO) shares that keep growing their dividend every year.

Plenty of large ASX dividend shares didn’t grow the dividend in FY20, like Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

But there are some ASX 200 shares that keep growing the dividend, like these:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX 200 share that has increased its dividend for the longest number of years in a row. It has a consecutive dividend growth streak going back to 2000.

It operates as an investment conglomerate. That means it owns both listed and unlisted investments. Some of its listed investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API) and New Hope Corporation Limited (ASX: NHC).

Unlisted investments include agriculture, financial services, resources and swimming schools.

The ASX 200 dividend share retains some of its cashflow each year to re-invest into more opportunities.

At the current Soul Patts share price it has a grossed-up dividend yield of 3.1%.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi has increased its dividend consistently over the past several years. Consistent growing of profit over the long-term has helped fund those dividend increases.

In FY20, which included COVID-19, the ASX 200 dividend share grew total sales by 11.6% to $7.9 billion, underlying net profit after tax rose by 33.2% to $332.7 million and underlying earnings per share (EPS) went up 33.2% to 289.6 cents.

JB Hi-Fi’s final dividend went up 76.5% to 90 cents per share whilst the total FY20 dividend rose by 33.1% to 189 cents per share.

The continuing growth is evident in JB Hi-Fi’s FY21 half-year update. The retailer said that its sales went up by 23.7% to $4.94 billion, earnings before interest and tax (EBIT) went up 75.9% to $462.7 million and net profit after tax (NPAT) rose by 86.2% to $317.7 million.

Management said that sales momentum was strong throughout the half, with continued elevated customer demand for consumer electronics and home appliances products. This, combined with high growth of online sales and a strong Black Friday sales period, more than offset the impact of the government mandated temporary store closures during the half. Online sales went up 161.7% to $678.8 million, which represented 13.7% of total sales.

The ASX 200 share said that gross margins were well managed with strong improvements in gross margins in key categories, particularly in The Good Guys, but was offset by the sales mix in JB Hi-Fi Australia and JB Hi-Fi New Zealand.

JB Hi-Fi also said that disciplined cost control combined with strong sales growth drove significant operating leverage. It didn’t receive any government wage subsidies and continued to pay landlords and team members throughout the half, including the periods where stores were temporarily closed.

At the current JB Fi-Fi share price it has a grossed-up dividend yield of 5.1%.

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Domino’s is another ASX 200 share that has steadily grown its dividend over the past several years, by a substantial amount.

The pizza ASX 200 share has grown its store count globally, increased its same store sales and improved its technology further for both customers and the pizzamakers.

In FY20 it saw its network sales rise by 12.8% to $3.27 billion, with online sales surging 21.4% with it being boosted during the COVID-19-affected period. FY20 EBIT went up 3.6% to $228.7 million and free cashflow rose 90.7% to $161.9 million. The number of stores increased by 6.5% to 2,668 stores globally across ANZ, Japan and Europe.

The result helped the Domino’s board decide to increase the full year dividend by 3.3% to 119.3 cents.

Over the next three to five years it’s hoping to achieve annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. Over the long-term it thinks it can reach a total of over 5,500 stores.

At the current Domino’s Pizza Enterprises share price it has a grossed-up dividend yield of 2.1%.

More reading

• Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO
• ASX 200 drops 0.8%
• RBA warns that low rates don’t come without cost
• ASX dividends: Are miners the new bank shares?
• JB Hi-Fi (ASX:JBH) share price soaring on record sales

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 Globe International Limited (ASX: GLB) share price powered up today as the company released a trading update. Shares in the skate-shop were up 34.3% at a price of $4.50 at close of trade.

The news comes after a superb 6 months for the company, which has seen a number of announcements send its share price soaring 267%.

Market update

This afternoon, shares in the consumer discretionary company were rocketing off the back of a positive performance update for the first half of FY21.

Globe advised that preliminary sales for the half year were around $125 million, up approximately 60% compared to the prior corresponding half. Earnings before interest and tax (EBIT) is estimated to exceed $20 million. This compares to the $4.2 million achieved in the prior half, marking an increase of 376%.

The company plans to announce its half year results late in February. A more complete view of the results and a full year outlook will be provided then. Globe noted that the information in this trading update is unaudited and remains subject to finalisation.

What Globe does

Globe is a global producer and distributor of purpose-built apparel, footwear, and hardgoods for the board sport, street fashion and workwear markets. 

Founded in 1985 by three brothers, its business is divided between proprietary brands, licensed brands, and distributed brands. The main of which is ‘Globe’, a large skating brand.

The Australian based small cap currently boasts a market capitalisation of $138 million, and sells its products in 100 countries worldwide. In addition, Globe is paying a trailing dividend yield of 2.59%.

About the Globe share price

Today’s 34.3% increase in the Globe share price marks a 52-week high for the company.

It comes after a positive 2020 for the company, which saw its shares gain 146% despite COVID-19 disruptions. In contrast, the All Ordinaries Index (ASX: XAO) dropped 3.6% during the same period.

More reading

• Why the Greenvale (ASX:GRV) share price surged 9% today
• What does ‘good diversification’ mean in 2021?
• Why the ARB Corp (ASX:ARB) share price popped today
• Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO
• ASX 200 drops 0.8%

Motley Fool contributor Daniel Ewing 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 Greenvale Mining Ltd (ASX: GRV) share price surged 9.52% today. This comes after the company announced the appointment of an experienced Australian mining executive as its new managing director.

The mineral exploration company’s shares closed the day’s trade at 10.5 cents per share.

Quick take on Greenvale

Based in North Fremantle, Western Australia, Greenvale is a mineral exploration company with a focus in oil shale deposits. The company owns a 99.99% interest in the Alpha shale oil deposit in central Queensland, and an 80% stake in the Iron Oxide Copper-Gold (IOCG) exploration project in the Georgina Basin.

What’s lifting the Greenvale share price

The Greenvale share price was sent surging following the company’s appointment of Mr Neil Biddle as managing director.

Mr Biddle is the founder of Pilbara Minerals Ltd (ASX: PLS) and has served on the Greenvale board since September, alongside mining executive Mr Tony Leibowitz.

He brings a significant wealth of experience to Greenvale, with over 35 years in senior management within the exploration and mining industry. Biddle will drive the development and commercialisation of the company’s Alpha Torbanite Project in Queensland

Greenvale’s Alpha Project is known to be the only remaining deposit of torbanite in Australia. The mineral is a substance between oil shale and coal, which consists of a variety of fine-grained black oil shale.

The company said that previous studies have shown that torbanite has potential to produce bitumen, light crude, and activated carbon.

According to Greenvale, over 800,000 tonnes per annum of the product is currently imported. The company highlighted that if the Alpha Project goes into production, the site will become a domestic supplier of bitumen, creating a unique position for Greenvale in the Australian market.

The company further noted Mr Biddle will supervise the pre-feasibility study for the Alpha Project which is due to be completed before mid-2021. The study will include resource drilling and bulk sampling test work, which will enable a final feasibility study, and potential investment decision.

Management commentary

Greenvale chair Mr Tony Leibowitz commented on the appointment of Mr Biddle. He said:

We believe the Alpha Torbanite Project is a project whose time has come, and I can think of no one better qualified to drive its development than Neil. Being resident in Queensland, Neil will be ideally placed to access the Project and work with our key consultants to rapidly advance Alpha towards production over the next 12 months.

He added:

Having worked closely with Neil at Pilbara Minerals, Bardoc Gold and other ventures over many years, I know that we possess the combined technical, corporate and commercial skill-sets to move this Project forward quickly and unlock value for our shareholders. Neil will also be well placed to advance our exciting Georgina IOCG Project in the Northern Territory, which is a frontier-scale exploration initiative capable of delivering Tier-1 mineral discoveries in an under-explored part of Australia.

More reading

• Why BrainChip, Pilbara Minerals, Premier Investments, & Tyro shares are dropping lower
• Here’s why the Pilbara (ASX:PLS) share price is on watch today
• Fundies reveal 3 top ASX shares to buy for 2021
• The Pilbara Minerals (ASX:PLS) share price is already up 25% in 2021
• Are ASX lithium shares staging a comeback in 2021?

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. 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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Ah, diversification… that magic word in the world of investing. One of the few consistent things you will hear from most financial advisors, stock pickers and would-be market experts is the importance of ‘diversification‘ in your investment portfolio.

A Nobel prize-winning economist even called it the ‘only free lunch’ in finance. Yet, it’s not quite enough to say ‘don’t put all your eggs in one basket’ in 2021. The world has changed (insert cliche) in a dramatic fashion over the past 12 months, and ‘good diversification’ might just have changed with it. So let’s have a look at this concept, and what it means in 2021 and beyond.

The primary objective of diversification is to mitigate risk without damaging your portfolio’s potential to deliver returns. It’s a lot better to have your money spread across 10 ASX shares than one, for instance. That way, if a black swan event, or another unforeseeable catastrophe, hits one of your companies, it won’t irrevocably ruin your portfolio.

But that’s diversification in its most basic application. Many investors also like to diversify their money between different asset classes too.

How do investors diversify?

Over in the United States, it used to be very common for financial advisors to recommend what’s known as the ’60/40 portfolio’. That represents a model portfolio consisting of a 60% allocation to shares, and a 40% allocation to fixed-interest investments, usually government bonds.

The idea is that the high potential of volatility (together with the possibility of higher returns) of shares are tempered with the stability of the bonds. Thus, you have a growth-orientated portfolio that won’t be as prone to volatility as a simple index exchange-traded fund (ETF) of shares.

That used to work reasonably well. But in 2021, the story is different. Government bonds are directly tied to interest rates. If rates fall, the bonds increase in value, and vice versa. But the problem is today, interest rates across the advanced economies of the world are all essentially at zero.

That means that bonds are arguably offering little to no potential future upside (unless rates go negative) today, together with very low running yields. This situation has possibly all-but rendered bonds impotent as an asset class offering a real rate of return.

As such, we have seen a rise in interest in asset classes that aren’t normally too popular with most investors. Why do you think we saw the gold price break its all-time high in 2020? Or witnessed bitcoin explode in value over the past few months in particular? It could be because investors are hunting for an alternative to having all of their capital in the share market right now.

So what’s the answer for how to diversify in 2021 and beyond?

Diversification in 2021

Well, there’s no harm in seeking to diversify your money across many different asset classes. That principle still arguably stands.

But it might be prudent to assess the intrinsic and holistic value of the assets you are using all the same. If you think bitcoin, or some other cryptocurrency, has a real intrinsic value today, then you wouldn’t be the only one.

We’ve recently covered how some ASX fund managers are exploring this avenue. There’s always gold as well. Although gold is not everyone’s favourite investment, it still remains one of (if not the) the oldest means to store wealth. There’s always that great Aussie past time of property too. Many investors love the simple fact that everyone is always going to need a place to live.

Additionally, many great investors are completely comfortable just with a well-balanced and diversified portfolio of ASX shares as well – with perhaps some international shares thrown in for a bit of spice. There’s no real ‘right or wrong’ answer to this question, it just depends on how comfortable you are with where your money is placed.

More reading

• Why the ARB Corp (ASX:ARB) share price popped today
• Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO
• ASX 200 drops 0.8%
• Why the OceanaGold (ASX:OGC) share price will be on watch on Tuesday
• Telstra furious about freebies to Optus, TPG

Motley Fool contributor Sebastian Bowen owns bitcoin. 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 ARB Corporation Limited (ASX: ARB) share price rose by almost 5% today, with ARB shares closing the day’s trade at $32.58 per share.

The company is Australia’s largest manufacturer and distributor of 4×4 accessories. ARB’s product range contains an assortment of different vehicle accessories including bull bars, canopies, roof racks and driving lights.

What’s been moving the ARB Corp share price?

Following the release of the company’s unaudited half year sales results on 12 January, the ARB Corp share price has been bouncing up and down. 

Some analysts believe ARB is on the right track, with seven granting a ‘buy’ rating, according to Nabtrade data.

The ARB Corp share price has boomed over 63% higher during the past 6-month period.

ARB Corp’s recent performance

In last week’s update, the company advised that it achieved unaudited sales revenue of $284 million for the half year ended 31 December 2020. This represents growth of 21.6% on the prior corresponding period.

ARB Corp also reported it expects its profit before tax for the first half to be within the range of $70 million to $72 million.

ARB also advised it maintains a positive short-term outlook based on a strong customer order book and record sales in December 2020.

The company expects to release half year 31 December 2020 results on Tuesday 16 February 2021. However, the company goes on to assert that its first half performance “should not be used as an indicator for the second half of the financial year, for which no guidance can be provided, as it remains far too uncertain to predict in the current economic climate.”

Foolish takeaway

With origins dating back to 1975, ARB started in the Melbourne garage of founder Anthony Ronald Brown, hence the name ARB. Today, ARB has an international footprint with an export network that extends to more than 100 countries.

In a year where COVID-19 came barrelling through, the ARB share price has delivered a return of over 59% in the past 12 months. 

More reading

• ASX 200 rises 0.1%
• ASX 200 drops lower
• ASX 200 up 0.4%: Altium disappoints, ARB impresses, Mesoblast charges higher
• Why ARB, Mesoblast, Pushpay, & Super Retail shares are racing higher
• Why the ARB (ASX:ARB) share price is charging 6% higher today

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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 Chimeric Therapeutics (ASX: CHM) share price had a very strong start to life as a listed company on Monday.

The drug development company’s shares jumped a whopping 88% at one stage to a high of 37.5 cents.

The Chimeric Therapeutics share price eventually closed the day at 29.5 cents, which is 47.5% higher than its Initial Public Offering (IPO) price of 20 cents.

The Chimeric Therapeutics IPO.

Chimeric Therapeutics’ shares landed on the ASX boards today following the completion of an IPO that raised $35 million from investors.

The offer comprised of 175 million shares to raise $35 million at an offer price of $0.20 per share, giving the company a market capitalisation of $66.1 million upon listing.

Management advised that the IPO was met with excellent support from both new and existing institutional, professional, and retail investors within Australia and overseas.

The proceeds from the IPO will be used to fund the phase 1 clinical trial of the CLTX-CAR T at the City of Hope Cancer Centre in Los Angeles and to further develop an oncology focused pipeline of novel cell therapies.

In addition, some of the proceeds will be used to invest in personnel, corporate, and working capital, as well as license fees to City of Hope.

What are Chimeric and CLTX-CAR T?

Chimeric is a clinical stage cell therapy company focused on the development of novel cell therapies for oncology. It is developing CLTX-CAR T, which uses a peptide derived from scorpion toxin, to direct T cells to target glioblastoma (brain cancer).

It has noted potent anti-tumour activity against glioblastoma established in preclinical models.

In light of this, a phase 1 trial of CLTX-CAR T therapy is now underway at the City of Hope cancer centre, where the first patient was dosed in late 2020.

Chimeric’s Executive Chairman, Paul Hopper, commented: “The team at Chimeric has been overwhelmed with the support for the IPO and what we believe is a highly promising technology in an attractive area of immuno-oncology. The IPO allows us to further develop the CLTX-CAR T therapy and extend it to patients with an unmet need, including those suffering from GBM as well as other solid tumors.”

More reading

• ASX 200 drops 0.8%
• RBA warns that low rates don’t come without cost
• ASX dividends: Are miners the new bank shares?
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
• Why the Premier Investments (ASX:PMV) share price is under pressure

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. 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 S&P/ASX 200 Index (ASX: XJO) went 0.8% lower today to 6,663 points.

Here are some of the highlights from the ASX:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi announced its FY21 half-year update. The retailer said that its sales went up by 23.7% to $4.94 billion, earnings before interest and tax (EBIT) went up 75.9% to $462.7 million and net profit after tax (NPAT) rose by 86.2% to $317.7 million.

Management said that sales momentum was strong throughout the half, with continued elevated customer demand for consumer electronics and home appliances products. This, combined with high growth of online sales and a strong Black Friday sales period, more than offset the impact of the government mandated temporary store closures during the half. Online sales went up 161.7% to $678.8 million, which represented 13.7% of total sales.

The ASX 200 share said that gross margins were well managed with strong improvements in gross margins in key categories, particularly in The Good Guys, but was offset by the sales mix in JB Hi-Fi Australia and JB Hi-Fi New Zealand.

JB Hi-Fi also said that disciplined cost control combined with strong sales growth drove significant operating leverage. It didn’t receive any government wage subsidies and continued to pay landlords and team members throughout the half, including the periods where stores were temporarily closed.

The JB Hi-Fi share price went up by close to 4% today.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price fell 1.6% today despite revealing large profit growth in the first half of FY21.

For the 26-week period ending 26 December 2020, the company said that it achieved a record result with group sales growth of 23% and like-for-like sales growth of 24%. Online sales went up 87% to $327 million.

The Super Retail gross margin improved by 270 basis points, which supported higher EBIT margins across all four core brands.

Super Retail reported that its provisional segment underlying EBIT was $253 million to $256 million – this would equate to growth of 119% to 122%. It also said that provisional normalised net profit is going to be in a range of $174 million to $177 million, which would be growth of 135% to 139%.

Statutory net profit is expected to be in a range of $170 million to $173 million, which would be growth of 196% to 201%.

Anthony Heraghty, the CEO and managing director of Super Retail, said: “Strong cashflow generation leaves us well placed in the second half to reinvest in our brands to maintain our customer value proposition, expand and reward our customer base, consolidate our market-leading positions and grow our market share. As inventory levels are restored during the second half, following a period of unprecedented consumer demand, we expect the level of promotional activity to increase.”

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price fell 0.4% despite the company giving the market a positive update.

It said that it had agreed to amend the binding long-term sale and purchase agreement to increase the supply of LNG from Woodside’s global portfolio to Uniper.

The quantity of Woodside LNG to be supplied under the amended agreement has doubled. Initial supply commencing in 2021 is now for a volume of up to 1 million tonnes per annum (mtpa), increasing to 2 mtpa from 2026. Most of the LNG supply after 2025 will come from the Scarborough gas resource.

Woodside CEO Peter Coleman said: “Scarborough is a globally competitive, capital efficient LNG development which supports the decarbonisation ambitions of our customers.

“This agreement with Uniper highlights the strong market demand we are seeing for Scarborough LNG as customers consider their energy requirements from the second half of this decade. We have now secured long-term customers for over 40% of our expected Scarborough equity production.”

More reading

• RBA warns that low rates don’t come without cost
• ASX dividends: Are miners the new bank shares?
• JB Hi-Fi (ASX:JBH) share price soaring on record sales
• Why Data#3, JB Hi-Fi, Ramsay, & Zip shares are charging higher
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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The OceanaGold Corp (ASX: OGC) share price will be one to watch tomorrow following the after-hours release of its fourth quarter and full year update.

What did OceanaGold announce?

According to the release, the company expects to report fourth quarter consolidated gold production of 99,155 ounces for the three months ended 31 December.

This will bring its full year gold production to a total of 301,675 ounces, which is down 36% on the FY 2019 due to the shutdown of its Didipio operation in the Philippines following protests.

OceanaGold achieved this with an all-in sustaining cost (AISC) of US$1,075 per ounce for the quarter and US$1,276 per ounce for the full year. The latter was up from US$980 per ounce in FY 2019.

However, the company benefited from the appreciation in the gold price in 2020. Its average gold sold price came in at US1,648 per ounce for the quarter and US$1,573 per ounce for the year. This compares to FY 2019’s average gold sold price of US$1,360 per ounce.

At the end of the period, the company had liquidity of US$229 million. This includes US$179 million of cash on hand and $50 million in undrawn credit facilities.

OceanaGold’s President and CEO, Michael Holmes, commented: “We delivered a strong fourth quarter of production, consistent with our core value to deliver on our commitments. Despite the ongoing risks associated with the COVID-19 global pandemic in the United States, Haile achieved its full year production guidance with 137,413 gold ounces produced including 48,988 ounces in the fourth quarter.”

“The risks associated with the management of COVID-19 remain, and we are focussed on keeping our workforce safe while delivering on our commitments. We expect the continued mining of high-grade zones at Haile through the first half of 2021,” he added.

Didipio update.

OceanaGold appears optimistic that its troubled Didipio operation could be back up and running as normal in the near future.

It advised that it has had multiple meetings with national government officials in December to finalise the terms of the FTAA renewal. This renewal is expected to be endorsed to the Office of the President for approval.

It added that it will continue to engage with government officials and work with stakeholders for a safe restart of operations at Didipio. However, it warned that the timeline for the renewal remains uncertain and achieving steady state production will be dependent on the timing of the renewal and workforce recruitment efforts.

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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the OceanaGold (ASX:OGC) share price will be on watch on Tuesday appeared first on The Motley Fool Australia.

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