Unlike a large proportion of shares on the ASX, the Treasury Wine Estates Ltd (ASX: TWE) share price has failed to bounce substantially from its post-pandemic lows. However, a recent deal negotiated by the federal government could turn the fortunes for Australian wine companies and the industry.

Why has the Treasury share price failed to bounce?

The Treasury Wine share price has only managed to bounce around 30% from its mid-March lows and is currently trading down more than 28% for 2020. This recovery dulls in comparison with the double and triple-digit recovery we have seen in other shares on the ASX.

Earlier this year, Treasury materially reduced market expectations citing an unexpected decline in profits from its US operations. The owner of famous brands like Wolf Blass, Lindemans and Penfolds was not spared during the COVID-19 pandemic, with Treasury acknowledging a decline in demand from China for its luxury wines.

In the company’s most recent trading update, Treasury informed investors that the COVID-19 pandemic and global lockdowns in major markets has reduced on-premise and cellar door sales. The company now expects earnings before interest, tax and accounting in FY20 to be between $530 million and $540 million. This compares to management’s guidance of $716–750 million at the interim result, which was then withdrawn on 25 February.

What deal has the federal government made?

According to a recent article in the Australian Financial Review, the federal government recently negotiated a deal that has lifted Canadian restrictions on Australian imports. Previous restrictions on Australian imports included a variety of taxes, markups and sales requirements. The new deal will lift these restrictions, allowing Australian wine producers and exporters like Treasury to take advantage of a market worth approximately $200 million per year.

Should you invest?

In my opinion, although the federal governments deal is a great win, I think that Treasury and the Australian wine sector in general faces multiple headwinds in the short term. Earlier this year, Treasury announced that it was considering a demerger of its flagship Penfolds business into a separate company listed on the ASX, which has further clouded the outlook for the company.

Despite the uncertainty, Treasury has reported positive signs of recovery in its major markets, which could see the company’s share price recover in the longer term. Instead of jumping the gun and buying shares in the company, I think a prudent strategy would be to wait until Treasury releases its full-year report in the August reporting season to get a better idea before investing.

In addition to Treasury, another listed wine company you might want to keep an eye on is Australian Vintage Limited (ASX: AVG).

More reading

• Why the Digital Wine Ventures share price is surging today
• How you can take advantage of the surging Australian dollar
• 2 ASX shares to buy during ‘Dry July’
• ASX 200 jumps 1.3%: Big four banks drop lower, Afterpay up after U.S. update
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 Is the Treasury Wine share price a buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3g3GKxs

As the economic outlook grows increasingly gloomy, many investors may be thinking of diversifying into defensive companies as a way of strengthening their portfolios. Generally, healthcare companies provide a good defence against a downturn as demand for health services tends to remain robust regardless of the prevailing economic conditions. However, many investors may want to look beyond the big name companies like Cochlear Limited (ASX: COH) or CSL Limited (ASX: CSL) to find pockets of higher growth in the sector. Here are three up-and-coming ASX healthcare companies that may offer explosive growth potential at bargain prices.

Polynovo Ltd (ASX: PNV)

Polynovo is a junior healthcare company that develops biodegradable medical devices for skin tissue repair. Its flagship medical technology is called NovoSorb, a synthetic polymer that clinicians can use to treat serious burn and skin trauma patients. It can be used in surgical procedures and will safely biodegrade and be excreted by the body.

The company recently announced it had secured US$15 million in funding from the Biomedical Advanced Research and Development Authority (BARDA), an office of the United States Department of Health and Human Services. The money will help finance a clinical trial to evaluate whether NovoSorb technology can apply to be an approved treatment for ‘full thickness burns’ in US hospitals. Full thickness burns are severe burns that destroy both the epidermis and dermis layers of skin.

The trial’s chances of success are relatively high, as NovoSorb is already used to treat these types of burns outside of America. This could cap off a surprisingly successful year for Polynovo. The company recently reiterated its FY20 guidance for sales to at least double FY19’s numbers.

Mesoblast Limited (ASX: MSB)

Mesoblast is an emerging pharmaceutical company that uses stem cell technology to develop treatments for a range of inflammatory diseases. The company’s shares have skyrocketed in recent months after one its treatments showed promising results in COVID-19 patients suffering from acute respiratory distress syndrome.

It was also recently announced that Mesoblast’s treatment for graft versus host disease – a potentially lethal condition affecting some cancer patients – had been accepted for priority review by the US Food and Drug Administration (FDA). If approved, the product has the potential to be made available in the US as early as September.

Revenues for the first nine months of FY20 were US$31.5 million, a 113% increase over the same period in FY19. A successful capital raise in May also means the company now has close to US$150 million in cash, which it is hoping to use to launch new treatments in the US, as well as scale up its manufacturing potential.

Medical Developments International Ltd (ASX: MVP)

Medical Developments International is a pharmaceutical and medical device company which specialises in pain management and the treatment of respiratory conditions like asthma. Its flagship product is a non-opioid analgesic named Penthrox.

Prior to the COVID-19 pandemic, the Medical Developments International share price had surged to an all-time high of $11.78. Excitement around the company was justifiably high: clinical trials of Penthrox were underway in China, and a US launch also seemed imminent.

However, the pandemic meant Chinese trials were put on hold, while talks with the US FDA don’t seem to have progressed markedly. Many impatient investors jumped ship, sending the share price tumbling – and even despite some recent gains, MVP is still trading at just $6.34.

However, for investors with a long-term outlook, I think this recent pullback in the share price offers the opportunity to pick up Medical Developments shares at bargain prices. Once the effects of the global pandemic subside, I believe the company still has a long growth runway ahead of it.

More reading

• ASX 200 Weekly Wrap: ASX has week of high volatility
• Should fixed-interest investments be part of your ASX share portfolio?
• Where to invest $100,000 into ASX shares
• Why I would buy Ramsay and this ASX blue chip share
• How CSL could save Australia from COVID-19

Rhys Brock owns shares of Cochlear Ltd. and Medical Developments International Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., Medical Developments International Limited, and POLYNOVO FPO. The Motley Fool Australia has recommended Cochlear Ltd. and Medical Developments International 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 3 junior ASX healthcare shares with explosive growth potential appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2BBa936

The Sezzle Inc (ASX: SZL) share price is pushing higher on Monday after the release of its second quarter business update.

At the time of writing the buy now pay later provider’s shares are up 2% to $8.03.

How did Sezzle perform in the second quarter?

During the second quarter, the Afterpay Ltd (ASX: APT) rival delivered underlying merchant sales (UMS) of US$188 million. This was a 57.5% increase on the first quarter and a 348.6% lift on the prior corresponding period.

This was driven by a 28.4% quarterly increase in active consumers to 1,475,235 and a 26.7% quarterly rise in active merchants to 16,112. Both metrics were up over 200% compared to the second quarter of FY 2019.

Sezzle’s merchant fees rose 54.8% over the first quarter and 397.1% over the prior corresponding period to US$10.6 million. As a percentage of UMS, merchant fees improved 55bps year on year to 5.6%, but declined 10bps from the first quarter.

Sezzle’s Executive Chairman and CEO, Charlie Youakim, was pleased with the quarter.

He said: “Our strong 2Q20 performance, improving consumer profile, and successful capital raise, position us to achieve our annualized run rate target of US$1 billion in UMS by the end of 2020. The shift to online retail has positioned Sezzle as a key partner for merchants, as 2Q20 represented the top 3 periods of monthly UMS in the Company’s history.”

“The gains in frequency of purchases by cohorts and repeat customer usage are encouraging to see as our business matures. We are excited about the brand loyalty that is building, as each cohort is outpacing the previous cohort at a similar point in time,” Mr Youakim added.

Strong balance sheet.

Operating cash flows for the quarter were a positive US$4.3 million, leaving Sezzle with US$55.7 million of cash and cash equivalents.

The company’s CFO, Karen Hartje, commented: “Our strong balance sheet at 30 June coupled with our Capital Raise subsequent to quarter end, positions us well to pursue our growth strategies and weather the protracted effects of COVID-19.”

“Additionally, during the pandemic, we continue to see leading loss indicators improve and have been able to leverage our cost structure. These trends combined with our top-line growth are driving positive moves in our Net Transaction Margin,” Hartje concluded.

More reading

• These BNPL shares have blown up since their IPOs
• 3 ASX fintech shares with exciting growth prospects
• Why Nearmap and 2 other ASX tech shares are surging higher today
• Zip and Openpay were among the most traded shares on the ASX last week
• Buy these strong ASX shares for your retirement portfolio

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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 Sezzle share price pushes higher after reporting stellar Q2 growth appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Ejz4ZT

The Bubs Australia Ltd (ASX: BUB) share price is sinking lower on Monday after the release its quarterly update.

At the time of writing the infant formula and baby food company’s shares are down almost 8% to 94 cents.

What did Bubs announce?

During the fourth quarter of FY 2020, Bub reported gross revenue of $13 million. This was a 5% decline on the prior corresponding period.

Management advised that this reduction was due to its strong sales in the third quarter during the height of the pandemic. This was driven by pantry stocking and pulled forward sales from the fourth quarter.

Nevertheless, infant nutrition sales grew 14% on the prior corresponding period during the quarter. These sales now represent 75% of gross sales and were largely driven by demand in China. Direct sales in this key market increased 26% on the same period last year.

This offset a 31% decline in Adult Goat Dairy segment sales, which now make up 24% of total sales. The remaining 1% of sales is attributable to its contract manufacturing business.

This ultimately led to Bubs reporting a 32% increase in FY 2020 gross revenue to $62 million.

What about its cash flow?

Unfortunately, the company wasn’t able to make it two consecutive quarters of positive operating cash flow.

Bubs reported an operating cash outflow of $6.9 million for the quarter which, combined with other costs, led to the company burning through $10.3 million of cash. This leaves Bubs with a cash balance of $26 million.

I suspect it is this cash burn that is weighing heavily on the Bubs share price today.

Vita Bubs launch.

In addition to its quarterly update, the company announced that it would be challenging Blackmores Limited (ASX: BKL) in the vitamin and mineral supplements market.

It is launching a range of children’s vitamin and mineral supplements that will be ranged in 400 Chemist Warehouse stores across Australia from October.

Bubs Founder and CEO, Kristy Carr, explained: “The Vitamin and Mineral Supplements category provides Bubs with the opportunity to leverage our unique positioning as a Children’s Nutrition and Australian Goat Dairy specialist with the launch of a complementary brand extension into this material $2.3 billion category.”

Supporting this launch will be its new global brand ambassador, Jennifer Hawkins.

The CEO commented: “Jen is a much loved Australian icon with her work as a popular TV presenter, international model, and successful entrepreneur. As a new mum she is the perfect role model to represent the Bubs brand to new parents everywhere, including among her legion of nearly two million social media followers.”

More reading

• My 5-minute bull case for the Bubs share price
• How to become a millionaire with ASX shares starting with $0
• Why Alcidion, Bubs, IGO, & Next Science shares are pushing higher
• Where I’d invest $9,000 in ASX shares
• Got $1,000? You should buy 1 of these 6 ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and BUBS AUST 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.

The post Bubs share price sinks lower on Q4 update and new product launch announcement appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32WH2m3

Another week, another wild ride for ASX 200 shares.

The S&P/ASX 200 Index (ASX: XJO) edged 0.2% lower to 6,024 points despite strong gains from the tech sector.

Last week, I was watching Coles Group Ltd (ASX: COL), Mirvac Group (ASX: MGR) and Northern Star Resources Ltd (ASX: NST).

The continued volatility was good for global gold prices which saw the Northern Star share price close up 3.7% for the week. Coles shares slid 2.0% from an all-time high while Mirvac shares dropped 2.8% lower.

After another volatile week on the markets, find out why I’ve got my eye on HUB24 Ltd (ASX: HUB) and 2 more ASX 200 shares this week.

HUB24 and 2 more ASX 200 shares to watch this week

Any recent share gainer is worth watching in my books. That’s certainly the case for HUB24 shares which are up 46.9% in July alone.

Shares in the wealth management software platform surged after the company reported record annual inflows of $4.95 billion, up 27% from FY19, with funds under administration climbing 34% to $17.2 billion for the year.

I think those strong numbers make the ASX 200 finance share worth watching in the weeks ahead.

While on the subject of numbers, Thursday’s budget update has provided some food for thought.

In particular, I think ASX 200 bank shares are worth watching after the Federal Government announced an $85.8 billion budget deficit for the year. 

With net debt set to balloon to $488 billion by the end of June. That could be good or bad news depending on how that money is spent in 2020.

ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) are so intertwined with the Aussie economy. That means strong government support could be good for the CommBank loan book and earnings quality.

Finally, the Orocobre Limited (ASX: ORE) share price is on my weekly watchlist. The ASX 200 lithium share rocketed 13.2% higher last week on renewed hopes of an electric vehicle boom.

Tesla Inc (NASDAQ: TSLA) shares have continued climbing recently on the back of strong earnings and closed out short positions. Strong production to fulfill demand could make lithium shares like Orocobre worth watching in the weeks ahead.

More reading

• 3 ASX dividend shares I like ahead of the August earnings season
• These are the 10 most shorted shares on the ASX
• These were the ASX 200’s biggest share gainers last week
• These shares were the ASX 200’s biggest losers last week
• ASX 200 Weekly Wrap: ASX has week of high volatility

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Hub24 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.

The post HUB24 and 2 more ASX 200 shares to watch this week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2D8vmBM

Good value ASX dividend shares are hard to find. With the August earnings season nearly upon us, let’s take a look at which ASX shares are worth considering right now.

3 ASX dividend shares I like in July

Right at the top of the list is Commonwealth Bank of Australia (ASX: CBA).

CommBank has long been a blue-chip ASX dividend share, churning out multi-billion-dollar profits and paying consistent dividends to shareholders.

All of that has changed thanks to the coronavirus pandemic in 2020.

The Australian Prudential Regulation Authority (APRA) wanted banks to reduce their dividend payments amid fears over liquidity and capital adequacy.

With APRA announcing a review of that advice, and the economy delicately poised for recovery, Commonwealth Bank could maintain its strong ASX dividend status.

If bad debts remain low and the bank can protect its net interest margin, we could see a small CommBank dividend announced in August.

Other than the ASX banks, I like the look of JB Hi-Fi Limited (ASX: JBH) right now. The JB Hi-Fi share price is up 16.5% this year despite challenging conditions for Aussie retailers.

Much of JB Hi-Fi’s share price growth has been due to strong sales in March and April.

With plenty of cash, and arguably limited internal reinvestment, JB Hi-Fi could be a strong ASX dividend share this year.

JB Hi-Fi shares are currently yielding 3.4% but I’d be keeping an eye on its 17 August results.

My final ASX dividend share to watch is Transurban Group (ASX: TCL). In my books, Transurban is more of a medium to long-term prospect.

Traffic numbers on its toll roads have been hit hard by coronavirus restrictions. However, that is starting to pick up again which could be good news for the Aussie infrastructure group.

Whilst we’ve seen a shift towards working from home, we’re also seeing a move away from public transport. This means FY2021 and FY2022 could be good ones for Transurban.

I’d tip Transurban’s distributions to dip lower this year. However, if you’re a buy and hold investor, I still think its a good long-term ASX dividend share.

More reading

• ASX 200 Weekly Wrap: ASX has week of high volatility
• 5 simple steps to financial independence
• A top ASX dividend share to buy next week
• Buffett buys more bank shares: Should you?
• 2 off the grid ASX retail shares for higher returns

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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 3 ASX dividend shares I like ahead of the August earnings season appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30TueKq

Every Monday I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) continues to be the most shorted share on the Australian share market despite its short interest easing slightly to 12.1%. Short sellers appear to believe the department store operator will struggle because of the accelerating shift to online shopping.
• Speedcast International Ltd (ASX: SDA) has short interest of 11.7% once again. Short sellers have done very well with this one. The communications satellite technology provider’s shares have been suspended for a few months as it finalises its bankruptcy.
• Webjet Limited (ASX: WEB) has seen its short interest fall week on week to 9.8%. Webjet shares have been among the worst performers on the ASX 200 in 2020 because of the pandemic. Some short sellers don’t appear to believe the worst is over for the company and its shares.
• Inghams Group Ltd (ASX: ING) has 9.5% of its shares held short, which is down slightly week on week. Last week the poultry company’s shares came under pressure after one of its processing plants in Victoria was closed after five employees tested positive for coronavirus. Outside this, there are concerns that its performance in FY 2020 could be impacted by an unfavourable sales mix.
• Nearmap Ltd (ASX: NEA) has seen its short interest rise slightly to 8.3%. Nearmap has come onto the radar of short sellers this year after large churn events led to a guidance downgrade. They may be expecting more churn events because of the pandemic.
• Zip Co Ltd (ASX: Z1P) has entered the top ten with 8.1% of its shares held short. Short sellers may be targeting the buy now pay later (BNPL) provider because of its lofty valuation and a recent rise in bad debts.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest remain flat at 8%. I suspect that the valuation of this biopharmaceutical company’s shares is the reason for high short interest.
• FlexiGroup Limited (ASX: FXL) has seen its short interest rise to 7.9%. The financial services company has been reporting strong BNPL growth, but there remain questions over the rest of its business.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest fall to 7.9%. Last week the regional bank lifted its coronavirus provisions and warned that there could be more to come.
• Orocobre Limited (ASX: ORE) has seen its short interest rise again week on week to 7.6%. Short sellers have been going after Orocobre due to ultra-low lithium prices.

More reading

• These were the ASX 200’s biggest share gainers last week
• ASX 200 Weekly Wrap: ASX has week of high volatility
• 3 stellar ASX tech shares I would buy in August
• Here are easy ways to diversify your ASX portfolio
• These were the best performing ASX 200 shares last week

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended FlexiGroup Limited and Nearmap 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.

The post These are the 10 most shorted shares on the ASX appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32YdBQI

The Australian share market hit a four month high on Tuesday but slid lower towards the end of the week, with the S&P/ASX 200 (ASX:XJO) ending the week down 0.2%. The market was buoyed early in the week on news around a potential COVID-19 vaccine, but economic data put a dampener on exuberance later in the week. The government announced the extension of its stimulus payments which gave the market continued support, but ongoing increases in COVID-19 cases in Victoria is giving rise to caution. 

The information technology sector finished the week marginally higher with the S&P/ASX All Technology Index (ASX: XTX) up just under 2%. The energy sector also performed well, however industrials and healthcare were down. A number of blue chip shares dropped last week, including CSL Limited (ASX: CSL), which fell 2.3%. But Afterpay Ltd (ASX: APT) was up 3.6% and Newcrest Mining Limited (ASX: NCM) was up 5.6%. So now let’s take a look at last week’s biggest ASX 200 share price gainers. 

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price gained 17.2% last week to finish the week at $1.36. The gold miner released its June quarterly report and the gold price was also on the rise, closing the week at $2680 per ounce. Resolute poured 107,183 ounces of gold in the June quarter at an all-in sustaining cost (AISC) of US$1,033 per ounce. 

The miner sold 110,660 ounces of gold during the quarter at an average price of US$1,446 per ounce. Resolute Mining had US$88 million cash and bullion at 30 June 2020 and net debt of US$220 million. The company has provided FY20 guidance of 430,000 ounces of gold at an AISC of US$980 per ounce. 

AP Eagers Ltd (ASX: APE)

The AP Eagers share price rose 16.8% last week to close the week at $7.23. AP Eagers is Australia’s oldest listed automotive group. The company represents a diversified portfolio of brands including 19 of the top 20 selling car brands in Australia and 9 of the top 10 selling luxury car brands. The company operates dealerships, many of which are on land it owns, with the balance leased. 

AP Eagers own $332 million of prime real estate in high profile, main road locations across Brisbane, Sydney, Melbourne, Adelaide, and Perth. It sold off an ancillary refrigeration business in June for $75 million, allowing it to focus on its core automotive retailing business. The company has engaged with its landlords in an effort to share the economic burden of Covid-19 and taken action to reduce its cost base. There was no news out of the automotive group last week to prompt the price rise, however the extension in the government’s stimulus program and resulting uplift to the economic outlook no doubt contributed. 

Orocobre Limited (ASX: ORE) 

The Orocobre share price lifted 13.2% last week to finish the week at $3.17.  Lithium prices are at record lows this year but are expected to rally in coming years as demand for electric vehicles increases. Orocobre shares have been rallying since the start of the month, having been slow to recover from the March market correction. Orocobre shares actually hit their low for the year of $1.84 in May, but have since recovered 72%.

Sales in the June quarter were impacted by coronavirus restrictions which hindered the ability of the company to complete sales. Total sales volume for the June quarter was approximately 1,600 tonnes of lithium carbonate at US$4,015 per tonne FOB. While most logistical issues have now been addressed, demand has yet to return to normal as customers delay shipments due to lower production and excess inventory. 

Electric vehicle manufacturers are taking a cautious approach to production given the uncertain economic impacts of COVID-19. Nonetheless, the pandemic has accelerated investment in some jurisdictions which will have medium to long-term benefits with many European countries implementing programs to support the manufacture and use of electric vehicles. 

Silver Lake Resources Limited (ASX: SLR) 

The Silver Lake Resources share price gained 11.6% last week to close the week at $2.59. Another beneficiary of the rising gold price, Silver Lake Resources also revealed record quarterly gold production last week. During the June quarter, Silver Lake Resources produced 71,291 ounces of gold and 494 tonnes of copper. It sold 64,593 ounces of gold and 416 tonnes of copper. 

Annual group sales were a record 255,533 ounces of gold and 2,175 tonnes of copper, exceeding upgraded sales guidance. The miner reported it held cash and bullion of $269 million at the end of the quarter, an increase of $42 million or 19%, plus no debt. Silver Lake Resources has provided sales guidance for FY21 of 240,000 to 250,000 ounces of gold and 1,100 tonnes of copper. 

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price rose 11% last week to close the week at $10.40. The share price rose throughout the week after QBE released a better than expected update on the impact of COVID-19 and its 1H20 result. Covid-19 is expected to have a $335 million underwriting impact over the half. This includes ~$150 million of net incurred claims, ~$115 million of additional risk margin, and ~$50 million of premium concessions. 

While the landscape remains uncertain, QBE expects total Covid-19 related costs to be around $600 million pre-tax. QBE expects to report a 1H20 net statutory loss after tax of $750 million, reflecting the impact of Covid-19, bushfires, and investment market volatility. CEO Pat Regan said, “despite the impact of Covid-19, I am encouraged by the strong underlying trends evident in the result. Our greatly strengthened capital base positions us well to capitalise on accelerating pricing momentum and emerging organic growth opportunities.”

More reading

• These are the 10 most shorted shares on the ASX
• Why the gold price just stormed to a record high
• ASX 200 Weekly Wrap: ASX has week of high volatility
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

Motley Fool contributor Kate O’Brien 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 These were the ASX 200’s biggest share gainers last week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2OXFDU3