The 2020 stock market crash highlighted the extreme volatility that can be present in the stock market. Indexes such as the FTSE 100 Index (FTSE: UKX) and S&P 500 Index (SP: .INX) declined rapidly in a short space of time. While some stocks have recovered, many others continue to be viewed negatively by investors as a result of an uncertain economic outlook.

As such, there could be buying opportunities that rarely present themselves. Through taking a long-term view and buying a diverse range of undervalued stocks today, you could improve your financial prospects.

Stock market crash 2020: an unusual event

The 2020 stock market crash was a very rare event. It prompted a bear market, with many indexes across the world slumping by over 20% in a matter of weeks. The last time such a large fall was experienced across global equity markets was during the global financial crisis in 2008/09. Prior to that, the dot com crash and an uncertain geopolitical outlook in the early 2000s also prompted severe declines for global stock markets.

Therefore, in the past 20 years, there have been only a small number of instances where stock prices have declined severely en masse. This means that buying opportunities such as those still available today are relatively rare. Investors who can go against the consensus views of their peers and buy high-quality shares at cheap prices may generate impressive returns in the long run.

Today’s buying opportunities

While some shares have recovered following the stock market crash, many others continue to trade at low prices. Investor sentiment towards sectors that face an uncertain near-term outlook is especially weak, with banks, retailers and consumer goods companies trading at low prices. In some cases, they are trading significantly below their historic averages. This suggests that they offer a wide margin of safety, and could deliver high capital returns in the long run.

Of course, the economic outlook is likely to remain uncertain for many months. Therefore, it is sensible to diversify across a range of sectors. With consumer sentiment apparently changing rapidly in response to lockdown measures put in place across many major economies, having exposure to a range of industries within your portfolio could be a profitable move.

A long-term perspective

While there may yet be another stock market crash, the reality is that such buying opportunities are few and far between. Investors who use them to their advantage through purchasing undervalued stocks can generate market-beating returns. Over time, they can make a real difference to your portfolio’s performance and your financial outlook.

Therefore, while buying shares may seem like a risky move today, it could be a logical step for any long-term investor to take. The stock market’s track record of recovery suggests that many undervalued stocks will deliver recoveries as the economic outlook improves.

More reading

• Don’t worry about low interest rates, just buy these ASX dividend shares
• Got $1,000? You should buy one of these 8 ASX shares
• Here’s my top ASX share to buy and hold through the 2020s
• How to turn $20,000 into $350,000 in 10 years with ASX shares
• These were the best performing ASX 200 shares last week

Motley Fool contributor Peter Stephens 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 Stock market crash 2020: a once-in-a-lifetime chance to get rich? appeared first on Motley Fool Australia.

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According to the latest economic report out of Westpac Banking Corp (ASX: WBC), its team expect the Reserve Bank to cut the cash rate down to 0.1% before the end of the year.

After which, the bank is forecasting rates to stay on hold at this level until at least the end of 2022.

I agree with this view and feel it could be many years before interest rates return to normal levels again.

In light of this, I would suggest income investors stick with dividend shares for the foreseeable future.

But which ASX dividend shares should you buy? Two I rate highly are listed below:

Rural Funds Group (ASX: RFF)

The first ASX dividend share to consider is this agriculture-focused property company. Rural Funds owns a total of 61 high quality properties which are leased to experienced agricultural operators on long-term agreements.

It is these long term agreements and their built in rental increases that most attract me to the company. These give Rural Funds great visibility on future earnings and, barring any unforeseen events, will allow the board to deliver on its target of increasing its distribution by 4% each year. In FY 2021 the company plans to lift its distribution to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 4.8% yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option for income investors to consider buying is this dividend-focused exchange traded fund (ETF). The Vanguard Australian Shares High Yield ETF gives investors access to 65 of the highest yielding blue chip shares on the Australian share market. This includes the likes of utilities company APA Group (ASX: APA), banking giant Commonwealth Bank of Australia (ASX: CBA), and Bunnings owner Wesfarmers Ltd (ASX: WES).

I like the ETF for two main reasons – the diversity it offers investors and its attractive yield. In respect to the latter, I estimate that it offers a FY 2021 dividend yield in the region of 4% to 5%.

More reading

• Why Rural Funds (ASX:RFF) is a great ASX dividend share
• APA Group (ASX:APA) plots a steady path to low emissions future
• ASX 200 recovered throughout today, but finished 0.3% lower
• Why Domino’s, Oil Search, Resolute, & Zip shares are dropping lower
• Why it makes sense to invest in ASX shares

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of APA Group and Wesfarmers 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 Don’t worry about low interest rates, just buy these ASX dividend shares appeared first on Motley Fool Australia.

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I think there are a number of ASX shares that are worth buying at the current prices with $1,000 (or more).

In my opinion, each of the below picks could be really good long-term options:

Pushpay Holdings Ltd (ASX: PPH)

This ASX tech share is a donation payments business which services the large and medium US church sector. It’s aiming for US$1 billion of annual revenue from this target market.

I think the company has a compelling future for the rest of the decade with growth being brought forward by COVID-19. The rising profit margins are very attractive to me.

At the current Pushpay share price it’s valued at 41x FY21’s estimated earnings. 

I’ve written about Pushpay many times as an idea, here is the latest longer-form article.

Redbubble Ltd (ASX: RBL)

Redbubble is an artist product business that sells things like wall art, masks, phone cases, clothing and so on through an online marketplace.

The company is seeing enormous growth as consumers shift to online purchasing. In the first quarter of FY21 it saw marketplace revenue growth of 116% and gross profit growth of 149%. It’s a very scalable business due to network effects. It is steadily adding new product lines which increases its total addressable market.

In my opinion, Redbubble has a very promising growth trajectory over the next five years.

I have covered Redbubble in a longer article here.

Temple & Webster Group Ltd (ASX: TPW)

This ASX share is another e-commerce business. It sells furniture and home furnishings online. It’s another business benefiting from the big shift to online shopping.

The Temple & Webster share price has crashed 24% lower after giving its trading update this week. Was it bad? The year to date to 19 October 2020 revenue was up 138% and it generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $8.6 million – more than the whole of FY20.

Looking out five years, I think this is a good opportunity to buy shares of a very fast-growing business.  

WAM Microcap Limited (ASX: WMI)

WAM Microcap is a listed investment company (LIC) which aims to invest in ASX shares with market capitalisations under $300 million.

I think the investment team at WAM Microcap is one of the best LIC teams out there. Its portfolio has generated strong results – since inception in June 2017 it has generated returns of 21.2% per annum (before fees, expenses and taxes).

It also offers a grossed-up dividend yield of 5.3%.

MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is another LIC which has done well. The ASX share has been one of the best LICs over the past decade under the stewardship of Chris Mackay.

It owns a portfolio of high quality global shares with good growth prospects like Visa, Mastercard, Berkshire Hathaway, Home Depot and Microsoft.

I believe good long-term returns can continue, with a steadily rising dividend as a bonus.

Here’s the latest longer article I wrote about MFF Capital.

Future Generation Global Invstmnt Co Ltd (ASX: FGG)

Future Generation Global is another LIC that gives exposure to global shares. However, it invests in the funds of fund managers that invest in global shares. Those managers work for free so that Future Generation Global can donate 1% of its net assets to youth mental health charities. It’s a great setup. 

Its portfolio has outperformed the global share market over the short-term and longer-term. It’s trading at a discount to its net tangible assets (NTA) per share and it’s starting to grow its (small) dividend.

This is a longer article I wrote about Future Generation Global.

A2 Milk Company Ltd (ASX: A2M)

I think A2 Milk could be the best value ASX growth share in the ASX 200.

The infant formula business is certainly going through a tough time at the moment due to COVID-19 impacts on domestic customer demand and logistics.

However, I believe it still has a very strong future – particularly in North America. I think short-term difficulties give us an opportunity to buy shares cheaper of this attractive global growth business.

At the current A2 Milk share price it’s valued at 23x FY23’s estimated earnings.

I made a bull case for the A2 Milk share price in a longer article here.

Bubs Australia Ltd (ASX: BUB)

Bubs is also an infant formula ASX share that’s suffering due to COVID-19 at the moment.

There are a few moving parts to Bubs, with the Chinese element worrying some investors.

However, there are two key areas of Bubs that make me bullish about its long-term future when you look out five years. First, its gross profit margin is steadily rising as more of its revenue comes from infant formula. Second, its growth prospects in markets outside of China, such as Vietnam, look very promising and could help drive revenue and profit much higher in FY22 and beyond.

I wrote about Bubs in a longer article here.

More reading

• Here’s my top ASX share to buy and hold through the 2020s
• 3 sublime ASX growth shares to buy this month
• The Adore Beauty (ASX:ABY) share price surged 10% higher today
• Why Iluka, Link, Resolute, & Temple & Webster shares are tumbling lower today
• I think the Bubs (ASX:BUB) share price is a steal

Tristan Harrison owns shares of Future Generational Global Investment Company Limited, Magellan Flagship Fund Ltd, and WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk and BUBS AUST FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Temple & Webster Group 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 Got $1,000? You should buy one of these 8 ASX shares appeared first on Motley Fool Australia.

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I think there are only a few ASX shares that are going to be able deliver very strong returns over the rest of the decade. If I were going to buy one share and hold it through the 2020s it’d be Pushpay Holdings Ltd (ASX: PPH).

What is Pushpay?

Pushpay is a digital donation business. It facilitates electronic giving to the large and medium US church sector.

Cash used to be the clear leader in how people donated to churches. Pushpay is at the leading edge of enabling donations these days with its technology. It offers an app for the church to connect with the congregation. Not only does it allow people to donate through the app, but there are various other community things that can be done in the app including livestreaming services.

Pushpay’s technology is very useful in this period with COVID-19 impacting the US. Social distancing and restrictions have significantly brought forward adoption of Pushpay.  

Why I think it’s a great ASX share

I think a lot of shares are going to produce better returns than cash over the next five to ten years.

However, there are only a certain number of ASX shares that are going to end up outperforming the market by a lot.

I believe Pushpay could be one of those to do very well. On the revenue side of things, it was already doing well – in FY19 it grew revenue by 40%. In FY20 it grew revenue by 32%.

For me, one of the most attractive things about Pushpay is that it’s rapidly growing its profit margins. In FY20 the ASX share managed to increase its gross profit margin from 60% to 65%. Even more importantly, its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin also rose by five percentage points from 17% to 22%.

This rising profitability means that new revenue adds more to Pushpay’s bottom line than in previous years. It shows that Pushpay is a very scalable business.

Whilst the company is aiming for US$1 billion of revenue, which represents huge growth from where Pushpay’s revenue is at the moment (it generated US$129.8 million of revenue in FY20), I think it’s the increase in profitability that is the most exciting thing about the ASX share.

Pushpay is steadily growing its market share of a sector that is likely to keep seeing regular yearly donations for a very long time. Plus, I think people would keep donating even during tough times – as they are right now. To me, Pushpay is a pretty defensive business on top its growth potential.

At the current Pushpay share price it’s priced at 41x FY21’s estimated earnings. This is the current year, where Pushpay is expecting to double its EBITDAF to a range of US$50 million to US$54 million.

Optionality for further growth

I think there’s a lot of growth potential from just the core Pushpay business.

However, I believe that there is a lot of other growth avenues that Pushpay could target along the road. For starters, there are other countries with churches that it would be pretty easy for Pushpay to just shift its software across to.

There are obviously other religions that the ASX share could target in the US and abroad.

Outside of religious donations, there is a huge amount of global donations for other charities and causes that are processed by other providers that Pushpay could try to organically grow into, or acquire a bolt-on acquisition to kickstart that diversification.

This additional growth may not be at the front of Pushpay’s plans, but I think it shows there is long-term growth potential with this business.

I think Pushpay is one of the most exciting shares on the ASX. I’d be very happy to buy some shares today.

More reading

• Why you should pay attention when management buy (or sell) ASX shares
• Why it makes sense to invest in ASX shares
• ASX 200 shares hit by multiple takeovers
• Where to invest your first $500 into ASX shares today
• This is where I’d invest $1,000 right now into ASX tech shares

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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 Here’s my top ASX share to buy and hold through the 2020s appeared first on Motley Fool Australia.

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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Codan Limited (ASX: CDA)

It certainly hasn’t been a smooth ride, but this electronic products company’s shares have been strong performers over the last decade. The majority of its gains have come in the last few years after low interest rates sent the gold price hurtling higher, underpinning very strong demand for its leading metal detectors. Overall, the Codan share price has generated an average total return of 18.6% per annum during the last 10 years. This would have turned a $20,000 investment into $164,000.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s has been growing its sales and earnings at an above-average rate over the last decade. This has been driven by the pizza chain operator’s highly successful focus on technology, such as mobile ordering, and its expansion across Australia, Japan, and several European countries. This has led to Domino’s shares delivering investors an average total return of 33% per annum. This means that if you had invested $20,000 into its shares 10 years ago, your investment would now be worth just under $350,000.

Ramsay Health Care Limited (ASX: RHC)

This leading private healthcare company has successfully expanded its operations over the last 10 years via acquisitions and developments. It now has a total of 480 facilities across 11 countries, making it one of the largest and most diverse private healthcare companies in the world. Combined with growing demand for healthcare services due to ageing populations and increasing chronic disease, this has underpinned solid earnings growth over the last decade. Which has led to its shares generating a market-beating average total return of 17% per annum. This would have turned a $20,000 investment in 2010 into over $96,000 today.

More reading

• Top brokers name 3 ASX shares to sell today
• Why Domino’s, Oil Search, Resolute, & Zip shares are dropping lower
• Broker updates are mixed on these 6 high profile ASX 200 shares
• Why Domino’s (ASX:DMP) and this ASX share just surged to record highs
• 2 ASX growth shares I would buy with $2,000 today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and Ramsay Health Care 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 How to turn $20,000 into $350,000 in 10 years with ASX shares appeared first on Motley Fool Australia.

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U.S. COVID-19 stimulus uncertainty weighed on sentiment last week and led to the S&P/ASX 200 Index (ASX: XJO) dropping lower. The benchmark index lost 9.8 points or 0.2% of its value to end at 6,167 points.

Fortunately, not all shares dropped lower with the market. Here’s why these were the best performers on the ASX 200 last week:

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price was the best performer on the ASX 200 last week with a 12% gain. This appears to have been a delayed reaction to an announcement a week earlier which revealed that the healthcare imaging software provider has signed a milestone contract in Germany. Pro Medicus has signed a seven-year deal with LMU Klinikum worth a total of A$10 million. The contract will see its Visage 7 technology deployed throughout LMU Klinikum’s radiology and subspecialty imaging departments.

BlueScope Steel Limited (ASX: BSL)

The BlueScope share price was on form and charged 9.2% higher over the five days. All of this gain came on the final day of the week after the steel producer released its guidance for the first half of FY 2021. According to the release, BlueScope expects to report underlying earnings before interest and tax (EBIT) of $340 million for the first half. This represents a 30% increase on the second half of FY 2020 and a 12.4% lift on the prior corresponding period.

Qantas Airways Limited (ASX: QAN)

The Qantas share price wasn’t far behind with a gain of 8.1% last week. A reduction in COVID-19 cases in Australia and its annual general meeting presentation appear to have helped drive its shares higher. The latter revealed significant cost cutting plans and management’s belief that it will win a greater share of the domestic market due to Virgin Australia’s new strategy.

Challenger Ltd (ASX: CGF)

The Challenger share price was a positive performer last week and rose 7.9%. This latest gain stretched the annuities company’s month to date gain to a sizeable 25%. A week earlier Challenger released its first quarter update and reaffirmed its guidance for FY 2021. It continues to expect normalised net profit before tax in the range of $390 million and $440 million.

More reading

• These were the worst performing ASX 200 shares last week
• The ASX 200 was mixed today, it finished down 0.1%
• 3 key takeaways from the Qantas (ASX:QAN) AGM
• CleanSpace (ASX:CSX) share price rockets 62% higher following IPO
• Why the Iluka (ASX:ILU) share price nearly halved today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Pro Medicus 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 were the best performing ASX 200 shares last week appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) wasn’t able to repeat the heroics of the previous week and dropped lower last week amid U.S. COVID-19 stimulus uncertainty. The benchmark index fell 9.8 points or 0.2% to 6,167 points.

Four shares that fell more than most last week are listed below. Here’s why they were the worst performers on the ASX 200:

Iluka Resources Limited (ASX: ILU)

The Iluka share price was the worst performer on the ASX 200 last week with a massive 47.2% decline. However, this decline relates to the demerger of its Deterra Royalties (ASX: DRR) business and nothing untoward. Eligible shareholders received 1 Deterra Royalties share for every Iluka share they own. The Deterra Royalties share price ended the week at $4.60, which offset most of the $4.78 decline in the Iluka share price.

Resolute Mining Limited (ASX: RSG)

The Resolute share price was out of form and sank 11.5% lower last week. Investors were selling the gold miner’s shares after the release of a disappointing third quarter update. Resolute’s production was down notably quarter on quarter and its costs jumped meaningfully higher. In light of this, management expects its full year production to be at the low end of its guidance range and its costs to be at the high end.

Megaport Ltd (ASX: MP1)

The Megaport share price wasn’t far behind with an 11.2% decline over the five days. The catalyst for this decline was the elastic interconnection services provider’s first quarter update. Investors appear to have been disappointed with its slower than normal revenue growth. However, the company did report strong growth port numbers during the quarter. This is a leading indicator for growth, which could mean Megaport bounces back in the second quarter.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was a poor performer and dropped 10% last week. This was despite there being no news out of the grain producer. However, its shares were up 8% month to date prior to the start of the week. Some investors may have decided to take a bit of profit off the table.

More reading

• These were the best performing ASX 200 shares last week
• The ASX 200 was mixed today, it finished down 0.1%
• CleanSpace (ASX:CSX) share price rockets 62% higher following IPO
• Brokers name 3 ASX shares to buy right now
• Why the Iluka (ASX:ILU) share price nearly halved today

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 and recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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 These were the worst performing ASX 200 shares last week appeared first on Motley Fool Australia.

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I think that Rural Funds Group (ASX: RFF) is a great ASX dividend share for both its income growth and diversification for investors.

Rural Funds’ diversification

Rural Funds is a farmland real estate investment trust (REIT). It owns a variety farms including cattle, almonds, vineyards, macadamias and cropping (cotton and sugar).

It’s good to see this level of diversification because it’s hard to say which farm type will deliver the best returns over the coming years.

These farms aren’t just diversified by farm type, but they are also diversified because they’re located across different states and different climates. It’s good that risk is lowered with this diversification.

Not only are the farms themselves diverse and strong, but most of the tenants are large and quality as well. That means they’re likely to keep paying their rent, even if times get tough. Many of them are listed either on the ASX or elsewhere. Some tenants include: JBS, Olam, Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV) and Australian Agricultural Company Ltd (ASX: AAC).

It’s important to remember that Rural Funds doesn’t take on the operational risks that the tenants do. But Rural Funds does own a large amount of water entitlements that are leased to tenants for them to use. I think that’s a good strategy considering the recent drought issues that the agricultural sector has faced.

The REIT has been adding to its diversification over the years and I think it will become even better over time.

Income growth

A key part of any business delivering market-beating returns these days is the ability to deliver growth. Some ASX tech shares are priced highly, whilst ASX dividend shares are looking a bit wobbly because of their impacted earnings.

Rural Funds is proving that it can continue to deliver rental earnings growth thanks to the way it’s set up.

Its rental contracts have rental indexation growth built into them. That growth is linked to CPI inflation or it’s a fixed 2.5% annual increase, with some contracts having market reviews. These rental increases are a big reason that the ASX dividend share can target an annual 4% increase to the distribution.

Another pillar to the growth of Rural Funds is its investing in productivity improvements. Rural Funds regularly retains some of its rental profit to invest in its farms to improve their productivity. This is particularly useful in a sector like cattle. The improvements can increase the rental income and capital value of the farms.

The final area of growth for Rural Funds is acquisitions. The ASX dividend share can make accretive acquisitions to grow its portfolio and then invest in those acquisitions to be more productive or change the farm type to a better use.

Is the Rural Funds share price a buy today?

Rural Funds is certainly not cheap after rising 15% since the start of August. It offers a FY21 distribution yield of 4.8%. I think that’s a solid starting yield which is projected to grow by 4% per annum for the foreseeable future.

It’s currently trading at a 21% premium to the adjusted net asset value (NAV). But the quality ASX shares with good assets like Goodman Group (ASX: GMG) are trading expensively at the moment because of the ultra low interest rates. I don’t think the premium should put off investors who are more focused on dividend income. 

Rural Funds is one of the few ASX dividend shares that kept growing its dividend/distribution during the difficult COVID-19 crash period. For strong income, I think Rural Funds is one of the best options out there. But there are a few other ASX dividend shares I’m also looking at.

More reading

• Coca-Cola Amatil (ASX:CCL) share price jumps on M&A speculation
• 2 of the best ASX dividend shares you can buy in October
• 2 ASX shares I plan to hold til I’m 100
• 2 of the best ASX dividend shares to buy today
• New Chinese government threat leaves these ASX mining stocks on tenterhooks

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and 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 Why Rural Funds (ASX:RFF) is a great ASX dividend share appeared first on Motley Fool Australia.

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The Laneway Resources Ltd (ASX: LNY) share closed up 14% today. This comes following the company’s announcement on the completion of its first blast at the high grade Sherwood deposit  at its 100% owned Agate Creek gold mine in North Queensland.

The emerging miner, with a market cap of $30 million, is no stranger to wild share price swings. Despite today’s 14.3% gains, the share price is down 20% year-to-date. Over that same time the All Ordinaries Index (ASX: XAO) is down 6%.

What does Laneway Resources do?

Laneway Resources is an emerging Australian resource development and mining company. Most of its projects are gold-focused in Queensland and New Zealand. The company also has a coking coal resource project in New South Wales.

Why did the Laneway Resources share price soar?

Laneway revealed that the first blast, completed yesterday at Agate Creek, exposed the first ore as mining starts. It expects approximately 9,000 ounces of gold will be mined in 2 stages the Sherwood Open Pit in the current campaign.

The company plans to mine 43,000 tonnes @ 6.5g/t from Sherwood and that the initial 18,000 will be processed this quarter at the Lorena Gold Mine CIL processing plant. That will occur at a fixed price over 3 weeks starting around mid-November. It forecasts gold recoveries will be approximately 90%.

Laneway expects to stockpile the remaining 25,000 tonnes for transporting and processing after the wet season. It also expects to see significant positive near-term cash flow and to receive the majority of the payment for the gold it produces in the first stage before the end of the year.

Commenting on the results, Laneway chair Stephen Bizzell said:

Commencement of mining activities at Sherwood on time is a great outcome for Laneway shareholders and we will be processing ore very soon through Lorena’s mill.

This means that significant revenue will be flowing to the company. The processing deal we have struck with Lorena enables payment by year end for the majority of the gold produced during this campaign.

This sets the company up well for a busy 2021 as we focus in parallel on the planning, approvals and development of the larger volume of high grade ore encompassed by the larger Whittle pit shell and then turn our attention to options for onsite processing of the almost half a million ounces identified at Agate Creek.

More reading

• Why the Lark (ASX:LRK) share price is flying high today
• Weebit (ASX:WBT) share price surges 17% higher on Q1 update
• Why the Carbon Revolution (ASX:CBR) share price soared 14% higher today
• The ResApp (ASX:RAP) share price is soaring 10% today. Here’s why.
• WISR (ASX:WZR) share price jumps higher on strong trading update

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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