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Investors who have owned Macquarie Group Ltd (ASX: MQG) and Commonwealth Bank of Australia (ASX: CBA) shares have enjoyed the benefits of positive long-term investments.

CBA is known as the biggest bank in Australia, and it has an impressive position in the Australian home lending space.

Macquarie’s business has four different segments: asset management, investment banking, commodities and global markets (CGM), and a retail bank providing banking and loans.

But let’s compare the ASX bank shares in three different areas – valuation, dividend yield and potential growth — to find out which is a better buy right now.

Macquarie and CBA share price valuation

The price/earnings (P/E) ratio isn’t everything, but the earnings multiple can tell us if one business is trading more expensively than another within the same sector. Or, the change in a company’s own P/E ratio can tell us if it’s cheaper or more expensive than it used to be.

Using the estimates from the broker UBS, the Macquarie share price is valued at 19x FY25’s estimated earnings and 18x FY26’s estimated earnings.

In comparison, the CBA share price is valued at close to 22x FY25’s estimated earnings and 21x FY26’s estimated earnings.

On the above numbers, Macquarie shares are trading more expensively than CBA shares.

Potential growth

CBA’s operational activities focus largely on lending to households and businesses in Australia and New Zealand. The bank has been pushing to grow its business lending, which was 1.1x the overall Australian system for the three months to March 2024. However, CBA’s home lending was only 0.7x the system.

CBA and many of the domestic ASX bank shares are currently suffering from high levels of competition in the sector. This is impacting net interest margin (NIM) and limiting growth. CBA’s quarterly cash net profit was down 5% year over year to around $2.4 billion.

In contrast, Macquarie is growing its market share and challenging the major players. I’ll also point out that Macquarie makes a significant amount of its earnings internationally. The company has the option to allocate attention and capital to whichever market it thinks it can make the best returns from.

Macquarie has also been looking to tap into areas like renewable energy, which is a big area of potential investment in the coming years as the world looks to decarbonise.

According to UBS, Macquarie’s earnings per share (EPS) are expected to grow by 33% between FY25 and FY28. However, CBA’s EPS is only expected to grow by 4% between FY25 and FY28.

I think Macquarie shares offer much more earnings growth potential, so I’d buy shares of the investment bank over CBA shares.

Dividend yield

Capital growth could account for the majority of future returns for both businesses, but the dividend return is also an important part of the picture.

According to the independent forecasts on Commsec, owners of CBA shares are expected to receive a fully franked dividend yield of just under 3.6% in FY25 and just over 3.6% in FY26.

Owners of Macquarie shares are projected to receive a partially franked dividend yield of 3.4% in FY25 and 3.7% in FY26. Macquarie’s projected superior earnings growth could lead to a better dividend yield.

The post Are Macquarie or CBA shares a better buy? appeared first on The Motley Fool Australia.

More reading

• Forget CBA and buy these ASX dividend stocks
• ASX 200 bank shares ‘don’t appear overly expensive’ compared to global peers: UBS
• What is the outlook for ASX 200 dividend shares in FY25?
• Would Warren Buffett buy CBA shares today?
• Why did CBA shares jump 27% in FY24?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price is sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed Friday trading for $44.39. In late morning trade on Monday, shares are changing hands for $43.82 apiece, down 1.3%.

That sees the big Aussie miner trailing the benchmark, with the ASX 200 down a lesser 0.4% at this same time.

It’s not just the BHP share price that’s underperforming though. Fortescue Metals Group Ltd (ASX: FMG) shares are down 1.9%, while Rio Tinto Ltd (ASX: RIO) shares are down 1.5% at this same time.

Here’s why the ASX 200 miners are battling headwinds today.

Why is the BHP share price underperforming on Monday?

Most of the selling pressure impacting BHP, Rio Tinto, and Fortescue today appears to be due to the 3% decline in the iron ore price over the weekend. After defying bearish expectations and climbing for most of the first week of July, the iron ore price dipped back to just over US$110 per tonne.

The reason once more looks to be driven by concerns that China’s sluggish, steel-hungry property markets have yet to regain any solid growth traction. Coupled with news of growing iron ore stockpiles at China’s largest ports, iron ore traders have been favouring their sell buttons.

With iron ore counting as BHP’s biggest revenue earner, the BHP share price is joining in that sell-down today.

Indeed, over the half-year to 31 December, the miner reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$9.7 billion from its iron ore division alone.

In its half-year report, released on 20 February, BHP estimated it will produce between 254 million and 264.5 million tonnes of iron ore in FY 2024.

So any pull back in demand from China, the world’s biggest consumer of iron ore, is going to have an impact on the BHP share price.

The miner addressed its own cautious outlook for Chinese iron ore and other commodity demand earlier this year, stating:

The Chinese economy has been volatile since the zero-COVID policy was eased in December 2022…

Throughout the year authorities have acknowledged that additional policies will be needed to support China’s economic recovery. For the balance of FY24 and into FY25, the key question remains how effective the policy push will be. Until we see greater coherence between the policies and their effective implementation, our outlook will remain cautious and conditional.

With today’s intraday moves factored in, the BHP share price is down 13% in 2024 but remains up 3% over 12 months.

The post Why is the BHP share price starting the week with a whimper? appeared first on The Motley Fool Australia.

More reading

• Best 5 ASX 200 energy shares for price growth in FY24
• Why are BHP shares trudging lower on Friday?
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• Morgans names 3 ASX 200 stocks to buy in July
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Encounter Resources Ltd (ASX: ENR) shares are catching the eye of investors on Monday.

At one stage, the ASX mining share was up as much as 26% to a new high of 92 cents.

The niobium explorer’s shares have eased back a touch since then but remain up 16% to 85 cents at the time of writing.

Why is this ASX mining share surging?

The catalyst for today’s gain has been the release of drilling results from the Aileron project in Western Australia.

According to the release, aircore drilling has intersected further shallow, high-grade mineralisation at the West Arunta-based project.

At the Crean target, continuous near-surface carbonatite was intersected across the four aircore drill lines completed to the west of previous drilling. Previously reported assay results from the most western aircore drill line returned shallow high-grade niobium mineralisation.

Management notes that mineralisation at Crean is strongest on the two western sections. Pleasingly, it remains open to the west. As a result, the aircore drill rig has now returned to Crean to complete 200m spaced drill lines to extend this high-grade, near surface mineralisation further to the west.

Over at the Emily target, as a reminder, fifteen widely spaced reverse circulation holes were completed by the ASX mining share late last year. Emily is centred on a magnetic low on the Endurance Fault, which is northwest of the world class Luni discovery owned by WA1 Resources Ltd (ASX: WA1).

Management advised that 10 of the 15 reconnaissance holes intersected carbonatite. The carbonatite at Emily is variably anomalous in niobium and rare earth elements (REE) with shallow, high-grade niobium-REE intersected in two adjacent holes 400m apart.

Its latest aircore drilling tested the north-south extent mineralisation intersected previously. The good news is the first assays received from Emily returned shallow, high-grade niobium-REE mineralisation north and south of there. Additional aircore drilling at Emily will be completed in July/August to establish strike extent of the high-grade mineralisation identified.

The ASX mining share’s executive chairman, Will Robinson, commented:

Aircore drilling is defining new belts of shallow niobium-REE carbonatite hosted mineralisation in the West Arunta. Highly enriched, near surface mineralisation has now been intersected at both the Crean and Emily targets which are located on separate structures at Aileron, over 10km apart. The aircore rig is currently completing further drill sections at the western end of Crean and will then return to Emily and Green.

The post This ASX mining share is surging 26% on ‘high-grade’ drilling results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

AMP Ltd (ASX: AMP) shares have not performed well compared to the S&P/ASX 200 Index (ASX: XJO). In the 12 months to 30 June 2024, AMP shares fell by 2.6%, as shown on the chart below, while the ASX 200 rose by 7.8%. Therefore, the ASX financial share underperformed by over 10%.

Of course, it’s important to note that AMP’s financial year follows the calendar year, so while the Australian 2024 tax year is over, AMP still has another six months of its FY24 to go.

AMP has been facing headwinds in recent times from banking competition and a shifting environment in the financial advice space. Analysts are not expecting a spectacular recovery for the company, but have suggested it could see profit slowly climb.

Before considering the outlook for the next 12 months or so, let’s review the latest financial updates from AMP.

Earnings recap

In the FY23 result, which was released in February 2024, AMP said its underlying net profit after tax (NPAT) grew by 6.5% to $196 million. It also paid a 2023 final dividend per share of 2 cents.

AMP Bank said its underlying NPAT was $93 million, down from $103 million in FY22. The decline was due to a weaker net interest margin (NIM) compression and growth moderation. Its platforms’ underlying NPAT of $90 million was higher than FY22’s $65 million. The advice underlying net loss was $47 million, an improvement of 30.9%.

In mid-April, the business revealed its quarterly update for the three months to March 2024.

It said AMP Bank’s total loan book was $23.5 billion at March 2024, down from $24.4 billion in the fourth quarter of 2023. AMP Bank total deposits grew to $21.4 billion, up from $21.3 billion in the 2024 fourth quarter.

Platforms net cash flows were $201 million, up 32% year over year. North inflows from independent financial advisers (IFAs) increased 22% year over year to $544 million. Platforms assets under management (AUM) increased to $74.3 billion, up from $71.1 billion in the fourth quarter of 2023.

AMP also said its superannuation and investments AUM increased to $54.1 billion, up from $51.9 billion in the fourth quarter of 2023, with net cash outflows reducing to $371 million (down from $610 million of net cash outflows in the first quarter of 2023).

Finally, New Zealand wealth management net cash outflows were $5 million, while AUM increased to $11.2 billion.

Outlook for FY24 and FY25 for AMP shares

At the time of the 2024 first quarter update, AMP Chief Executive Alexis George said:

We are navigating the headwinds faced by AMP Bank by carefully managing our loan and deposit books, to help address margin pressures. We are making good progress on the development of our digital small business and consumer bank offer, launching in Q1 25, to lessen funding risks over the medium term by broadening the customer base and introducing a compelling transaction account offer that will help diversify and build deposits.

Our wealth management businesses, Platforms, Superannuation & Investments and New Zealand, benefited from the positive investment markets, while in Australia pension payments increased as we continue to see the impact of the lifting of minimum drawdown limits that came into effect in July 2023.

In terms of projections, UBS forecasts AMP to make a net profit of $220 million in FY24 and pay a dividend per share of 5 cents.

The broker predicts AMP’s net profit can rise by 15% to $253 million in FY25. According to UBS, AMP shareholders are forecast to receive a dividend per share of 7 cents in FY25.

UBS calls AMP shares a sell, with a price target of 98 cents.

The post Is the FY25 outlook compelling for AMP shares? appeared first on The Motley Fool Australia.

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• Why AMP says share markets ‘can continue to rally’ in FY25
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• ASX 200 shares vs. property: AMP reveals predictions for 2024 growth

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re wanting to invest in the tech sector, then you may want to consider Hub24 Ltd (ASX: HUB) shares.

That’s the view of analysts at Bell Potter, which see value in the investment platform provider’s shares and a huge long-term growth opportunity.

What is the broker saying about this ASX tech stock?

Firstly, if you’re not familiar with the company, it is a specialist investment platform provider with over $100 billion in funds under administration (FUA). The vast majority of this relates to custodial services that provide financial intermediaries with a consolidated way to acquire, hold, and administer a broad range of investments.

Last week, Bell Potter initiated coverage on the ASX tech stock with a buy rating and $53.20 price target.

Based on its current share price of $46.88, this implies potential upside of approximately 13.5% for investors over the next 12 months.

Commenting on its initiation, the broker said the following:

We initiate on HUB with a Buy recommendation and a Target Price of $53.20 p/s. Our favourable investment view is supported by: (1) changes in advice, with investment professionals shifting away from institutionally owned platforms while seeking comprehensive technology solutions; (2) single digit market share and leading capital flows; and (3) increases to the super guarantee contribution and rollovers into self-managed super funds.

$600 billion opportunity

Bell Potter highlights that the area of the market that Hub24 operates is suffering from a lack of investment in technology. In light of this, it sees Hub24 as well-positioned to capture an estimated $600 billion in FUA from incumbents on legacy systems. It adds:

Traditional Dealer Group attrition and a decade of underinvestment in technology has been a tailwind for specialist platform providers. Incumbents with legacy systems have ~$600bn in total FUA that could be redistributed in the medium-term. Adviser ratings recognised HUB as the best functional platform for the second consecutive year and we see this as an opportunity to upsell on capital flows.

So, with this ASX tech stock having such a bright future and trading at a discount to rival Netwealth Group Ltd (ASX: NWL), it feels now is the time for investors to invest. Bell Potter concludes:

Netwealth is trading on a blended 1 year forward EV/EBITDA of 32.9x with lower forecast FUA and mature EBIT margins. We don’t believe HUB’s trading discount of ~26% is justified and see the potential for it to rerate, predicated on superior technology, recurring revenue growth and operating leverage.

The post Buy this ASX tech stock with a $600b opportunity appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Core Lithium Ltd (ASX: CXO) share price is soaring higher today.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed Friday trading for 9.1 cents. In morning trade on Monday, shares are swapping hands for 9.9 cents apiece, up 8.8%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.2% at this time.

This outperformance follows the release of the lithium miner’s preliminary results for FY 2024, which caught a raft of short sellers wrong-footed today.

Here’s what the company just reported.

Why is the Core Lithium share price surging?

Investors are bidding up the Core Lithium share price on Monday after the company revealed it had exceeded its FY 2024 production guidance. Over the 12 months, Core produced 95,020 dry metric tonnes (dmt) of spodumene concentrate and shipped 97,423 dmt.

That tops management’s revised guidance of 90,000dmt-95,000dmt of production. And the spodumene concentrate sales exceeded revised guidance of 80,000dmt-90,000dmt.

This was aided by the quarter just past, which saw record shipments of spodumene concentrate of 33,027 dmt, atop of 19,771 dmt of lithium fines.

Lithium fines sales in FY 2024 came in at 66,140 dmt.

And the balance sheets took a turn for the better, with Core Lithium reporting an unaudited cash balance of $87.6 million at 30 June, up from $80.4 million at the end of March. The company has no debt.

The miner said it will now pause its Finniss operations, with restart assessments currently underway. It will now prioritise the safe preservation of the Finniss assets in a restart ready state.

Core is also preparing to commence drilling programs at Shoobridge, Finniss and Napperby. Results of that drilling campaign are expected in the coming months.

What did management say?

Commenting on the results sending the Core Lithium share price soaring today, CEO Paul Brown said, “I would like to commend the team on the operational performance in FY24, particularly the safe and orderly cessation of production activities at Finniss while achieving record production and shipments.”

Brown added:

Our commitment is to judiciously protect our balance sheet by reducing costs across the organisation and making prudent investments in our assets where we believe it can grow shareholder value.

Central to this is putting Finniss in a position where operations can rapidly resume with minimal capital. This would only occur when we are confident the lithium market conditions support such a decision.

Our strategic focus will be on making Finniss a more robust operation in the future, and exploration is a key enabler of this.

In FY 2025, we will be drill testing priority targets around Finniss, potentially adding meaningful life to future lithium mining operations. We will also be advancing earlier stage, low multi-commodity exploration activities within our Northern Territory landholding to demonstrate the value in these projects.

Our business will stay agile and prepared for future opportunities, both within the company and externally, as they arise.

Core Lithium share price snapshot

Despite today’s bounce, the Core Lithium share price remains down 89% over 12 months.

The post Core Lithium share price leaps 9% as results catch short sellers by surprise appeared first on The Motley Fool Australia.

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• Why did the Core Lithium share price crash 90% in FY 2024
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• Will FY25 be kinder to Core Lithium shares?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Accent Group Ltd (ASX: AX1) is a leading shoe retailer, but it’s also usually an impressive ASX dividend share. In 2026, it’s projected to have a very large dividend yield.

This business acts as the distributor for a number of global shoe brands including Vans, Hoka, Kappa, Skechers, Herschel, Sebago, Merrell, CAT, Saucony, Dr Martens, Palladium, Ugg, Autry, Superga and Timberland.

It also owns several businesses, including The Athlete’s Foot, Nude Lucy, Article One, Stylerunner, Lulu and Rose, Platypus, Glue Store, and Hype.

Due to its retail nature, the business usually trades on a relatively low price/earnings (P/E) ratio, which can enable a fairly high dividend yield.

Huge projected dividend yield

Accent’s FY24 result may show some disappointing year-over-year profit numbers because of the weak consumer environment at the moment. Households don’t have as much to spend at the moment because of high interest rates, high rent and inflation of other costs.

However, conditions could start improving in FY25 and rebound in FY26, according to the projections on Commsec.

The ASX dividend share is predicted to pay an annual dividend per share of 12.2 cents in FY24. That’d be a grossed-up dividend yield of 9.4%.

In 2025, owners of Accent shares could receive a dividend per share of 13.5 cents. If that projection comes true, it will equate to a grossed-up dividend yield of 10.4%.

Then, in 2026, the company could pay an annual dividend per share of 15 cents. Incredibly, that implies a possible grossed-up dividend yield of 11.5%. There aren’t many S&P/ASX 300 Index (ASX: XKO) shares that are projected to pay a dividend yield of more than 10% in FY26.

Can the ASX dividend share’s earnings grow?

FY24 is likely to be a fairly weak report, but I think there could be positives to focus on regarding the future.

Australian inflation has reduced compared to last year, which could mean that Accent’s costs, like rent and wages, stop increasing as fast in FY25 and FY26.

One of the main drivers of Accent’s earnings for the foreseeable future is its ongoing store rollout. It reached 888 stores in the FY24 first half and planned to open at least 20 new stores in the second half of FY24.

The company sees a continued store rollout opportunity “in both its core banners and new businesses.” The ASX dividend share also believes there is a “significant growth opportunity” with its online sales as well.

Pleasingly, the underlying gross profit margin continues to improve, which can support the other profit margin levels.

Another positive for Accent is that its total ‘owned’ sales in the year to date to the end of January were up 1.6%.

According to the estimate on Commsec, the Accent share price is valued at just 11x FY26’s estimated earnings.

The post Could this ASX dividend share offer a huge 11% yield in 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Accent Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares wrapped up FY24 on a high. Over the 12 months to June 28 2024, shares in the buy now, pay later (BNPL) stock soared 256% into the green.

The benchmark S&P/ASX 200 index (ASX: XJO) didn’t even come close to that result.

Investors are eager to know what the future holds for the BNPL player. Especially as gains have continued into the new financial year.

Let’s dive into the factors driving the recent performance and explore the expert outlook for FY25.

Why are Zip shares soaring?

Zip share price performance was impressive through the COVID-19 pandemic years. Investors sent the stock on a meteoric rise to an all-time high of $12.35 per share in February 2021.

They plunged not long after, wiping billions in market capitalisation from the company’s value. The selling continued until October last year when investors returned to buy Zip shares at lows of 25.5 cents per share.

Fast forward to today, and Zip shares have rebounded to their current price of $1.65.

Zip’s business performance under new management has been a major driver of its stock price recently. The company shifted from an aggressive growth strategy to a more sustainable, profitable model, garnering positive sentiment from investors.

Tyndall Asset Management’s James Nguyen highlighted this transformation as a key differentiator from its BNPL peers. Speaking to The Australian Financial Review, Nguyen said:

[Zip] was previously a market darling, capitalised at over $6 billion despite reporting losses of more than $200 million per annum. Higher interest rates, loose credit leading to high bad debts, and a weaker consumer resulted in significant shareholder value losses.

While the macro environment is now more supportive, it is the company-specific turnaround under new management that sets Zip apart from its BNPL counterparts. Growth for growth’s sake has been abandoned, as has its international domination aspirations, and in place is a sustainable, profitable growth strategy.

Nguyen says Zip’s focus on profitability over growth for growth’s sake is paying off. Within 18 months, the company expects to earn nearly $100 million in earnings before interest, tax, depreciation, and amortisation (EBITDA).

Additionally, Apple Inc.’s (NASDAQ: AAPL) decision to cancel its BNPL service in the United States, Apple Pay Later, appears to have increased investor confidence. This reduction in competition could help Zip increase its market share in the lucrative American market.

What’s next for Zip shares in FY25?

UBS and Ord Minnett both maintain buy ratings for Zip shares, setting price targets of $1.55 apiece, respectively.

According to CommSec, the stock is rated a buy from consensus. Out of the seven firms covering Zip, five rate it a buy directly, four say it’s a hold, and one firm rates it a sell.

Looking ahead, Zip’s ability to maintain its profitability focus while growing market share will be crucial, in my view.

One key area to monitor is Zip’s performance in the US market, where it has shown significant growth. Apple’s decision to withdraw from the BNPL race could be a tailwind.

Setting context for this, in its most recent quarterly results, Zip reported a 14.6% year-on-year increase in transaction volume to $2.4 billion despite a 3% rise in active customers to 6 million.

But US revenues were up more than 49% to US$74.3 million, underscored by a 43% growth in transaction volume there.

Foolish takeaway

Zip shares have delivered stellar gains in FY24, locking in triple-digit gains for the year.

As the company continues its transformation under new management, the outlook for FY25 remains promising but requires careful monitoring. As always, remember to conduct your own due diligence.

The post Zip shares FY24 recap: Up 256%, what’s next for FY25? appeared first on The Motley Fool Australia.

More reading

• 5 ASX All Ords shares that rose 250% to 700% in FY24
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• Has the Zip share price ‘risen too rapidly’?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. 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 Scott Phillips.

A number of ASX 200 gold stocks are pushing higher on Monday. This has led to the S&P/ASX All Ords Gold index rising by an impressive 1.7% in morning trade.

This catalyst for this has been a solid rise in the gold price on Friday night amid interest rate cut hopes.

In addition, a couple of updates have given the shareholders of two ASX 200 gold stocks a reason to smile today. Let’s dig a little deeper into these updates now:

Ramelius Resources Ltd (ASX: RMS)

The Ramelius share price is up 3.5% to $1.98. This morning, this ASX 200 gold stock revealed that it achieved a production record of 293,033 ounces for FY 2024. This means that it has hit the upper end of its upgraded guidance of 285,000 to 295,000 ounces.

Another positive is that management expects its full year all-in sustaining costs (AISC) to be at the lower end of its upgraded guidance range of A$1,550 to A$1,650 per ounce.

This underpinned total free cash flow of A$315.8 million for the 12 months, boosting its cash and gold balance to A$446.6 million. The latter is up from a balance of $272.1 million at the end of FY 2023.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is up 6.5% to $1.89. Investors have been buying this ASX 200 gold stock after it released its fourth quarter update.

During the quarter, the operational performance across its Duketon and Tropicana operations continued to recover from the major rain events that occurred in March. This led to Duketon producing 75,600 ounces of gold, resulting in FY 2024 gold production of 289,900 ounces. This is within its FY 2024 production guidance range.

Tropicana, which management notes experienced more significant impacts from the rain, has had a slower recovery. It produced 30,800 ounces of gold, resulting in FY 2024 gold production of 127,800 ounces. This was below its FY 2024 production guidance range.

Nevertheless, this couldn’t stop the gold miner from achieving production of 417,700 ounces of gold for the year. This was within its group production guidance range for the year.

And with Regis Resources now fully unhedged and receiving a $20 million tax refund, it reported a record $109 million increase in its quarterly cash and bullion balance. At the end of the period, its cash and bullion balance was at its highest ever level of $295 million.

The post 2 ASX 200 gold stocks racing higher on record results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The market may be having a subdued start to the week, but that hasn’t stopped one ASX mining stock from rocketing higher today.

At the time of writing, Rex Minerals Ltd (ASX: RXM) shares are up 65% to 45.5 cents.

Why is this ASX mining stock rocketing?

Investors have been scrambling to get hold of the copper and gold developer’s shares after it received and accepted a takeover offer.

According to the release, Rex Minerals has entered into a scheme implementation deed with MACH Metals Australia.

Under the scheme, it is proposed that MACH will acquire all of the shares in Rex Minerals which it does not already own for cash consideration of 47 cents per share. This represents a 71% premium to where the ASX mining stock ended last week and values the company at $393 million.

The release notes that the MACH offer was received following a competitive global partnering process. This process was focused on the $854 million funding and subsequent development pathway for the Hillside Copper-Gold Project in South Australia.

The Rex Minerals board carefully assessed the offer against a range of other alternatives. After taking into account the risks and potential ownership dilution associated with a stand-alone development of Hillside, it decided the offer was the superior option.

As a result, the ASX mining stock’s board unanimously recommends that shareholders support the transaction by voting in favour of it. This is in the absence of a superior proposal and subject to the independent expert’s report.

‘Significant premium’

Rex Minerals’ CEO and managing director, Richard Laufmann, said:

The Transaction provides certainty of value and a significant premium representing a 98% uplift relative to Rex’s 90-day VWAP, as well as the opportunity for Rex shareholders to realise their investment at a 10-year historical share price high. This Transaction also represents a more certain outcome for wider stakeholders in Hillside, including the local community, the South Australian Government and Rex employees who will benefit from the significant financial strength and proven track record of MACH to deliver the successful development of Hillside.

The South Australian Government has been a leader in Australia in support of decarbonisation and copper development. The successful development of Hillside will very much align with their strategy. Subject to approvals, we look forward to working with MACH through to completion and watching them develop the Hillside Project, Australia’s largest fully permitted and shovel ready copper project.

The post Guess which ASX mining stock is rocketing 65% on takeover deal appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.