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Owners of Santos Ltd (ASX: STO) shares might want to keep an eye on the company’s Papua New Guinea assets amid rumours of a sell down.

One top broker flagged that the potential sale could bring a $3.25 billion payday for the oil and gas producer, while moving to sell its Alaskan interests could bring another $1.42 billion.

At the time of writing, the Santos share price is $6.99, 0.36% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.43% this morning.

Let’s take a closer look at the sale Santos is reportedly gearing up for.

Santos may be eyeing asset sales

According to reporting by The Australian, Santos is actively moving to sell down its stake in PNG LNG – boosted by its takeover of Oil Search.

The merged group owns 42.5% of the LNG project after Oil Search’s 29% stake was added to Santos’ 13.5% holding.

Previously, the now-joined companies flagged that the merger would grant the resulting entity the flexibility to sell down some of its stake.

Now, Santos managing director and CEO Kevin Gallagher is reportedly pushing for a fast sale to Total – the operator of the Papua LNG project.

Santos and Oil Search flagged that the sell-down of PNG LNG would realign its interests across PNG LNG, P’nyang, and the Papua LNG project, improving coordination and accelerating the development of Papua LNG.

Total has no interest in PNG LNG or P’nyang.

The Australian reports that Total would be willing to buy as much of the project as Santos is willing to sell, with at least 10% needing to change hands to transfer voting rights.

Morgan Stanley has reportedly stated a 10% stake in the project could bring Santos as much as $3.25 billion if sold at a 25% discount on its valuation.

Additionally, Santos might be eyeing the sale of its stake in the Pikka Project – located in Alaska. The broker reportedly believes that the asset could bring a $1.42 billion payday.

How has Santos been performing on the ASX?

While the ASX 200 has been suffering this year, the Santos share price has been performing relatively well.

It has gained 10% since the final close of 2021. Meanwhile, the ASX 200 has slipped 7%.

The post Is Santos (ASX:STO) about to enjoy a $3 billion payday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Why are ASX 200 energy shares tumbling on Tuesday?
• Why AGL (ASX:AGL) and Origin (ASX:ORG) shares tumbled today
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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Key points

• The Firefinch share price is dropping 3% today
• The move coincides with its latest quarterly activities report
• Firefinch is positioning for production growth in gold and lithium

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The Firefinch Ltd (ASX: FFX) share price is falling today.

The price move follows Firefinch’s latest quarterly West African-based mining activities and cash flow update. At the time of writing, the Firefinch share price is down 3.17% to 61 cents.

So what’s been going on with the gold and lithium miner to make its share price drop?

Let’s take a deeper look…

Firefinch’s quarterly cash flow

The miner’s quarterly corporate snapshot (as of 31 December 2021) is as follows:

• Cash (and cash equivalents available) is $152 million
• $5.6 million in gold sold (proceeds not received by date)
• Share purchase plan “heavily oversubscribed” and raised $51.36 million at 58 cents apiece
• $100 million institutional placement at 67 cents a share completed in December

Since the end of the quarter, the Firefinch share price has decreased by 33%.

Further, the miner has had “aggressive growth plans” on its mind leading into 2022, as it aims to increase annual production.

In fact, it’s aiming to hit a target of 100,000 ounces of gold this year and double that by 2024. It also wants to rapidly progress its lithium site and believes it is now “fully funded” to hit these targets.

Now, moving away from its corporate targets — what practical advancements has the company? Let’s take a look…

Firefinch mining activity snapshot

Morila Gold Mine (Mali, West Africa):

• 11,115 ounces of gold produced (within guidance)
• A new “high grade” zone found in the eastern side of its Super Pit
• Pre-stripping of the pit underway (in order to increase production to 100,000 oz this year)
• Mining and haulage is underway at its Viper satellite pit
• Additional mineralisation at Viper location found and to be explored

Goulamina Lithium Mine (Mali, West Africa):

• The Lithium site received a post-tax, net present value (NPV) of $4.1 billion
• It had an internal rate of return (IRR) of 83% (more than double the prior definitive feasibility study)
• 50:50 joint venture with Jiangxi Genfeng Lithium Co Ltd to develop Goulamina is nearing “formal finalisation” (though still subject to conditions)
• Required Chinese regulatory approval achieved and Mali Government also in support
• JV parties agreed a final investment decision and early-stage engineering and drilling programs to begin
• Essential sterilisation of the waste rock facility underway
• Lithium production from the site expected early 2024

As announced in August, the Goulamina mine is set to be demerged from Firefinch and placed under its new entity, Leo Lithium Limited (Leo). In its latest update, Firefinch said the necessary regulatory documents were being prepared.

The demerger is scheduled for March but is still subject to shareholder approval (the miner has assured investors that no cost will be incurred). The ASX listing is expected by the end of the 2022 first quarter.

Firefinch share price summary

Over the past 12 months, the Firefinch share price has increased by a staggering 221%.

It saw its highest point of the year earlier this month at 92 cents apiece. This compares to its lowest point (almost a year to the day) of 17 cents.

But since its high point, the Firefinch share price has decreased, seeing a 7% drop coinciding with a Morila Gold Mine update. There was also a share price fall around the time of appointing Leo Lithium’s new managing director.

The company has a market capitalisation of $712 million and a price-to-earnings ratio (P/E) of -86.

The post Why is the Firefinch (ASX:FFX) share price suffering today? appeared first on The Motley Fool Australia.

More reading

• Why Beforepay, Firefinch, Kogan, and South32 shares are dropping
• Why the Firefinch (ASX:FFX) share price started higher today
• Firefinch (ASX:FFX) shares tumbled 7% today despite project milestone
• Here’s why the Firefinch (ASX:FFX) share price is flying higher today

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Key points

• A2 Milk shares are in a 51% drawdown from January 2020 highs of circa $10 per share.
• The visibility on the future of A2 Milk’s share price future remains unclear.
• The team at Bell Potter are constructive on A2 Milk and rate it a buy right now

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Shares in A2 Milk Company Ltd (ASX: A2M) have struggled this week and are down 2.86% at the time of writing.

It’s been a challenging year for A2 Milk both operationally and on the chart this past year. Shareholders have witnessed their holdings peak at a 52-week high of $10.79 in January last year, before free diving off the cliff face to bottom at $5 in May.

After a lumpy revival period throughout the remainder of 2021, where shares attempted a snapback rally on a few occasions, the A2 Milk share price now trades back at these levels, having closed the session at $5.24 on Thursday.

As shown on the chart below, that’s a 51% drawdown from that January 2020 high, meaning the A2 Milk share price now needs to spike over 100% in order to break even at that point once more. Can it be done? Let’s take a look.

Can A2 Milk thrust towards former highs?

Underpinning the large company’s lacklustre performance on the chart is its operational performance throughout FY21.

For instance, in its FY21 report, the company recognised a 30% decrease in revenue to NZ$1.2 billion whereas net profit after tax (NPAT) decreased by almost 80%.

Underpinning the weak result was a shift in the demand dynamics out of A2’s largest export customer, China. Demand from China came in softer last year meaning the company had to write down its inventory values.

Now there are reports that Canadian dairy processing giant Saputo could be set to embark on the acquisition scale, as conveyed by Motley Fool at the time.

Doing so could provide the opportunity to unlock long-term value and trend upwards to its pre-COVID earnings profile, where it recognised NZ$1.73 billion in revenue in FY20.

Hence the visibility on the future of A2 Milk’s share price future remains unclear. This point was even hammered in by management itself most recently, stating that because of “these uncertainties and the range of potential outcomes, it is very difficult to define future state targets and when they will be achieved – the path is also unlikely to be linear”.

The team at Bell Potter are constructive on A2 Milk and rate it a buy right now amid the strengthening fundamentals and a positive earnings outlook over the coming 5 years.

For example, it reckons that A2 Milk can focus can double EPS by FY26 should it successfully convert on its China offline expansion strategy. As such, the broker values the company at $7.70.

With that in mind, Bell Potter doesn’t believe the market is currently “reflecting this potential” within A2 Milk’s growth and normalisation outlook.

In fact, when checking the consensus of analyst estimates provided by Bloomberg Intelligence, the price target on A2 Milk shares is $6.50 and sentiment is normally distributed across each of buy, hold and sell recommendations.

Importantly, no brokers value A2 Milk close to its previous highs of $10. The highest price target from this group is $7.70 out of Bell Potters’ camp, for instance, whereas Macquarie rate it as a sell at $5.20.

A2 Milk share price snapshot

A2 Milk investors are swimming in a sea of red, with the share price down 52% in the last 12 months and 7% already this year to date.

The selling pressure has spilled over into this week and shares are down 5% this week.

The post Can the beaten down A2 Milk (ASX:A2M) share price get back to $10? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why A2 Milk, Baby Bunting, Codan, and Sezzle shares are surging higher
• Why the A2 Milk (ASX:A2M) share price is jumping 8% despite the market selloff
• A2 Milk (ASX:A2M) share price awaits judgement day as earnings draw near
• Broker tips A2 Milk (ASX:A2M) share price to rise over 50%

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The PointsBet share price is moving lower today on its second-quarter figures
• Operating cash outflows increased to $51.8 million on $65.6 million in marketing expenses
• PointsBet is now one of only six betting operators to cover New York, New Jersey, and Pennsylvania

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The PointsBet Holdings Ltd (ASX: PBH) share price is unable to find its footing on Friday following the release of its second-quarter results.

In early morning trade, shares in the sports betting company are down 5.96% to $4.73 per share.

PointsBet share price slumps on solid second-quarter update

• Group turnover increased 11% from prior corresponding period to $1,326 million
• Sports betting net win up 61% year-on-year to $71.9 million
• Total group net win increased 73% to $77.3 million
• United States cash active clients up 210% to 211,113
• Operating cash outflows increase from $38.7 million to $51.8 million
• Cash and cash equivalents at the end of the quarter sat at $523.2 million

What else happened during the quarter?

For the three months ending December 2021, PointsBet achieved growth across all of its major metrics compared to the prior corresponding period. Importantly, the total turnover (money wagered) through its platform increased 11% to $1,326 million.

However, this appears to not be what shareholders were hoping for as the PointsBet share price moves lower this morning.

The group’s growth in turnover didn’t come from the United States as per usual. Instead, the Australian segment lifted 34% compared to a 9% contraction in turnover in the US.

Despite this, operations abroad pulled in an exceptionally improved gross win for the company. Compared to Australia’s gross win growing by 22% year-on-year, the US notched up an increase of 425% to $41.6 million in gross win for PointsBet.

Although, the improved win rates were not enough to counter the company’s marketing spend during the quarter. Between Australia and the US, PointsBet forked out $65.6 million for marketing and sales in the second quarter. As a result, the company widened its net operating losses to $51.8 million compared to $38.7 Q2 FY21.

On a positive note, the company has been able to expand its reach across the US. PointsBet is now one of only six operators with coverage across New York, New Jersey, and Pennsylvania.

PointsBet share price snapshot

It has been a difficult start to the year for the PointsBet share price. Since celebrating the start of 2022, the sports betting company has witnessed a 32% fall in the value of its shares.

The weakening share price has not been from a lack of business developments either. In the last couple of weeks, PointsBet has made three product update announcements. These have included being awarded a wagering and gaming license in Pennsylvania and launching its iGaming product in West Virginia.

Shares in PointsBet are down 68% in the last 12 months.

The post PointsBet (ASX:PBH) share price sinks 6% as losses widen to $52m appeared first on The Motley Fool Australia.

More reading

• Why the PointsBet (ASX:PBH) share price is rocketing 9% today
• PointsBet (ASX:PBH) share price sinks 9% despite launching in New York
• ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update
• Top broker tips 80% upside for the PointsBet (ASX:PBH) share price
• 2 buy-rated ASX tech shares with 100% upside in 2022

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The EML share price has sunk close to 20% in 2022, is it too low to be ignored?
• CBI is now going allow EML to keep signing new customers and launch new programs
• EML keeps growing at a fast pace and is rated as a buy by UBS

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The EML Payments Ltd (ASX: EML) share price has fallen by not far off 20% in 2022. Considering this year is only a few weeks old, that’s a sizeable decline.

Share markets around the world are dropping as investors worry about the size and pace of the central bank interest rate rises.

However, whilst share prices are dropping, it can lead to some ASX shares being opportunities for investors.

With that in mind, here are some reasons why the EML share price could be an opportunity:

De-risked by the Central Bank of Ireland (CBI) update

EML shares went through a savage sell-off last year as the company warned that a substantial part of its European business could see its growth significantly impacted by potential limitations put on it by the CBI.

However, two months ago EML announced some CBI news that heartened investors. The broker UBS said that it de-risked the business.

EML said that the CBI will permit its Irish subsidiary to sign new customers and launch new programs whilst staying within the material growth restrictions. EML is confident it can meet these obligations. It has been removing higher volume, lower yielding programs to enable it to comply with a material growth restriction and is confident it can meet these obligations.

The ASX share said that the remediation plan is on track.

EML also revealed that the CBI said that broad based reductions in limit controls on programs will not be imposed. The CBI is satisfied to continue engaging with EML’s subsidiary, with a view to agreeing appropriate limits under its risk management and controls framework.

The company said that the CBI intends to impose a material growth limitation over the total payment volumes for 12 months, or rescinded earlier after third party confirmation that the remediation plan has been effectively implemented.

Fast growth

A business that is growing quickly may give itself a better chance of producing outsized returns over time. The EML share price could benefit if the business keeps growing quickly.

EML is creating instant and secure payment solutions that connects its customers with their customers. Its technology is being used for a variety of uses including open banking, gift cards, e-gift cards, general purpose reloadable cards, buy now, pay later and so on.

It’s growing quickly across a number of areas. In FY21 total gross debit volume grew 42% to $19.7 billion. Revenue went up 60% to $194.2 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 65% to $53.5 million. Underlying net profit after tax (NPATA) rose 54% to $32.4 million.

EML is benefiting from a few different trends, including the rise of fintechs as well as the shift of payments going from cash to electronic.

FY22 is expected to be another year of growth.

Gross debt volume is expected to be between $93 billion to $100 billion, which includes Sentenial and Nuapay. The EML component is expected to be between $24 billion to $26 billion, representing growth of 20% to 30%.

Revenue is expected to be between $220 million to $255 million, EBITDA is expected to be between $58 million to $65 million. However, the NPATA guidance range is $18 million to $34 million with an increase in compliance costs, insurance costs and the impact of Sentenial.

EML share price valuation

Multiple brokers rate EML shares as a buy, including UBS and Ord Minnett.

The UBS price target on UBS is $4.40. That’s a potential increase of 60% over this year. The broker is expecting growing profit in the coming years.

EML shares are valued at 23x FY23’s estimated earnings.

The post Down almost 20% in 2022, is the EML share price now too good to ignore? appeared first on The Motley Fool Australia.

More reading

• 2 fast-growing ASX shares rated as buys in this correction
• 2 ASX fintech shares that could rocket this year
• Why is EML payments (ASX:EML) share price having a rollercoaster start to the year?
• Here’s why the EML (ASX:EML) share price could be a big opportunity
• 2021 was a year to forget for the EML (ASX:EML) share price. Here’s why

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

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Key points

• Imugene share price soared 5% on the back of European patent approval
• This is further intellectual protection for the company’s HER-Vaxx immunotherapy
• Today’s news follows recent South Korean patent award

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Imugene Limited (ASX: IMU) shares were on the move at the open this morning, soaring 5% to 30 cents before quickly retreating in the first hour of trading.

At the time of writing, the Imugene share price is down 1.75% to 28 cents apiece. It’s worth noting that Imugene was heavily sold off in the past week, with the share price falling by roughly 20%.

Let’s take a look at the news that the immuno-oncology company released this morning.

Imugene achieves another ‘important milestone’

Investors initially bid the Imugene share price up today, following a positive announcement and a rebound across the ASX.

The All Ordinaries (ASX: XAO) is travelling 0.4% higher to 7,146 points, after spending this week deep in the red.

According to the Imugene release, management advised it has received a notice of grant from the European Patent Office. This is in relation to the company’s HER-Vaxx immunotherapy, which is in development for HER-2 positive gastric cancer.

Earlier this month, Imugene also secured patent approval from the South Korean Intellectual Property Office for the same therapy.

HER-Vaxx immunotherapy is a B-cell activating immunotherapy. The therapy treats tumours that over-express the HER-2/neu receptor. Imugene is designing HER-Vaxx to treat gastric, breast, ovarian, lung, and pancreatic cancers.

This patent approval in a major oncology market is a key step in protecting the company’s intellectual property.

The patent protects the method of composition and method of use of Imugene’s HER-Vaxx immunotherapy for 15 years.

Imugene managing director and CEO, Leslie Chong said:

Attaining the key European patent is an important milestone and is another major pharmaceutical market to grant patent protection for HER-Vaxx until 2036.

Imugene share price summary

It has been a solid 12 months for Imugene investors, with the company’s share price jumping 156%. The share price reached an all-time high of 62.5 cents in November before embarking on a downhill trend.

Imugene presides a market capitalisation of roughly $1.65 billion with approximately 5.81 billion shares on issue.

The post Why the Imugene (ASX:IMU) share price advanced 5% on market open appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Imugene (ASX:IMU) share price backtracks 7% despite milestone update
• These are the 5 best performing ASX shares of 2021
• Why did Pro Medicus (ASX:PME) and 2 other ASX 200 healthcare shares fall today?
• Why is the Imugene (ASX:IMU) share price up 8% today?

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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Key points

• Goldman Sachs thinks REA shares are a buy ahead of earnings season
• The broker believes the property listings company could smash consensus estimates
• Goldman’s price target implies 23% upside

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The REA Group Limited (ASX: REA) share price is up 1% to $136.50 on Friday morning.

One leading broker that believes the property listings company’s shares could keep on rising is Goldman Sachs.

What did the broker say about the REA share price?

According to a note this morning, Goldman Sachs has retained its buy rating but trimmed its price target on the company’s shares to $168.00.

Based on the current REA share price, this implies potential upside of 23% for investors over the next 12 months.

The note reveals that Goldman is expecting a strong result from REA next month when it releases its half year update. In fact, its analysts suspect that the company will outperform the market’s expectations for both revenue and earnings.

Goldman commented: “We expect a very strong result, with 1H22 Rev/EBITDA/NPAT of A$592mn/A$373mn/A$227m [growth of 37%, 29%, and 32%], well ahead of consensus (+4%/+7% Rev/EBITDA vs. Visble Alpha Consensus Data).”

A key driver of this outperformance is the broker’s expectation for a particularly strong second quarter.

The broker explained: “This implies 2Q Rev/EBITDA growth of +40%/+30% vs. +35/+27% in 1Q, given improved listings (+21% GSe vs. +11% in 1Q).”

And while Goldman suspects that the second half will be softer, potentially due to the Federal Election, it still expects another solid full year result from the realestate.com.au operator.

Goldman has pencilled in revenue of $1,153.5 million and EBITDA of $685.8 million for FY 2022. This equates to year on year growth of 24.3% and 21%, respectively.

What else will be on watch?

There are a number of other items that Goldman has suggested investors focus on.

It explained: “Key focus points: 1) Depth uptake, with positive 1Q trends, 2) International momentum (Move, India, PropertyGuru); and 3) cost performance, given we expect higher opex than prior guidance (high single digit operating cost growth excl. MOC/Elara), given supportive near-term macro.”

The post Top broker tips REA (ASX:REA) shares as a buy ahead of a ‘very strong result’ appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares brokers have named as buys
• Top brokers name 3 ASX shares to buy next week
• Is the REA Group (ASX:REA) share price a clear buy after dropping 14% in less than 3 weeks?
• Analysts name 2 excellent ASX 200 shares to buy
• Are these 2 top ASX growth shares buys?

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

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Key points

• ASX cannabis shares could benefit from new COVID-fighting research
• Cannabidiol (CBD) has proven effective in mice
• Researchers hope to launch human trials

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ASX cannabis shares haven’t exactly shot the lights out over the past full year.

At all.

The Creso Pharma Ltd (ASX: CPH) share price, for example, is down 48% over the past 12 months.

Little Green Pharma Ltd (ASX: LGP) has done a bit better. But the ASX cannabis share is still down 17% since this time last year.

As for medicinal shareholders in marijuana cultivator Cann Group Ltd (ASX: CAN), they’ve watched the stock fall a painful 55%.

With this month’s sharp correction, the All Ordinaries Index (ASX: XAO) has given back much of its gains. But for some comparison, the index remains up 3.6% over the past full year.

With that said, ASX cannabis shares could be in for some healthy tailwinds down the line.

That is if breaking research pans out to show that cannabidiol (CBD), an active ingredient in cannabis, could help prevent COVID-19 infections.

Can CBD help prevent COVID infection?

While there’s no definitive answer yet, Live Science reports that research suggests CBD “could block the coronavirus“.

Not just any low potency CBD though. But rather “the kind of medical-grade … CBD used to treat seizure disorders”.

Should that prove out, it would certainly be welcome news to ASX cannabis shares involved in medicinal production.

Scientists involved in the study caution that CBD won’t be a silver bullet that will bring down the pandemic on its own.

However, according to Live Science:

The researchers are hopeful that the compound could be an additional tool in the fight against the SARS-CoV-2 virus — and perhaps other viruses. So far, the team has shown that the compound can help mice fight off COVID-19, and they’ve turned up suggestive evidence that it might be helping humans, too.

The study’s leader, Marsha Rosner, said, “We don’t know yet if CBD can prevent COVID, but we think our results provide a strong case for conducting a clinical trial.”

While a human clinical trial has yet to be formulated, there are some early promising signs.

According to Rosner, “We show that CBD can stop replication of SARS-COV2 in cells in a dish and that it acts at least up to 15 hours after infection, so that suggests it might be effective even at early times after viruses enter cells.”

ASX cannabis shares minnows in the global market

Medicinal marijuana has only been legally available in Australia since November 2016.

And with the past year’s sell-off, even the bigger ASX cannabis shares are minnows compared to some of their overseas peers in the United States and Canadian markets.

Cann Group, for example, has a market cap of $96 million. Little Green Pharma’s market cap stands at $107 million while Creso Pharma is valued at $101 million.

Certainly not blue-chips.

But if research pans out to show CBD can help stave off COVID infections, they could see some growth potential.

The post ASX cannabis shares in spotlight amid COVID prevention research appeared first on The Motley Fool Australia.

More reading

• Why is the Little Green Pharma (ASX:LGP) share price in the green today?

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 Bruce Jackson.

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Key points

• Newcrest delivers solid production growth in the second quarter
• Management expects this trend to continue in the second half
• FY 2022 production guidance has been reaffirmed

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The Newcrest Mining Ltd (ASX: NCM) share price is under pressure on Friday morning.

At the time of writing, the gold miner’s shares are down 4% to $22.050.

Why is the Newcrest share price falling?

The Newcrest share price is falling today after a pullback in the gold price offset any positives from its second quarter production report.

In respect to the latter, for the three months ended 31 December, Newcrest delivered gold production of 436koz and copper production of 26kt. This was an increase of 10% and 7.7%, respectively, quarter on quarter.

This production growth was driven by its Cadia, Lihir, and Telfer operations, which offset softer performances from the Red Chris and Fruta del Norte operations.

Management notes that Cadia’s mill capacity increased during the quarter, with completion of the replacement and upgrade of the SAG mill motor in November resulting in higher gold production. In addition, mill throughput rates were higher at Lihir and Telfer with a reduction in planned and unplanned shutdown activities compared to the first quarter.

Newcrest achieved this production with an all-in sustaining cost (AISC) of $1,127 an ounce, which resulted in an AISC margin of $588 an ounce. The latter was up 45% from $406 an ounce during the previous quarter.

Looking ahead, management expects its production to increase in the third quarter. After which, it believes the company is on track to deliver its full year production guidance of 1,800koz to 2,000koz.

Management commentary

Newcrest’s Managing Director and Chief Executive Officer, Sandeep Biswas, was pleased with the company’s performance during the quarter.

He said: “We maintained a strong operational focus on maintenance and productivity improvements during the quarter. It was a tremendous achievement for our team to safely complete the replacement and upgrade of the SAG mill motor at Cadia, which is now operating at full capacity. It was also pleasing to receive approval to increase the permitted processing capacity at Cadia from 32Mtpa to 35Mtpa during the period. Across all our operations, we are well positioned for a strong second half and remain on track to meet our FY22 guidance.”

The post Newcrest (ASX:NCM) share price down 4% following Q2 update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
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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 Bruce Jackson.

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Key points

• Webjet shares down 12% over the week due to market fears and WA border closure
• COVID-19 cases at the highest since the middle of the month
• Increased focus on North American B2B market

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The Webjet Limited (ASX: WEB) share price has continued its rapid descent following a broader market sell-off in January.

The online travel agent’s shares tumbled again yesterday, this time by 2.95% to $4.61 apiece. This means its shares have lost almost 12% since this time last week, reflecting an 8-month low.

In comparison, the S&P/ASX 200 Index (ASX: XJO) gave up 1.77% to 6,838.3 points on Thursday. The benchmark index shed 6.8% for the week to slump to a 9-month low.

Stock markets around the world have plummeted following concerns of military tension between Russia and Ukraine. In addition, potential interest rate rises and the spread of Omicron have fuelled investors’ worries.

What’s ahead for Webjet shares?

A rise in COVID-19 cases across Australia has led the Western Australian government to postpone the reopening of its borders. This has not only led domestic passengers to delay or cancel holiday plans but also has affected international tourists.

The latest figures show Australia recorded 97,890 COVID-19 cases yesterday, the highest since 15 January.

Double vaccinated interstate and international travellers would have been able to enter Western Australia without quarantine from 5 February. However, the border will now remain closed indefinitely.

Investors appear to have chosen to dump Webjet shares price in light of the multitude of factors impacting the markets.

While Western Australia remains shut, investors will be wondering what this means for the Webjet share price.

In its FY22 first-half results last November, the company noted that its WebBeds business is poised to deliver significant revenue growth.

In particular, management has focused on expanding its domestic offering, with increased penetration into the North American B2B market. This segment is the company’s second biggest market behind the Asia Pacific region in terms of booking numbers.

Even with Western Australia closed for now, Webjet will be churning profit due to its geographical spread. The state does play an important role but is not vital in terms of the company’s operations.

A retained global footprint, hotel supply relationships, and global customer network could boost the company’s revenue.

Total revenue in H1 FY22 stood at $55.4 million, a 145% increase when compared to the prior corresponding period.

Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.

Webjet share price recap

It’s been a rollercoaster 12 months for Webjet investors, with its shares down 5% over the period.

The Webjet share price reached a 52-week high of $6.89 in early October when Australia appeared to have managed the pandemic. However, since the outbreak of the Omicron variant, its shares have nosedived to May 2021 levels.

On valuation grounds, Webjet presides a market capitalisation of roughly $1.75 billion, with approximately 380.51 million shares outstanding.

The post What might the WA border closure mean for the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia.

More reading

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• Why did the Webjet (ASX:WEB) share price fall 7% last week
• ASX travel shares are nosediving today amid border opening delays
• Will the Webjet (ASX:WEB) share price travel higher in 2022?
• Why are ASX 200 travel shares down today?

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

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