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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very disappointing note. The benchmark index is currently down 1.6% to 7,223.2 points.

Here’s what is happening on the ASX 200 today:

Whitehaven shares tumble on guidance downgrade

The Whitehaven Coal Ltd (ASX: WHC) share price is tumbling lower today after downgrading its production guidance. The coal miner revealed that it now expects coal production of 19 to 20.5 Mt in FY 2022. This is down from 20 to 21.5 Mt previously. In addition, coal sales have been downgraded and costs have been upgraded. This has been driven by La Niña and COVID impacts.

BHP shareholders approve unification

The BHP Group Ltd (ASX: BHP) share price is falling on Friday despite announcing the results of its unification vote. According to the release, the Big Australian will scrap its dual listing after shareholders voted overwhelmingly in favour of its unification. BHP has been tipped to go on a buying spree post-unification to boost its future growth.

Allkem shares fall on broker downgrade

The Allkem Ltd (ASX: AKE) share price is falling on Friday after being downgraded by the team at UBS. According to the note, the broker has downgraded the lithium miner’s shares to a neutral rating with a price target of $11.20. While UBS is positive on lithium prices and expects Allkem to benefit greatly, it doesn’t see enough value in its shares now to maintain a buy rating.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Boral Limited (ASX: BLD) share price with a 2.5% gain on no news. Going the other way, the worst performer has been the Whitehaven Coal share price with an 8% decline following its guidance downgrade.

The post ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant?
• 5 things to watch on the ASX 200 on Friday
• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Thursday

Motley Fool contributor James Mickleboro owns Orocobre Limited. 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

• Regis Resources has placed its shares in a trading halt pending an announcement in relation to the Rosemont gold mine
• A statement is expected to be made on or before Tuesday 25 January
• The company’s shares have accelerated in a month as the price of gold rises

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The Regis Resources Limited (ASX: RRL) share price won’t be going anywhere on Friday. This comes as the gold miner requested its shares be placed in a trading halt before market open.

As such, Regis shares are frozen at $2.10 apiece. It’s worth noting the company’s shares have gained more than 13% in value in the past month.

Why is the Regis Resources share price halted?

Prior to the market open, the company requested the Regis Resources share price be halted while it prepares an announcement.

The company says it is planning to release a statement on or before Tuesday 25 January.

This is in regards to its FY22 guidance after a geotechnical incident occurred at the company’s Rosemont open pit in Western Australia.

What’s the latest?

At this stage, details remain unknown about what exactly occurred at the company’s underground gold mine.

Located in Bandya, WA, Rosemont and its associated surface deposits are mined using conventional open-pit mining truck and shovel methods.

Commercial production commenced in June 2020, with 721,000 tonnes of ore mined and 8,000 lineal metres of development achieved during the year, according to the company’s results for FY 2021.

Deep drilling continued at Rosemont to explore the high-grade shoots which extend at depth beneath existing underground infrastructure.

The company said about 24,000 metres of diamond drilling was completed to test down-plunge extensions of high-grade gold mineralisation. It also announced an updated mineral resource of 2 million tonnes at 5.2g/t Au for 340,000 ounces.

Interestingly, the company had this to say in its report for the quarter ended September 2021.

“Lower mill feed grades were largely a result of the treatment of low-grade stockpiles while pits were rescheduled as a result of unplanned geotechnical issues in Rosemont North and Main pits.

“These issues resulted in delays while adequate controls were put in place to manage the risk and allow access to ore. This work has now been largely completed and while it is not expected to be an ongoing issue, it is being carefully monitored as these pits are completed as planned during FY22.”

Earlier this week, the company’s non-executive director Russell Barwick resigned from the board with immediate effect. While citing personal reasons, Regis shares wobbled in the days following.

About the Regis Resources share price

Since this time last year, Regis Resources shares have lost more than 40% in value. In 2022 alone, the company’s shares are up by 7% after the price of gold sharply rose yesterday.

Based on valuation grounds, Regis has a market capitalisation of roughly $1.59 billion, with approximately 754.78 million shares on issue.

The post Why is the Regis Resources (ASX:RRL) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why has the Regis Resources (ASX:RRL) share price risen 10% in a week?
• 5 things to watch on the ASX 200 on Thursday
• These were the 5 worst ASX 200 mining shares to hold in 2021
• 5 things to watch on the ASX 200 on Thursday

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

• Silver Lake declared successful bidder for Canada’s Harte Gold
• Company to acquire 2% net smelter royalty on the entire Sugar Zone Property
• Transaction expected to finalise by end of February

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The Silver Lake Resources Limited. (ASX: SLR) share price is in the red at time of writing, down 0.8%.

It’s not just the ASX gold explorer dipping lower though. The All Ordinaries Index (ASX: XAO) is down 1.3% at this same time.

Below we take a look at the company’s bidding update.

What bidding update was announced?

Silver Lake’s share price is dipping despite the company reporting that its bid for Harte Gold Corp has been declared successful.

Listed on Canada’s Toronto Stock Exchange (TSX), Harte Gold is a gold mining company that owns and operates the Sugar Zone mine in Ontario with 81,287 hectares of associated land.

The sale and investment solicitation process (SISP) was given the green light by the Ontario Superior Court of Justice on 20 December. That process was completed on 14 January, with Silver Lake’s bid declared successful on 19 January.

According to the release, the agreement comprises:

• Approximately US$74.5 million (AU$103.0 million) in credit bid consideration reflecting the value owed to Silver Lake under the Credit Facilities acquired from BNP Paribas and the full amount of the Court-approved Debtor in Possession Loan subsequently made available to Harte Gold during the Proceedings
• Applicable liabilities (including the ~US$22 million out of the money hedge book and accounts associated with the operation of the Sugar Zone operation to allow for a transition of operation under Silver Lake ownership)
• The full and final satisfaction of finance facility obligations owed by Harte Gold to Appian Capital Advisory by way of the issuance of ~25 million Silver Lake shares
• Cash consideration for payment of certain priority claims and for the purposes of completing the CCAA Proceedings and certain ancillary matters (estimated to be not more than US$3 million)

Silver Lake expects the transaction to close in the latter half of February.

Separately, the company reported that it’s entered an agreement for the acquisition of a combined 2% net smelter royalty on the entire Sugar Zone Property from an affiliate of Appian. The acquisition price was reported to be US$22 million, which Silver Lake will pay for in shares.

This acquisition, which will reportedly reduce operating costs, remains subject to the completion of its acquisition of Harte Gold.

Silver Lake share price snapshot

Over the past year the Silver Lake share price has gained 7%. That’s right about in line with the 6.5% gain posted by the All Ords over that same time.

Silver Lake shares are up 4% so far in 2022.

The post Silver Lake (ASX:SLR) share price drops today following this bidding news appeared first on The Motley Fool Australia.

More reading

• Why is the Regis Resources (ASX:RRL) share price frozen today?
• Senex (ASX:SXY) share price higher on 20th consecutive quarter of record production
• What to expect from the CBA (ASX:CBA) half year result next month
• Why is the Little Green Pharma (ASX:LGP) share price in the green today?
• Broker tips A2 Milk (ASX:A2M) share price to rise over 50%

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

• Senex reports earnings today for the quarter ended 31 December 2021
• Sales revenue gained 9% whereas net sales revenue gained 5%
• Capital expenditures were far higher reflecting drilling and expansion projects
• The company forecasts higher capital expenditure in FY22 by bringing forward projects, otherwise guidance remains unchanged.
• Senex has climbed 57% in the last 12 months.

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Shares in Senex Energy Ltd (ASX: SXY) are inching forwards today following the release of its report for the quarter ended 31 December 2021.

Shares opened at $4.60 and have held the fort since, now trading less than 1% in the green on thin volume, having traded sideways all week.

Senex share price gains on “continued growth in production”

The company outlined several investment highlights this quarter, including:

• Quarterly production up 5% to 5.2 PJ, with growth at both Roma North and Atlas
• Sales revenue up 9% to $38.7 million before hedging impacts.
• Domestic gas sales agreement signed with Shell Energy Australia starting in 2022.
• Total sales volumes of 4.9 PJ were 3% higher than the previous quarter.
• Net sales revenue increased 5% on the prior quarter to $34.7 million.
• As at 31 December 2021 Senex had cash reserves of $62.8 million and a net debt position of $12.2 million.

What else happened for Senex this quarter?

Growth in total sales volumes reflected increased sales from production due to increased production rates at Roma North and Atlas alongside reduced third-party gas purchases.

Capital expenditure was 193% higher for the quarter at $36.1 million, compared to Q1 FY22 at $12.3 million. The increase in cost base came from drilling programs and expansion projects throughout the half.

The company also finalised its agreement with Australia Pacific LNG to acquire undeveloped gas fields adjacent to the Atlas site.

These new fields “provide additional optionality to Senex’s development portfolio”. As a result, Senex is “reviewing the sequencing of its Surat Basin developments”.

With respect to the Surat Basin, Senex notes that daily production “reached a peak of 59 TJ/day during the quarter”.

Gas production was 5% higher than the prior quarter, signifying the “20th consecutive quarter of Surat Basin production growth”, Senex says.

Senex also entered into a binding Scheme Implementation Agreement with Posco International Corporation on 13 December.

The agreement will see 100% of Senex’s shares acquired for a cash offer price of $4.60 per share. In addition to the cash offer price, Senex’s “current intention is to pay a dividend of up to A$0.05 per share” for the half year ending 31 December 2021.

Senex expects a Scheme Meeting to occur in March 2022 and, if approved, the transaction is expected to be complete in late March 2022.

What’s next for Senex?

The company reiterated its previously announced guidance for FY22, albeit forecasting higher capital expenditures (CAPEX) for the year.

Senex now provides CAPEX guidance of between $120-$140 million, up from $70-$80 million at the last report.

Although, the upward revision in CAPEX comes as Senex aims to bring forward some of its production targets into cash flow.

For instance, some drilling activity – previously planned for FY23 – has been brought forward to FY22 to “fill available additional gas processing capacity at both Atlas and Roma North”.

It also aims to commit to “certain compression facility long-lead items for planned production expansion projects”.

The company forecasts production of 21-23 PJ and sales of its own product of 19–21 PJ in FY22. This should result in an EBITDA of $75–$85 million and free cash flow conversion of $50–$60 million.

Senex share price summary

As seen on the chart below, the Senex share price took off from the benchmark S&P/ASX 200 Index (ASX: XJO) in August and has since plateaued in the new year.

Nevertheless, it has still climbed over 57% in the last 12 months.

The post Senex (ASX:SXY) share price higher on 20th consecutive quarter of record production appeared first on The Motley Fool Australia.

More reading

• The 5 best ASX energy shares of 2021 unmasked

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 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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All eyes will be on the Commonwealth Bank of Australia (ASX: CBA) share price next month when it releases its half year results.

Ahead of the release, let’s take a look to see what the market is expecting from the banking giant on 9 February.

What is expected from CBA in the first half?

The team at Morgans is bearish on the CBA share price and has a reduce rating and $74.00 price target. In light of this, it will come as no surprise to learn that the broker is forecasting a half year result that falls short of the market’s expectations.

According to the note, the broker expects CBA to report a first half cash net profit after tax of $4.32 billion. This is 2% lower than the Visible Alpha consensus estimate of $4.406 billion and compares to $4.785 billion during the second half of FY 2021. This is being driven by its belief that CBA’s net interest margin (NIM) will be softer than the market is forecasting.

Morgans commented: “Our 1H22 NIM forecast of 186bps compares with Visible Alpha consensus of 191bps. We therefore see risk that the market will be disappointed on the NIM front.”

What else?

One item that Morgans is actually more positive on than the market is the bank’s expenses. It doesn’t expect them to increase as much as consensus estimates.

It commented: “CBA reported a 3% increase in the run-rate of operating expenses (excluding remediation costs) from 2H21 to 1Q22. We expect this increase to be 2% from 2H21 to 1H22 as a result of our expectation of greater annual leave usage in 2Q22. However, we are more optimistic than consensus on this front as consensus appears to be factoring in a 3% increase from 2H21 to 1H22.”

One final item that the broker will be looking for commentary on is the Omicron impact on its operations.

Morgans concluded: “By way of outlook for asset quality, we will be particularly interested to hear about what CBA is seeing on the SME front with the spread of Omicron.”

Food for thought for investors over the next couple of weeks before the big day.

The post What to expect from the CBA (ASX:CBA) half year result next month appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares with fully franked yields
• How are ASX bank shares performing today?
• Will the CBA (ASX:CBA) share price climb another 23% in 2022?
• CBA (ASX:CBA) is about to lose the mantle of the ASX’s largest company, here’s why
• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?

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

• Little Green Pharma made a key announcement regarding an exclusive distribution agreement in Greece.
• It is an exclusive four-year agreement to supply and distribute LGP-branded products.
• Both parties will share product revenues on a 50:50 basis.
• The Little Green Pharma share price has grown 9% in the last 12 months.

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The Little Green Pharma Ltd (ASX: LGP) share price shot out of the gate today and is now 0.84% higher at 60 cents, having earlier been up 3%.

Investors are responding positively after Little Green Pharma made a key announcement regarding an exclusive distribution agreement in Greece.

The announcement builds on another distribution agreement the medicinal cannabis company signed in Germany just two days ago. Let’s take a closer look.

What’s boosting the Little Green Pharma share price?

The Little Green Pharma share price is on the rise after the company announced it has signed an exclusive four-year agreement with Greek company PharmaServe for the distribution of LGP-branded oil medicines and cannabis flowers in Greece.

The company says PharmaServe has operated as a distributor of pharmaceutical and healthcare products in Greece since 1984.

“With a population of around 11 million, there are no registered medicinal cannabis products in [the Greece] market,” the company says.

“LGP anticipates PharmaServe will be one of the first distributors to apply for a medicinal cannabis Marketing Authorisation in Greece, giving LGP a significant foothold in a new, currently under-served market in the EU.”

It is also the first agreement to utilise the company’s Danish facility outside Australia and Denmark.

Under the agreement, LGP-branded cannabis medicines will be supplied and distributed in Greece for a minimum 2-year period.

After 2 years, PharmaServe “may also require LGP to supply co-branded cannabis medicines in addition to the LGP-branded medicines for prices to be agreed”.

The agreement is also conditional upon PharmaServe achieving minimum revenues of 600,000 euros per year.

Both parties agree to exclusively work with each other. PharmaServe will avail from promoting any other cannabis medicine in Greece while Little Green Pharma will exclusively supply its products over the contract length.

The financial terms of the deal benefit both parties fairly equally. For instance, Little Green Pharma will supply its medicines from its Australian and Danish facilities, and will share product revenues on a 50:50 basis.

Both arrangements are subject to LGP receiving certain minimum prices per unit and subject to deposit prepayment terms.

Management commentary

Speaking on the announcement driving the Little Green Pharma share price, chief executive officer Fleta Solomon said:

The agreement represents the continued fulfilment of LGP’s strategic imperative to grow significant market shares in key markets across the EU. With the addition of Greece to the LGP distribution footprint, LGP aims to capture a market that is currently significantly underserved and overlooked by other medicinal cannabis producers.

With a population of [approximately] 11 million and no currently registered cannabis medicines, the market for medicinal cannabis in Greece represents another attractive opportunity for LGP’s broader international growth ambitions.

The Little Green Pharma share price (blue) has grown around 9% in the last 12 months and is trading flat this year to date at the time of writing.

As the graph shows, it is now at a crossroads with the benchmark S&P/ASX 200 Index (ASX: XJO) after wiping substantial value from its previous highs.

The post Why is the Little Green Pharma (ASX:LGP) share price in the green today? appeared first on The Motley Fool Australia.

More reading

• Broker tips A2 Milk (ASX:A2M) share price to rise over 50%
• Strike Energy (ASX:STX) share price slides despite continuing exploration success
• Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season
• BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant?
• Can lithium charge the Rio Tinto (ASX:RIO) share price higher?

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 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

• A2 Milk shares are trading close to multi-year lows
• Bell Potter believes there is significant upside potential for its shares
• The broker has reiterated its buy rating

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The A2 Milk Company Ltd (ASX: A2M) share price is on course to end the week in the red.

In morning trade, the embattled infant formula and fresh milk company’s shares are down 2.5% to $5.20.

This leaves the A2 Milk share price trading within a whisker of its multi-year low of $5.04.

Is the weakness in the A2 Milk share price a buying opportunity?

While opinion remains divided on the A2 Milk share price, one leading broker continues to see a lot of value in it.

According to a note out of Bell Potter, its analysts have retained their buy rating and $7.70 price target on the company’s shares.

Based on the current A2 Milk share price, this implies potential upside of almost 53% over the next 12 months.

What did the broker say?

The broker has been looking at industry data, which it appears to believe continues to support its buy thesis. This includes Australian exports to China (a daigou proxy) growing 146% year on year in November to an 18-month high.

All in all, the broker believes that A2 Milk has the potential to double its earnings in the coming years as its recovery continues. It doesn’t believe this is reflected in the current A2 Milk share price.

Bell Potter commented: “There is no change to our Buy rating. We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while regaining 50% of the lost sales (from FY20-21) in English label IMF. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

The post Broker tips A2 Milk (ASX:A2M) share price to rise over 50% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Are the worst-performing ASX 200 shares turnaround opportunities?
• Here’s why the A2 Milk (ASX:A2M) share price lost 52% of its in value in 2021
• Leading brokers name 3 ASX shares to buy today
• Why you shouldn’t expect the A2 Milk (ASX:A2M) share price to bounce back in 2022

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 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

• Strike Energy scores successful exploration results in Perth Basin
• Gas demand is forecast to grow over the coming decade
• Global urea shortages disrupt critical diesel fuel additive

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The Strike Energy Ltd (ASX: STX) share price is sliding in morning trade, down 3.9%.

The All Ordinaries Index (ASX: XAO) is deep in the red as well, currently down 1.1%.

Strike Energy is currently trading at 25 cents after closing at 26 cents per share yesterday.

Below, we look at some highlights from the company’s quarterly report, released this morning.

What did Strike Energy report?

• The company spudded its 100% owned “potentially high impact” South Erregulla-1 well in the North Perth Basin on 15 January
• Its Walyering-5 results confirmed the presence of high-quality, low CO2, conventional gas accumulation in the Central Perth Basin
• Strike was awarded a $2 million grant for its Project Haber under the Federal Government’s Supply Chain Resilience Initiative
• Strike Energy finished the quarter with approximately $41 million cash on hand and some $10 million in liquid investments

What else happened in the quarter?

Strike Energy’s share price will have received some support over the quarter from spot gas prices, which reached as high as $5.35/GJ at the end of 2021. The company reported that this is consistent with a continued tightening in the Western Australia gas market.

Strike also revealed that urea shortages impacting farmers across the world “reached acute levels”. This impacted the supply of AdBlue, a urea derivative diesel exhaust fluid. With the Gibson Island urea production plant slated to close this year, Strike’s Project Haber received support from the Federal and State Governments to expedite the project through to its financial close.

During the quarter the company also applied for a 1,750 square kilometre Geothermal Exploration Permit (GEP). This forms part of Strike’s plans for dedicated geothermal operations.

What did management say?

Commenting on the quarter gone by, Strike Energy’s CEO Stuart Nicholls said:

During the quarter, Strike continued its run of successful exploration and appraisal results in the Perth Basin, with the positive confirmation of a conventional gas accumulation at the Walyering-5 appraisal well.

Upon successful flow testing, Strike intends to re-start production from Walyering as soon as practicable and progress towards first cashflows, which with an aggressive development plan could come as early as the end of the current calendar year…

The company’s focus now turns to the execution of the South Erregulla 1 well that spudded in mid-January, and has the potential to unlock the gas feedstock for Project Haber, Strike’s fully integrated 1.4 mtpa low carbon urea manufacturing facility.

What’s next?

According to the Australian Energy Market Operator’s (AEMO) December 2021 report, “gas demand will continue to grow over the next decade”. AEMO reported that despite sufficient plant and pipeline capacity, it expects periods of potential supply shortfall after 2023.

Gas is also expected to play a critical role in the global decarbonisation transition. Atop provided baseload power, gas can help industry to produce the required resources to move towards electrification, including copper, lithium, nickel and iron ore.

Strike plans to commence production testing of its Walyering gas asset in the first quarter of 2022.

Strike Energy share price snapshot

The Strike Energy share price is down 20% since this time last year. By comparison the All Ords has gained 7% over the past 12 months.

In a big turnaround, Strike Energy’s shares have gained 42% over the last 3 months.

The post Strike Energy (ASX:STX) share price slides despite continuing exploration success appeared first on The Motley Fool Australia.

More reading

• Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season
• BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant?
• Can lithium charge the Rio Tinto (ASX:RIO) share price higher?
• Nuix (ASX:NXL) share price crashes 11% amid another disappointing update
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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

• Bigtincan Holdings is set to report its quarterly earnings for the period ending 31 December 2021 on 24 January.
• The company reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million in FY1.
• The consensus of analyst estimates has Bigtincan to report around $54 million in revenue for 1H FY22.
• Shares have fallen more than 8% since January 1.

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All eyes will be on the Bigtincan Holdings Ltd (ASX: BTH) share price on 24 January when it releases its quarterly report to investors.

The ‘sales enablement platform provider’ confirmed it will provide an overview of quarterly activities and cash flows for the period ending 31 December 2021 near the month’s end in an announcement today.

Specifically, the webinar will be hosted via Zoom at 11.00 am (AEDT) on 24 January 2022, per the release.

What can we expect from Bigtincan in its quarterly update?

Even though it was a robust performance from Bigtincan in 2021, including a 218% increase in cash receipts in October, this didn’t inflect positively on its share price – particularly in the back end of the year.

Shares ran down from a 52-week high of $1.47 in August and haven’t slowed down since, having closed less than 1% in the green yesterday at 93 cents.

During its last quarterly update, the company grew total customer cash receipts by 218% to $14.4 million year over year (YoY).

Cash operating payments were also up 67% to $19.3 million YoY whereas it reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million in FY21.

Probably the most interesting component of Bigtincan’s upcoming earnings release – especially for those investors familiar with the Bigtincan growth narrative to date – is commentary on how the Brainshark acquisition has synergised since completion.

Management had forecasted a 124% accretion to recurring income from the combined sources and estimate $119 million in ARR for FY22 following the acquisition.

Morgan Stanley notes these elements in their valuation of the company. The broker is constructive on Bigtincan and reckons it’s a buy right now, valuing the tech player at $2.10 per share.

With that kind of upside margin, the broker has big expectations for Bigtincan these coming 12-24 months.

The consensus of analyst estimates also has Bigtincan to report around $54 million in revenue for 1H FY22 and $58 million for the second half.

This is expected to carry through to gross profit of $45.6 million, which is a substantial jump of 116% on the last half, according to this consensus view. We will see how on track Bigtincan is in hitting these targets later this month.

For those investors interested in attending Bigtincan’s quarterly report investor webinar, one can register their interest by clicking here and following the prompts to register interest.

Bigtincan share price summary

In the last 12 months, the Bigtincan share price has swung from its 52-week highs in August and is now down 10.5% for the year.

The trend has spilled over into the new year and shares have fallen more than 8% since January 1, after collapsing a further 3% in the previous week of trading.

As such, Bigtincan is now trading at its May 2021 levels after consolidating more than 36% in the last 4 months.

The post Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season appeared first on The Motley Fool Australia.

More reading

• 3 exciting ASX growth shares with major upside potential in 2022
• Experts tip the ASX sectors that are set to outperform in 2022
• 3 small cap ASX shares to watch in 2022

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. owns and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. 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

• BHP shareholders have voted overwhelmingly in favour of its unification
• Unification expected to complete at the end of the month
• BHP has been tipped to make new acquisitions post-unification

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The BHP Group Ltd (ASX: BHP) share price is falling on Friday morning.

At the time of writing, the mining giant’s shares are down 2.5% to $46.85.

What’s going on with the BHP share price?

The BHP share price is falling today despite announcing the completion of the shareholder vote on its unification.

According to the release, BHP shareholders have approved each of the unification resolutions at the BHP Group Limited General Meeting, the BHP Group Plc Scheme Meeting, and the BHP Group Plc General Meeting.

Despite a bit of push back from a small group of investors prior to the vote, shareholders were overwhelmingly in favour of the plans. So much so, approximately 96% to 97% of the votes were in favour of each of the resolutions.

What now?

With the shareholder vote out of the way, arguably the biggest hurdle has now been surmounted.

BHP will now seek approval from the UK courts. A Court Sanction Hearing is expected to take place on 25 January 2022.

After which, if everything goes to plan, the Big Australian expects the unification to complete on 31 January. This will mean its UK listed shares stop trading at the close of play next Friday on 28 January.

What next?

Once the unification is complete, a number of analysts believe BHP will commence an aggressive merger and acquisition (M&A) strategy.

The team at Morgans expect this to be the case. They have suggested that base metal operations outside Australia could be a target.

Yesterday, the broker said: “Post unification and divestments, we expect BHP to get active on the M&A hunt for larger acquisitions after simplifying its business and freeing up considerable capital resources and management capacity. If we had to guess, we would expect base metal acquisitions outside Australia as the most likely to hold some appeal (we also do not expect it to be in Africa which BHP exited when it spun off South32 in 2015). While not the bottom of the cycle by any means, we see it as the next logical step in BHP’s evolution consistent with its overarching strategy.”

Morgans has an add rating and $48.60 price target on the company’s shares. This suggests only modest upside for the BHP share price from current levels.

The post BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant? 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 Bruce Jackson.

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