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If I could have known just how big Amazon.com, Inc. (NASDAQ: AMZN) would get, I would have bought shares at the IPO.

Which is probably the most useless sentence ever written!

It’s akin to ‘If I’d known what last night’s lotto numbers were, I would have marked them on my ticket’.

It is perhaps wiser to ask ‘Given Amazon’s success, what lessons does it offer us?’

One, by the way, is ‘It’s better late than never’; I left plenty of money on the table but did — belatedly — buy Amazon shares, and I still hold them today.

The lessons might go to disruption and innovation. Changing the game, doing things differently — better — is hard. But if you can do it well, and actually achieve ‘escape velocity’, then you turn others’ benefits of incumbency into millstones around their neck.

Not easy to do, of course, but once you’ve done it, the world can be your oyster.

The lessons might, related, go to scale. Size becomes its own defence at some point, as you go from puny upstart to dominant player. You get to set standards, call the shots, and your marketing costs can fall as you become a household name, at least among your target market.

And the lessons might go to culture. Building from scratch, though difficult, can be easier than trying to turn things around from inside. An oil tanker takes more time, effort and distance to turn than a speedboat does.

But, as I said before, these things are only obvious in hindsight, and only after a company crosses an invisible tipping point.

Plenty of would-be Amazons have failed. Wal-Mart, usually held up as the victim of Amazon’s success, has found a second wind.

Still, I was amazed — and, again, I’m a shareholder so discount it accordingly, if you think that’s appropriate — to get an email from Amazon this morning, telling me they’d sent me a refund.

The word refund was in the email’s ‘subject line’ but it didn’t tell me what the product was.

“Bugger”, I thought, “I wonder what I’m not getting.

Opening the email, I was instantly confused. I’d actually received the product yesterday.

I had to read a little further.

Then I read it:

“Reason for refund: Item shipped late”

I hadn’t complained.

Truth be told, I hadn’t even realised it was late.

Yet Amazon had refunded my shipping cost. In full.

Again, remember I hadn’t complained.

Amazon swallowed my shipping cost.

Not to keep me sweet. Not because I complained.

But because they figure they screwed up, and wanted to make it right.

They could have done nothing. I probably wouldn’t have noticed.

If I’d complained, they could have legitimately blamed COVID-related shipping delays.

Or begrudgingly offered me a partial refund or site credit.

I probably would have been satisfied with that, had I complained.

But Amazon doesn’t want me to be ‘satisfied’.

It doesn’t want me to feel neutral about the company.

It doesn’t want me to tell my friends that Amazon is ‘okay’.

Don’t get me wrong — Amazon isn’t doing this out of the kindness of its (shareholders’) hearts.

Amazon is doing it because it knows that customer love matters.

That meeting expectations is the ticket to the dance, but truly delighting customers sets a company apart.

It knows that by treating customers better than they expect to be treated, those customers will be even more likely to use Amazon next time.

That freight saving is an investment in customer retention.

Because Amazon also knows that the cost of ‘acquiring’ a new customer is many, many times the cost of keeping an existing one.

It probably also knows that people want to work for a company that cares for its customers, too. And that it’s far more efficient to pre-emptively deal with supply chain failures than deal with unhappy customers.

And it knows human nature means that I now feel better about being an Amazon customer than I did before I opened that email.

So, I’m probably going to use Amazon more in future, because I know how much they care about their customers. I’m going to be less worried that they might try to get one over on me next time. That, choosing between Amazon and someone else, I’m going to trust Amazon a little more.

And all of the above, measured over days, weeks, months and years, makes that freight refund a pretty cheap investment.

Which begs the questions:

How many businesses try to make a buck on every single transaction, missing the forest for the trees?

How many businesses are investing time, effort and money into making their customers’ experience a better one?

How many businesses are truly playing the long game — realising that happy customers, even if less profitable today, are goldmines over the long term.

It’s not just Amazon, of course.

For example, Aussie Broadband, in the usually boring, low-expectations world of telecommunications, elicits a tonne of customer love, and recommendation.

Corporate Travel Management, a company whose shares I also own, has long won awards for customer service and satisfaction and has high customer retention rates.

And there are plenty more besides.

As a group, I reckon there’s a pretty good chance that companies that care most about their customers — and whose customers feel that love — will beat those who don’t.

It’s not the only way to pick a stock market winner. And there will be exceptions that prove the rule. But when your customers actively tell others about their great experience… well, you’re probably onto something worth paying attention to.

Fool on!

The post Does your company love its customers? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Scott Phillips owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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The Vulcan Energy Resources Ltd (ASX: VUL) share price has returned from its trading halt and is sinking on Thursday.

In morning trade, the clean lithium company’s shares are down 10% to $14.40.

Why is the Vulcan share price sinking?

The Vulcan share price has come under pressure on Thursday after receiving firm commitments for its $200 million underwritten placement to sophisticated, professional, and institutional investors.

According to the release, the company is raising the funds at an offer price of $13.50 per new share. This represents a discount of 15% to the Vulcan share price prior to its trading halt.

The release notes that the placement was strongly supported by new and existing shareholders. This includes Gina Rinehart’s Hancock Prospecting and a number of global ESG-focused institutions.

The settlement of the placement is expected to occur on 21 September. After which, a share purchase plan will open on 24 September. This will be available to eligible existing Vulcan shareholders and will seek to raise up to a further $20 million at the same price.

Why is Vulcan raising funds?

Vulcan is raising funds to support its goal of becoming the world’s first fully integrated renewable energy and zero carbon lithium company, with phase 1 production targeted for 2024.

It is also seeking to expand its Zero Carbon Lithium Project development at a time of unprecedented demand for lithium chemicals to supply the transition to electric vehicles in Europe.

Vulcan’s Managing Director and CEO, Dr. Francis Wedin, said: “We would like to thank our existing shareholders, including Hancock Prospecting, and new ESG-focused institutional shareholders, for supporting us in this placement to accelerate and expand our integrated renewable energy and lithium development strategy.”

“We are now well positioned to pursue the targeted acquisition and upgrade of existing brownfield energy and brine infrastructure, to de-risk and grow our development plans, as well as to increase our production pipeline from our existing license areas.”

“This also allows us to complete the targeted acquisition and refurbishment of exploration equipment which will assist with executing on our project development in a timely manner. The Vulcan team remains focused on developing our world-first dual renewable energy and Zero Carbon Lithium business, with phase 1 production to supply the EU battery market targeted for CY2024,” he concluded.

The Vulcan share price is up over 400% in 2021.

The post Why the Vulcan (ASX:VUL) share price is crashing 10% today 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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The Telstra Corporation Ltd (ASX: TLS) share price is rising after the telco released its T25 strategy and also told the market about its dividend intentions.

T25 strategy to help the Telstra share price?

There are a few key elements to this new strategy.

Telstra wants to deliver sustained growth and value for shareholders. – It’s targeting a compound annual growth rate (CAGR) of mid-single digits for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and high-teens for underlying earnings per share (EPS) from FY21 to FY25. Telstra also wants T25 to achieve another $500 million of net cost reductions, good cash conversion and generation, active portfolio management and shareholder value through an updated capital management framework.

It wants to provide an exceptional customer experience. – The telco is planning to expand into energy and continue to provide its other services. One part of the customer service will be using ‘predictive analysis’. Telstra wants to ensure that customer can speak to an Australian contact centre service rep or visit a local expert in its Telstra-owned store network. It’s looking to grow its Telstra Plus membership to 6 million by FY25.

The telco wants to have continued network and tech leadership, providing solutions that deliver for the future. – It’s planning to extend its 5G network coverage to 95% of the population. Regional coverage will be expanded with 100,000sq km of new 4G and 5G coverage. The company also referred to greater access to tower assets with 250 new towers and 700 additional tenancies.

Telstra also wants to be a place that people want to work. – It wants to be in the 90^th percentile for employee engagement.

The Telstra share price is currently up around 2% after releasing this update.

Dividend growth goal

A notable part of the T25 announcement was that Telstra is looking to maximise fully franked dividends for shareholders and seeks to grow them over time.

Telstra said that its objectives about its capital management framework is to maximise returns for shareholders, maintain financial strength and retain financial flexibility.

The company noted the importance of dividends for investors. It intends to return as much cashflow to shareholders that can be sustainably be supported by earnings and franking.

Telstra is confident in maintaining a minimum fully franked dividend of $0.16 per share, subject to no expected material events and the requirements of its capital management framework. At the moment, its franking credit balance is “low”.

At the current Telstra share price, the telco’s $0.16 per share annual payment equates to a grossed-up dividend yield of 5.7%.

It pointed out that in FY21 it generated 15.6 cents of reported EPS and 9.7 cents of underlying EPS. Management stated that it needs to grow underlying earnings in line with its financial ambitions and grow its franking balance in order to grow fully franked dividends.

Telstra has replaced its previous principle of paying fully franked dividends of 70% to 90% of underlying earnings because it expects its cashflow to remain ahead of its accounting earnings.

It expects FY22 to be the last year of special dividends funded by the NBN receipts.

Telstra share price valuation

Earnings estimates may change after the T25 update. However, the current Commsec estimates put the Telstra share price at 24x FY23’s estimated earnings.

The post Telstra (ASX:TLS) share price rises on T25, dividend growth goal appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended Telstra Corporation 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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The EML Payments Ltd (ASX: EML) share price is under pressure this week. Shares in the Aussie payments group are falling again today and are down 9% since last Tuesday.

So, what’s influencing the company’s valuation right now, and should investors be paying attention?

Why the EML share price is down 9% in just over a week

It’s been a volatile little period for the company’s shares. They closed at $4.23 per share last Tuesday, September 7 and struggled through to Friday’s close.

The EML share price then climbed back up to $3.98 per share on Tuesday morning this week before sliding through to $3.86 per share at Wednesday’s close. In early trade today, they are down 0.52% to $3.84 — that’s a fall of 9.2% since last Tuesday.

Interestingly, there have been no new announcements from the ASX payments group in recent days. However, it often pays to look at recent updates and see if there is a hangover of sorts from investors reacting to the latest news.

The last major price-sensitive announcement from the group was its August 20 full-year results update.

In case you missed it, EML announced its FY21 results with some of the key takeaways below:

• Gross debit volume (GDV) up 52% on the prior corresponding period (pcp) to $19.7 billion;
• Revenue up 60% on pcp to $194.2 million;
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 65% on pcp to $53.5 million;
• Operating cash flow up 121% on pcp to $48.8 million;
• Underlying net profit after tax and acquisition adjustments (NPATA) up 54% to $32.4 million.

The EML share price has been broadly flat since the full-year update. Shares in the payments group are up 7.5% in the past month but a sharp drop in mid-May amid regulatory concerns in Ireland means they remain down around 27% in the past 6 months.

Tech shares have been under pressure in recent days with the ASX following the trend seen in offshore markets such as the United States. That seems to be flowing through to EML’s valuation given the lack of any market-moving news and relatively benign conditions in recent days.

Foolish takeaway

The EML share price has struggled to climb higher in 2021. Despite some bumper headline growth numbers in its August results, shares in the payments group have tumbled in recent days.

The post The EML (ASX: EML) share price is down 9% in recent days. What’s happening? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of 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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The Domain Holdings Australia Ltd (ASX: DHG) share price is edging lower on Thursday morning.

At the time of writing, the property listings company’s shares are down 0.5% to $5.23.

Why is the Domain share price edging lower?

The Domain share price is trading lower after it followed the lead of REA Group Limited (ASX: REA) by bolstering its offering with an acquisition.

According to the release, Domain has entered into a binding agreement to acquire Insight Data Solutions (IDS) for $60 million. Management believes this marks another step forward in executing on its marketplace strategy.

However, given that IDS is expected to record revenues of $7 million in FY 2022, some investors may feel Domain has overpaid. This may explain some of the weakness in the Domain share price today.

Why acquire IDS?

The release notes that Domain is on a journey to expand its addressable market beyond agents and consumers to financial institutions and government.

The company believes the acquisition of IDS establishes Domain as a market leading provider of land and property valuation, insights, and analytics services into the government sector. It also notes that it significantly expands the size of the property data solutions pillar of its marketplace strategy.

What is IDS?

IDS is a market leading property data business focused on two key customer segments: government and corporate.

The company’s platform and workflow tools connect many of the key stakeholders in the property ecosystem. This includes the Office of the Valuer General, who is responsible for statutory valuation processes, and the Local Government Authorities (LGAs), which levy rates based on these valuations.

In addition, valuers who perform the statutory valuations and the public whose rates are based on the statutory valuations are connected via the platform.

IDS is anticipated to deliver FY 2022 revenue of $7 million before the impact of any operating synergies. However, over the next five years, if IDS executes on identified growth opportunities, Domain sees the possibility of a greater than four-fold increase in total revenue in FY 2026. That would be revenue of at least $28 million.

Domain’s CEO, Jason Pellegrino, commented: “We are pleased to welcome IDS to the Domain Group. IDS brings rich experience in building property data platforms and delivery services to support the workflow requirements of Governments, particularly in regards to land valuations.”

“Federal, State and Local Governments will always play a central role in Australia’s property ecosystem. IDS’ platforms, workflow tools and property analytics allow Governments to make more timely, accurate and nuanced decisions regarding land valuations, land use, tax policy and revenues.”

“The importance of these services is likely to amplify as Governments deal with increasing land scarcity, the challenges of housing affordability and planning policy, increased infrastructure investment and the transition of revenue from transfer duties to annual levies based on land valuation,” he concluded.

The Domain share price is up 15% in 2021.

The post Domain (ASX:DHG) share price lower despite key $60m acquisition 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 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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The Myer Holdings Ltd (ASX: MYR) share price is charging higher following the release of its full year results.

In morning trade, the department store operator’s shares are up 7% to 54.5 cents.

Myer share price higher on profit rebound

• Total sales increased 5.5% to $2,658.3 million
• Online sales up 27.7% to $539.5 million
• Gross profit margin lifted 168 basis points to 39.7%
• Net profit after tax of $51.7 million, compared to a loss of $13.4 million in FY 2020
• Dividend remains suspended due to lockdown uncertainty

What happened in FY 2021 for Myer?

For the 53 weeks ended 31 July 2021, Myer reported a 5.5% increase in sales to $2,658.3 million. A key driver of this growth was its online business, which delivered a 27.7% lift in sales to $539.5 million. This means that 20.3% of Myer’s sales are now generated online.

Complementing its solid sales growth was margin expansion, which was underpinned by the success of its Customer First Plan and its focus on profit sales. This led to Myer delivering a net profit after tax of $51.7 million for FY 2021. This is a huge improvement on the $13.4 million loss it recorded a year earlier.

Despite its strong profit rebound, lockdown uncertainty means that its dividend will remain suspended for the time being.

What did management say?

Myer’s Chief Executive Officer and Managing Director, John King, was very pleased with the company’s performance in FY 2021.

He commented: “This result is a testament to the hard work of our team, and we are starting to see the business thrive despite the extraordinary market conditions. Our significantly improved FY21 results, including growth in profitability for both the first and second half, demonstrates the Customer First Plan is getting real traction.”

“Despite the on again off again nature of physical retail over FY21, when combined with continued growth in the online business, we delivered solid sales growth when not impacted by lockdowns, particularly in 2H21,” he added.

Mr King also highlighted that the company’s focus on profitable sales has been key to the retailer’s resurgence.

He explained: “As we have consistently said over the past three years our focus has been on profitable sales, growing the online business, disciplined management of costs, cash, and inventory, space optimisation and the deleveraging of our balance sheet. The successful execution of these, and many more strategic initiatives, has delivered solid growth across all our key metrics in FY21.”

“We continue to improve our merchandise cycle as evidenced by improved margins and stockturn, reduced aged stock and record low levels of clearance inventory,” added King.

Outlook

One thing that could be holding the Myer share price back a touch today is that there was no guidance provided by management. Though, it did provide a bit of colour on current trading.

The company advised: “Trade remains subdued with lockdowns however there is strong performance in Online and our non-lockdown stores which provides optimism once lockdowns ease.”

Management also advised that it was pleased with how it was positioned going into the Christmas trading period.

Mr King commented: “The business is well placed ahead of the upcoming peak trading period and the team are focused on remaining agile in response to the various State-based lockdowns and travel restrictions.”

The Myer share price is now up 82% in 2021.

The post Myer (ASX:MYR) share price jumps 7% on strong FY 2021 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 Bruce Jackson.

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Eagle-eyed investors would be watching the Graincorp Ltd (ASX: GNC) share price right now.

Shares in the Aussie commodities business have been surging higher in 2021 and the past year more broadly. The Graincorp share price was swapping hands for $6.50 at Wednesday’s close of trade.

So, what’s helping propel the Aussie grain business’ valuation to its current level?

What’s driving the Graincorp share price?

Graincorp’s core business is in the receipt, storage and management of grain and related commodities. The Aussie company currently boasts a market capitalisation of $1.5 billion and is trading just shy of a 52-week high.

Perhaps the most surprising thing is the company’s price to earnings (P/E) ratio. Graincorp’s current P/E ratio is 277.8 times earnings — an astonishing valuation.

The Graincorp share price has rocketed 68% higher in the last 12 months on the back of strong profitability and earnings growth. Unlike many other ASX companies, Graincorp reports on a May (half-year) and November (full-year) reporting cycle.

That means we didn’t get to see the latest results from the group during the August reporting season just gone. We did, however, get a guidance upgrade from the Aussie company last month.

Looking ahead

Graincorp has upped its FY21 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit after tax (NPAT). The Aussie commodities group was previously expecting underlying EBITDA of $255 million to $285 million with underlying NPAT of $80 million to $105 million.

Underlying EBITDA is now expected to hit $310 million to $330 million with underlying NPAT coming in at $125 million to $140 million.

The significant expected earnings bump saw the Graincorp share price surge higher in August. It comes after strong performance from the company’s east coast Australian grains business amid a strong harvest season.

It’s good news for shareholders following on from a solid half-year result in May.

The Graincorp share price is now up 51.9% year-to-date and trading just shy of its $6.54 per share 52-week high.

The post Up 65% in the past year: What’s happening with the Graincorp (ASX:GNC) share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 are on ASX uranium shares today as the commodity’s spot price continues to rise amid a new international deal for nuclear-powered submarines.

The price of uranium – a commodity needed to fuel nuclear reactors – has been soaring in recent weeks.

According to data from CNBC, the price of uranium has gained more than 60% since this time last month.

As a result, ASX uranium stocks including Deep Yellow Limited (ASX: DYL), Paladin Energy Ltd (ASX: PDN), and Energy Resources of Australia Limited (ASX: ERA), are on watch today.

What’s causing the price of uranium to surge?

The price of uranium has been soaring in recent weeks, driving up the share prices of many ASX uranium shares.

S&P Global Platts reports the price of uranium is being driven higher by funds, investors, and producers increasing their holdings in the commodity.

The publication notes some partakers in uranium-buying believe there’s a lack of supply. It also states some investors are enthused by nuclear’s potential as an energy source in the age of climate change.

The increased prices, demand, and funds’ buying the material to hold will likely bolster uranium production. It would also be good news for ASX uranium fans.

Additionally, ASX uranium enthusiasts’ interest may be peaked by a new pact between Australia, the United States, and the United Kingdom. The security partnership, named AUKUS, aims to see nuclear-powered submarines navigating Australian waters.

As ABC News has reported today, under the AUKUS pact, Australia’s submarines and their diesel-electric motors will be replaced with nuclear-powered counterparts.

The United Kingdom’s Prime Minister, Boris Johnson, was clear in saying the submarines will not be equipped with nuclear weapons.

The talk of nuclear power in Australia might boost investors’ sentiment of the uranium sector today. However, no companies have announced their involvement in the new submarines.

How are ASX uranium shares performing lately?

So far, the Deep Yellow share price has gained a massive 88% over the last 30 days.

Paladin’s stock is besting that figure, boasting a 113% gain for the same period.

Finally, the Energy Resources of Australia share price is currently 70% higher than it was this time last month.

The post Why are ASX uranium shares in focus today? appeared first on The Motley Fool Australia.

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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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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is on watch during Thursday’s session after the company released an investor briefing before the market open.

The briefing is concentrated on the banking giant’s ESG approach, and how it is complying with the push towards a sustainable and diverse business model.

ANZ’s share price closed at $27.61 yesterday, and therefore it is on watch after the release of this ESG briefing.

Let’s investigate a little further.

What did ANZ announce in its ESG update?

ANZ gave a comprehensive overview of its ESG framework, and how ESG factors are embedded into its operations.

The bank went into great detail into each framework of the ESG criterium – Environmental, Sustainability and Governance – and how it ticks the boxes for each of these headings.

For instance, ANZ has “funded and facilitated $14 billion towards sustainable finance”, and has completed 55 transactions in its “sustainable finance business” so far in FY21. The transaction volume on these deals is $91 million – definitely no small change.

Another interesting takeout from the briefing was the bank’s posture on risk, and its newly formed “risk appetite statement (RAS)”.

This is basically a document that states the “degree of risk that ANZ is willing to take”, and a “process for monitoring compliance”, amongst others.

As such, its assessment of risk now extends to climate risk, biodiversity in environmental sustainability, cyber scamming and economic disparity, as per the release.

The banking giant then gave a series of case examples in its presentation on each of the subsections under the ESG banner, before establishing its future ESG targets.

It intends to “support 10 of the 17 United Nations sustainable development goals”, ranging from environmental sustainability to fair and responsible banking.

A big part of its plan to beef up ESG principles in house is ANZ’s policies on disclosure, and this came through in the briefing. ANZ outlined its disclosure process, and demonstrated the extent of its transparency, particularly on ESG measures.

The presentation concludes on a similar theme, and investors wanting to find out more on ANZ’s ESG policies, disclosures, or annual review of the same can head to the last page (page 50) of ANZ’s report and click the links found there.

ANZ share price snapshot

The ANZ share price has had an interesting year and has posted a gain of 22% this year to date. This extends the return over the past 12 months to 60%.

Both of these results have outpaced the S&P/ASX 200 index (ASX: XJO)’s climb of around 25% over the past year.

The post ANZ (ASX:ANZ) share price on watch following ESG update appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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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The Newcrest Mining Ltd (ASX: NCM) share price has been under pressure this year. Shares in the Aussie gold miner have slumped 9% lower in 2021 despite strong gains for other ASX resources shares.

What’s going on with this S&P/ASX 20 Index (ASX: XTL) constituent right now and why is it under pressure?

Why the Newcrest share price is struggling in 2021

Newcrest is primarily a gold and copper miner, and a large one at that. According to the group’s recent FY21 results, Newcrest produced 2.1 million tonnes of gold and 142.7 thousand tonnes of copper last year.

It’s perhaps surprising to see the Newcrest share price struggle given the strong realised prices seen in FY21. Newcrest’s realised gold price jumped 17% to US$1,796 per ounce while copper prices were up 42% to US$3.66 per pound.

Group revenue climbed 17% in FY21 to $4.6 billion with earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 33% to $2.4 billion. That helped Newcrest post record free cash flow in FY21 of $1.1 billion.

Those strong headline numbers weren’t enough to arrest the recent Newcrest share price slump. Shares in the Aussie gold miner have been sliding lower since the middle of the year.

Gold prices and market expectations could help explain the recent valuation slump. A large proportion of Aussie gold miners have seen their share prices fall in the last year.

In fact, it’s hard to find many S&P/All Ordinaries Gold Index (ASX: XGD) companies that are seeing strong gains. That sub-sector index has seen double-digit declines in 2021 as expectations for a continued gold rally have subsided.

There has also been the supply-side factors with a number of miners ramping up capacity and production in anticipation of sustained higher prices.

The Newcrest share price has remained under pressure in 2021. However, the Aussie miner still remains one of Australia’s largest listed companies with a market capitalisation in excess of $20 billion.

The post Why is the Newcrest (ASX:NCM) share price struggling in 2021? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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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