Tag: Motley Fool

Is the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price a buy right now for dividends?

What’s the latest from ANZ?

Last month, the big bank released its update for the first quarter of FY21. It announced an unaudited statutory profit after tax for the quarter to 31 December 2020 of $1.62 billion, with an unaudited cash profit from continuing operations of $1.81 billion – up 54% on the average of the last two quarters of 2020.

ANZ reported that its credit impairment charge was a release of $150 million, compared to a quarterly average impairment charge of $531 million in the second half of FY20 and $827 million in the first half of FY20 (due to COVID-19 impacts). 

However, ANZ said that its profit before credit impairments and tax was $2.4 billion in the first quarter of FY21. This was actually lower than the quarterly average in the second half of FY20 ($2.52 billion) and also lower than the first half of FY20 ($2.51 billion).

ANZ’s common equity tier 1 (CET1) capital ratio has been steadily climbing. At December 2020, the CET1 ratio was 11.7%, at September 2020 it was 11.3% and at March 2020 it was 10.8%. It’s this level of capital that’s getting the market excited about potential dividends in the next couple of results.

How has the ANZ share price performed recently?

The big banks have been some of the stronger performers on the ASX in recent times.

Over the last six months the ANZ share price has gone up by 62% and over the last month it has risen by 14.5%. The market seemed to like the update and investors have priced the bank higher for a recovery in earnings.

ANZ CEO Shayne Elliot himself said:

This is a strong performance in volatile trading conditions that again highlights the benefits of disciplined execution of our strategy as well as maintaining a simpler and well balanced portfolio of businesses.

Margins were up across the group due to higher volume growth in targeted segments and disciplined and active approach to risk and pricing. The combination drove group revenue up 4% for the quarter when excluding the impact of our markets business.

The small release in the collective provision reflected improved economic conditions, particularly here in Australia. However, recent lockdowns in Perth, Brisbane, Melbourne and Auckland demonstrate how quickly things can change and we believe our current settings are both prudent and appropriate given this uncertainty.

What about dividend expectations?

ANZ’s dividend decision will be left to the FY21 first half result, but some brokers have pencilled in some expectations about what the dividend size will be for the full 2021 financial year.

For example, broker Ord Minnett thinks that the ANZ FY21 dividend could be $1.40 per share, which amounts to a grossed-up dividend yield of 7% at the current ANZ share price.

Broker Credit Suisse has expectations of a FY21 annual dividend of $1.48 per share for ANZ, equating to a grossed-up dividend yield of 7.4%.

Morgan Stanley has pretty low expectations for the FY21 dividend from ANZ – the broker is expecting a dividend payout of $1.05 per share. This translates to a forward grossed-up dividend yield of 5.25%.

More reading

• Is Australia’s stagnant wage growth worse than we thought?
• Can ASX bank shares keep rallying after hitting 52-week highs?
• ANZ (ASX:ANZ) hits 3 year high. Can we thank dividends?
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• Beat low interest rates with this outstanding ASX dividend share

Motley Fool contributor Tristan Harrison 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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If you’re wanting to build your wealth over the long term, then you’ll no doubt be on the lookout for some quality buy and hold options.

If that is the case, then you might want to look at the ASX shares listed below. Here’s why they could be excellent buy and hold investments:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share to consider as a buy and hold investment is this pizza chain operator. Domino’s has been a very strong performer over the last decade. This has been driven by a combination of same store sales growth, acquisitions, and its international expansion.

The latter has led to Domino’s growing its store network from 823 stores in FY 2010 to 2,800 stores at the end of the first half of FY 2021.

Positively, management isn’t resting on its laurels and intends to double its store count again later this decade. And that’s just from its existing network. Management also advised that it is actively pursuing acquisitions, which could bolster its growth further.

If this all goes to plan, Domino’s shares could be market beaters again over the next 10 years. That appears to be the view of analysts at Goldman Sachs. The broker is very positive on its outlook and currently has a buy rating and $112.60 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed could be another excellent ASX share to buy and hold. This is because this sleep treatment-focused medical device company is benefiting from the growing prevalence of sleep disorders such as sleep apnoea.

This is supporting very strong demand for ResMed’s industry-leading portfolio of products. And given that the majority of sleep apnoea sufferers are still undiagnosed, it has a very long runway for growth.

Furthermore, thanks to its investment in the out of hospital space, ResMed is very well positioned to benefit from the shift to home healthcare.

It is partly for this reason that Credit Suisse is a fan of the company. The broker currently has an outperform rating and $29.50 price target on ResMed’s shares. It believes the company is capable of double digit growth over the medium term.

More reading

• Leading brokers name 3 ASX shares to buy today
• 2 fantastic ASX growth shares to buy this week
• How to turn $20,000 into $300,000 in 10 years with ASX shares
• Why it could be a good time to buy Domino’s (ASX:DMP) shares
• Why are these ASX 200 healthcare shares sinking today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and ResMed Inc. 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 Australian share market is home to a large number of companies that share their profits with investors in the form of dividends.

If you’re interested in getting a piece of the action, then you might want to take a look at Aventus Group (ASX: AVN).

Why Aventus?

Aventus is a fully-integrated owner, manager, and developer of large format retail.

Unlike many other retail landlords, Aventus has been performing very positively over the last 12 months. This is thanks largely to its exposure to the household goods sector, which is performing strongly during the pandemic.

In fact, last month the company released its half year results and revenue a small increase in revenue and a 43% lift in net profit to $103.4 million. The latter includes a $25.7 million increase in the net fair value of its property.

Excluding accounting adjustments, Aventus’ funds from operations (FFO) increased 6.5% to $55.9 million. Positively, more of the same is expected in the second half, with management upgrading its FFO growth guidance to 4% for the full year.

Goldman Sachs expects this to lead to a 16.6 cents per share full year dividend. Based on the latest Aventus share price of $2.81, this represents a generous 5.9% dividend yield.

The broker also sees upside for its share price. It has a buy rating and $3.04 price target on the company’s shares.

Why is the broker positive on Aventus?

Goldman Sachs explained that it believes the Aventus share price is trading at an attractive level based on its growth profile.

“We believe AVN’s recent strong performance reflects its diversified tenant base, lower rental point and better growth outlook (both organic and external), resulting in its strong positioning into 2H21 as Australia reopens. AVN’s multiple has recovered since its trough in March 2020, which was as a result to concerns surrounding economic uncertainty, retail exposure, and higher leverage at the onset of COVID-19 in Australia. Since then, the stock has re-rated higher, as traffic has picked up and retailer performance continues to improve.”

“We continue to believe AVN remains attractive, with its aforementioned organic and external growth strengths not currently reflected in its multiple – trading at 13x FY22e FFO – in line with our coverage average despite a two-year growth rate 1.8% above our A-REIT coverage average. Moreover, AVN remains attractive when screened against retail A-REIT peers.”

More reading

• Aventus Group (ASX:AVN) share price flat despite 43% increase in profits
• 2 high yield ASX dividend shares to buy today
• 2 high quality ASX dividend shares with generous yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) gave back its early gains and dropped lower due to weakness in the banking and resources sectors. The benchmark index fell 0.85% to 6,714.1 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 to bounce back

The Australian share market looks set to bounce back on Thursday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 39 points or 0.6% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.6%, the S&P 500 has risen 0.85%, and the Nasdaq is up 0.15%. Bond yields fell overnight after weak US inflation data.

Iron ore price stabilises

A sharp pullback in the iron ore price weighed very heavily on Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) shares on Wednesday. Fortunately, the steel-making ingredient has now stabilised and even edged higher during overnight trade. Traders had been selling iron ore after Chinese authorities curbed steel production to tackle pollution.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a solid day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.85% to US$64.55 a barrel and the Brent crude oil price has risen 0.8% to US$68.05 a barrel.

Gold price higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,723.80 an ounce. The gold price climbed after bond yields pulled back following soft inflation data.

Shares going ex-dividend

Another group of shares will be going ex-dividend this morning and could trade lower. On this occasion these shares include copper producer OZ Minerals Limited (ASX: OZL) and diversified mining company South32 Ltd (ASX: S32).

More reading

• ASX 200 drops, Zip down, Afterpay soars
• Here’s why the Fortescue (ASX:FMG) share price sank 8% today
• Why the Rio Tinto (ASX:RIO) share price is among the worst performers today
• Here are some of the best performing ASX tech shares today
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower

Motley Fool contributor James Mickleboro 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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Energy Australia has announced today that it will bring forward the closure of its Yallourn coal-fired power station in Victoria by 4 years. Therefore, operations will cease in mid-2028, instead of the previous 2032 target.

The decision set the tone for the Australian Financial Review’s Business Summit discussion with Origin Energy Ltd (ASX: ORG)’s CEO Frank Calabria; and BHP Group Ltd (ASX: BHP)’s head of carbon management, sustainability, and climate change, Graham Winkelman.

Green future is desired, but the path there is complex

It is a fine balance, trying to walk the tight rope of supply and demand while also transitioning to renewables. The difficulty is further compounded by the government’s hand in the markets.

Renewable subsidisation from governments means traditional energy producers find it hard to compete. Ironically, as is this case for Yallourn, the government will offer a support package to transition the 500–1,000 jobs that are expected to be lost. So, either way, governments are finding themselves having to play both sides to ‘sustainably’ reach the end goal.

Origin Energy weighs in as share price dips

Both the Origin Energy share price and the BHP share price have fallen this afternoon, after the shutdown news.

Calabria today remarked that Yallourn’s earlier closure is a sign of what’s to come: “In truth, the energy transition has been underway for many years. You can see that by the growth in renewable energy over the last decade.”

Calabria further commented on the fact that end-of-life programs will need to be managed as renewable energy overtakes traditional energy production.

Everyone with their existing assets will need to make the assessment in their own portfolios, and I think that’s probably a good point to raise that when there’s the prospect of changing policy that represents a risk to the commitment of large investment.

Based on Origin’s 2020 annual report, the power producer held 7,400 megawatts of power generating assets, nearly 19% of which were owned and contracted renewables and storage.

Yallourn power station is tip of the iceberg

NSW Premier Gladys Berejiklian also chimed in on the matter. Despite the improvement in climate change policies, the Premier stated that Australia has “a little catching up to do”, adding “We need the right politics.” A sentiment that Calabria also mirrored during his address.

All this ‘catching up’ will certainly come at a cost. A cost that Commonwealth Bank of Australia (ASX: CBA) senior exec Andrew Hinchliff estimates could be as high as $12 trillion.

More reading

• Is Afterpay (ASX:APT)’s BNPL competition heating up?
• Is this a better way to buy into the ASX mining supercycle?
• Macquarie sees upside for Rio (ASX:RIO) and BHP (ASX:BHP) share prices
• Here are the US shares ASX investors have been buying
• How does China really feel about Australian iron ore and coal?

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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 Afterpay Ltd (ASX: APT) share price had a fantastic day today. Afterpay shares closed the day up by 7.53% at $115.26. However, if you pull back just a little bit, the picture is not nearly as rosy. Afterpay shares are still down around 25% over the past month after making a new all-time high (of $160.05 a share) back on 10 February.

Afterpay’s rival Zip Co Ltd (ASX: Z1P) hasn’t been so lucky. Zip shares dropped 3.87% today to $8.44. Over the past month, Zip has lost a hefty 21.5%, and more than 40% since reaching a new all-time high on 16 February.

As we discussed earlier today, Zip shares haven’t been feeling the love from several brokers in recent weeks, with UBS slapping a sell rating on Zip just this morning.

It also seems to be the case that sentiment from the US in regards to the tech sector over there has been spilling into the ASX. Some itchy investors might have been quite keen to get some of their profits off of the table as well, given the success these companies had earlier in the year.

BNPL competition heats up

But perhaps another threat is also emerging: competition.

At least until now, it could be said that investors are treating buy now, pay later (BNPL) as a magic pudding of sorts. Since it’s such a high growth area, most new entrants into the space have been arguably awarded very generous valuations and scope by the market. 

But perhaps this sentiment is drying up. BNPL, despite being a high growth area, is also a relatively low-margin business. Each BNPL company clips the ticket on transactions going through its network, helped of course by some late fees along the road. But as competition increases, these margins might be whittled down to a level more similar to that of the debit card space.

We already know that the ASX BNPL space is a little crowded. We have Afterpay and Zip, as well as others like Splitit Ltd (ASX: SPT), Openpay Group Ltd (ASX: OPY), Humm Group Ltd (ASX: HUM) and Laybuy Holdings Ltd (ASX: LBY). Then there’s Commonwealth Bank of Australia (ASX: CBA)-backed Klarna, as well as American Express Company‘s (NYSE: AXP) new instalment feature.

And, according to a report in the Australian Financial Review this morning, US e-commerce giant PayPal Holdings Inc (NASDAQ: PYPL) will also finally be rolling out its ‘pay in four’ instalments option for Australians in June. It announced this new feature last year.

That’s a group of companies that will have the potential to deliver a massive amount of competitive pressure to the entire sector. No wonder some investors are getting jittery!

More reading

• Early Yallourn power station closure sets the pace for ASX energy sector shakeup
• ASX 200 drops, Zip down, Afterpay soars
• Here are some of the best performing ASX tech shares today
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower
• Could this be why the Zip (ASX:Z1P) share price lost all its gains today?

Sebastian Bowen owns shares of American Express. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Humm 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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I can’t decide whether I’m jinxed, or whether I’m just proof that Murphy’s Law is real and, well, Murphy is just a no-good so-and-so.

Whatever the reason, if you owned certain US stocks before last night, you’re welcome.

See, I’d been planning to buy some US companies for a while now. But, between getting the money into my US brokerage account (in US dollars), and the trading rules here at The Motley Fool (yes, okay, and my never quite getting around to it), I just hadn’t done it.

So, last night, after dinner, I sat down and finalised my list of the companies I wanted to buy with the cash I had in the account.

Then, this morning, I woke up, and…

And the shares were up. 

By quite a bit.

Bloody Murphy’s Law.

So, I didn’t buy them, right?

Wrong.

I bought them anyway.

Now, there’ll be more than a few of you shaking your head right now.

Who buys when shares are up, for goodness sake?

Why not wait for them to drop?

Sentiments I understand.

But sentiments you need to dispense with, if you’re going to be a long term investor.

See, here’s the thing: buying — or not — based on what happened yesterday, today, or tomorrow, is not a particularly great way to invest.

You reckon the person who bought Woolies shares at $3, kicking herself for missing them at $2.90, is still kicking herself today, when the share price is closer to $40?

I mean, sure, given our druthers, we’d all choose to jump in the time machine and travel back to the Woolies IPO and buy shares then, but we don’t have that luxury.

Frankly, I don’t know if my hypothetical mate would have had the chance to buy Woolies again at $2.90.

Maybe she would have.

Or maybe not.

And what would have been the bigger sin? 

Missing out on $0.10, or missing out altogether on buying, because your target price was never reached?

Still, that’s just a hypothetical, right?

Would never happen, right?

Not so fast.

You know my Woolies example? There’s a US analog.

Some bloke called Buffett.

And some company called Wal-Mart.

You might have heard of it. And him.

Buffett estimated that his company, Berkshire Hathaway (I own shares, for the record), lost out on US$10 billion in profits when he stopped buying after the share price rose through a predetermined price.

He stopped buying because he’d set a mental limit that he wouldn’t cross.

In hindsight, he cites it as one of his biggest mistakes.

Which isn’t to say he should’ve or could’ve paid just any old price for the shares.

Or that you and I should, either.

But if you’re only going to pay, say, $2.90 rather than $3 per share for a company, do you really reckon your valuation skills are so good that you can correctly estimate the worth of a company to within 3%?

Because I have to tell you, mine aren’t.

And here’s the other thing — I reckon, on balance, I’m much better off finding a company with a great future and paying an approximately attractive price, then obsessing over the last 5 or 10 cents on a mediocre business.

Because, maybe the share price comes back down.

But maybe it doesn’t.

And if we’re right about the long term potential, that bit is going to matter a whole lot more.

Want to spin out a little more on the ‘coulda, shoulda, woulda’ stuff?

One of the companies I bought last night was up about 5% on the day before.

Ouch.

Then again, it’s still down 25% on its 2021 highs.

Beauty!

Oh, but it’s currently selling for more than double what it was selling for a year ago.

Bugger.

And around and around we go.

Just like Buffett’s $10 billion, or my mate’s 10 cents, it’s easy to get caught up in the emotion of trying to pay the best price.

But don’t miss the forest for the trees. Buying the right business, at approximately the right price, is far, far better than obsessing over the last few cents per share.

Maybe the shares I bought this morning fall overnight.

Maybe they go up.

Maybe they close, unchanged.

I really don’t care.

If I’ve bought quality, at a decent price, this’ll be the last time I even remember what happened yesterday.

The prize is through the windscreen, not the rear vision mirror.

(Oh, and if you’re wondering what I bought, I could tell you, but I’d have to kill you. Well, I’d be in some serious trouble at work, at the very least. The Motley Fool’s trading rules prohibit me from talking about a company, by name, for two full market days before and after making a trade. And I enjoy my job, so I’d like to keep it!)

Fool on!

More reading

• ASX 200 drops, Zip down, Afterpay soars
• Demoted AMP exec paid $1m bonus for 53 days’ work
• Why did the Latin Resources (ASX:LRS) share price bomb 14% today?
• Here’s why the Fortescue (ASX:FMG) share price sank 8% today
• Why this fundie tips Australian Vintage (ASX:AVG) shares

Scott Phillips owns shares of Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.8% to 6,714 points.

Here are some of the highlights from the ASX today:

Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have opposite performances

It was a differing performance for some of the largest ASX 200 buy now, pay later (BNPL) companies.

The Afterpay share price jumped 8.4%, but the Zip share price fell 3.8% today.

It was recently announced that PayPal will be launching its buy now, pay later offering for Aussies by early June 2021.

PayPal has over 9 million active accounts in Australia and will be ready for the end of financial year sales. Consumers will be able to access this using the standard PayPal button at the checkout. Merchants can also have a payment option on the website.

Andrew Toon, General Manager, Payments, PayPal Australia said:

Australian consumers are looking for more choice and flexibility and PayPal Pay in 4 gives them yet another way to purchase securely using PayPal. PayPal’s digital wallet is the only solution that provides multiple ways to pay all in the one place – instantly with debit or credit card; 21 days later with our Pay After Delivery option; and now in four interest-free instalments using PayPal Pay in 4.

Our Australian business customers have been requesting buy now pay later functionality from us, and we’re excited that we can offer PayPal Pay in 4 to them at no additional cost.

Shopping habits are changing at an unprecedented rate and during the pandemic we saw more than two million Australians start shopping online for the first time. We will continue to support Australian businesses of all sizes to adapt to rapidly changing consumer behaviours by evolving our service to meet their needs.

Afterpay has completed the acquisition of its European purchase called Pagantis. 

Gold Road Resources Ltd (ASX: GOR)

The Gold Road Resources share price went up more than 5% after announcing its result and declaring a final dividend.

Gold Road said that it generated $294.7 million of revenue from 126,434 ounces of gold sales. It generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $170.6 million, at an EBITDA margin of 58%.

The ASX 200 gold miner generated net profit after tax (NPAT) of $80.8 million, with operating cash flow of $142.7 million. It also made $105.5 million of free cash flow, translating to $817 free cash flow per ounce of production for 2020.

It became debt free after fully repaying its borrowings on 21 July 2020. Gold Road finished the period with cash of $126.4 million.

The board declared a dividend of 1.5 cents for the six month period to 31 December 2020. Its dividend policy is 15% to 30% of free cash flow for the six-month period.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine Estates share price rose by around 3% after announcing some news.

The ASX 200 share said that it has reached a long-term agreement The Wine Group for several commercial tier brands in its US portfolio.

Under the terms of the long-term licensing agreement, The Wine Group will source and sell Beringer Main & Vine, Beringer Founders’ Estate, Coastal Estates and Meridian brands in the Americas.

The Wine Group will acquire existing inventories associated with these brands on a progressive drawdown basis and will assume responsibility for related future bulk wine supply contracts.

Tim Ford, the CEO of Treasury Wine Estates, said:

We are delighted to be entering into this long-term transaction with The Wine Group, which will be of mutual long-term benefit to our respective organisations. For TWE, this transaction is a significant milestone towards our plans to deliver the future state remium US wine business and we can now focus solely on continuing the growth of our premium brand portfolio to drive future performance in the Americas.

More reading

• Why this fundie tips Australian Vintage (ASX:AVG) shares
• Here are some of the best performing ASX tech shares today
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower
• Could this be why the Zip (ASX:Z1P) share price lost all its gains today?
• ASX 200 down 0.2%: Afterpay surges, gold miners jump, Fortescue sinks

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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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Demoted AMP Ltd (ASX: AMP) executive Boe Pahari was paid close to a $1 million bonus for running AMP Capital for all of 53 days.

The disclosure was made Wednesday in the company’s annual report.

The report stated Pahari was a beneficiary of the AMP Capital Enterprise Profit Share (EPS) plan for his role as global head of infrastructure equity and the northwest region.

“The prorated amount of the EPS award was $937,724 for the time during which he was the chief executive, AMP Capital.”

Why was Pahari only in the position for 53 days?

Pahari was promoted to AMP Capital chief on 1 July last year.

But in August explosive details of sexual harassment allegations made against him were publicly revealed.

This included Pahari sending the female subordinate on a gratuitous trip to the UK, then allegedly saying she made him look like a “limp dick” when she refused his offer to buy her clothing. 

He was also accused of extending her accommodation against her wishes then suggesting they communicate on Whatsapp to avoid scrutiny.

AMP’s share price tanked as investors called for Pahari’s head.

The company initially defended the promotion. But the subsequent pressure became too much to bear and Pahari was demoted back on 23 August — after just 53 days in the position.

Chair David Murray and board member John Fraser also exited that day.

AMP staff outraged about Pahari’s bonus

AMP shareholders have seen the stock price tumble from $5.43 just 3 years ago to now $1.46.

But it seems they might not be the only ones wondering about the generous bonus to Pahari.

According to AFR.com, a staff town hall meeting on Wednesday went haywire with employees complaining about the generosity to the executive.

After a tough 2020, the financial services giant had put on a pay rise freeze and is currently seeking to cut 20% of its workforce while it sells off a part of the business to a US buyer.

AMP also released its annual sustainability report on Wednesday, which confirmed the Pahari scandal had an impact on the workforce.

“In the second half, disclosure of workplace conduct and consequence management issues had a negative impact on engagement which increased talent risk for AMP.”

More reading

• AMP (ASX:AMP) share price on watch as second buyer for its asset could emerge
• ASX 200 sinks 2.4%, Afterpay plunges, AMP jumps
• ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher
• Why AMP, Bubs, BWX, & Lynas shares are pushing higher
• AMP (ASX:AMP) share price on watch with proposed $2.3bn joint venture

Motley Fool contributor Tony Yoo 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 Latin Resources Ltd (ASX: LRS) share price bombed today, despite announcing good news this morning.

The mineral exploration company is a favourite with Reddit investors and, even after today’s fall, currently has an incredible 12 month return of 1,600%.

At close of trade today, Latin Resources’ share price is 5.3 cents.

What did Latin Resources announce?

The company announced this morning that the second batch of samples from its Noombenberry project have shown the same ultra-bright white kaolin and high-grade halloysite as the first batch.

Latin Resources is the sole owner of Noombenberry, located in Western Australia.

The company also stated today that it has plenty of cash to fund the additional drilling needed to extend the maiden resource estimate. Especially, due to the shallow nature of the minerals found and the consistency of assay results.

The announced today results included:

• 17 metres at 12% halloysite and 65% kaolinite from 3 metres, including:
  • 3 metres at 23% halloysite and 65% kaolinite from 8 metres.
• 10 metres at 10% halloysite and 80% kaolinite from 2 metres.
• 16 metres at 7% halloysite and 65% kaolinite from 5 metres, including:
  • 4 metres at 14% halloysite and 66% kaolinite from 9 metres.

and

• 17 metres at 5% halloysite and 87% kaolinite from 10 metres, including:
  • 5 metres at 12% halloysite and 67% kaolinite from 22 metres.  

Both kaolin and halloysite are clay-like materials. They both can be used in the production of porcelain and fine china, although, generally, only kaolin is used for this purpose. Halloysite is most often used in industrial applications, particularly in the refining of petroleum.

Management commentary

Latin Resources executive director Chris Gale said the company was pleased to see its initial results mirrored in this batch of samples.

We now have results for over 50 of our 197 holes drilled at Noombenberry, and we are seeing continuity and consistency of the high-grade halloysite and bright to ultra-bright white kaolinite. This is shaping up to be a very large and more importantly, a high-quality deposit that we expect will command strong attention from potential end-users.

Work is well underway on building our geological wireframes, so that we can be ready to commence the resource estimate as soon as all of our test work results have been received. The team is focused on fast tracking this process, as well as looking toward the next phase of drilling to extend our coverage to the north, where our initial results show the mineralisation remain open.

More about Latin Resources

Noombenberry is Latin Resources’ first foray into mining kaolinite and halloysite. It has previously made a name for itself as a miner of gold, copper and lithium.

The company has mines in Australia and South America – mining gold in New South Wales; copper in Peru; and lithium in Argentina and Brazil.

Latin Resources share price snapshot

A true marvel, despite today’s drop, the Latin Resources share price is currently up by 1600% over the past 12 months with a year to date return of 93%.

Latin Resources share price is now 5 cents, having dropped 1 cent since opening this morning.

The company has a market capitalisation of $81.1 million with approximately 1.3 billion shares outstanding.

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