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I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

Bravura Solutions Ltd (ASX: BVS)

According to a notice of change of interests of substantial holder, Mawer Investment Management has taken advantage of weakness in the Bravura share price to top up its position. The notice reveals that the Canadian fund manager has picked up almost 3 million shares over the last few months.

Its most recent purchase was on 11 November when it bought 485,083 shares for a total consideration of $1,514,477. This works out to be an average of $3.12 per share. This means that Mawer Investment Management now owns a total of 18,163,832 shares, which is the equivalent of 7.35% of its total shares.

The Bravura share price is currently fetching $3.23, which is down a sizeable 46% from its 52-week high.

Kogan.com Ltd (ASX: KGN)

Another notice of change of interests of substantial holder reveals that Fidelity Investments has been increasing its holding in this ecommerce company over the last few weeks.

Between 29 October and 9 November, the fund manager picked up a total of net 1,104,164 shares. It was buying for as low as $20.30 at the start as the month and for as much as $23.42 last week. This lifted the fund manager’s holding to a total of 8,838,029 shares, which represents an 8.36% stake in the company.

The good news for investors is that the Kogan share price is now trading at $19.72, which is a discount of almost 16% to what Fidelity was very happy to pay just a week ago.

More reading

• This cheap ASX share is supplying US giants: fundie
• Are these beaten down ASX shares bargain buys?
• Here’s where this ASX fund manager is investing right now
• Why Coles, Incitec Pivot, Kogan, & Northern Star shares are crashing lower
• The OFX (ASX:OFX) share price slumps with ASX tech stocks after posting its results

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) went up by 1.2% today to 6,484 points.

However, that rise was achieved in early trading and then the ASX halted transactions for the rest of the day due to technical problems.

Before the ASX’s normal trading, it said that ASX equity markets will not open for the remainder of today. The underlying cause of the issue has been identified and a resolution path is in place to allow trading to commence tomorrow at 10am.

BWX Ltd (ASX: BWX)

BWX held its annual general meeting today. At the AGM the company said that it expects FY21 first half revenue for Mineral Fusion to be down but it’s focused on achieving a recovery in the second half.

BWX also announced a strategic partnership with THG, which is a global technology platform specialising in taking brands direct to consumers to grow BWX in Europe and Asia.

THG will provide a full service solution including localised digital capabilities for taking BWX brands direct to consumers. It’s initially targeting five priority markets, which will increase to 14 markets in FY22.

The aim of this agreement is to help BWX reach its revenue target of $30 million to $50 million for Europe by the end of FY23.

BWX’s chief operating officer Rory Gration said the partnership was important for bringing BWX’s product innovation to more consumers at a time when the natural beauty category is thriving:

“We are delighted to announce our partnership with THG, as we leverage the already-strong consumer connection to our brands Sukin and Andalou Naturals in the UK market over recent years.

“Combining BWX’s house of natural brands and insights with THG’s digital services, cross-border expertise and sophisticated technology means we can build more meaningful footprints in what is a fast-evolving retail environment.”

The BWX share price rose 3.7% today, in the early trading that was possible.

ASIC report about the buy now, pay later (BNPL) industry

ASIC released a report into the BNPL sector today. Both Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) made announcements relating to this.

Both of them pointed out that they don’t rely on late fees to generate most of their revenue.

Afterpay said that ASIC’s consumer research identified the potential for financial stress among users of different financial products categorised as BNPL. Afterpay’s own research of 144,000 of Afterpay customers found there is no casual link between spending on Afterpay and changes in spending on essentials.

The ASX 200 BNPL company said that the report highlights that ASIC’s new product intervention power and the forthcoming design and distribution obligations, which focus on consumer outcomes and harms rather than imposing prescriptive compliance obligations, will play an important role in promoting good consumer outcomes. ASIC also commented that there is a significant role for industry self-regulation with broad industry support and commitment to ensure good consumer outcomes.

The ASIC data shows that 20% of customers have missed a payment.

Zip co-founder Peter Gray said that whilst it’s good that the industry is developing a code of practice, “while we believe the code is a very good start, Zip will continue to implement its own higher standards, particularly around customer suitability.”

CSL Limited (ASX: CSL)

The ASX 200 healthcare giant said that it’s going to build a new influenza vaccine manufacturing facility.

Seqirus, a subsidiary of CSL, plans to invest more than $800 million into the construction of this Melbourne-based facility to supply influenza vaccines to Australia and the rest of the world.

This investment decision follows the agreement with the Australian government for the supply over 10 years of influenza pandemic protection for the Australian population, anti-venoms for Australian snakes, spiders and marine creatures and Q-fever vaccine.

The new facility will be built at the Melbourne Airport Business Park will use innovative cell-based technology to produce influenza vaccines for both seasonal and pandemic purposes.

CSL CEO Paul Perreault said: “Providing safe and effective influenza vaccines is essential in securing our defences against serious public health threats.

“The facility will be an important addition to our global influenza manufacturing supply chain, incorporating the technology platform used in our Holly Springs, North Carolina facility.”

CSL explained that cell-influenza vaccine technology offers many advantages like being more scalable and offering faster production, particularly for influenza pandemics.

More reading

• Is the BWX (ASX:BWX) share price a buy?
• This cheap ASX share is supplying US giants: fundie
• Leading brokers name 3 ASX shares to buy today
• Why the CSL (ASX: CSL) share price is climbing higher today
• Update: Trading on ASX remains in ‘enquire’ state after market data error

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 CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The past month has been a busy period for the share market, with headline news such as the coronavirus vaccine success, the United States election, and the lifting of restrictions gracing our front pages. Some share prices were notably adversely affected by the news, but many reacted positively as the ASX surged ahead by 8% just in the last week of trading.

Let’s take a look at 3 shares that have strongly outperformed their respective sectors during the past month. 

Coca-Cola Amatil Ltd (ASX: CCL)

Coca-Cola Amatil’s recent share price move has been largely driven by the $9 billion impending takeover from Coca-Cola European Partners (NYSE: CCEP). The latest offer from the European giant came at $12.75 per share, and Coca-Cola Amatil’s share price has been hovering around that level since late October. The Australian beverage maker is still mulling over this offer price, and analysts believe that CCEP may have to increase its price to win over investors who believe the bid is too low and doesn’t reflect recent efforts by Amatil to restructure its cost base.

The Coca-Cola Amatil share price has risen by 22% this month to $12.70 at today’s trading, driven by the anticipation that the $12.75 offer could be accepted by shareholders. In comparison to the overall sector, the ASX 200 Consumer Staples Sector Index (ASX: XSJ) has risen by only 4% during the past month.

Oil Search Limited (ASX: OSH)

Oil producer Oil Search has not had a fantastic FY20, releasing a rather downbeat Q3 trading update in October. In that announcement, it reported a 29% fall in revenue to $189 million, which was a 47.6% decline on the third quarter of FY19. At the time, the company said that COVID-19 had severely impacted its business, and that it did not expect LNG demand to fully recover until 2027.

However, the Oil Search share price received a strong boost last week when Pfizer Inc (NYSE: PFE) announced clinical trial success on its COVID-19 vaccine. The vaccine news triggered asset price rises on multiple fronts, including the Brent Crude oil price which also rose by 10% since the news broke out. The increase in oil price has been the main catalyst for Oil Search’s strong price performance.

The Oil Search share price has risen by 30% in past month, compared to the sector’s average return of 13%, as measured by the ASX Energy Sector Index (ASX: ZEJ) – giving it an outperformance of 17% over the sector. Oil Search shares are trading today at $3.76.

ResMed Inc (ASX: RMD)

Sleep-treatment device company ResMed has had a great month, in which its share price increased by 19%. The catalyst for this latest gain has been the recent release of a first quarter update which smashed expectations. In that announcement, Resmed reported a 10% increase in revenue to US$751.9 million. Management advised that it was experiencing strong demand for ventilators because of the COVID-19 pandemic.

More importantly, the share price of ResMed kept rising even after the vaccine news was announced. In fact, ResMed’s share price was given an upgrade, as analysts at Credit Suisse believe the company is well-placed for growth. They have upgraded ResMed’s shares to an outperform rating with a $31.00 price target. The analysts believe ResMed is well-placed to benefit from a shift to home healthcare following the pandemic.

ResMed’s share price’s return of 19% has beaten the health-care sector return during the past month by 14%, as measured by the ASX Health Care Index (ASX: XSJ). ResMed’s share price is currently trading at $55.80.

More reading

• 2 top ASX healthcare shares that could be market beaters
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• These were the best performing ASX 200 shares last week
• 2 ASX healthcare shares that have risen since Pfizer’s vaccine news
• ASX 200 surges again on Wednesday

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Papyrus Australia Ltd (ASX: PPY) shares were on fire today. They rose 26.32% to 7.2 cents per share this morning (before the ASX was suspended anyway). The Papyrus share price had closed at 5.8 cents on Friday afternoon last week. But it opened at 6.7 cents this morning and rose to 7.2 cents before the ASX was suspended (it remains suspended at the time of writing).

It’s been an… interesting year for the Papyrus share price. This company has spent most of 2020 (and indeed, most of the past decade) stuck at around just 1 cent per share, with the occasional spike to 2 cents. However, last month, we began seeing some volume come into this company, which pushed up Papyrus shares to 4 cents. Then, between 5 and 9 November, the company jumped to 7 cents a share before bouncing around over the following days.

Today’s moves mean Papyrus is up 260% since 5 November, and 620% since late August. So what is this company? And why are Papyrus shares swelling again today?

What is Papyrus?

The more historically-literate readers out there might recognise the term ‘papyrus’ from the Ancient Egyptians’ precursor to modern paper. Papyrus was fashioned out of fibres from the papyrus plant back then. It was made into a crude form of paper that was used for both writing/scribing and as a building material.

And that’s where this ASX company presumably finds its inspiration.

Papyrus Australia describes itself  as “the developer of a world-first technology that converts the waste trunk of the banana palm into alternatives to forest wood products to be used in the paper, packaging, furniture, building, construction and other industries.” It currently operates a factory to this end in Egypt.

The company has identified that fibres produced from ‘secondary fibre crops’ like banana, sugar cane, cereals, palm oil and tobacco, have far lower environmental and economic costs that ‘primary fibre crops’ like cotton, hemp and flax. The company focuses on banana and plantain (a less popular species of banana that isn’t as nice to eat) trees. That’s because it has identified these plants as being “sustainable, renewable and abundant secondary fibre crop available all year round” in comparison to other options.

Papyrus has developed its ‘”proprietary technology” as a result of “15 years of research and development”. The company tells us that its technology can facilitate the manufacture of a variety of products. These include plywood components, cartons, moisture-resistant laminates for cartons and boxes, grease-resistant packaging, stationery, and furniture.

Why did the Papyrus share price rocket today?

We can probably put Papyrus’ share price movements today down to an ASX announcement the company released to the market before open. In this release, Papyrus told investors that it has completed a major institutional investment. This “cornerstone” investment comes from L39 Capital, a venture-style wholesale fund. Papyrus also noted it has recently received a funding round from Union Pacific Equities as well. These funding rounds have reportedly provided a much firmer financial footing for the company. Papyrus stated this “ensures that the Company is currently in a financially healthy state meeting all near-term working capital needs, and securing a platform for business growth”.

As part of the arrangement, L39 Capital has nominated its director, David Attias, to join the Papyrus board as a director. Here’s some of what Mr Attias had to say on this development:

We have now formally completed an in-depth due diligence of Papyrus with no major areas of concern highlighted. We are now ready to begin working actively with Papyrus to achieve the vision of zero-waste micro-factories globally as part of the circular economy. Shareholders can expect to see a lot of news flow from Papyrus as it undergoes this transformation.

Papyrus chair, Ted Byrt, also commented:

The days of us worrying about funding and liquidity are over. This is a rebirth of Papyrus where we can focus on the business and the growth strategy for the next 12 months… We are delighted to now formally collaborate with L39 Capital. David will enhance our corporate governance and strategic planning to help us build a global business

More reading

• Is the Blackmores (ASX:BKL) share price in the buy zone
• ASX trading halt to remain in place for the rest of the day
• Tyro (ASX:TYR) share price flat on positive weekly EFTPOs update
• Is the BWX (ASX:BWX) share price a buy?
• Why the Medusa (ASX:MML) share price is edging lower today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Blackmores Limited (ASX: BKL) share price has been a particularly positive performer over the last month.

Since this time in October, the health supplements company’s shares have risen an impressive 18%.

Why is the Blackmores share price up 18% in a month?

Investors have been buying the company’s shares over the last few weeks following the release of its annual general meeting update. 

That update revealed that Blackmores is on course to end its downturn and deliver profit growth in FY 2021. Though, management did explain that this profit growth would come predominantly from the second half of the financial year.

Another positive that went down well with investors was comments on its cost savings. Blackmores revealed that its restructuring is set to deliver $15 million of gross annualised savings from the second half.

In addition to this, further savings of $10 million have been identified in relation to its cost of goods sold.

Is it too late to buy Blackmores shares?

According to one leading broker, the Blackmores share price may be fully valued now.

A note out of Goldman Sachs reveals that its analysts have put a neutral rating and $75.40 price target on this company’s shares. This compares to the current Blackmores share price of $76.78.

While the broker is positive on the company’s outlook, it has a neutral rating on its shares for valuation reasons.

Goldman explained: “We revise earnings forecasts in the ANZ and China region based on the positive progress towards the cost savings and turnaround strategies as well as the more supportive high frequency data from e-commerce. We revise FY21 and FY22 EBIT [earnings before interest and tax] forecasts by +11.4% and +9.4%, respectively, based on these changes, but less materially by +1.7% in FY23.”

This means EBIT of $53.3 million in FY 2021 and then $70.9 million in FY 2022.

“Our revised 12-month Target Price is A$75.40, offering a [then] total return of +2.1%. While we note positive progress on multiple fronts, we believe that the ability to secure a partner in China and successful execution in new markets like India are outstanding risks for the firm. BKL trades at a +55% premium to the ASX200 on a P/E basis vs. historical average of +37%. We maintain a Neutral rating on BKL,” it concluded.

More reading

• ASX 200 down 0.1%: Xero hits record high, Telstra and Wesfarmers updates impress
• Here’s why the Blackmores (ASX:BKL) share price jumped 11% higher in October
• These were the 5 best performing ASX shares last week
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX trading halt will remain in place for the remainder of the day, says the ASX in its latest update to customers.

All trading activities will cease for the remainder of the day and trading is expected to commence tomorrow morning at 10 am AEDT.

The decision came after a tech glitch which started at 10:24 am this morning that caused all trading activities to be halted while the ASX investigated the issue.

What caused the ASX trading halt

Although the ASX has yet to announce the root cause, it appears that the problem occurred after the ASX carried out a “refresh” and “migration” activities for its ‘ASX Trade’ system on Saturday, with go-live scheduled for this morning at 2:25 am.

It is currently unknown whether those activities related to scheduled maintenance or a system upgrade. 

In its latest tweet, the ASX says that the “underlying cause of the issue has been identified and a resolution path is in place, allowing trading to commence tomorrow at 10 am AEDT.”

MEDIA ALERT@ASX equity markets will not open for the remainder of today. The underlying cause of the issue has been identified and a resolution path is in place to allow trading to commence tomorrow at 10am. System status updates https://t.co/uhcaPSyh0G More to come.

— ASX 🏛 The heart of Australia’s financial markets (@ASX) November 16, 2020

https://platform.twitter.com/widgets.js

Today’s glitch today follows a similar problem encountered last month when the ASX launched its new website.

The website crashed on launch day and failed to show company announcements.

These disruptive events have raised the question of market integrity on the part of the ASX and may put the lingering question of the ASX’s monopoly back on the table.

More reading

• Tyro (ASX:TYR) share price flat on positive weekly EFTPOs update
• Is the BWX (ASX:BWX) share price a buy?
• Why the Medusa (ASX:MML) share price is edging lower today
• NTM Gold (ASX:NTM) share price rockets 44% higher on Dacian (ASX:DCN) merger plan
• Nearmap (ASX:NEA) targets return of 20-40% year-on-year growth

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fintech EFTPOs provider Tyro Payments Ltd (ASX: TYR) has committed to providing the ASX market with weekly transaction value updates. In an unparalleled level of transparency, the company intends to provide weekly updates to the end of the calendar year. The Tyro share price has been trading in a sideways fashion after a V-shaped recovery between March and June. 

Positive trading update

The most recent update for the week ended 13 November might be Tyro’s most positive trading update since the initial COVID-19 outbreak in Australia. 

Tyro’s November transaction values have improved 15% on the prior corresponding month. This has been the greatest improvement in transaction values since February. The company’s year-to-date transaction values for FY21 currently sit at $8.222 billion or 7% higher than the $7.72 billion in FY20.  

The reopening of hospitality and retail businesses in Victoria will have contributed to its improvement in transactions. More recently, indoor entertainment venues, gyms, fitness centres and more have been allowed to reopen in Melbourne. The reopening and expanding capacity of businesses combined with the recent 7-year high in consumer confidence paints the narrative of a reinvigorated Tyro business.

New alliance boost

 On 16 October, Tyro partnered with Bendigo and Adelaide Bank Ltd (ASX: BEN) to provide its best-in-class payment solution to Bendigo Bank’s business customers. 

This alliance will result in a full technical and economic separation of Bendigo Bank’s merchant business to Tyro. Moving forward,  Tyro will exclusively provide merchant acquiring services to current and referred Bendigo Bank customers. 

The formal completion of the partnership will see a combined number of terminals of 89,000 up from 63,000 pre-alliance. The alliance is structured so that Bendigo Bank sells Tyro its assets used in conducting its merchant acquiring business. It will receive an upfront consideration of $9.0 million and an ongoing gross profit share from existing and newly referred business customers. This deal is expected to be completed in the first half of CY21. 

The Tyro share price jumped 5% on this announcement. It was trading at $3.98 before market halt this morning. 

More reading

• Why Aurelia Metals, PolyNovo, SKYCITY, & Tyro shares are dropping lower
• ASX 200 finished 2% higher on Tuesday
• Why 5G Networks, Cedar Woods, SEEK, & Tyro shares tumbled lower today
• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week
• Why Bendigo and Adelaide Bank, Mach7, National Storage, & Unibail-Rodamco-Westfield are dropping lower

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Is the BWX Ltd (ASX: BWX) share price a buy?

What is BWX?

BWX is a natural beauty business which operates multiple brands and they are sold across several countries.

Sukin is the biggest brand within the BWX portfolio and it’s the number one natural skincare brand in Australian pharmacies.

Andalou Naturals is a US based business that BWX acquired. It’s the number one natural facial skincare brand in the US.

Mineral Fusion is another US business that BWX bought. It’s the number one natural cosmetics brand in the US.

BWX also owns Nourished Life, which is the number one natural personal care and lifestyle business-to-customer platform in Australia.

What has BWX been up to in recent months?

The BWX share price is still a little lower than it was at the start of the year. However, it has been a very volatile year because of COVID-19. BWX shares plunged down to $2.57, so it’s up 65% since then. But BWX is actually 17% lower than it was at the end of August 2020.

That strength of the share price came just after BWX reported its FY20 result.

In that result it reported net revenue increased 26% to $187.7 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 30% to $27.5 million and statutory net profit after tax (NPAT) grew by 59% to $15.2 million.

BWX also saw its gross profit margin increase, it also saw an improved cash and net debt position. Its cash position grew from $14 million to $28.6 million. It ended with net debt of $32 million.

The ASX share is planning for a new manufacturing hub in Melbourne which is anticipated to deliver growth above and beyond its current 3-year plan.

When it released its FY20 report it said that it had made significant distribution gains for Sukin, Andalou Naturals and Mineral Fusion across its growth markets of Asia Pacific and USA. In the US its total points of distribution grew to over 1,000 doors with Target USA adding 330 new doors.

Is the BWX share price a buy today?

In FY21 it’s expecting to achieve ongoing growth in revenue and EBITDA of at least 10% in FY21. Management believe the company is well positioned for long-term sustainable growth.

However, at the AGM today the company said that it expects FY21 first half revenue for Mineral Fusion to be down but it’s focused on achieving a recovery in the second half.

BWX also announced a strategic partnership with THG, which is a global technology platform specialising in taking brands direct to consumers to grow BWX in Europe and Asia.

THG will provide a full service solution including localised digital capabilities for taking BWX brands direct to consumers. It’s initially targeting five priority markets, which will increase to 14 markets in FY22.

The aim of this agreement is to help BWX reach its revenue target of $30 million to $50 million for Europe by the end of FY23.

BWX’s chief operating officer Rory Gration said the partnership was important for bringing BWX’s product innovation to more consumers at a time when the natural beauty category is thriving:

“We are delighted to announce our partnership with THG, as we leverage the already-strong consumer connection to our brands Sukin and Andalou Naturals in the UK market over recent years.

“Combining BWX’s house of natural brands and insights with THG’s digital services, cross-border expertise and sophisticated technology means we can build more meaningful footprints in what is a fast-evolving retail environment.”

Is the BWX share price a buy? It’s currently rated as a hold by the Motley Fool Share Advisor service.

More reading

• Why Althea, BWX, Damstra, & GrainCorp shares are charging higher
• Why the BWX (ASX:BWX) share price is charging higher today
• 3 ASX shares you’ll regret not buying during this correction
• 3 small cap ASX shares I’d buy with $3,000 right now
• Is it time to go all in on ASX shares?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Medusa Mining Limited (ASX: MML) shares are edging lower today following an update regarding the company’s Co-O Gold Mine. Before the ASX market halted in late morning trade, the Medusa share price was marginally down 0.6% to 79.5 cents.

Let’s take a closer look at Medusa and see what is said today.

What does Medusa do?

Medusa is an Australian-based gold producer, focusing on growth opportunities in the Asia Pacific region. The company operates two projects, the Co-O mine and the Royal Crowne Vein Prospect.

What’s impacting the Medusa share price?

The Medusa share price edged lower in morning trade despite the company advising that its Philippines jointly operated Co-O gold mine resumed operations from 3 November.

The announcement follows the voluntary suspension of operations due to a number of COVID-19 cases detected within the workforce in October. Medusa Mining decided to halt operations and place the site on ‘care and maintenance’ only for a period of seven days.

In response to the outbreak, Medusa undertook a program of disinfection of communal sites and tested all members for COVID-19. Only after showing negative results, were workers then allowed to return to work.

As operations recommenced, Medusa revealed that it does not see an impact in gold production as a result. The company reaffirmed its FY21 production guidance of between 90,000 to 95,000 ounces of gold. Furthermore, the company’s all-in sustaining cost is forecast to be between US$1200 to US$1250 per ounce. This is in line with previous projections indicated mid-last month.

To minimise the risk of infections at the Co-O site, Medusa has increased hygiene protocols and safety standards. This includes operating on a reduced workforce and conducting weekly regular testing of employees and contractors.

Workers who return with positive test results remain away from the site and enter into quarantine facilities or isolate at home.

What did management say?

Medusa chair and interim CEO, Mr Andrew Teo, commented on the resumption of operations. He said:

Temporarily suspending operations was the correct decision and we believe the risk of the further spread of infection at site (from the cases identified) has now been minimised. Our workforce has performed admirably in the circumstances, with operations running in line as planned upon resumption.

More on the Medusa share price

The Medusa share price has been on a bumpy road this year, falling to as low as 40 cents in March. Whilst now nearly double that at its current level, the Medusa share price is still a way off its multi-year high of $1.06 reached in August.

The company has a market capitalisation of $165.2 million and a price-to-earnings (P/E) ratio of 4.7. This could be considered quite low by mining standards, as most gold miners average a P/E ratio of around 13.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The NTM Gold Ltd (ASX: NTM) share price was rocketing higher this morning before the Australian stock exchange paused trading.

The Western Australia-based gold-focused mineral exploration company’s shares were up a massive 44% to 12.5 cents before the pause.

Why was the NTM Gold share price rocketing higher?

Investors were buying the company’s shares this morning after it announced a merger with fellow Western Australia-based gold miner Dacian Gold Ltd (ASX: DCN).

According to the release, the two parties have entered into a binding scheme implementation deed, under which the two companies will merge by way of a scheme of arrangement.

Management believes the merger will combine two complementary West Australian gold companies, leveraging Dacian’s operational expertise and processing infrastructure to unlock the development potential of NTM Gold’s Redcliffe Gold Project through regional consolidation.

Under the terms of the scheme, each NTM Gold shareholder will receive 1 Dacian share for every 2.7 NTM shares held at the scheme record date. Based on Dacian’s last close price of 35 cents, this equates to ~12.96 cents per share.

Post-merger, shareholders of Dacian and NTM will hold 68.4% and 31.6%, respectively, of the merged company.

What now?

The NTM board unanimously recommends that its shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to an independent expert deciding that the scheme is in the best interest of shareholders.

NTM shareholders, including all directors and the two largest shareholders, Empire Resources Limited (ASX: ERL) and DGO Gold Limited (ASX: DGO), representing a combined voting interest of 32.9%, intend to vote all the shares that they hold in favour of the scheme, in the absence of a superior proposal.

Dacian Gold’s Managing Director, Leigh Junk, commented: “This merger will create value by delivering on our strategy of extending mine life, diversifying our production base and increasing operational flexibility at Mt Morgans.”

“This is a logical step for Dacian to expand operations in our region by unlocking resources within haulage distance of our substantial processing infrastructure, enabling future resource and reserve additions to be brought quickly into production.”

“The merger with NTM creates an industry leading portfolio of advanced exploration targets underpinned by potential high-margin, low capital intensity development opportunities, which would significantly expand Dacian’s production profile through the addition of high-grade deposits to our operating plan, further future proofing our business,” he concluded.

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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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