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The Dampier Gold Ltd (ASX: DAU) share price surged a massive 87.5% today to a high of 12 cents before dropping back to 7.6 cents at the time of writing. This came after the company announced a high grade strike at its Zuleika gold project, ending a trading halt that started on Monday.

What was in the announcement?

Dampier Gold said it had received spectacular results from its phase 2 aircore drilling program at Paradigm East. The drilling program consisted 21 holes and returned results including 24 metres at 6.39 grams per tonne of gold inclusive of 4 metres at 34.74 grams per tonne of gold. The drilling also identified 8 metres at 2.20 grams per tonne of gold inclusive of 4 metres at 3.25 grams per tonne of gold. 

The drilling extended the existing mineralised footprint a further 400 metres with a further 2km to be tested. The company said confirmation of the mineralised zone was highly encouraging for the system to produce high grade gold zones.

Dampier Gold has identified 40 advanced targets within the Zuleika project which it plans to test in the coming months. 

About the Dampier Gold share price

Dampier Gold is a gold exploration company with projects in Western Australia. Dampier Gold has been listed on the ASX since 2010.

Earlier in October, the company announced that it had discovered a new gold zone in the Browns Dam area of the Zuleika project. Results included 5 metres at 3.10 grams per tonne of gold inclusive of 1 metre at 6.6 grams per tonne of gold.

In the quarter to 30 June 2020, Dampier Gold spent $541,000 and had $2.18 million cash on hand at the end of the quarter, up from $1.71 million at the end of the previous quarter.

The Dampier Gold share price is up 471.43% since its 52-week low of 1.4 cents, it is up 300% since the beginning of the year. The Dampier Gold share price is up 300% since this time last year.

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• Beat low interest rates with these 2 ASX dividend shares
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• Vocus (ASX:VOC) share price drops lower despite positive AGM update
• Why the Blackmores (ASX:BKL) share price is rocketing 12% higher today

Motley Fool contributor Chris Chitty 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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Right now in Australia, interest rates have never, in history, been as low as they are today at just 0.25%. The Reserve Bank of Australia (RBA) has cut rates this low as a result of the severe economic recession the country (and the world) is currently going through as a result of the coronavirus pandemic. Although some of us are benefitting from these cuts by paying rock-bottom interest rates on the mortgage, savers and retirees are concurrently suffering. That’s because a cash rate of 0.25% means it’s very hard for banks to offer any decent, inflation-beating interest rates on savings accounts and term deposits. These days, it’s hard to get an interest rate above 1% on a savings account.

It’s a diabolical problem. But that’s why I think a great possible solution is investing in ASX dividend shares. Dividend-paying shares can help your portfolio produce a cash yield vastly superior to ‘safer’ investments like cash and bonds. So here are 2 ASX dividend shares I believe should be considered over term deposits for income today.

2 ASX dividend shares for income

Coles Group Ltd (ASX: COL)

Coles is a name I’m sure we’d all be fairly familiar with. However, I have admired what this company has pulled out of its hat in 2020 for its shareholders. Coles has been able to actually grow its dividend in 2020, partly thanks to the record sales it has seen in light of the pandemic (which Coles reaffirmed this morning). Since Coles sells groceries and other household essentials, I think the stability and defensiveness it can bring to a dividend portfolio is of great value.

On current prices, Coles is now offering a trailing dividend yield of 2.24%, which grosses-up to 4.63% with Coles’ full franking. Not bad for a 2020 blue chip share, in my view.

Telstra Corporation Ltd (ASX: TLS)

I believe Telstra is another top ASX dividend share to consider today. This company — the ASX’s largest telco — has been having a rough time of late, with the Telstra share price currently (at the time of writing) near an all-time low at $2.72. Investors have been fleeing Telstra, worried about its post-nbn growth prospects and whether declining earnings will lead to a dividend cut.

Even so, I think Telstra is a top income share today. The company has paid 16 cents per share in dividends in 2020, and has recently all-but-confirmed it will do so again in 2021. If that does come to pass, it means Telstra is offering a forward dividend yield of 5.88% today, or 8.4% grossed-up with Telstra’s full franking.

More reading

• Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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Exchange-traded funds (ETFs) are some of the most interesting investments to look through in my opinion. The index funds variety, exemplified by the Vanguard Australian Shares Index ETF (ASX: VAS), are certainly the most popular. But many investors think index funds like VAS are a little ‘vanilla’. Sure, they have important roles to play, and are great long-term investments. But there are some more exotic ETFs out there that do offer a bigger slice of pizazz, let’s say. So here are 2 exotic ETFs that I think all investors should consider today.

2 exotic ETFs for an ASX share portfolio

BetaShares Global Cybersecurity ETF (ASX: HACK)

This ETF from BetaShares does what its name implies. It tracks a basket of global shares involved in the provision of cybersecurity. I really like this ETF because it comprehensively covers an area seeing strong growth, which I think will last for decades to come. Think about how important cybersecurity is today, for individuals, companies and governments. Then think about how important it will be into the future as more and more commerce, communications and government services are done online. I’m sure you’ve reached a similar conclusion than I have.

HACK is heavily weighted towards the United States, with 89% of its holdings listed in the US. However, Britain, Israel and Japan also feature. Some of HACK’s top holdings include CrowdStrike, ZScaler, Okta and Cisco Systems. This ETF has returned an average performance of 21.04% over the past 3 years, which I think could well happen again over the next 3 and beyond.

ETFS FANG+ ETF (ASX: FANG)

This ETF is a highly concentrated fund tracking a basket of US shares known as the FANG+ stocks. FANG (sometimes FAANG) is an old acronym referring to Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Google parent company Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Apple Inc (NASDAQ: AAPL) is the other A in FAANG.

This ETF tracks all 5 of these US tech titans, plus another 5 extras. These include Tesla Inc (NASDAQ: TSLA), Twitter Inc (NASDAQ: TWTR) and Alibaba Group (NYSE: BABA) as well.

These are some of the best tech companies in the world, and I like that this ETF puts them all together in one easy investment. This ETF was only created in February this year, but since then it has already returned 54.7% (despite the March share market crash). If you want a strong, US-based and growth-orientated investment, then I don’t think you need to look any further than FANG.

More reading

• 2 high-quality ETFs to buy for any portfolio
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Baidu, Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Baidu, Facebook, Netflix, Tesla, and Twitter and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Netflix. 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 Vocus Group Ltd (ASX: VOC) share price is trading lower on Wednesday following the release of its annual general meeting update.

At the time of writing the telecommunication company’s shares are down 0.5% to $3.61.

What did Vocus announce at the meeting?

This morning Vocus released its annual general meeting presentation which included an update on its performance so far in FY 2021.

According to the release, almost four months into the new financial year, management notes that it has started well across all three businesses.

The company’s Vocus Network Services business has seen key growth trends across revenue, margin, and EBITDA continue. Furthermore, its pipeline of opportunities is strong, even after winning a key contract with the Australian Tax Office to provide secure national data and internet services. Management notes that this was a competitive flagship customer win, executed well in a new virtual environment.

Across the ditch, the New Zealand business has also had a strong start to the year. The Stuff Fibre acquisition has been fully integrated ahead of plan, and the company is seeing continued organic growth in key segments.

In addition to this, management notes that its New Zealand brands recently dominated their industry awards leading categories. This includes NZ Service Provider of the Year, Best Value Broadband Provider, and Best Fibre Broadband Provider.

Finally, the Retail business is steadily improving, with the Consumer segment on track to return to growth before the end of this financial year. Management advised that cash collections are strong, and it is seeing a good performance in its energy operations as it seeks to bundle energy, broadband, and mobile for retail customers. Earlier this week, its Dodo brand won the award for Best MVNO at the CommsDay Edison Awards. It feels this is another indicator that this business is being positively recognised in market.

Outlook.

Management advised that it is on track to achieve its FY 2021 guidance that was issued with its results in August.

It expects Vocus Network Services to deliver revenue growth of at least 5% in FY 2021, which exceeds the 3% growth in the key Data and IP Networks segment in the prior period.

It also expects Vocus Network Services to deliver underlying EBITDA growth in the 8% to 12% range, which it believes will be a market leading performance in this segment.

For the overall company, management is guiding towards underlying FY 2021 EBITDA in the range of $382 million to $397 million. This excludes a benefit of $22 million from a change in accounting standard AASB16.

In respect to capital expenditure, Vocus is guiding towards $160 million to $180 million, which is down from $200 million in FY 2020.

Lastly, the Vocus Board revealed that it is focused on reducing the financial leverage in the business over the coming 12 months.

More reading

• 5 things to watch on the ASX 200 next week

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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The Blackmores Limited (ASX: BKL) share price is surging today, up 12.2% is late afternoon trading.

This puts it firmly at the top of the S&P/ASX 200 Index (ASX: XJO) big gainers board today. The ASX 200 itself managed to shake off the losses from earlier today and is currently up 0.3%.

Today’s gain will come as welcome news to shareholders, who’ve suffered a turbulent year.

Blackmores hit a 1-year high on 5 February of $94.95 per share. From there it plunged 32% through to 28 February. And the share price has seen some big swings higher and lower from there.

Year-to-date. Blackmore’s share price is down 15%.

What does Blackmores do?

Blackmores is Australia’s leading natural health company. It provides a range of vitamins, herbal and nutritional supplements to markets around the world. The company was founded way back in 1931 by Maurice Blackmore.

Blackmores’ shares first traded on the ASX in 1985.

Why is Blackmore’s share price up 13% today?

Investors appear optimistic on a string of the company’s ASX releases, all announced yesterday.

Blackmore’s annual general meeting update sounded some optimistic notes about the near term outlook. Among the highlights stirring optimism, the company is forecasting profit growth for the full 2021 financial year.

As Blackmores’ CEO Alastair Symington wrote in a letter to shareholders yesterday, “We are currently projecting first half FY21 Net Sales growth in the mid-single digits range compared to prior year. Both of our Asian regions will be the primary drivers of this growth.”

Symington went on to note, “As we have highlighted before, year on year cost variances linked to the October 2019 acquisition of Braeside will negatively impact gross margin in the first half of FY21.”

He also noted several untapped opportunities for the all the company’s markets, including pet health and mental well being. Symington said the pet health supplement market in Australia is forecast to grow by 9% CAGR over the next 4 years, reaching $100 million. Blackmores also expects to restore future dividends.

In a separate announcement yesterday, Blackmores reported its agreement to sell its Global Therapeutics business to McPherson’s Ltd (ASX: MCP) for $27 million.

Global Therapeutics, acquired by Blackmores in May 2016, includes the Fusion Health and Oriental Botanicals brands.

Judging by today’s strong share price gains, the divestment of Global Therapeutics and the company’s positive forward looking statements have revived investor interest.

More reading

• Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher
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• Why Alcidion, Blackmores, Boral, & CogState shares are pushing higher
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Motley Fool contributor Bernd Struben 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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West African Resources Ltd (ASX: WAF) provided the market with a very positive quarterly activities report today which is sending the company’s shares shooting higher. The miner reported gold production increased by 40% to 45,719 ounces. In addition, unhedged gold sales averaged US$1,868 per ounce. Consequently, the West African share price has rocketed up by 9.38% at the time of writing. 

What’s moving the West African share price?

Investors are today sending the West African share price higher after the company announced it was able to operate continuously through the September quarter, unhindered by the COVID-19 pandemic. Moreover, it was able to process the first underground ore in late September. Consequently, underground ounces mined were up 16% over the previous quarter. The ramp up of production will continue through December.

The Sanbrado mine ramp-up progressed in Q3 with mined open pit ounces up 84% versus the previous quarter. Gold produced was up 40% to 45,719 ounces at an all-in sustaining cost (AISC) of US$1,009/oz. This is US$168 less than Q2 and aligns with some of the cheaper ore bodies to mine in the world. As production levels increase, the AISC will decrease even further. 

Lastly, the company is continuing with its deep drilling beneath M1 South. This has revealed further underground reserves including 15.5m at a very high grade of 20.5 g/t gold, and 32m at 4.9 g/t gold. 

Management commentary

West African Executive Chairman and CEO, Richard Hyde, commented:

The Sanbrado mine showed solid production improvements during Q3 2020 while dealing with the challenges presented by COVID19, which is a credit to the commitment of our in-country team of staff and contractors.

Further important milestones are expected for the Company in Q4 with stope production ramping up at M1 South, continuation of deep drilling to extend underground Reserves, and a Resource and Reserve and 10-year production to be updated for the group late in the quarter.

Future planning

Over the last quarter of 2020, West African intends to focus on a range of areas. In terms of mining activities, this will include ramping up the underground and increasing stoping tonnes. In terms of physical growth, the company will continue to drill the M1 South pit and recommence the Sanbrado regional exploration program. Early debt repayment and updating reserves will be the company’s financial focus. 

West African share price performance

In year-to-date trading, the West African share price has risen by more than 144%. Currently, it has a market capitalisation of $924 million, and is trading at a very high price-to-earnings (P/E) ratio of 374 due to the early stage in its ramp up. In addition, the company has achieved an AISC that is well within the top 17 gold mines. 

More reading

• Here’s why the Super Retail (ASX:SUL) share price is zooming higher today
• After sliding 3% this week, is Sydney Airport’s (ASX:SYD) share price a buy?
• How did ASX gold shares perform in the last quarter? 
• Warren Buffett has this advice for investing in a volatile market
• Why the Tinybeans (ASX:TNY) share price is jumping 16% today

Motley Fool contributor Daryl Mather 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 Super Retail Group Ltd (ASX: SUL) share price has been a strong performer on Wednesday.

In afternoon trade the retail company’s shares are up 6% to $11.83.

Why is the Super Retail share price racing higher?

Investors have been fighting to get hold of the company’s shares today following the release of a very positive trading update this morning.

According to the release, Super Retail has started FY 2021 in sensational form and recorded strong sales growth across the majority of its brands.

For the first 17 weeks of FY 2021, the company has delivered 25% growth in both total and like-for-like sales. This is despite the impact of COVID-19 restrictions, which include lockdowns in Melbourne and Auckland.

Management advised that it has maintained strong momentum in its digital channels, with online sales growth of 132% and Click & Collect sales growth of 123%. The latter represents 44% of year to date total online sales.

Pleasingly, the company has also experienced a widening of its gross margin thanks partly to the benefits of reduced promotional activity. Management advised that its gross margin was 200 basis points higher than the prior corresponding period.

How are its brands performing?

The Supercheap Auto business continues to perform very strongly, reporting 22% growth in sales and 21% growth in like-for-like sales. It also reported a 132% increase in online sales during the period.

The Rebel business reported a 16% increase in both total and like-for-like sales during the 17 weeks. This was supported by a sizeable 184% lift in online sales.

Another very strong performer was the BCF business. It delivered a whopping 63% increase in sales over the period. This was driven by a 61% increase in like-for-like sales and a 140% jump in online sales.

Finally, the struggling Macpac business significantly underperformed, with a 2% decline in sales. This was despite the business recording a 121% lift in online sales.

Super Retail’s Managing Director and Chief Executive Officer, Anthony Heraghty, commented: “We are pleased with the positive start to the financial year. We are continuing to see robust growth in both in-store and online sales and our active club membership base has increased to over 6.85 million members.”

“Our considered approach to promotional activity in response to strong levels of consumer demand – to help manage inventory in the leadup to Christmas and optimise gross margin – and the substantial fixed component of our cost base means that revenue growth has flowed meaningfully through to the bottom line.”

Outlook.

Given the uncertain environment, no guidance has been provided for the first half or full year. Nor does it believe that its year-to-date performance should be treated as an indicator of full year performance.

However, management appears cautiously optimistic on the future.

Mr Heraghty said: “As Australia and New Zealand begin to re-open, we are looking forward to inspiring our customers to live their passion as they look to get outdoors, be more active and enjoy the summer holiday season.”

“The Group’s four core brands operate in attractive lifestyle categories and are well positioned to benefit from increased demand for domestic tourism and leisure as well as the acceleration of the health and wellbeing trend,” he concluded.

More reading

• Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher
• 5 things to watch on the ASX 200 next week
• 4 ASX shares to buy for a rare Christmas surprise
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high
• These were the best performing shares on the ASX 200 last 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 Super Retail Group 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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With the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price down 3.1% this week, and flat in afternoon trading today, is now a good time to buy some shares?

Like many investors, I’ve been keeping a keen eye on Sydney Airport since the share price crashed 48% in February and March during the COVID-19 market rout.

Now, it’s regained 26% since the 19 March low. But with domestic and international travel restrictions gutting its revenues, the share price rebound has significantly lagged the average within the S&P/ASX 200 Index (ASX: XJO).

Sydney Airport’s share price remains down 31% year-to-date. The ASX 200, edging higher after losing ground this morning, is down 9%.

What does Sydney Airport do?

Sydney Airport Holdings owns a 100% interest in Sydney Airport, offering an international gateway connecting to more than 90 other airports around the world.

Headquartered in Sydney, the company provides aeronautical, retail, property, car rental, and parking and ground transport services through its 2 main business units: Aviation (Sydney Airport) and Leasing & Advertising Opportunities.

Sydney Airport shares began trading on the ASX in 2002.

Why Sydney Airport is looking more attractive at today’s share price

If you merely look at the immediate picture, Sydney Airport’s share price might seem overvalued, rather than beaten down.

From a short-term perspective, the company’s September 2020 traffic performance report tells you all you need to know.

Sydney Airport reported 132,000 passengers in September. That’s down a gut churning 96.4% on September 2019 numbers. International passenger numbers plunged the most, down 97.5%. But the domestic number, down 95.7%, wasn’t much brighter.

Despite one-way travel from New Zealand to New South Wales, the Australian Capital Territory and the Northern Territory kicking off on 16 October, the company expects the downturn in passenger traffic to “persist until further government travel restrictions are eased”.

And that will almost certainly be the case.

Moving forward

Domestic traffic through Sydney Airport will likely gradually increase over the coming months, presuming Australia can keep the coronavirus in sharp check. Two-way international travel to a few other nations with minimal to no infectious cases may follow sometime next year.

This tells me Sydney Airport’s revenue likely won’t recover to its January 2020 levels for some time yet.

And with most investors focused on shorter-term share price gains, Sydney Airport’s share price likely won’t rebound to its 17 January level of $8.81 per share (or higher) any time soon either.

But here’s the thing. Unless the coronavirus (or some new version thereof) continues to plague the world without an effective vaccine or treatment, passengers will return to Sydney Airport.

As the head of Tourism Australia, Phillipa Harrison told the Australian Financial Review (AFR):

All the portents are good for us going forward – market research indicates people want to come here when they can travel again, and (travel) agents want to deepen their knowledge of selling Australia…

This isn’t something that will transpire in a matter of weeks, or even months. But given time, Sydney Airport’s current share price of $5.81 may well look like a bargain.

More reading

• What do you do when your ASX 200 shares are falling?
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
• The RBA says the recession could be over. What does it mean for your ASX shares?
• 5 things to watch on the ASX 200 on Wednesday
• The ASX 200 sank almost 2% today

Motley Fool contributor Bernd Struben 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 quarter ended 30 September 2020 was a volatile period for ASX gold shares, with the rising gold price being offset by the surging Aussie dollar. This saw many ASX gold shares push higher into record territory, followed by a sharp pullback.

The gold price has taken a breather around the US$1,900 level but the upcoming US election and anticipated US fiscal stimulus package could be the catalyst to push gold higher. 

Before we look forward, let’s take a look back at how ASX gold shares performed in the latest quarter. 

Newcrest Mining Limited (ASX: NCM) 

Newcrest could be considered the ‘gold’ standard amongst ASX gold shares, boasting some of the largest reserves, lowest production costs and a suite of technical capabilities. Its FY20 report revealed a solid performance with the company producing 2.2 million ounces of gold at an all-in sustaining cost (AISC) of US$862 per ounce.

Underlying profit of $750 million was 34% higher than the prior period primarily driven by a higher realised gold price and higher copper production at its flagship Cadia, Lihir and Telfer mines, which account for more than 75% of the group’s total gold production. These benefits were partially offset by the lower gold sales driven by lower production and higher operating costs at Cadia and Lihir. 

Despite a highly profitable and operationally sound quarter, the Newcrest share price went full circle to hit a record all-time high of $38.00 before a sharp pullback to bring its quarterly returns to around breakeven. This coincided with the Aussie dollar rally, which weakened profitability for the gold miners. 

Newcrest appears to be making a significant effort in investing for the future with a free cash flow of negative $621 million, which includes payments for the following: 

• $1.3 billion to acquire Red Chris mine and increase exposure to Fruta del Norte mine
• $273 million on major capital projects 
• $113 million on exploration. 

Overall, Newcrest cements its position as one of the largest and most efficient gold producers in the world. The company has successfully navigated the operational challenges of COVID-19 and looks to have an exciting pipeline of growth projects to maintain its operational performance for the medium to long term

Saracen Mineral Holdings Limited (ASX: SAR) and Northern Star Ltd (ASX: NST) 

While it didn’t occur in the last quarter, this article wouldn’t be complete without mentioning the fact that Saracen and Northern Star announced one of the biggest mergers in the ASX gold space in early October. Post-completion, Saracen shareholders will own 36% of the merged group while Northern Star shareholders will own 64%. 

The merger is a logical combination of highly complementary assets given the proximity of each other’s mines and joint ventures. In 2019, Saracen and Northern Star became 50/50 joint owners of the KCGM mine in the world-class geological district of Kalgoorlie, WA. The merger will consolidate the ownership of KCGM and respective Kalgoorlie district operations into one company for the first time in its history.

Given the proximity of the group’s operations in Kalgoorlie and Yandal, WA, it believes that the merger will unlock between $1.5 billion to $2 billion in synergies from combined strategic, corporate, mining and processing synergies. In the case of KCGM, the mine represents the biggest producing asset for the group with the highest reserves. Consolidating its ownership will streamline its operations, drive efficiency, and accelerate growth options. 

The announcement saw the Saracen and Northern Star share prices rocket some 15% in the trading sessions that followed. The transaction is subject to approval by Saracen shareholders and the Supreme Court of WA. However, an indicative completion date has been set for February 2021. While its difficult to gauge where the Saracen and Northern Star share prices will go in the meantime, this is no doubt one of the most exciting mergers to take place for ASX gold shares.

Evolution Mining Ltd (ASX: EVN)

Evolution is in many ways the quiet achiever among the ASX gold shares. It’s one of the top 3 largest gold-producing companies in Australia behind Newcrest and Northern Star. It doesn’t quite grow as fast as Northern Star or Saracen, but possesses a very low AISC comparable to that of Newcrest.

For the 3 months ended 30 September, Evolution’s gold production came in at 170,021 ounces, which was a 22% reduction on the prior quarter. This was made up of:

• Cowal production of 51,774 ounces
• Ernest Henry production of 24,569 ounces
• Red Lake production of 26,638 ounces
• Mungari production of 35,370 ounces
• Mt Rawdon production of 20,024 ounces
• Mt Carlton production of 11,646 ounces.

This production was achieved with an AISC of $1,198 per ounce, up from $1,088 per ounce in the previous quarter.

All operations generated positive net mine cash flow during the quarter, with mine operating cash flow and net mine cash flow of A$272.3 million and A$183.4 million, respectively. Mine capital investment for the period was A$88.1 million. As at 30 September 2020, Evolution had cash in the bank of $369.7 million and bank debt of $550 million.

As shown in the table below, Evolution provided a strong 3-year outlook with increased production and lower AISC. Its growth will be driven by its Cowal and Red lake sites. The Red Lake gold operation in Ontario, Canada, is in its early days with significant mineral resource and potential to optimise into a large, long-life mining operation.

3-year outlook	FY21	FY22	FY23
Production (oz)	670,000–730,000	700,000–770,000	790,000–850,000
AISC ($/oz)2	1,240–1,300	1,220–1,280	1,125–1,185
Sustaining Capex ($/M)	112.5–137.5	110.0–135.0	95.0–120.0
Major Capital ($M)	260.0–290.0	250.0–280.0	220.0–260.0
Discovery ($M)	75.0–100.0	70.0–100.0	70.0–100.0

Table: author’s own, Data source: Evolution Mining FY20 report

Foolish takeaway

The gold price is sitting at a cool US$1,900 but fiscal stimulus not just in the US but globally could see the gold price grinding higher. Gold is directly tied to stimulus as the metal is inflation driven. As the government prints more money and devalues currency, the gold price is pushed up.

ASX gold shares have achieved operational excellence in recent years. The shares discussed above all possess different priorities –from focusing on cost efficiencies such as Newcrest and Evolution, or growth and M&A such as Saracen and Northern Star.

In my opinion, gold is at a crossroads and investors should pay close attention to what the sector does next.  

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 down 1.2%: Blackmores jumps, Bendigo and Adelaide Bank’s update, Zip sinks
• Northern Star (ASX:NST) share price edges lower despite positive update
• Why the Evolution Mining (ASX:EVN) share price is dropping lower
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Lina Lim 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.

The post How did ASX gold shares perform in the last quarter?  appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The past seven months have been a wild ride for stocks. In March, the market crashed as a result of the coronavirus outbreak. Then, stocks recovered, only to encounter a major sell-off in early September. In fact, the stock market has bounced around a lot in October, and as we inch closer and closer to the upcoming presidential election, we could see even more turbulence.

As an investor, that puts you in a tough spot, so if you’re worried about managing your portfolio during these trying times, here’s one solution worth considering: dollar-cost averaging. It’s a strategy that investing legend Warren Buffett has long advocated, and it’s a good bet for navigating a volatile market like the one we’re in.

How dollar-cost averaging works

The concept of dollar-cost averaging is simple: Pick some stocks, figure out how much you can afford to invest, and then commit to buying shares at preset intervals. For example, say you decide you want to buy Netflix Inc (NASDAQ: NFLX) and can dedicate $200 every two weeks toward its shares. (Technically, $200 isn’t enough to buy a full share of Netflix right now, but you can buy fractional shares instead.) In that case, you’d buy Netflix every other week, regardless of the price it’s trading at on the day you purchase your shares.

The idea behind dollar-cost averaging is that while you might overpay for shares some weeks, you’ll also underpay other weeks. All told, things should all work out in your favor so that you’re ultimately paying a lower price per share all in.

Dollar-cost averaging is a far safer bet than aiming to time the market during periods of volatility, because in doing so, you might miss out on great buying opportunities and risk getting stuck with a higher share price overall. Remember, the stock market is unpredictable on a good week, but when we’re in the midst of election season, it can be even wilder. And at a time like that, being consistent is crucial.

Of course, if you want to take Buffett’s advice even further, employ dollar-cost averaging to buy shares of S&P 500 Index (SP: .INX) index funds. That way, you get exposure to the broader market and aren’t putting all of your money into a single stock. Buffett has stated many times over that index funds are a great way for the average investor to grow wealth, so if you don’t want to do the legwork involved in vetting individual stocks, index funds are the way to go.

Take Buffett’s advice

A man with the investing track record of Buffett is someone to take seriously. If you’re looking to invest in the coming weeks, it pays to employ dollar-cost averaging rather than attempt to time the market in an effort to score the lowest stock prices. Investors who try timing the market often get burned, and given the way stocks could swing in the near term, a stable, steady approach is not only a safer bet, but most likely a more lucrative one as well.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Maurie Backman owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix. The Motley Fool Australia has recommended Netflix. 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.

The post Warren Buffett has this advice for investing in a volatile market appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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