Motley Fool Australia

ASX 200 drops 1.3%, Resolute Mining soars

ASX 200
Credit: Cimexus

The S&P/ASX 200 Index (ASX: XJO) fell 1.3% today to 6,075 points.

Australia recorded the highest number of daily COVID-19 cases today, with another 484 new cases in Victoria. There were also 16 new cases in New South Wales.

Resolute Mining Limited (ASX: RSG) share price glitters

The Resolute Mining share price jumped 12.9% after the company announced its quarterly activities report.

The company saw total quarterly gold production of 107,183 ounces at an all-in sustaining cost of US$1,033 per ounce.

An updated life of mine plan for the Mako mine saw 39% more gold and an extra two years of mine life.

The resources business had US$88 million of cash and bullion at 30 June 2020.

The ASX 200 gold miner maintained its FY20 guidance of 430,000 ounces at an all-in sustaining cost of US$980 ounces.

Baby Bunting Group Ltd (ASX: BBN) sales are booming

The baby product retailer announced a June 2020 update today. The Baby Bunting share price rose 11.1% in response.

The company said that in the second half of FY20 it achieved comparable store sales growth of 10.5%, with full year comparable store sales growth of 4.9%. Online sales grew by 39% and made up 14.5% of FY20’s total sales.

Baby Bunting achieved total sales of approximately $405 million, this represents growth of around 12% compared to the prior corresponding period.

Management expect a gross profit margin of 36.2%, an improvement of 120 basis points compared to FY19.

Statutory net profit after tax (NPAT) is expected to be between $9.5 million to $10.5 million. In FY19 it generated $11.6 million of NPAT when restated for AASB 16. However, this FY20 reported profit includes employee equity incentive expenses, significant transformation project expenses and the impairment of the carrying value of the company’s investment in its digital commerce technologies.

Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $33 million to $34 million, up between 22% to 25%.

Pro forma NPAT is expected to be between $18.5 million to $19.5 million – this is growth of 29% to 35% compared to FY19.

Beach Energy Ltd (ASX: BPT) share price rises

The ASX 200 oil and gas business released its fourth quarter activities report today.

Fourth quarter production was 6.8 million barrels of oil equivalent (MMboe), bringing the full year production to 26.7 MMboe, an increase of 2% on FY19’s pro forma figure.

The effects of COVID-19 hurt the pace of new well connections and gas demand during the quarter, resulting in FY20 production being 1% below guidance.

The FY20 fourth quarter sales revenue of $320 million was 26% lower than the last quarter, largely because of lower oil prices. The price was $46.90 per barrel, which was down 37%.

FY20 capital expenditure of $863 million was lower than the lower end of its guidance. This was in response to lower oil prices. It is also reducing its operating costs.

Beach ended FY20 with $50 million of net cash.

FY21 guidance will be released with its FY20 result, but FY20 underlying EBITDA is expected to be marginally below prior guidance of $1.175 billion. Lower oil prices, COVID-19 impacts on production and exploration costs were the main causes of the lower profit.

Inghams Group Ltd (ASX: ING) closes a factory due to COVID-19

The ASX 200 poultry business has announced that five employees at its Thomastown processing plant in Victoria have tested positive for COVID-19. Therefore the site has been temporarily closed.

The company said that contingency plans have been in place for a number of months. It will work with customers to minimise supply chain disruptions.

Inghams doesn’t expect the temporary closure to materially impact the FY21 result.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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. 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.

Related Articles...

Latest posts by Tristan Harrison (see all)