ASX 200 falls on Tuesday

The S&P/ASX 200 Index (ASX:XJO) dropped 0.35% today. Nick Scali Limited (ASX:NCK) shares jumped on increased profit guidance.

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The S&P/ASX 200 Index (ASX: XJO) dropped 0.03% today to 6,682 points.

Here are some of the highlights from the ASX:

Nick Scali Limited (ASX: NCK)

The Nick Scali share price went up by around 6.3% after upgrading its profit guidance for the first half of FY21 again.

Unaudited net profit after tax for the six months to 31 December 2020 is expected to be $40.5 million, which is up approximately 100% compared to the underlying profit of the prior corresponding period. This was due to better than previously anticipated container availability during the months of November and December leading to increased delivery volumes.

A couple of months ago Nick Scali provided a trading update on 26 October 2020 showing that total written sales orders for the first quarter of FY21 grew by 45%.

In the second quarter of FY21 Nick Scali achieved growth of 58%, which was driven by the reopening of the Melbourne metropolitan stores as well as a successful Black November campaign across both the online and in-store channels.

Total written sales orders for the six months to 31 December 2020 exceeded delivered sales by approximately $20 million according to the company due to exceptional growth in written sales orders during the second quarter. Management said that the sales order book was at an all-time high at 31 December 2020 and this is expected to translate to material revenue and profit growth in the second half of the financial year, subject to there being no further disruption to the store network or supply chain.

During the month of November, Nick Scali opened new stores in Wairau Park in Auckland, New Zealand and Bennetts Green in NSW which have both performed strongly and are expected to contribute to profit in the second half of FY21 as written sales orders convert to revenue. Despite the entire store network being reopened at the end of October, sales made through digital channels continued to growing during the second quarter of FY21.

Ramelius Resources Limited (ASX: RMS)

ASX 200 gold miner Ramelius Resources saw its share price rise by 3.6% today after announcing the production for the three months to December 2020.

Ramelius Resources' guidance for quarterly gold production had been 67,000 ounces to 72,000 ounces. It achieved 72,896 ounces of production. This was split with 43,055 ounces of production from Mt Magnet (including Vivien) and 29,841 ounces from Edna May (including Marda).

Half-year gold production guidance had been 132,000 ounces to 142,000 ounces. It achieved half-year production of 144,240 ounces.

Management said that it finished the quarter with $221.5 million of cash and gold on hand. Debt reduced to $8.1 million at the end of the quarter. It ended with a net cash position of $213.4 million.

Ramelius Resources said that it continues to deliver gold into its forward sales book as the current schedule requires, with a quarter end position of 229,750 ounces at an average price of AU$2,288 per ounce.

Dacian Gold Ltd (ASX: DCN)

The Dacian Gold share price dropped 1% after announcing its preliminary December update.

For the quarter ending 31 December 2020, it achieved production of 27,162 ounces and year to date production of 59,961 ounces. This production is "tracking well" for its guidance of 110,000 ounces to 120,000 ounces.

During the latest quarter the company repaid $15.7 million in debt during the quarter, with total debt now standing at $23.4 million.

Cash and gold on hand at 31 December 2020 was $37.9 million for a net cash and gold position of $14.5 million. This was a $15.1 million improvement from 30 September 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. 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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