What is running hot on ASX today?

  • Feb 24, 2020 AEDT
  • Team Kalkine
What is running hot on ASX today?

Although the S&P/ASX 200 is down by around 2% today, many metal and mining players are trading in green. Most notable among them is Saracen Mineral Holdings Limited (ASX: SAR) which has risen by around 6.5% on ASX (AEDT 2:55 PM0. Despite not releasing any update, this gold producer is at the top of ASX top performers list and is trading near to its 52 weeks high price. There are several other gold producers which have witnessed significant uplift in their share price today.

Saracen Mineral Holdings Limited (ASX: SAR)

Last week, when Saracen Mineral provided Carosue Dam update, it highlighted that the company’s recent drilling at Karari has returned thick high-grade results further demonstrating the increasing grade profile with depth. The result included 22m @ 5.6g/t, 17m @ 6.9g/t, 14m @ 8.0g/t, 10m @ 10.7g/t, 14m @ 5.1g/t and 16m @ 4.5g/t. “These results show that Saracen continues to enjoy a strong growth outlook driven by both organic sources and prudent acquisitions” said Saracen Managing Director Raleigh Finlayson while commenting on the results.

St Barbara Limited (ASX: SBM)

Another metal and mining player who rose substantially during today’s trade is St Barbara Limited (ASX: SBM). Last week, this gold producer and explorer released its half year results for the six months ending 31 December 2019, wherein it reported underlying profit after tax of $35 million and Gold production of 181,728 ounces for the period. For the period, the company declared $0.04 fully franked interim dividend payable in March 2020.

“The financial result for this half is softer, due to the lower production previously reported at Gwalia and Simberi” said St Barbara MD & CEO, Craig Jetson while commenting on the results. He further highlighted that Atlantic Gold has made a significant contribution to the Group on the back of its record gold production for the half year period and in the coming months, the company is expecting to complete the Gwalia Extension Project and  provide an update on the sulphide study work at Simberi, and work continues on the Atlantic Gold growth assets.

Northern Star Resources Ltd (ASX: NST)

Today, Northern Star Resources Ltd (ASX: NST), a global-scale Australian gold producer, also witnessed a  sharp increase in its share price. The company today has released an investor presentation in which it highlighted 1H FY2020 key financial highlights which includes:

  • Net profit of A$126.8 million up 54% on pcp;
  • Cash flow from operating activities up 76% to $297.5 million on pcp;
  • Underlying free cash flow up 179% from pcp to A$116.3M
  • Interim dividend up 25% from pcp to A7.5¢ (fully-franked)
  • Strong Balance Sheet; Cash, Bullion & Investments of A$274 million

 

Currently, the NST’s stock is trading at a price of $15.180, up by 4.834% intraday, close to its 52 weeks high price of $15.280. Notably, in the last three months, NST’s stock has provided a return of 55.7% to its shareholders.

 

Chorus Limited (ASX: CNU)

It was not all gold miners which were trading in green today. New Zealand broadband company, Chorus Limited (ASX: CNU) witnessed a 5.3% share price jump during today’s trade, mainly due to its positive half year results which released today. For the half year period, the company reported net profit after tax (NPAT) of $31 million and EBITDA of $332 million. the company’s results were better than the corresponding previous year because of the combination of operating cost reductions and strong broadband connections growth.

For FY20, the company has increased its EBITDA guidance range to $640 - $655 million. The Gross capex guidance unchanged at $660 - $700 million and Fibre connections & layer 2 capex increased to $295 - $315 million. Further, the dividend guidance for FY20 is unchanged at 24 cents per share, subject to no material adverse changes in circumstances or outlook.

Reliance Worldwide Corporation Limited (ASX: RWC)

Among the top losers today, the Reliance Worldwide Corporation Limited (ASX: RWC) was on the top of the list as it dropped over 26% during intraday following the release of its half year results. For the half-year period, the company reported Adjusted NPAT of $63.7 million, down by 21% on previous corresponding period. During the year, the company witnessed lower production volumes, particularly for intercompany sales to the Americas, as well as unfavourable mix in Continental Europe. Over the period, the company’ s UK specialty product sales were lower due to subdued trading conditions. Further, the sales to the Automotive sector were lower due to the continued withdrawal from that market which was exacerbated by broader sector weakness.

While providing an update on the impacts of coronavirus, the company told that the coronavirus will have minimal impact in the short term. The company is assessing the longer-term impact with suppliers and is working with its supply base to prioritise production to restock products that have lower inventory levels.

The company has amended its earnings guidance for FY2020 to incorporate the impact of the first half financial performance. For FY20, the company expects its Adjusted NPAT to be in between $140 million- $150 million.

EML Payments Limited (ASX: EML)

Another stock which declined sharply today is EML Payments Limited (ASX: EML). Even since EML released its half-year results, its stock price has been declining. Today, the stock has declined by around 10%. For the half year period, the company had reported record results which includes revenues of $59.2 million and EBITDA of $19.7 million.

The company has ended its half-year period with $256.8 million in cash and $32.7 million of breakage accruals, which will convert to cash over the coming 12-36 months. The company has tightened guidance range for the FY20 year, which excludes PFS until the acquisition closes to revenue of $120 million - $129 million, EBITDA of $39.5 million - $42.5 million.

NIB Holdings Limited (ASX: NHF)

Health insurance company, NIB Holdings Limited (ASX: NHF) witnessed a decline of 7.9% during today’s day trade. The company had reported total Group revenue of $1.3 billion, up 6.4% on pcp. The company’s Net profit after tax declined by 23.1% to 57.1 million, indicating current industry pressures and escalating competition. In FY20, the company expects its Statutory operating profit of ~150 million and its Underlying operating profit to be around ~170 million.

In the past six months, NHF stock has declined by around 24.72%.  Notably, the stock is trading close to its 52 weeks low price.


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