Argo Investments (ASX:ARG) has maintained its final dividend to shareholders despite a drop in profit to $253. 0 million for the year to June. This fall is explained by the fall in distributions of the companies in the portfolio.
The net return on the group’s tangible assets after all prices and updated corporate tax paid amounts to 11. 0%. This compares with the index’s 12. 1% decline over the 12 months ended June 30, 2024, which does take prices into account.
Management attributed the underperformance to an underweight position in the big four banks. In particular, promoting National Australia Bank (NAB) percentages appears to be a poor move given the bank’s 38% percentage value for the 2023-24 monetary year. Commonwealth Bank gained 28%, Westpac 27% and ANZ 20. 5%.
Directors also expressed sadness at the underweight of Goodman Group, whose percentage value increased by 73%. However, Clarity Pharmaceuticals performed remarkably, contributing particularly to the effects with a notable percentage gain in value of 677%. This positive effect was partially offset by investments in other stocks in the healthcare sector and in the APA group.
Argo admitted in its report on Monday that the lack of exposure to the Goodman Group and the underweighting of the big four banks hurts its relative performance for the 2024 monetary year.
The fully paid final dividend of 18 cents per constant percentage brings the total for the 2023-24 year to 34. 5 cents per constant percentage, unchanged from last year.
In addition to postal credits, the final dividend includes a LIC capital appreciation component of 3. 0 cents consistent with the percentage eligible for a tax deduction for most Americans and self-directed pension funds. This is the result of capital gains in the portfolio, specifically via acquisitions.
The decline in dividend flows from giant corporations owned by index investment corporations like Argo has also affected other investment outfits like AFIC. Stock analysts expect additional strain on dividend flows unless the economy improves during the rest of the year. Mining and retail sectors Banks are expected to post weaker results, while banks will likely struggle to justify higher bills and buybacks.
Argo reported a decline in earnings despite an accumulation of special dividend income sources due to the decline in the overall investment income source of portfolio companies. In particular, dividends from BHP Group, Rio Tinto and Woodside Energy fell significantly, reflecting falling commodity prices. Revenue from sales of functions and business activities also declined, but Argo welcomes the decline in overall prices in a highly inflationary environment.
In the fiscal year that ended in June, Argo purchased $344 million in investments, adding new securities and additions to existing positions. The company sold $287 million in investments, adding through acquisitions. Major purchases included APA Group, BHP Group, CSL, IDP Education, Resmed (new stake), Santos, Woodside Energy Group and Woolvalues Group. Higher sales, added through acquisitions, have worried Adbri, Estia Health, Invocare, Liontown, NAB, Wesfarmers and Australian United Investment Co.
The portfolio number increased from 89 to 86 due to acquisitions, the sale of Liontown and the incorporation of Resmed.
The directors expected persistent and demanding economic situations comparable to those of the last year and a half, adding inflation, interest rates and geopolitical factors. As inflation moderates, Tuesday’s Reserve Bank of Australia meeting will be closely watched. The upcoming corporate earnings season may reveal headwinds for Australian corporations due to emerging operating costs. Given the high levels in the market, corporations will most likely underperform investors’ expectations.
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Increases across the board of Deep Leads’ resources: quality, tonnage and target area ABx Group has reported a 30% increase in its mineral resource estimate (MRE) at Deep Leads’ rare ion adsorption clay (IAC) earth deposit in northern Tasmania. The accumulation in MRE comes from 36 tested outlets, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding within 10 days. Ford Company (Ford) has signed a memorandum of understanding for about 25,000 t/year and last week, Hanwa, a Japanese commodity trader, signed a memorandum of understanding for up to 25,000 t/yr. Subject to execution, this is a feat as Ford and Hanwa are prepared to engage in long-term strategic partnerships with LKE. Commercial negotiations are still ongoing but should, namely whether Ford and Hanwa will inject new capital into LKE, removing additional risks in financing the task and thus ensuring that LKE and Kachi are fully funded.
Two recent gravity studies have particularly exceeded expectations and revealed prospects for extension of the existing MRE at Throssell Lake, as well as a significant expansion opportunity at Yeo Lake. This reinforces the prospect of a multi-decade Tier 1 SOP production center around Lake Throssell.
TMG is currently completing work for the planned PFS in early 2023, adding start of drilling in Q3 2022, evaporation testing and permitting activities. The effects of those systems will affect the PFS and any long-term resource upgrades.
SOP reference prices have increased to around $940/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that each 10% accrual in value effects amounted to $144 million accrued to the NPV of the $364 million allocation. The accrual of around 70% compared to the scoping study implies an NPV of the allocation of approximately $1. 4 billion.
Despite the fall in oil and fuel prices, which fell 5. 4% and 19. 7% respectively in August, Calima managed to show an improvement in its main indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company, founded in 2010 and indexed to the Australia Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors acting as legal advisors. Representatives. WTL in connection with its broker organization activities Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). He has approximately 275 advisers at over two hundred money advisory firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a full study report on ASX-listed biotech Immutep Ltd (ASX: IMM). It was so inspired by IMM that Corporate Connect found it imperative to publish a follow-up report valuing the company, as the market did not see the great prospects of eftilagimod alfa (efti).
This monitoring report was published today. Using comparables, after adding a dollar reduction to its EV estimate and dividing by the total number of percentages issued, Corporate Connect now puts the fair price of one percentage of Immutep at A$2. 20.