Our Director of Trading, Trent Primmer, provides his insights into 3 ASX stocks that will compliment your investor portfolio in July 2021.
Fortescue Metals Group Limited (ASX: FMG)
A proud West Australian company, Fortescue Metals Group Ltd is a global leader in the iron ore industry, recognised for its culture, innovation and industry-leading development of world-class infrastructure and mining assets in the Pilbara, Western Australia.
Trent's comments:
"So Fortescue metals, we like Fortescue, basically the first half of fiscal year 21 EBITDA margin increased to 71% and based on strong first-half performance and continued focus on de-bottlenecking to optimize capacity. Guidance for FY 21 shipments is increased to 178- 182 million tons. They have a commitment to shareholder returns targeting the top end of its dividend policy, to pay 80% of their full-year impact. With the strengthening in iron ore prices, increased global demand and increased spending on new infrastructure projects, we feel like Fortescue is well prime to take advantage of the increase in pricing in iron ore."
Northern Star Resources Limited (ASX: NST)
Northern Star Resources Limited (ASX: NST) is a global-scale Australian gold producer with Tier-1 world-class projects located in highly prospective and low sovereign risk regions of Australia and North America.
Trent's comments:
"Our second stock is Northern Star, which is a top 10 ASX listed global gold miner. Basically, with gold at the moment as a hedge against inflation, obviously historical storage of wealth and with the market coming off due to inflation and a rotation from growth into value stocks, we'd expect gold, being around these levels to be an optimal asset class to be invested in. Northern Star themselves are expecting full-year 21, production of 1.5 million to 1,700 ounces of gold, which is obviously quite high and all-in sustaining costs of just 1,200 1,400 an ounce. They're on track to achieve 2 million ounces per annum by fiscal year 27."
Evolution Mining (ASX: EVN) is a leading, growth-focused Australian gold miner. Evolution operates five wholly-owned mines - four in Australia, and one in Ontario, Canada. In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine in Queensland.
Trent's comments:
"Our third and final stock is evolution mining EVN, which was recovering from heavy rainfall at their Mt Rawdon mine, which impacted production previously. They are now expecting for full-year 21 productions of 695,000- 710,000 ounces. And they're all in sustaining costs of just $1,190 - $1,210 per ounce, both favoured gold miners."
Where to from here?
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Our Equities Trading team, backed by our independent research department is the ideal solution for said situation. Our clients receive access to exclusive investment opportunities, daily ASX research reports, our expert weekly outlook on the Australian markets and direct access to our equity traders.
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~ Trent Primmer, Head of Trading, Barclay Pearce Capital.