ASX 200 flat, Lynas soars, City Chic jumps

The ASX 200 was flat, though Lynas was a highlight.
The post ASX 200 flat, Lynas soars, City Chic jumps appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) was flat today, ending at 7,394 points.

Here are some of the highlights from the ASX:

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price climbed over 10% today after releasing its quarterly update for the three months to 30 June 2021.

The rare earth miner said that it achieved quarterly sales revenue of $185.9 million, up from $110 million in the third quarter of FY21. Its cash receipts increased to $192 million, up from $133 million in the prior quarter.

In terms of production, total rare earth oxide (REO) production was 3,778 tonnes (up from 4,463 tonnes) in the third quarter and NdPr production was 1,393 tonnes (up from 1,359 tonnes). Management said this was an excellent result due to the continuing challenges being presented by the pandemic, particularly in Malaysia.

The ASX 200 miner ended FY21 with a cash balance of $680.8 million, up from $568.5 million at 31 March 2021.

Lynas’ CEO, Amanda Lacaze, made some comments about the company’s progress:

Progress continued on our Lynas 2025 projects including the rare earth processing facility in Kalgoorlie and the proposed integrated US rare earths processing facility. Detailed engineering and design work for the heavy rare earths facility was submitted to the US committed in line with US Department of Defense (DoD) phase 1 milestones. The DoD is now conducting a merit evaluation of the submission.

Preparation for the next mining campaign has commenced at Mt Weld and a number of improvement projects are underway, including the commissioning of the second stack cell in late June and the installation of a second concentrate dryer.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price has jumped today after announcing an acquisition and a trading update.

In the trading update it said that it saw FY21 sales of $258 million. That represented an increase of 32.9% year on year, with comparable sales growth of 31.6%. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $42 million to $42.5 million. This would be growth of 58% to 60% compared to FY20.

City Chic also said that its trading in FY22 has exceeded the budget so far. The US and the UK performance has outweighed the impact of temporary store closures because of lockdowns in Australia.

The acquisition is a €6 million deal to buy Navabi, which is an online marketplace which sells hundreds of third-party women’s plus-size brands as well as its own brands that it has developed.

The customer base is predominately from Germany. Its websites had 5.8 million customer visits in 2020, generating €10.4 million of sales revenue. Before the pandemic, Navabi had annual website traffic that exceeded 10 million visits. It has been profitable in 2021, but traffic and revenue have not recovered.

City Chic is expecting trading and profitability to improve from 2022 as it rebuilds its inventory over the next six months.

Bank of Queensland Limited (ASX: BOQ)

The BOQ share price fell 0.3% today after releasing its quarterly capital update for the three months to 31 May 2021.

BOQ’s board has set the common equity tier 1 (CET1) capital target range to be between 9% to 9.5% and the total capital target range to be between 11.75% and 13.5%.

At 31 May 2021, the ASX 200 bank’s CET1 capital ratio was 14.1%, up from 10% at 28 February 2021.

The total capital ratio was 18%, up from 13.8% at 28 February 2021.

BOQ said it raised $1.35 billion by issuing new shares in March 2021 and $250 million through the issue of subordinated debt in April 2021.

The post ASX 200 flat, Lynas soars, City Chic jumps appeared first on The Motley Fool Australia.

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More reading

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Why UBS just upgraded these 3 ASX shares to “buy”

ASX 200 employee busted stealing $470,000: Watch it unfold

Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher

The City Chic (ASX:CCX) share price has jumped 6% today. Here’s why

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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