The CBA Chief Economist quoted that 2024 could experience more market risk than its fair share of risks and market impediments, especially geopolitical risks as well as the U.S. presidential election. Refraining the challenges, the Australian economy stands resilient and in relatively good shape.
The RBA will likely lower the cash rate by 75 basis points in the second half of 2024; however, the unemployment rate might also lead the way, moving up to 4.5% by the end of 2024.
The good thing is coming up in 2024 as inflation is getting under a grip, more likely decelerating further.
The Central Bank of Australia foresees an inflation rate of 3% at the end of 2024. Global fund flow will pave the way for market upraises and paradigm shifts towards net zero carbon targets.
Source: Reserve Bank of Australia
Note: The market cap and the share price of the selected ASX companies below are mentioned as of 27 December 2023.
QUBE Holdings Limited (ASX: QUB)
Market cap: $5.68 billion
CMP: $3.215
QUBE Holdings Limited (ASX: QUB) is providing logistics solutions.
Qube’s operating strategy and approach towards development and expansion have already resulted in a consistently strong and constantly improving functional state, capable of yielding significant returns for its shareholders. The operational volumes and sales being in line with the company’s optimistic established guidance further indicate an expanded business presence for the company. The existing works of the company, such as the developments at Moorebank Logistics Park, also continue to make advancements and provide further assurance of the company’s ability to deliver on its project pipeline.
Industrial Minerals Limited (ASX: IND)
Market cap: $50.88 million
CMP: $0.74
Industrial Minerals Ltd. (ASX: IND) is a diversified industrial mineral project developer with a primary focus on high-purity silica sand.
The deal with North West Quarries allows IND to explore the lithium and HPQ potential of the project's pegmatite units while North West continues its quarrying activities. A historic drill intercept of 6m at 3.73% Li2O is promising. The existing geological model from previous activities helps target lithium and HPQ, and the granted mining lease expedites development in the event of a viable discovery.
Bowen Coking Coal Ltd. (ASX: BCB)
Market cap: $284.40 million
CMP: $0.10
Bowen Coking Coal Ltd. (ASX: BCB) is a coking coal exploration company with advanced exploration assets.
Key takeaways:
• Robust coal production growth, strategic partnerships, and environmental approvals point to a promising future.
• Upcoming projects like Ellensfield South and the Isaac River Coal Mine are expected to drive production growth towards the company's ambitious target.
• Financial prudence and strategic initiatives position BCB for growth in the coal mining sector.
Ramelius Resources Ltd. (ASX: RMS)
Market cap: $1.97 billion
CMP: $1.735
Ramelius Resources Ltd. (ASX: RMS) is a gold mining and production company, with its primary production being focused on the Mt. Magnet goldmine.
The Penny Gold Mine is experiencing successful mining and ore haulage operations. Recent exploration drilling has uncovered resource extensions, and there is anticipation of extending the mine plan into FY2026. This development is generating excitement for the business, indicating future growth and operational success. The revised ore reserves and mineral resources estimates underscore RMS’s robust position in the gold mining sector, highlighting substantial gold resources and reserves that are poised to contribute positively to the company's future endeavors and growth.
Pure Hydrogen Corporation Limited (ASX: PH2)
Market cap: $44.40 million
CMP: $0.125
Pure Hydrogen Corporation Limited (ASX: PH2) is an independent oil and gas exploration ASX company. PH2 is also venturing into hydrogen production at multiple plants in Australia.
PH2 holds a highly diversified market offering as it aims to assist and provide hydrogen solutions to its customers at every level, starting with selling hydrogen-powered vehicles and batteries. Further, the company also plans to sell and supply hydrogen on long-term contracts, which will be the primary focus of operations as it stands to provide margins of 100%+, while the sale of HFC vehicles is merely supposed to be a hook to reel in customers. The company plans to further expand vertically to provide after-sale services or general services relating to the two services mentioned above, such as parts, lease rentals, vehicle refurbishment, etc.
Note: The market cap and the share price of the selected ASX companies below are mentioned as of 28 December 2023.
Corporate Travel Management Ltd (ASX: CTD)
Market cap: $2.86 billion
CMP: $19.54
Corporate Travel Management Ltd (ASX: CTD) is a provider of cost effective travel management solutions.
The company has forged robust client relationships, vital for continued revenue growth in the corporate travel sector. With an 80% revenue contribution from international markets, a tech-savvy approach, and a resilient client base encompassing 40% government and essential travel clients, maintains resilience despite recovery challenges in certain markets.
MLG OZ Ltd. (ASX: MLG)
Market cap: $89.54 million
CMP: $0.61
MLG OZ Ltd. (ASX: MLG), which provides integrated services across gold, iron ore, and other base metals.
MLG has substantial contracts and projects in its current pipeline, running up until 2026/27. This strong project and sales pipeline will facilitate a further increase in the company’s revenues, consistent with its high growth rates in the past, while the long-running contracts and constant renewals provide assurance towards the sustenance of these revenues. The increased headcount will also allow improved underlying service and delivery capabilities for contracts and revenues and also bring in operational efficiency.
KGL Resources Ltd. (ASX: KGL)
Market cap: $85.09 million
CMP: $0.15
KGL Resources Ltd. (ASX: KGL) is a mineral exploration company.
KGL’s commercialization of its flagship project remains highly promising, with favourable monetary prospects and return-generating capability, as seen through the feasibility studies of the project and its substantial resource base. With continued exploration and evaluation activities, a further upgrade in both the scale and the classification of the resources can be expected, which could eventually lead to higher than anticipated returns from the project. The market conditions for copper also remain favourable, and the transition towards clean energy will drive demand and provide a higher degree of assurance of sales and healthy pricing for the company.
Resolute Mining Ltd. (ASX: RSG)
Market cap: $990.01 million
CMP: $0.465
Resolute Mining Ltd. (ASX: RSG) is an African-focused gold miner. It has over 30 years of experience as an explorer, developer, and operator of gold mines.
RSG has achieved substantial operational improvements during the initial nine months of FY23, both relating to production and downstream operations, as seen through the reduction in AISC as well as improved profitability margins, efficiency, and trading cycles. The production, despite seeing minor fluctuations over quarters, is still anticipated to remain consistent with a sufficient boost post-phase I expansion, along with additional optimisation.
The company now holds a strong liquid position, well above its capital expenditure requirements, while the leverage proportion in its balance sheet has also reduced substantially, eventually leading to a significantly increased book value and security in the investment.
Credit Corp. Group Ltd. (ASX: CCP)
Market cap: $1.10 billion
CMP: $16.20
Credit Corp. Group Ltd. (ASX: CCP) is into debt purchase and collection as well as consumer lending. It is one of the largest providers of sustainable financial services in Australia.
The sustained demand for Wallet Wizard continued in FY23, leading to a record closing book of $358 million and projecting robust growth in consumer lending segment earnings for FY24. As a key player in debt services across Australia and New Zealand, CCP's market leadership expanded further with the acquisition of Collection House Limited, reflecting a growing customer base and diverse service offerings. Financial stability is evident through the extension of its banking facility until 2026, enabling flexibility amid market changes.
Reference: *All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters
Frequently Asked Questions (F.A.Q)
What is the performance of Ramelius Resources Ltd. (ASX: RMS)?
In the fiscal year that ended on 30 June 2023, Ramelius Resources reported a set of financial and operational results that depicted a dynamic performance landscape. Underlying EBITDA decreased by 6%, totaling $276.3 million. However, in terms of profitability, RMS demonstrated significant improvements, with statutory net profit after tax soaring by 396% to A$61.6 million, while underlying net profit after tax increased by 3% to A$75.3 million. Pre-tax cash flow from operations saw a robust 23% rise, amounting to A$226.3 million, and the company's net cash and bullion significantly increased by 57%, totaling A$272.1 million. Notably, the acquisition of Breaker Resources NL significantly bolstered RMS's cash position, contributing A$75.1 million to the operational cash flow generated in the June 2023 quarter.
What factors should I consider before buying ASX shares?
Analysts follow a top-down approach primarily; hence, they analyse the top-line growth and net earnings growth eventually of ASX companies. Tack the capex growth and relative performance of the assets; assess revenue-generating assets that will potentially support free cash flow generations.
What are the best ASX stocks to buy in 2024?
Some of the potential ASX stocks that might see a good reward for shareholders are as follows:
• Pure Hydrogen Corporation Limited (ASX: PH2)
• Ramelius Resources Ltd. (ASX: RMS)
• Bowen Coking Coal Ltd. (ASX: BCB)
• Industrial Minerals Limited (ASX:IND)
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