The stock markets witness changes and events happening one after another in quick succession. Influenced by these, even the astute investors are foxed by quick swings.
Staying away from short term ups and downs, there are Long Term Holding stocks exhibiting steady growth.
Capricorn Metals Limited (ASX: CMM)
Capricorn Metals Limited is a gold producer with two key projects: the Karlawinda Gold Project in the Pilbara region and the Mt Gibson Gold Project in the Murchison region, both located in Western Australia.
The successful gold production at the Karlawinda Gold Project (KGP) positions Capricorn for substantial growth. With the development of the Mt Gibson Gold Project (MGGP), Capricorn has the potential to reach an annual production of around 270,000 ounces, pushing it into the ranks of the top 10 largest gold producers. Furthermore, this growth trajectory is bolstered by the anticipation of maintaining All-in Sustaining Costs (AISC) within the lowest quartile among ASX listed gold producers.
Capricorn Metals Limited has cut its gold hedge book by 52,000 ounces, seizing a recent pullback in the A$ gold price. They closed hedge contracts at A$2,327/oz and bought put options at A$3,432/oz, aiming to benefit from potential price increases. Current gold forward sales commitments stand at 55,000 ounces at A$2,327/oz, representing a small portion of their total reserves.
Capricorn Metals Limited is among the Best Stocks to Invest in as it presents a compelling opportunity, mainly because of the promising prospects of the Mt Gibson Gold Project (MGGP). The project's robust economic fundamentals, including a rapid payback period, substantial operating cash flow, and favorable pre-tax NPV, underscore its potential for delivering attractive returns. With an anticipated average annual gold production of 155,000 ounces over the initial years and a lengthy mine life of 11.5 years, the MGGP offers stability and significant revenue potential. Moreover, the project's cost-effective operations, demonstrated by reasonable all-in sustaining costs (AISC), enhance its resilience in varying market conditions. Capricorn Metals is one of the good Fundamental Stocks. Its successful execution of its development plans, along with ongoing exploration activities, positions it well to benefit from both existing and potential opportunities in the gold market.
Nuix Limited (ASX: NXL)
Nuix Limited (ASX: NXL) reported its annual results for FY24 ended 30 June 2024 on 19 August 2024.
The Annualised Contract Value (ACV) of Nuix, which reflects the annualised "run rate" of its contract value at a specific point in time, reached $211.5 million as of 30 June 2024, representing a 14.0% increase compared to the previous corresponding period (PCP). When adjusted for constant currency, ACV experienced a growth of 12.0% relative to the prior year, surpassing Nuix's strategic goal for FY24, which aimed for an approximate 10% increase in constant currency.
Revenue for the period surged by 20.9% as compared to the PCP, amounting to $220.6 million. In constant currency terms, revenue grew by 18.0%, significantly exceeding the target of a 10% rise in constant currency. The proportion of revenue derived from multi-year contracts saw a slight increase, rising to 31% from 30% in the previous year, bolstered by the renewal of key multi-year agreements during the year.
Underlying EBITDA, which excludes net non-operational legal expenses, rose by 38.7% compared to the PCP, reaching $64.4 million, a result of robust revenue growth coupled with effective cost management. Statutory EBITDA, which incorporates the effects of net non-operational legal costs, demonstrated a substantial increase for the full year, climbing by 60.2% to $55.9 million.
Net Profit After Tax improved to $5.0 million, a recovery from a loss of $5.6 million in the previous year. The funding for software development costs continues to be sourced from operating free cash flow.
After the full year, Nuix held cash reserves of $38.0 million, reflecting a 29% increase from the prior year and a 59% increase from the first half of the year.
The company is considered among Growth Potential Stocks, as it is experiencing considerable operational growth, particularly highlighted by the recent successful launch of Nuix Neo, which achieved an annual contract value (ACV) two to three times greater than non-Neo sales, offering a promising sales outlook. Additionally, the company is committed to progressing commercial negotiations for its third Nuix Neo application, Legal Processing, which has also been recently introduced.
Source: Company's Report
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