I Believe WCM to Be the Best

Thursday 10 September 2020 I believe WCM to be the best

I’m opening the Report today with an article I’ve spent some time thinking about. I’m giving you my honest and thoughtful view on a CIE board approved change that CIE shareholders will vote on 18 September. If you’re a CIE shareholder or would like to be, I ask you to read this. It would be great if dividends were like they used to be but they’re not. Therefore it makes sense for the CIE board to go looking for a world-class manager with an appropriate strategy that can bolster capital growth in the current market environment. This then becomes the basis of higher profits, out of which better dividends can be paid. I firmly believe WCM is the right manager.

Sincerely,

Peter Switzer

Inside this Issue 02 Your vote for WCM on September 18 matters My honest and thoughtful view on a CIE board approved change by Peter Switzer 05 3 dividend ideas for income investors to consider Searching outside the box for yield by Tony Featherstone 08 5 tech stock tips APT, Z1P, TYR, XRO & MP1 by Maureen Jordan Your vote for WCM on 10 Buy, Hold, Sell – What the Brokers Say 7 upgrades September 18 matters by Rudi Filapek-Vandyck by Peter Switzer 12 Questions of the Week 02 IOOF, Tesla, Z1P-v-APT and gold miners by Paul Rickard

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before Switzer Super Report is published by Switzer Financial Group Pty Ltd AFSL No. 286 531 acting, consider the appropriateness of the information, having regard to the Level 4, 10 Spring Street, Sydney, NSW, 2000 individual's objectives, financial situation and needs and, if necessary, seek T: 1300 794 893 F: (02) 9222 1456 appropriate professional advice. Your vote for WCM on September 18 matters by Peter Switzer

If you’re a shareholder in the listed company generated a return of 23.5% per annum², Contango Income Generator Limited (CIE) or outperforming its benchmark, the MSCI All Country considering becoming one, the board recently World Index by an annualised 11.9%2 per annum. announced a proposal to adopt a new investment strategy for its investment portfolio, involving arguably The strategy will complement WCM Global Growth one of the best fund managers in the world in WCM Limited (WQG), a successful large cap, long only LIC Investment Management (WCM). that was floated in June 2017. WQG’s investment portfolio has generated a return of 22.5% after fees³ The plan is to turn CIE into a global long-short vehicle since listing and the company is already rewarding that would invest in some of the world’s best shareholders with dividends that are now partially international growth companies. franked.

Fast growing companies not only can deliver solid Why now? capital gains, they can also produce the basis for a listed investment company (LIC) to pay income. One The impact of the Coronavirus and the ensuing stock of the benefits of a LIC is that profits can be retained market crash resulted in an inability for CIE to declare and distributed as dividends, meaning that income a final dividend due to the lack of distributable profits and growth are not mutually exclusive in the LIC at that time, lower dividends from companies that structure. once were seen as consistent dividend payers, and the low levels of growth in the mid-cap sector. In the The independent directors of CIE unanimously present environment, any alternate Australian believe that the proposal will enhance shareholder equities fund manager is likely to face the same returns and that this proposal is in the best interests obstacles. Therefore, the independent directors of of the Company and its shareholders in a CIE believe WCM, and the companies in which they post-COVID-19 environment, where interest rates will invest, are best placed to generate the long-term be lower for longer and where dividends are expected profits necessary to restore dividends. WCM’s to be squeezed for some time. investment record, which compares favourably with the likes of the highly regarded Magellan Financial Who is the proposed fund manager? Group’s fund performance, explains why the board is putting this option to its shareholders. WCM is a world-class fund manager with an outstanding track record across multiple investment Alternative proposals strategies. WCM currently manages in excess of A$85 billion¹ on behalf of institutional and retail The board of CIE stated that no formal alternative investors around the world. WCM entered the proposals had been received when it announced the Australian market in 2013 and manages new WCM strategy. The board said that a number of approximately A$2.5 billion1 for Australian investors. other fund managers were considered as part of a manager selection process undertaken on behalf of The proposed WCM Quality Global Growth Long the Company over a period of time. This included Short Strategy has (since inception on 30 June 2014) Wilson Asset Management (Wilson) however, CIE

Thursday 10 September 2020 02 was advised on 16 June 2020 that Wilson was unable strategies, will be the ones who will be able to deliver to engage with CIE due to capacity issues (this not only higher share prices but potentially more means he can’t manage any more money for income. investors). Although Wilson has now expressed an interest, his capacity constraints presumably remain A common-sense approach an issue. To make this Wilson versus WCM and CIE less In considering Wilson as an alternative investment personal, I’d like you to think about this: Is the adviser, the board advised that they considered the old-world income-chasing strategy of CIE appropriate relative investment performance of Wilson’s LICs for a listed investment company now in a new world (before fees) with that of WCM (after fees) over a of very low interest rates and shrinking dividends? I’d wide range of investment time frames. The chart also add, that in this post Coronavirus world, the below demonstrates the significantly superior growth opportunities seem to be more likely to come performance of WCM (over all strategies and time from overseas rather than at home. frames) compared with Wilson4: The history of innovative companies shows that as the world changes, forward-thinking boards adapt, which is what the board of CIE is proposing.

Many companies change their profit centres, as Wesfarmers has shown over time. Wesfarmers was founded in 1914 as a co-operative to provide services and merchandise to Western Australian farmers. It was listed in 1984 and grew into a major retail conglomerate. Yes, it changed its function and look at its success.

Wesfarmers (WES)

Click here to enlarge the performance chart.

The performance figures for WCM in the previous chart are after fees, whereas for Wilson they are before fees because Wilson chooses not to disclose easily the performance of its LICs after fees. Generally, best practice governance for fund managers requires fully transparent fee disclosure. As you would expect, the industry believes after-fee performance is the only appropriate method of Wesfarmers recently exited supermarkets to look at comparison of investment performance. Currently, better growth alternatives going forward, while why does a retail fund manager as well-known as retaining its jewel in the crown — Bunnings. Geoff Wilson not report his returns after fees? My personal view Because of the heralded period of low dividends going forward, the source of better income from many It would be great if dividends were like they used to strategies will be via capital growth. Those fund be but they’re not. Therefore, it makes sense for the managers who can generate good growth by their board of CIE to go looking for a world-class manager better stock selection and state of the art investment with an appropriate strategy that can bolster capital

Thursday 10 September 2020 03 growth in the current market environment. This Equity Strategy is 30 June 2014. Past performance is becomes the basis of higher profits, out of which not indicative of future results. better dividends can be paid. 3. Data as at 31 July 2020 in AUD. Performance presented is net of fees and includes the If you are a shareholder of CIE, you are being given a reinvestment of all dividends and income. Past chance to invest with one of the world’s best fund performance is not indicative of future results. managers in WCM. I suspect if the shareholders vote Inception date of WCM Global Growth Limited is 21 in favour of this innovative idea, the stock market will June 2017. like that idea and it should be positive for the share 4. Data source: WCM Investment Management and price. Wilson Asset Management. (https://wilsonassetmanagement.com.au/). Data as at That would mean those shareholders who only want 30 June 2020. Performance of WCM strategies is to invest for income somewhere else could get a presented in in AUD net of fees and includes the better share price in exiting the stock. I’m also sure reinvestment of all dividends and income. Past there will be many potential shareholders who would performance is not indicative of future results. like a WCM long short strategy, especially at this stage in the investing cycle. Important: This content has been prepared without taking account of the objectives, financial situation or The stock market marks up management teams, with needs of any particular individual. It does not great track records, bringing a world-class product or constitute formal advice. Consider the service to market. That’s the way I view this change appropriateness of the information in regard to your of strategy and investment manager for CIE. circumstances.

Admission: Yes, I am a shareholder of CIE and CGA — Contango Asset Management. As a shareholder and commentator, if I thought Geoff Wilson could perform better than WCM, I would be duty-bound and honour-bound to say that. I think CIE, like Wesfarmers, needs a new basis for making profit, driving the share price higher and delivering some income along the way, especially in an age of expected low interest rates and squeezed dividends.

If you’re a shareholder, think about voting. Your vote is important

You can vote in favour of Resolution 1 online at the Company’s share registry, Computershare, by visiting http://www.investorvote.com.au and using the control number: 184 099.

Please note that proxies must be received by 10:00am AEST on Wednesday 16 September 2020.

1. As at 30 June 2020. 2. Data as at 30 June 2020 in AUD. Performance presented is net of fees and includes the reinvestment of all dividends and income. Inception date of the WCM Quality Global Growth Long Short

Thursday 10 September 2020 04 3 dividend ideas for income investors to consider by Tony Featherstone

A politician recently called for more COVID-19 Also, sell-off in property trusts looks overdone, “detectives”. I reckon the share market could do with judging by profit-season results. However, a decent a few more dividend “detectives”, given the recovery in banks and listed property will take time as challenges of finding reliable yield. COVID-19 clouds the economy.

Dividends-per-share fell by about a quarter in the Income investors must be prepared to look beyond latest reporting season, broadly matching dividend usual sources for yield. For some, that means cuts in the Global Financial Crisis, notes Macquarie venturing outside of ASX 100 companies to mid- and Wealth Management. small caps. For others, that means identifying quality companies not normally bought for yield. Two thirds of companies Macquarie covers cut or suspended their dividend in FY20. That’s probably I’ve ploughed through the reporting season to find the worst of it, but it’s hard to see dividends roaring dividend ideas, using a four-step framework. higher in FY21. STEP 1 There’s too much COVID-19 uncertainty. Victoria looks like being in some form of lockdown for a few Step one sought companies that issued earnings more months, possibly longer because of onerous guidance. As I wrote last week, it’s a good sign when rules to relax restrictions. companies disclose a range of expected earnings in such uncertain markets. The majority of companies Government stimulus tapers after this month, the that issued guidance beat market expectation and suspension of insolvency laws ends this year, and rallied. more bank customers will have to make loan repayments. STEP 2

Sadly, many companies and consumers will go bust Step two identified companies that lifted their in the next six months. The recession will bite hard, dividend. It’s reassuring when a company achieves especially in Victoria. Heaven help the economy if the magic trifecta – rising revenue, earnings and COVID-19 vaccine does not arrive. dividends – and has the guts to return more capital to shareholders. Doing so during COVID-19 impresses. Expect more pain for income investors in FY21. Yields on cash and fixed interest, already low, will STEP 3 edge lower. More companies will have flat dividend growth at best. Usual dividend sources – banks, listed The third step considered valuations. It’s no good property trusts and utilities – will remain out of favour nominating a company with a rising dividend if it is due to COVID-19. overvalued. We want undervalued companies with good dividend outlooks – or even fairly valued That said, the banks are a good buy at current prices companies for those who buy for yield (the focus for long-term investors – and even more attractive should be on total return). after this week’s global equities fall.

Thursday 10 September 2020 05 STEP 4

The final step was income traits. The stock must have a yield, preferably fully franked, that appeals to income investors. For example, Breville Group, among my favourite mid-cap stocks, lifted its dividend. But Breville is a growth rather than an income stock; its yield is too low. Source: ASX

Barely any stocks ticked all the boxes. 2. Magellan Financial Group (MFG)

Here are three that income investors could consider: The wealth manager has been one of this market’s great growth stocks over the past decade. So 1. Worley (WOR) including Magellan in an income story feels odd, even though its dividend growth appeals. The global engineering firm matched market expectations with its FY20 profit (NPAT). The surprise A tip is avoiding companies that have modest yield, was a final dividend of 25 cents per share. The without assessing future dividend growth. A company market expected no dividend. yielding 3% might look a lot better in a few years (at the current share price) if its dividend grows at a Other positives included strong growth in cash flow, decent clip. debt reduction, cost savings and Worley’s leverage to renewables projects. The market liked the result. Magellan’s FY20 dividend rose 16% to $2.14. Within that, the interim and final dividend ($1.84) was up The well-run company is doing a good job managing 22% up on FY19. Magellan’s 30.4 cents costs. Worley is positioned for an eventual recovery performance-fee dividend was slightly down. in capital expenditure on oil and gas budgets, which have been trashed this year. The boom in Adjusted after-tax net profit grew 20% to $438 million, renewable-energy projects is another tailwind. supported by solid growth in funds under management and fees. Magellan delivered another As the oil price tanked, so did Worley. From a good performance in a market where COVID-19 52-week high of $16.24, it crashed to $4.63 at the pummelled wealth managers and sparked funds depth of the market sell-off in March. Worley now outflows. trades at $9.67. Magellan has a strong brand and is adapting well to At that price, Worley is yielding about 6 % in FY21 changing investor demands for cheaper, listed funds. and 7% in FY22, on Morningstar numbers. There’s I see Magellan increasing market share and assets no franking, but the yield is highly competitive without managed in the next few years as global share it. markets recover. That’s good for its dividend growth.

Morningstar values Worley at $12.50. Few sectors Magellan has fallen from a 52-week high of $74.91 to have been belted like energy, but the worst of the $58.49. At the current price, it’s yielding a bit above problems should be behind Worley, which has not 5% (with partial franking) in FY21 and nearer 6% in issued guidance. FY22.

Chart 1: Worley More telling is Magellan’s potential to deliver double-digit growth in its DPS over three years. Few ASX 100 companies will do that.

The stock looks fully valued. But with risks to

Thursday 10 September 2020 06 Magellan’s earnings and dividends growth on the An immediate question is whether Aurizon can deliver upside, today’s valuation could prove undemanding an FY21 dividend only a little down on FY20 (the in a year or two. dividend will fall due to lower earnings guidance).

Chart 2: Magellan Financial Group Morningstar expects Aurizon’s dividend to fall from 27.4 cents in FY20 to 26.1 cents in FY21, then rise to 29.3 cents in FY22. That delivers a forward yield of around 8 per cent after franking.

Aurizon has dropped from a 52-week high of $6.11 to $4.37. The stock looks fairly priced given coal-production risks. Provided the FY21 dividend only edges lower, Aurizon’s expected 8% grossed-up Source: ASX yield should suffice for income investors as they wait for the global economy to recover. 3. Aurizon Holdings (AZJ) It wouldn’t surprise if Aurizon tested previous price Is Aurizon another dividend “trap” with inflated yield? support around $4 if the latest share market rout At $4.30, the rail-freight group has a grossed-up yield lingers. That would be an entry point for income of 7.3% in FY21, rising to 8.2% in FY22 on investors willing to take calculated risks in search of Morningstar numbers. higher yield.

The FY20 result marginally beat broker expectations. Chart 3: Aurizon Holdings Underlying earnings (Group EBIT) rose 10% to $909 million in FY20. The final dividend rose 10% to 13.7 cents per share.

Aurizon issued FY21 guidance of $830-$880 million. Although earnings will be down, it’s a good sign that Aurizon has provided guidance. It gives confidence in dividend forecasts for the company. Source: ASX Granted, there are many risks. Aurizon relies almost totally on coal. That’s a short-term problem as Tony Featherstone is a former managing editor of COVID-19 trashes the global economy and, with it, BRW, Shares and Personal Investor magazines. The steel demand. Thermal coal volumes are so far information in this article should not be considered holding up, but weakening Chinese demand is personal advice. It has been prepared without weighing on coal prices. considering your objectives, financial situation or needs. Before acting on information in this article Aurizon is guiding for flat growth in haulage volumes consider its appropriateness and accuracy regarding in FY21. It might do a little better due to contract wins, your objectives, financial situation and needs. Do but near-term risks for Australian coal exports are further research of your own and/or seek personal rising. financial advice from a licensed adviser before making any financial or investment decisions based Longer term, relying on coal’s fortunes is complex as on this article. All prices and analysis at 9 September the world moves faster towards renewable energies. 2020. Supporters say the coal industry has plenty of life in it yet as China, India and smaller developing nations require cheap power from fossil fuels. They are right, for now.

Thursday 10 September 2020 07 5 tech stock tips by Maureen Jordan

Peter, what do you think of Xero, Afterpay, Zip and Afterpay at this point,” Jun Bei said. Tyro? Zip Co (Z1P) “I like Xero and Afterpay (but Afterpay is too expensive right now). I like Zip, not because my old mate Joe Hockey now has a contract to represent them in America, but because it’s a good company heading in the right direction.

“If we can call Tyro a tech company, I like that too. And that’s why I have them in my ZEET (Zip, Elmo, EML and Tyro) collection, with Zip at one end and Afterpay (APT) Tyro at the other. Both those companies should do well over the next three years.

“Xero’s a safer play and I’ll try to make money out of it.

“Tyro is going to make money for me. Zip’s good but there could be challenges with new players. We saw PayPal coming out and knocking Afterpay around for What about Tyro? a little while. “Tyro is amazing. Peter’s right. Over the next six “With Afterpay, there are still people talking about months, Tyro will probably be the biggest performer,” regulation. Maybe their big lift has already happened. she said. Tyro’s next big lift will happen when the whole economy is up and running again. Then I’ll be Tyro (TYR) interested to see where it heads,” said Peter.

Jun agrees with Peter and likes these four stocks.

“Afterpay is phenomenal and I like Zip as well. Like Peter said, that sector has done so well,” she said.

What would you choose, Jun Bei: Zip or Afterpay? And Xero? “Afterpay is a quality company and there’s enough support in there. You just constantly see buying “With Xero, take a three-year view. It’s perfect. Just whenever it dips. Zip is smaller and it’s going to take buy it and don’t worry about it. This company will go longer to get to that kind of scale. I probably prefer places and will dominate. They’re already showing

Thursday 10 September 2020 08 great numbers in the UK. And the US is still quite small at the moment but they’ll deliver those numbers. Xero is absolutely there,” she added.

Xero (XRO)

Are there any other tech stocks you like, Jun Bei?

“Another one I’d like to mention is Megaport. It’s expensive but it’s one of the very few companies that offer you growth exposure in the cloud space.

Megaport (MP1)

“In a sell off, it’s a great opportunity to buy some of the names I’ve mentioned above. They may have a few down days when tech companies get sold off, but in three years, they’ll be a whole lot bigger than today. As long as the key metrics are ticking higher, these stocks will continue to perform,” she concluded.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.

Thursday 10 September 2020 09 Buy, Hold, Sell – What the Brokers Say by Rudi Filapek-Vandyck

In the good books company’s products offer attractive characteristics that appeal to institutional investors and flows should BEACH ENERGY (BPT) was upgraded to remain robust. Rating is upgraded to Outperform from Outperform from Neutral by Macquarie Neutral and the target raised to $65 from $60.

With Beach Energy’s share price down -15% since NUFARM (NUF) was upgraded to Add from May, Macquarie notes the company has Reduce by Morgans underperformed the energy sector on account of its reduced five-year free cash flow guidance. The Nufarm reports its FY20 result on September 23. The broker considers the Waitsia-North West Shelf company has recently provided preliminary contract win a positive surprise. Earnings forecasts underlying earnings guidance of $290m-$300m for for FY21-23 have been increased due to higher FY20, slightly below Morgans estimates. However, expected oil production and gas contract the broker expects FY20 earnings to be the low point prices. Macquarie has upgraded its rating to given improved seasonal conditions in Australia. Outperform from Neutral with a target price of $1.70. Additionally, the company said FY20 will be the trough for the European business. Given material FORTESCUE METALS GROUP (FMG) was share price weakness and a more attractive upgraded to Buy from Hold by Ord Minnett valuation, Morgans upgrades the rating to Add from Reduce and the target price is increased to $4.85 Ord Minnett expects 2021 iron ore price to increase to from $4.76. US$105/t from US$100/t due to higher China steel production estimates. This compels the broker to In the good books (gold stocks) upgrade Fortescue Metals Group’s rating to Buy from Hold with the target price increased to $20 from Ord Minnett is positive on the outlook for gold and $18.80. Iron ore price estimates for the group have maintains a US$2,000/oz gold price forecast for the been increased to US$51/t from US$48/t. The group December half. However, a strengthening Australian offers a dividend yield of 9% over the next three dollar has been playing spoilsport, adds the broker, years, according to the broker. eroding margins and leading to near-term downgrades in earnings forecasts. MAGELLAN FINANCIAL GROUP (MFG) was upgraded to Outperform from Neutral by Credit NEWCREST MINING (NCM) was upgraded to Suisse Accumulate from Hold by Ord Minnett

Since the FY20 result Magellan Financial has The broker has upgraded its rating for Newcrest dropped around -10%. Yet the infrastructure franchise Mining to Accumulate from Hold with the target price has built a core offering which accounts for around increasing to $35 from $34. half of its assets under management and Credit Suisse believes there is scope for a similar market in REGIS RESOURCES (RRL) was upgraded to Hold global equities. The broker upgrades estimates by from Sell by Ord Minnett 1-2% to account for higher net flows and believes the

Thursday 10 September 2020 10 Regis Resources’ rating has been upgraded to Hold from Sell with a target price of $4.80.

SARACEN MINERAL HOLDINGS (SAR) was upgraded to Hold from Lighten by Ord Minnett

FY21 production guidance for Saracen Mineral Holdings has been downgraded led by the Super Pit JV. Ord Minnett upgrades its rating to Hold from Lighten with a target price of $4.70.

The above was compiled from reports on FNArena. The FNArena database tabulates the views of seven major Australian and international stockbrokers: Citi, Credit Suisse, Macquarie, Morgan Stanley, Morgans, Ord Minnett and UBS. Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.

Thursday 10 September 2020 11 Questions of the Week by Paul Rickard

Question 1: I own IOOF (IFL) shares, which I bought think the Senate Inquiry into the buy now/pay later some time ago at $10.25. I have been thinking about industry may result in a re-rating of the company’s buying more shares around their current price, then market multiple? selling when the price reaches a stage that I can break even. Do you think it is a good idea to Answer: I prefer Zip (Z1P) to Afterpay (APT). I am at participate in the retail entitlement offer, which would odds with the broker analysts, who now see more allow me to purchase up to $30,000 of shares at upside in Afterpay (see Jun Bei Liu’s $3.50, or would I be better off investing in something comments here). According to FNArena, these are else? the latest consensus target prices:

Answer: I have seen too many acquisitions “turn to Afterpay: target $81.72 (range $28.25 to custard”, particularly potentially “game changing” $106.00) about 10.4% higher than the last acquisitions like the purchase by IOOF of the MLC price of $74.05. wealth business. You have to ask this question: why Zip – target $6.75 (range $4.80 to $10.28) can IOOF make a go of MLC when the seller, NAB, about 2.1% higher than the last price of $6.61. can’t? Afterpay has the most to lose if the Senate I remain very sceptical. I also don’t think you should Committee recommends that customer lending be investing to “average down”. If you like IOOF as suitability (e.g. credit checks) be considered by the an investment prospect, then participate in the SPP. provider. That said, in the scheme of things, I really Otherwise, don’t invest. don’t think it is that big an issue. For Zip, I can’t see the Inquiry leading to any re-rating of its multiple. Question 2: I have a friend who is suggesting I Maybe a short-term negative. invest in Tesla (TLSA). What are your thoughts? There has been good share price increase but the Question 4: I have been wanting to buy a gold miner dividend history is not good. I know electric cars for quite some time but have never taken the plunge. seem to be the flavour of the month but they are I have a Gold (PMGold) ETF. Do you think the boat marketing in the luxury car market and I wonder if has set sail? If not do you have a favoured miner? I there are limited market opportunities for them? am looking for growth and dividend.

Answer: Tesla is definitely a stock for Answer: I don’t think the “boat has set sail” in “thrill-seekers”. One of the most expensive stocks on relation to gold but it will take further US dollar any market in the world. Certainly, one of the most weakness. A lack of confidence in the USA, the volatile. Year-to-date to 9 September, it is up an soaring US budget deficit, zero interest rates, weak astounding 338%. Over the last 12 months, up 690%. US dollar and bourgeoning US money supply are the But over the last 5 days, down 18.1%. I wouldn’t buy drivers behind the gold price. In terms of playing gold, (alone) on a friend’s recommendation. Buy it if you I prefer ETFs such as GOLD, QAU or PMGOLD, or are ready for the “thrill” and believe in it. the outright bullion. Shares in gold miners just bring in an additional complication – production issues – and Question 3: Do you still like Zip Ltd (Z1P)? Do you of course, are more leveraged.

Thursday 10 September 2020 12 Below are the big five gold miners (Newcrest also produces copper), their consensus target prices (from the major brokers), and upside/downside relative to current share price:

1. Newcrest (NCM): target $34.96; last price $31.24, 11.9% upside 2. Evolution Mining (EVN): target $5.00; last price $5.60; 10.8% downside 3. Northern Star (NST): target $13.77; last price $13.03; 5.71% upside 4. St Barbara (SBM): target $3.67; last price $3.27; 12.2% upside 5. Regis Resources (RRL): target $5.56; last price $5.20; 6.9% upside

Gold miners are not typically big dividend payers. Forecast yields on the above range from 1% to 3.2%.

Thursday 10 September 2020 13