Stock Pick

  • New Hope to create $6.3bn coal group with Malabar merger

    A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today

    The New Hope Corporation Ltd (ASX: NHC) share price is in focus today after announcing plans to acquire all outstanding shares of Malabar Resources Limited via a recommended scheme of arrangement. This merger will create a combined group with a pro forma market capitalisation of around $6.3 billion and is expected to deliver up to 19 million tonnes of saleable coal production per year.

    What did New Hope report?

    • New Hope will acquire all Malabar shares it doesn’t already own, via a scheme of arrangement.
    • Malabar shareholders to receive 0.500 New Hope shares for each Malabar share, valued at $2.92 per Malabar share (based on New Hope’s 16 October 2026 closing price).
    • Implied equity value of $1.8 billion for Malabar and a combined group market cap of about $6.3 billion.
    • Malabar shareholders will hold approximately 21% and New Hope shareholders about 79% of the combined group.
    • The deal is unanimously supported by both boards, subject to standard approvals.
    • Scheme implementation is targeted by March 2027, pending necessary approvals.

    What else do investors need to know?

    The merger brings together three high-quality coal operations, consolidating Malabar’s Maxwell Mine with New Hope’s portfolio. The transaction allows Malabar shareholders to swap their unlisted shares for liquid ASX-listed New Hope shares, providing them with greater flexibility and ongoing exposure to the growing Maxwell Mine.

    On completion, Malabar’s nominees Wayne Seabrook and Tony Haggarty will join the New Hope Board. This will ensure the group retains strong underground mining know-how and helps facilitate a smoother integration. The combined entity also plans to refinance Malabar’s debt, aiming to unlock further value through enhanced scale and improved capital access.

    What did New Hope management say?

    New Hope CEO Rob Bishop commented:

    This transaction provides a clear pathway to unlock the full value of the Maxwell Mine for both shareholder groups. For New Hope shareholders, this on-strategy transaction brings 100% of the Maxwell Mine into the New Hope portfolio, at compelling and accretive terms.

    What’s next for New Hope?

    The scheme now needs approval from Malabar shareholders, the court, regulators, and Japan’s Fair Trade Commission. If these are granted, implementation is expected by March 2027. Both companies will focus on blending their strengths—New Hope’s operating and financial capability with Malabar’s project and underground mining experience—to ramp up production at Maxwell and explore further regional opportunities.

    For Malabar shareholders, the move provides liquidity, exposure to a broader coal asset base, and the possibility of continued dividends, while New Hope shareholders gain 100% control of a large-scale, long-life underground mine.

    New Hope share price snapshot

    Over the past 12 months, New Hope shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

    View Original Announcement

    The post New Hope to create $6.3bn coal group with Malabar merger appeared first on The Motley Fool Australia.

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    Motley Fool contributor Laura Stewart 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • South32 sustains FY27 guidance while boosting base metals and cash position

    Two mining workers on a laptop at a mine site.

    The South32 Ltd (ASX: S32) share price is in focus today after the company maintained its FY27 production guidance across all operations, increased net cash to US$297 million, and delivered strong growth in base metals output.

    What did South32 report?

    • FY27 production guidance remains unchanged for all operations.
    • Net cash rose by US$14 million to US$297 million after a US$153 million distribution from Sierra Gorda.
    • Sierra Gorda copper equivalent production increased by 11% to 22.4kt in the September 2026 quarter.
    • Manganese production rose 14% as operations benefitted from improved conditions in Australia and South Africa.
    • Cannington’s zinc equivalent production decreased by 27% due to temporary lower mining rates but was offset by processing low-grade stockpiles.
    • A fully-franked ordinary dividend of US$242 million was paid for the June 2026 half year, after the quarter close.

    What else do investors need to know?

    South32 has kept its FY27 production guidance steady across all sites, signalling consistent operational expectations. The company made progress on key development milestones, including advancing the Taylor zinc-lead-silver project at Hermosa and starting the fourth grinding line at Sierra Gorda, which aims to boost copper output by 25% in future years.

    Shareholders approved the sale of South32’s aluminium value chain assets to Alcoa at the October AGM, with completion expected in the June 2027 half, pending regulatory approvals. This move will position South32 as a focused upstream base metals company with long-term growth opportunities.

    What did South32 management say?

    South32 Chief Executive Officer, Matt Daley, said:

    We’ve made a positive start to FY27, maintaining production guidance across all our operations and achieving key development milestones for our copper and zinc growth projects… The transaction [sale of aluminium assets] will reposition South32 as a leading upstream base metals focused company with high-margin assets and transformational growth.

    What’s next for South32?

    Looking ahead, South32 will continue to invest in expanding its base metals portfolio, including growth capital at Hermosa and ongoing development at Sierra Gorda. Upgrades at Cannington are expected to support higher mining rates as the year progresses.

    The pending sale of aluminium assets will further concentrate South32’s business on copper, zinc, and manganese. Ongoing capital management, including the share buy-back and dividend payments, remains a priority as the group looks to deliver value to shareholders.

    South32 share price snapshot

    Over the past 12 months, South32 shares have risen 48%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

    View Original Announcement

    The post South32 sustains FY27 guidance while boosting base metals and cash position appeared first on The Motley Fool Australia.

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    Motley Fool contributor Laura Stewart 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • Pro Medicus signs A$24M US deal

    Three healthcare workers standing together and smiling.

    The Pro Medicus Ltd (ASX: PME) share price is in focus today after the company announced a significant seven-year, A$24 million contract win with Billings Clinic – Logan Health in the United States.

    What did Pro Medicus report?

    • Secured a 7-year, A$24 million deal with Billings Clinic – Logan Health
    • Contract covers deployment of Visage 7 Viewer, Workflow, and Open Archive solutions
    • Cloud-based implementation planned, supporting digital transformation for the client
    • Migrating legacy image archives to the Visage 7 Open Archive platform
    • Agreement operates on a transaction-based model, with potential for further upside

    What else do investors need to know?

    Billings Clinic – Logan Health is a leading not-for-profit healthcare provider across Montana and the surrounding region, operating 25 hospitals and over 1,000 beds. This contract reflects Pro Medicus’s strong reputation for delivering scalable and innovative cloud-based imaging solutions.

    The implementation will see Visage 7’s entire platform integrated, including image distribution within the client’s electronic health record system. Rollout planning is underway, aiming for a go-live date in early 2027.

    What did Pro Medicus management say?

    Pro Medicus CEO Dr Sam Hupert said:

    Billings Clinic – Logan Health provides comprehensive community-focused care to patients across a broad, multi-state, rural area. They join an ever-growing list of Visage 7 clients to opt for our fully cloud-based platform, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.

    What’s next for Pro Medicus?

    Pro Medicus will begin planning for the rollout with its proven cloud-based implementation processes. The company continues to report strong interest in its solutions, with management pointing to a robust North American sales pipeline spanning all market segments.

    This deal supports Pro Medicus’s broader strategy of expanding its North American footprint and reinforces its position as a leading healthcare imaging provider with widespread cloud adoption.

    Pro Medicus share price snapshot

    Over the past 12 months, Pro Medicus shares have declined 39%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

    View Original Announcement

    The post Pro Medicus signs A$24M US deal appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    * Returns as of 6 March 2025

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    Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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