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  • Evolution Mining lifts cash flow and holds full year guidance in September quarter

    Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.

    The Evolution Mining Ltd (ASX: EVN) share price is in focus after the company reported quarterly group operating cash flow of $775 million and maintained its FY27 production and cost guidance.

    What did Evolution Mining report?

    • Gold production of 154,000 ounces and copper production of 18,000 tonnes for the September quarter
    • Group all-in sustaining cost (AISC) of $1,653 per gold ounce, among the lowest in the sector
    • Operating mine cash flow of $775 million; net mine cash flow of $466 million, with all operations positive
    • Group cash flow of $185 million, boosting net cash to $141 million
    • FY27 Group guidance maintained across all key measures

    What else do investors need to know?

    Evolution’s safety performance improved, with a total recordable injury frequency (TRIF) of 5.8, down from the previous quarter. All growth projects at Cowal, Northparkes and Ernest Henry remain on schedule and budget.

    During the quarter, the Board approved $72 million (Evolution share) for the Northparkes Concentrate Regrind and Filtration Project, aiming to boost mineral recoveries and concentrate grade. Exploration spending was $24 million, with key drilling results at Ernest Henry and Cowal indicating further organic growth potential.

    On the corporate front, Evolution advanced its proposed acquisition of Carnaby Resources, expected to complete in November subject to shareholder approval. There were also Board changes, including the retirement of Tommy McKeith and the appointment of John Vann as a Non-Executive Director.

    What did Evolution Mining management say?

    Managing Director and Chief Executive Officer Lawrie Conway said:

    After the first quarter we remain on track to deliver to all key FY27 Group guidance measures, albeit after a slower start than expected for the September quarter. Our focus on preserving our margin, complemented by the upside from our copper exposure, resulted in an All-in Sustaining Cost of A$1,653 per ounce, below the low end of Group guidance at a margin of 73%. Mine operating and net mine cash flow of $775 million and $466 million were also at a high margin of $4,973/oz and $2,990/oz respectively. With a production profile that is set to grow in the quarters ahead, significant cash flows are expected in FY27.

    What’s next for Evolution Mining?

    Evolution is sticking with its FY27 group guidance, with production expected to be weighted toward the second half of the year as new mining areas come online. Key growth projects—like the E22 block cave at Northparkes, Bert development at Ernest Henry, and underground expansion at Cowal—are all progressing to plan.

    The company will also focus on organic growth through ongoing exploration, while integrating any new assets added from acquisitions. Capital management remains a priority, with 27 consecutive dividends paid and a strong liquidity position.

    Evolution Mining share price snapshot

    Over the past 12 months, Evolution Mining shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

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    The post Evolution Mining lifts cash flow and holds full year guidance in September quarter 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.

  • Rio Tinto provides Q3 2026 production update

    Two miners laughing and having fun while using smart phone during their coffee break.

    The Rio Tinto Ltd (ASX: RIO) share price is in focus today after the miner delivered strong third-quarter 2026 production results, highlighted by a 29% year-to-date lift in Oyu Tolgoi copper output and a 3% rise in global iron ore sales.

    What did Rio Tinto report?

    • Oyu Tolgoi copper production up 29% year-to-date; Q3 output reached 114,000 tonnes (+27% YoY).
    • Global iron ore sales of 90.8 million tonnes for the quarter, up 3% from Q3 2025.
    • Pilbara iron ore sales increased 2% YoY to 85.7 million tonnes in Q3.
    • Lithium carbonate equivalent production rose 33% year-to-date to 40,300 tonnes.
    • Alumina production grew 10% YoY, with stable aluminium output and progress on Pacific smelter repowering.
    • Year-to-date capital release exceeded US$2 billion under its US$5–10 billion program.

    What else do investors need to know?

    Rio Tinto maintained its full-year production and unit cost guidance across key commodities. While the company faced higher diesel costs and foreign exchange impacts, these were managed within existing forecasts. Major projects like the Simandou iron ore ramp-up and aluminium repowering initiatives remain on track.

    The group highlighted robust operational momentum heading into year-end, supported by ongoing initiatives to boost safety, productivity, and reliability. In the third quarter, it signed further power agreements and progressed capital release efforts, including divestments in desalination and surplus land.

    Geopolitical tensions in the Middle East drove volatility in energy and freight markets, but Rio Tinto’s operations continued with minimal disruption. The company continues to monitor supply chain risks and maintain contingencies.

    What did Rio Tinto management say?

    Rio Tinto Chief Executive Simon Trott said:

    We delivered strong operational performance in the third quarter. Oyu Tolgoi copper production increased 29% year-to-date, with the operation running at a ~450 kt annualised rate in the quarter, and global iron ore sales are up 3% year-to-date. The Simandou iron ore mine hit an annualised production run-rate of ~10 Mtpa (100% basis) in the quarter as the project continues to ramp up.

    We are finishing the year with momentum, with significant opportunities to accelerate improvements in safety, productivity and reliability through implementation of our operating system. We remain on track for a $1.8 billion annualised productivity benefit run-rate by the end of 2026. Our major projects remain on schedule and budget, underwriting our growth profile to 2030.

    We made further significant steps in decarbonising our business in the third quarter, with our Pacific Aluminium smelter repowering arrangements now well progressed.

    Today, we announce that we have achieved more than $2 billion of capital release year-to-date, as we actively manage our portfolio with discipline to maximise long-term value, as part of the $5 to 10 billion capital release program.

    What’s next for Rio Tinto?

    Looking ahead, Rio Tinto expects to maintain its operational momentum with major projects such as Simandou iron ore, Brockman Syncline 1, and new lithium developments progressing on schedule. The business remains focused on capturing a US$1.8 billion productivity benefit by the end of 2026 and advancing its decarbonisation goals, including further aluminium smelter repowering.

    Exploration and evaluation spending has risen, especially in copper. The company will continue its disciplined approach to capital allocation, with further asset sales expected to deliver on capital release targets.

    Rio Tinto share price snapshot

    Over the past 12 months, Rio Tinto shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

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    The post Rio Tinto provides Q3 2026 production update 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.

  • 2 ASX lithium shares to buy with 38% to 120% upside

    A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.

    The lithium industry has been sold off recently in response to falling lithium prices.

    But it isn’t all doom and gloom.

    Even after factoring in weaker than expected prices, Bell Potter believes the two ASX lithium shares in this article could be seriously undervalued and positioned to deliver big returns.

    Here’s what the broker is recommending:

    Liontown Ltd (ASX: LTR)

    Speaking about its lithium price expectations, Bell Potter said:

    We have marked-to-market our lithium price estimates for the recent quarter and downgraded our near-term outlook, in line with recent price weakness. Spodumene Concentrate 6% Li2O CFR China (Fastmarkets) averaged US$2,107/t in the September 2026 quarter (BP est. US$2,500/t); spot prices are US$1,562/t. We now factor in SC6 prices of US$1,777/t in FY27 (-21% on prior estimate of US$2,250/t) and US$1,750/t in FY28 (-7% on prior estimate of US$1,875/t).

    While this has led to significant reductions in the broker’s earnings estimates, Liontown remains its preferred ASX lithium share to buy now. 

    As a result, it has reaffirmed its buy rating with a trimmed price target of $1.60 (from $1.70). Based on its current share price of 71.5 cents, this implies potential upside of approximately 120% over the next 12 months.

    Commenting on its buy recommendation, the broker said:

    LTR is our preferred lithium exposure. We expect a value re-rate as the Kathleen Valley ramp-up and expansion are progressively derisked over the forecast period. On recent share price weakness, LTR is trading on an EV last seen in mid-2025 when SC6 prices were around US$650/t and the company’s balance sheet was materially weaker. Spot prices are now over 2.5x this level and LTR is in a net cash position.

    Mineral Resources Ltd (ASX: MIN)

    Another ASX lithium share that could offer major upside is Mineral Resources.

    Once again, Bell Potter has made meaningful reductions in its earnings estimates to reflect weaker lithium prices, which has had a knock-on effect to its valuation.

    Nevertheless, the broker feels that Mineral Resources shares are very good value at current levels.

    According to the note, it has retained its buy rating with a trimmed price target of $63.00 (from $75.00). Based on its current share price of $45.81, this implies potential upside of approximately 38% for investors over the next 12 months. It also expects a modest 1% dividend yield in FY 2027.

    Commenting on Mineral Resources, Bell Potter said:

    Completion of the US$765m MIN-POSCO lithium transaction is expected in the current half, and will accelerate balance sheet deleveraging paired with strong cash flows from iron ore and lithium operations. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is strongly positioned to execute its next phase of growth, having reinstated dividends.

    The post 2 ASX lithium shares to buy with 38% to 120% upside appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro 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.

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