AIC Mines Ltd (ASX: A1M) shares had a day to forget on Thursday.

The ASX copper stock ended the day around 18% lower at 67 cents.

What happened?

Investors were hitting the sell button following the release of the company’s quarterly update, which revealed higher than expected costs at the Eloise copper mine.

Commenting on the update, Bell Potter said:

A1M has met production and cost guidance for its 3rd consecutive year. At its 100%- owned Eloise Copper Mine in QLD, A1M has reported production for the June 2026 quarter of 3,106t copper in concentrate plus 1,605oz gold at All-In-Sustaining-Costs (AISC) of A$6.15/lb (vs BPe 3,299t Cu in concentrate plus 1,389oz Au at A$4.51/lb). Compared with our numbers, this was a slight miss on copper, a beat on gold, but costs were a negative surprise and the highest reported from Eloise under A1M’s ownership.

Bell Potter has also been looking at the ASX copper stock’s expansion plans and is pleased with its progress. However, it concedes that AIC Mines’ higher costs has raised concerns that it may have to raise capital to fund the expansion. It said:

We recently attended a site visit to Eloise and returned comfortable with the view that the mine expansion is on schedule and mill commissioning will commence as planned in the December quarter 2026. This timeline was reiterated by A1M with the June quarterly report, albeit with some non-critical-path delays. A1M will also provide an updated outlook on 20 July 2026 covering FY27, FY28 and FY29 production targets. 

We anticipate this will include an update on a staged expansion from 1.1Mtpa to 1.5Mtpa, which is already partially catered for with the current expansion to 1.1Mtpa. On our current forecasts the expansion is fully funded. However, the higher costs reported in this quarterly have caused, in our view, some in the market to question this and it being a factor in today’s negative share price reaction.

Should you buy this ASX copper stock?

According to the note, the broker has retained its buy rating on AIC Mines’ shares with a reduced price target of 90 cents.

Based on its current share price of 67 cents, this implies potential upside of 34% for investors over the next 12 months.

Commenting on its buy thesis, Bell Potter said:

EPS changes with this update are: FY26: -13%, FY27: -8% and FY28: -9%, on the softer June quarter, forecast higher underlying unit costs, and slightly lower production. A1M represents leveraged, unhedged copper exposure via its Eloise Copper Project with a clear, organic growth strategy being advanced. It has a strong track record of delivery to guidance and a well-credentialed management team. We retain our Buy recommendation on a lowered NPV-based target price of $0.90/sh.

The post Why this ASX copper stock could rise 30%+ in 12 months 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.

The ASX stock APA Group (ASX: APA) continues to deliver a very pleasing level of passive income, particularly for investors targeting resilient payouts each year.

APA has one of the best records when it comes to regular payout growth, as well as its impressive asset base.

The business owns a number of important energy assets, including gas pipelines, electricity transmission, gas power stations, gas processing, gas storage, solar farms and wind farms.

Thanks to the essential nature of its portfolio, the business has been able to deliver investors a pleasing level of passive income.

Great passive income track record

APA has increased its distribution every year since 2004, which is the second-longest streak on the ASX for consistent growth of dividend payouts.

The business has kept up this payout growth whilst regularly investing in more assets for its portfolio. For example, in recent times it has announced more gas pipelines, as well as a gas peaking power plant in Queensland.

Each asset it builds/acquires, meaning it adds to APA’s ability to generate more cash flow. APA pays for its distribution from the cash flow it makes, so a growing portfolio is good news for investors wanting larger payouts.

Another positive for income-seeking investors is the fact that most of APA’s revenue is linked to inflation, so it’s benefiting from regular growth and can help offset the negatives of higher inflation for investors.

APA does not pay a distribution every month, though it does pay every six months. I think it would be better to think of the goal as an annual target and then divide the amount into 12 equal amounts.

$200 per month translates into an annual goal of $2,400 per year. I’m expecting the business to increase its annual payout to at least 59 cents per security in FY27.

To receive $2,400 per year based on the potential FY27 payout, an investor would need to buy 4,068 APA shares.

In my view, the business has a promising future and can continue expanding its energy portfolio for the foreseeable future as Australia looks to other energy sources to replace coal over the next decade.

The post I’d buy 4,068 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of options for investors to choose from in the resources sector.

To narrow things down, let’s find out what Morgans is saying about three ASX shares that have recently released updates.

Here’s what you need to know:

Amplitude Energy Ltd (ASX: AEL)

Morgans remains positive on this energy producer’s shares following its fourth-quarter update. This was particularly the case with the Orbost operation, which continues to outperform.

In response, the broker has retained its buy rating and $3.05 price target on the company’s shares. It said:

A solid Q4 production and sales result, with Orbost’s continued outperformance the obvious standout. As we expected, revenue dipped on softer Victorian and South Australian spot prices through the quarter, though by less than we had allowed for. FY26 closed with records across the board. Group production of 27.6PJe (+3%), revenue of A$285.8m (+7%) and a record realised gas price of A$10.35/GJ (+4%), while net debt was slashed 85% yoy to A$37.2m. 

Management’s outlook commentary was very positive, with the flagship Orbost plant setting fresh production records post quarter end. AEL is our top energy sector pick following recent share price weakness. We maintain our BUY rating and A$3.05 target price.

Evolution Mining Ltd (ASX: EVN)

The broker notes that this gold miner delivered a result in line with expectations. And while capital expenditure will be higher than forecast in FY 2027, it remains positive on the investment opportunity here.

Morgans has retained its buy rating with a trimmed price target of $14.60. It commented:

4Q26 result and FY26 guidance were largely in line with expectations. FY27 outlook commentary flagged higher capex than previously expected and inflationary impacts to AISC, which affect FY27 cash flow forecasts. Maintain BUY with a A$14.60ps target price (previously A$16.00ps).

Rio Tinto Ltd (ASX: RIO)

Morgans highlights that this mining giant’s Pilbara operations outperformed expectations during the second quarter. And while the Simandou operation’s performance was weak, the broker doesn’t see this as a negative.

However, for valuation reasons, Morgans only has a hold rating and $163.00 price target on Rio Tinto shares.

RIO posted a healthy Q2 where it matters, with Pilbara shipments beating consensus (+2%), while we see the headline Simandou miss (-68% vs consensus) as a net positive: a slower Simandou ramp supports iron ore benchmarks, and each US$10/t on the benchmark is worth ~US$2.5bn of annual EBITDA to RIO’s far larger Pilbara business. The sting in the tail was Kennecott, with a late June converting furnace breach requiring a ~75-day full rebuild, hitting H2 refined copper and gold output (total copper including saleable matte unchanged). 

Copper C1 guidance halved to US30-50c/lb, on strong by-prod prices, a material margin tailwind into the H2 result. Trading back close to where we see fair value, RIO remains one of the highest quality global exposures to a sector enjoying a multi-year upcycle (albeit not without its volatility). We maintain our HOLD rating, A$163.00 TP (was A$165.00).

The post Should you buy Rio Tinto and these ASX shares? 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.