Tesoro Gold Ltd (ASX: TSO) shares have been pretty much flat over the past year, but the team at Morgans believes some recent news could be the catalyst for a significant rerating.

Maiden gold reserve bolsters confidence

The company has in the past few days reported a maiden gold reserve at its Ternera deposit in Chile, with the project containing 1.28 million ounces of gold.

The reserve lies within a planned single open pit and represents 87% of the overall 1.47 million ounce gold resource at the project.

Tesoro said further:

The Ore Reserve supports a substantial, long-life development at the planned 3.0Mtpa process rate. The Reserve pit was designed based on a US$3,000/oz gold price optimal pit shell. It is underpinned by Pre-Feasibility (PFS) mine designs and schedules and the application of Modifying Factors informed by work completed across mining, geotechnical, metallurgy, processing, infrastructure, environmental and cost workstreams.

The company will now progress to a definitive feasibility study for the deposit, and will, “evaluate further opportunities to optimise the Project as the technical and development workstreams are refined”.

Tesoro said the gold reserve supports a project production life of more than 13 years.

The company said the project was close to road, power and water infrastructure and just 57km by road to the port of Caldera.

Further growth potential was also being tested through an ongoing drilling program.

Tesoro Managing Director Zeff Reeves said:

The Ternera Gold Deposit represents a rare, single open pit development opportunity in a world class mining friendly country. Establishing this initial 1.28Moz Ore Reserve is a significant step for our El Zorro Gold Project. We now have a substantial Ore Reserve contained entirely within a single open pit which supports more than 13 years of production at the planned 3.0Mtpa processing rate. This gives us a strong development base at Ternera, which still has significant upside to be unlocked from further drilling.

ASX gold shares looking cheap

Morgans said in a note to clients that the maiden reserve further reinforced their view that the project was technically robust and financeable.

They said:

The Ternera deposit supports a simple open-pit development scenario, with a single pit-constrained mining inventory and favourable geometry resulting in a moderate life of mine strip ratio of 6.3:1. We believe the combination of strong project economics, low technical complexity and favourable mining conditions should support development financing and enhance corporate appeal.

Morgans said they saw multiple catalysts over the next 12 months which could further derisk the project.

They have a price target of $2.64 on the company compared to 87.5 cents currently. Tesoro Gold is valued at $157.3 million.

The post This ASX gold stock could jump more than 200%: Broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

It hasn’t been a great start to Wednesday’s session for Nufarm Ltd (ASX: NUF) shareholders.

The agricultural chemicals company’s share price has fallen 8.44% to $2.93 in late morning trade following an update on its FY26 performance.

The stock has traded as low as $2.90 today, compared with Tuesday’s closing price of $3.20.

Interestingly, the selling comes despite Nufarm forecasting strong earnings growth and an improvement in its balance sheet.

So, what exactly did the company announce today?

Earnings are heading higher

According to the release, Nufarm expects FY26 underlying EBITDA to come in between $370 million and $380 million.

At the midpoint, that’s around 25% higher than last year, which is a pretty decent result considering the challenges facing the business.

Much of that growth should come from its Seed Technologies division, with Hybrid Seeds and Omega-3 both performing well.

Crop Protection hasn’t had quite the same run, with earnings expected to be broadly flat compared with last year.

The company said it has been dealing with currency headwinds, manufacturing disruptions and softer conditions in North America, which haven’t helped.

But there was some good news on the balance sheet.

Nufarm expects leverage to fall to around 2x by 30 September, compared with 2.7x a year ago.

So, why are the shares falling?

Well, there is one figure in today’s announcement that can help explain the selling.

Nufarm expects to recognise between $90 million and $110 million in material items after tax during FY26.

These costs are primarily non-cash and relate to the company’s ongoing restructuring and strategy changes.

They include costs associated with the planned closure of its manufacturing facilities in Kwinana, Western Australia, and Alsip in the United States.

While these charges won’t affect underlying EBITDA, they will still weigh on Nufarm’s reported statutory profit.

And this isn’t the first year shareholders have had to deal with restructuring costs.

In FY25, the company reported a statutory net loss of $165.3 million, which included $142.4 million in predominantly non-cash material items.

What’s next for Nufarm shares?

Looking ahead, Nufarm is sticking with its plan to simplify the business and bring costs down.

The company is targeting $50 million in annual cost savings by the end of FY27, with several initiatives already underway.

Management will be hoping these changes help improve profitability over the next couple of years, especially given the costs involved in restructuring the business.

The next big date for shareholders to pencil in is 19 November, when Nufarm is due to release its full FY26 results.

The post Why is this ASX share crashing 8% on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Money keeps pouring into two of the ASX’s most popular Vanguard exchange-traded funds (ETFs), and it’s not hard to see why. The Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively oversee roughly $40 billion in funds under management.

For a huge number of Australian investors, this pair effectively is the foundation of their portfolio. If I were starting from scratch, these two ETFs are exactly where I’d begin.

Building an investment portfolio from nothing can feel overwhelming. There are thousands of shares to sort through, endless opinions, and constant market noise pulling investors in every direction.

For beginners, ASX ETFs cut through all of that. Buy one fund, and you instantly own a slice of dozens, or hundreds of companies, without having to bet everything on picking the next big winner yourself.

VAS: owning corporate Australia in one trade

This top Vanguard ETF gives investors exposure to the 300 largest companies listed on the ASX. It’s a simple, one-click way to own a piece of corporate Australia.

Recent performance hasn’t been flashy. The fund is down around 3% over the past month and roughly 0.5% over 12 months. But chasing short-term returns misses the point of an ETF like this entirely.

What VAS really offers is broad exposure across Australian industries, paired with a genuinely attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) sit among its largest holdings, each making up more than 10% of the fund.

The dividend yield currently sits around 3.8%. That is solid, but it’s worth remembering that Australian equities lean heavily on financials and resources. Buy VAS, and you’re making a concentrated bet on those two sectors whether you realise it or not.

VGS: the antidote to a home-country-only portfolio

This is where the second largest Vanguard ETF earns its place. It directly tackles the biggest weakness of an Australia-only portfolio: concentration.

VGS provides exposure to developed international markets and has returned around 8% over the past year. it spreads investors’ money across hundreds of companies well beyond the ASX. The US dominates the portfolio, with tech giants like Apple inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) each representing more than 5% of the fund at the time of writing.

That global reach matters. It reduces reliance on Australia’s relatively small, concentrated share market, and opens the door to industries and business models that barely exist on the ASX at all. Think large-scale semiconductor manufacturers, global software platforms and consumer tech giants.

None of that makes VGS risk-free, though. International markets can correct sharply and geopolitical shocks can hit hard. Currency swings in the Australian dollar can also chip away at returns for local investors.

The post The Vanguard ETFs I’d buy first if I were starting again appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.