Broker Shaw and Partners has recently initiated coverage of ASX resources company BCI Minerals Ltd (ASX: BCI) and believes the company could more than double in value.

Major resources project nearing completion

BCI, the Shaw team says, is on the cusp of becoming Australia’s largest solar salt operation and the third largest globally via its 100%-owned Mardie Salt and Potash Project on the Pilbara coast.

In its most recent update for the March quarter, BCI said that overall construction of the Mardie project was 81% complete.

The company is expecting its first salt harvest in the coming months, with the first harvest washed and stockpiled towards the end of the year.

As of March 31, the company had invested $1.37 billion in the project, compared to its then market capitalisation of $1.1 billion, and it had liquidity of $522 million, which was about 1.6 times its further anticipated construction costs.

The company was forecasting positive operating cash flow from FY28.

Shaw and Partners said the project was progressing well.

The Mardie Project uses seawater pumped into nine sequential evaporation ponds across 115sq km of Pilbara mudflats, 80km south of Karratha. Solar and wind evaporation concentrate brine to produce 5.35mtpa of high-purity industrial salt. Residual bitterns feed a secondary potash process targeting 140ktpa of Sulphate of Potash, a premium, chloride-free fertiliser used on high-value crops.  A significant milestone was reached in March 2026 when Pond 9 hit operational brine density, marking the transition from construction project to operating asset. Two tropical cyclones temporarily diluted pond densities earlier this year, but BCI reported no material infrastructure damage. We model first salt sales from early CY27.

The Shaw and Partners analysts said the most difficult elements of the project were now complete, which were approvals, pond construction, jetty commissioning, and project finance.

Shares looking cheap

They said the company was undervalued at the current share price.

They said:

With a market cap below the replacement cost of already-built infrastructure, BCI shares are too cheap for a project with a 60yr mine life, binding customer agreements covering 62% of initial output, and infrastructure-scale cash flows approaching.

The Shaw and Partners team said BCI’s high purity product was exactly what customers were after, and the primary risk from here on in was execution.

They said:

Further delays to First Salt on Ship or a disappointing production ramp-up in FY27 would erode confidence in the Project. A sustained period of weak industrial salt prices, or underperformance at the SOP pilot, could also reduce long-term earnings upside.

Shaw and Partners has a price target of 75 cents on BCI shares compared to 37 cents currently.

BCI is valued at $1.07 billion.

The post This billion-dollar ASX resources company is tipped to jump more than 100% 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.

A big restructuring plan has not been enough to stop one S&P/ASX 200 Index (ASX: XJO) stock from falling on Tuesday.

Reliance Worldwide Corporation Ltd (ASX: RWC) is in focus after the company announced another round of operational changes.

At the time of writing, the Reliance share price is down 4.36% to $3.51.

The plumbing products company has still gained around 12% over the past month, but it remains about 15% lower than this time last year.

Here’s what was in the update.

Reliance closing brass sites

In a statement to the ASX, Reliance said it plans to close its brass casting, forging, and machining operations in Moorabbin and Braeside, Melbourne.

It will also shut several smaller sites as part of a wider move to make its manufacturing operations more efficient.

Reliance said the closures follow a sustained fall in brass production volumes at its Melbourne facilities in recent years. As such, the company no longer sees enough value in keeping those sites running.

Management said the changes are expected to start supporting earnings from FY27.

However, the move will affect around 85 employees in Australia. The company has started consulting with those workers and expects that process to finish in July 2026.

Why is brass demand falling?

Reliance pointed to a few reasons why its brass volumes have been falling.

In the US, the company has invested in its Alabama facility to automate the assembly of its SharkBite Max brass push-to-connect fittings.

SharkBite Max has also been redesigned so it uses less brass. According to the company, that has reduced the amount of brass needed per fitting by about 20%.

Reliance is also moving some of its APAC SharkBite production out of Melbourne and to third-party suppliers in Asia.

On top of this, the company expects brass demand to fall further as it keeps replacing brass with stainless steel across some of its key product ranges.

What will it cost?

The changes will come with a fairly large hit in the short term.

Reliance expects to record a one-off net charge of between US$100 million and US$110 million in FY26. This will be left out of operating earnings.

The charge includes about US$5 million for redundancy and property exit costs, around US$25 million in net asset write-downs, and a US$70 million to US$80 million impairment of intangible assets.

However, most of that isn’t a cash cost. Reliance said only about US$5 million is expected to be cash, with the rest being non-cash.

From FY27, the company expects more production to shift away from the APAC region. That is expected to reduce APAC revenue by about US$38 million compared with FY25, but improve APAC operating earnings by about US$9 million.

Across the group, Reliance expects the changes to lift annual EBITDA by about US$9 million by the end of FY27. Once all the benefits are flowing through, the total annual uplift could reach around US$15 million.

The post This ASX 200 stock just dropped 4% after revealing a big business reset 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.

REA Group Ltd (ASX: REA) shares have fallen further into the red in Tuesday morning trade.

At the time of writing, the shares are down around another 2% and are changing hands for $133.12 a piece.

Today’s drop is the latest of a long string of share price declines. 

In fact, REA shares have suffered a gradual but relentless downturn since the company announced the appointment of a new CEO in August last year. 

REA shares dropped from above $260 in August 2025 to around the $150-range by March 2026. And now they tumbled even further.

The shares are now down around 28% year to date and roughly 43% lower than this time last year.

What has happened to REA shares?

REA was previously one of the more expensive stocks on the ASX. It was supported by strong profits, its dominant position in online property listings, and a robust property market.

Investors were expecting years of strong growth. But indications that the Reserve Bank would begin another interest rate hike cycle in late 2025 saw many investors shy away from the high-growth property share. 

Rising rates, softer lending demand, and concerns about tax changes affecting property investors have led the market to forecast weaker house prices and transaction volumes. 

Given REA earns a significant portion of its revenue from property advertising, analysts and investors are concerned that a weaker housing market will translate to fewer homes for sale and therefore a lower advertising spend. This directly affects REA’s bottom line.

The company’s latest financial results haven’t helped either.

REA reported robust second-quarter FY26 results in early February. But the figures came in short of market expectations, and investors were spooked. 

The company’s third-quarter results update in early May was a little more optimistic. But the small share price uptick was short-lived and quickly followed by huge losses.

Is there any chance of a rebound ahead?

Analysts are divided on their outlook for REA shares, but it looks like they mostly agree we’ll see some upside ahead.

Market Index data shows that the majority have a hold rating on REA shares. But after the latest share price slump, the average $181.20 target price now implies an upside of around 36%, at the time of writing.

Over on TradingView data, analysts are a little more positive. The majority (nine out of 16) have a buy or strong buy rating. Another six rate the stock as a hold. 

The average $198.12 target price implies a potential 48% upside over the next 12 months, at the time of writing. However, some are tipping the share price to rocket another 86% to $249 a piece. 

The post REA shares fall 43% to a three-year low. Is it time to buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.