The Sims Ltd (ASX: SGM) share price is in focus after the company posted a 6.9% rise in full-year group revenue to $8,007.5 million, and underlying EBIT up 167.6% to $468.0 million.

What did Sims Ltd report?

• Group sales revenue increased 6.9% to $8,007.5 million
• Underlying EBITDA jumped 69.3% to $727.8 million
• Underlying EBIT surged 167.6% to $468.0 million
• Underlying NPAT rose to $289.1 million (up from $83.1 million)
• Return on Invested Capital (ROIC) improved by 7.2 percentage points to 11.7%
• Final fully franked dividend of 20.0 cents per share, bringing the full-year total to 34.0 cents

What else do investors need to know?

Sims’ Sims Lifecycle Services (SLS) division delivered standout growth, with sales revenue up 77.4% to $757 million, and underlying EBIT climbing 429.8% to $172.7 million, driven by strong demand for recovered memory components in the AI infrastructure sector. Repurposed units almost doubled to 16.8 million, reflecting deepening relationships with hyperscale data centre customers.

The North American and SA Recycling segments benefited from favourable non-ferrous prices and domestic US steel demand, offsetting ongoing challenges in the Australian and New Zealand metals business due to soft steel markets and limited tariff protection.

What’s next for Sims Ltd?

Looking ahead, Sims expects supportive market conditions for non-ferrous metals and AI-related asset recovery to continue into FY27. While the timing of data centre decommissioning remains variable, the company expects SLS to contribute first-half underlying EBIT between $75 million and $90 million.

The group also sees ongoing US tariffs and new electric arc furnace capacity supporting demand for ferrous scrap in North America. In Australia and New Zealand, domestic demand could strengthen over the medium term as new steel production capacity comes online. Sims remains focused on recovery optimisation, operational excellence, and disciplined growth through targeted investments and bolt-on acquisitions.

Sims share price snapshot

The Sims share price has been a very strong performer over the past 12 months, outperforming the S&P/ASX 200 index (ASX: XJO) with a gain of around 50%.

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The post Sims delivers strong FY26 earnings growth as AI demand fuels SLS division 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. 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.

The Lycopodium Ltd (ASX: LYL) share price is in focus after the company secured a major EPCM contract worth roughly $37 million for the San Cristóbal Silver Oxide Project in Bolivia. The contract will see Lycopodium design and manage construction of a new 15,000 tpd silver oxide processing plant adjacent to the existing operation.

What did Lycopodium report?

• Awarded a $37 million Engineering, Procurement and Construction Management (EPCM) contract for the San Cristóbal project in Bolivia
• New plant to treat 15,000 tonnes per day of oxidised material, producing silver doré
• Project is a brownfields expansion, complementing the existing 52,000 tpd sulphides processing plant
• Works to commence immediately, with completion targeted for 2030
• Contract is subject to a final investment decision by the client

What else do investors need to know?

The San Cristóbal Mine is one of the world’s largest open-pit silver, zinc and lead operations, and this new contract will expand Lycopodium’s international footprint. The project presents unique engineering challenges, requiring design and construction at over 4,000 metres above sea level.

The delivery will be a collaborative effort, drawing expertise from Lycopodium’s offices in Toronto, Lima, and Argentina. The company highlighted that once complete, both sulphide and oxide plants will run side-by-side, increasing production capacity at the site.

What did Lycopodium management say?

Lycopodium Managing Director and CEO Peter De Leo said:

We are extremely pleased to be given this opportunity to work with Minera San Cristóbal SA in the development of the San Cristóbal Mine. This strategic project positions the mine to become a significant silver producer on a global scale and includes challenges of design and construction at a high altitude, at 4,000 metres above sea level. Execution of the project will include significant collaboration across our Americas team, with input from our Toronto, SAXUM (Argentina) and Lima offices.

What’s next for Lycopodium?

Lycopodium will begin work on the San Cristóbal Silver Oxide Project immediately, focusing on engineering and planning while awaiting the client’s final investment decision. The company expects strong collaboration across its international teams to deliver the project, with completion forecast for 2030.

This contract strengthens Lycopodium’s global pipeline and underscores its capability to deliver large, complex resource projects. Investors will be watching for updates as work ramps up in the Americas.

Lycopodium share price snapshot

Over the past 12 months, Lycopodium shares have risen 57%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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The post Lycopodium lands $37 million contract for Bolivian silver project 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 recommended Lycopodium. 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.

ASX dividend shares have an income competitor for the first time in years.

The Reserve Bank left the cash rate unchanged at 4.35% at its June meeting, following three increases since the start of the year.

That has pushed term deposit rates to levels Australian savers have not seen for some time.

Commonwealth Bank of Australia (ASX: CBA) is currently advertising a 12-month term deposit special of 5.25% per annum, with a standard 12-month rate of 4.75%.

Both are guaranteed, and deposits are protected up to $250,000 per person per institution.

So the following question is a fair one: Why own bank shares when the bank itself will pay you more for a term deposit?

The case against ASX dividend shares right now

On headline yield alone, cash wins comfortably.

Analysts expect CBA to pay a total dividend of $5.15 per share in FY26, which is equivalent to a forward yield of around 3% at the current share price.

FY27 forecasts of $5.45 per share imply about 3.2%.

A 5.25% term deposit beats both, with none of the volatility.

Term deposits also beat annual inflation, which the RBA recorded at 4.0% for the year to May.

Franking credits change the maths

The comparison is not quite complete, though.

CBA’s dividends are fully franked, which means the company has already paid 30% tax on the profits behind them.

Grossing up a 3% cash yield produces an effective pre-tax yield of roughly 4.3%.

On the FY27 forecast, that rises to about 4.6%.

For an investor in a low- or zero-tax environment, such as a pension-phase superannuation fund, those credits are refundable in full.

However, a term deposit pays the same rate for the whole term and then rolls over to whatever rates exist at the time (reinvestment risk), which is a real risk if the RBA does begin cutting in 2027.

CBA, by contrast, has delivered a rising dividend every year since 2021, meaning your yield on cost can grow over time, which a term deposit cannot do.

CBA’s most recent earnings

So what has been driving these dividend increases? To answer this question, it is worthwhile to look at the results.

CBA delivered cash net profit of $5,445 million in its FY26 half-year result, up 6% on the prior period.

The company lifted its interim dividend 4% to $2.35 per share, fully franked.

In contrast, the March quarter update was steadier. Cash net profit came in at around $2.7 billion, up 4% year on year but down 1% on the first-half quarterly average. Business lending grew 12.5%, household deposits rose 9.1%, and home lending increased 7.1%.

A $316 million loan impairment expense reflected what the bank described as heightened geopolitical and macroeconomic uncertainty.

Full-year results for CBA are due on 12 August.

Foolish takeaway: ASX dividend shares versus cash

If you need a known sum on a known date, the term deposit is the better instrument today.

But ASX dividend shares are not really competing on this year’s yield.

They are competing on the next decade of dividend growth, franking credits and capital appreciation, all of which come with the very real risk of losing money along the way.

The choice investors make should be aligned with their risk appetite.

The post Term deposits at 4.35% vs. ASX dividend shares: which one wins? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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.