The Santos Ltd (ASX: STO) share price is in focus today after the company’s second quarter report showed sales revenue rose 6% to $1,349 million, as overall production increased 3% on the prior quarter.

What did Santos report?

• Sales revenue for Q2 2026 was $1,349 million, up 6% quarter on quarter
• Production reached 23.1 million barrels of oil equivalent (mmboe), up 3% compared to Q1
• First-half production: 45.6 mmboe; full year guidance narrowed to 99–105 mmboe
• Free cash flow from operations for H1 was approximately $378 million, impacted by commissioning and timing items
• Capital expenditure $481 million in Q2; 20% lower in H1 versus last year, reflecting project transitions
• Realised LNG pricing increased to $11.21 per mmBtu, a 4.9% rise on Q1

What else do investors need to know?

The Barossa project reached 97% of planned production rates, with cargoes now being loaded around every eight days. The Pikka Phase 1 development is progressing, with first oil wells online and plateau production expected in Q3.

Santos made significant progress on several projects, taking a final investment decision for both the Agogo Production Facility tie-in and PNG LNG oil infill campaign. These are expected to deliver strong internal rates of return. The company also secured a new 10-year gas sales agreement with the South Australian Government, with proceeds funding the Moomba Central Optimisation project.

The half was impacted by timing of cargo receipts and an under-lift position in PNG (about 1.3 mmboe), which is expected to be reversed in the second half. Higher realised LNG pricing and expected production uplift are likely to boost free cash flow in the latter half of 2026.

What did Santos management say?

Santos Managing Director and CEO Kevin Gallagher said:

Production increased towards the end of the second quarter as Barossa ramped up and Pikka came online, with Barossa now producing at 97 per cent of planned rates. The challenges encountered during commissioning activities have essentially delayed our transition to a higher production, higher cash flow generating portfolio, until the second half of the year. Subsequently, we expect continued strong production growth through the third quarter as Barossa maintains steady state production and Pikka grows to plateau rate

2026 was always going to be a transition year for Santos with two major development projects coming online and significant commissioning activities to be completed before establishing steady-state performance at both assets. Our initial production guidance had a large band of uncertainty as a result. However, with Barossa’s ramp-up nearing completion and Pikka’s first wells online, we have narrowed our production guidance to 99 to 105 mmboe for the full year.

What’s next for Santos?

Looking ahead, Santos expects production to grow further as Barossa maintains high output and Pikka moves to plateau rates in the third quarter. The company targets full-year production of 99–105 mmboe and is optimistic about stronger realised LNG pricing in the second half, due to industry pricing lags.

Strategically, Santos will remain focused on completing its ongoing development projects, including new drilling across PNG and Australia, and progressing carbon capture initiatives. Management will review cash flow timing in relation to the interim dividend, with strong operational momentum expected in the second half.

Santos Limited share price snapshot

Over the past 12 months, Santos shares have risen 1%, matching the S&P/ASX 200 Index (ASX: XJO), which has also risen 1% over the same period.

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The post Santos reports higher Q2 revenue as Barossa, Pikka ramp up 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.

The team at Shaw and Partners has run the ruler over some up-and-coming ASX mining companies they believe could deliver serious upside.

They’ve picked two gold companies and a copper company, which they think could outperform.

Let’s see who they like.

Strickland Metals Ltd (ASX: STK)

Shaw and Partners has just initiated coverage on this company, which owns the Rogozna gold and base metals project in southern Serbia.

The company’s shares are down about 40% over the past 12 months, but the broker thinks they could more than double from this lower base.

Shaw and Partners said the company’s “substantial existing resource” of 9.3 million ounces at 1.33 grams per tonne of gold equivalent had high growth potential.

They added:

Optionality across the four Rogozna deposits could potentially allow staged entry and ramp-up of mining and processing. We expect a maiden prefeasibility study late CY27. We find the market is materially undervaluing Rogozna’s deposits and overestimating current regulatory concerns. Indeed, Zijin Mining recently increased its STK ownership to 7.4%.

Shaw and Partners said regulatory and project derisking could increase their valuation to 30 cents per share, up from 20 cents, while the current share price is 8.5 cents.

The broker added:

Due to Rogozna’s vast scale, STK has substantial further re-rate potential from delivering project studies and progressing towards production.

AIC Mines Ltd (ASX: A1M)

AIC recently announced guidance for the current year and a three-year growth outlook for its Eloise and Jericho copper mines.

The company said it was “an exciting time” as it transitioned from a small-scale, single-mine operation to a 1.5 million tonne per annum dual-mine operation producing 25,000 tonnes per annum of copper concentrate.

For the current year, AIC said it expected to produce 17,500 to 18,000 tonnes of copper, weighted to the second half of the year.

Guidance for the following year was for production of 20,000 to 22,000 tonnes, increasing to 25,000 to 27,000 tonnes in FY29.

Shaw and Partners has a price target of $1.10 on AIC shares, compared to the current price of 69 cents.

Aurelia Metals Ltd (ASX: AMI)

Shaw and Partners said Aurelia recently delivered “standout” results for its fourth quarter, “highlighted by gold production beating the top end of its recently upgraded guidance, generating the highest quarterly operating cash flow since 2018, and sharply improving balance sheet liquidity following the close of a new financing package”.

The broker added:

The operational turnaround, outstanding cash generation, and finalised debt structure sets a firm foundation for FY27.

Shaw and Partners has a price target of 50 cents on Aurelia shares compared to 33 cents currently.

The post 3 ASX mining companies which could return 50% to 130%: 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.

The PolyNovo Ltd (ASX: PNV) share price is in focus today after the medical technology company reported record group revenue of $150 million for FY26, up 16.1%, alongside strong cash flow and expanding sales in the United States and globally.

What did PolyNovo report?

• Group revenue rose 16.1% to $150 million (20.3% growth at constant currency).
• Commercial sales climbed 16.7% to $138.4 million, with US commercial sales up 15.6% to $102.1 million.
• NovoSorb MTX commercial sales nearly doubled, up 89.6% over the year.
• Operating cash flow improved to $24.0 million, including $3.5 million from an insurance claim.
• Free cash flow turned positive at $10.4 million (from negative $10.1 million the previous year).
• Cash and cash equivalents stood at $35.4 million as at 30 June 2026.

What else do investors need to know?

PolyNovo completed construction of its new manufacturing facility this year, helping to increase production output and set the stage for expanded commercial opportunities. Only $1.5 million of the total capital expenditure is outstanding, relating to additional machinery planned for FY27.

The company is continuing to finalise its insurance claim following a fire at its R&D Innovation Centre in late 2025. PolyNovo has received $3.5 million in payments so far, with further amounts expected in the first half of FY27. The finalisation of EBITDA and NPAT figures is pending as full accounts are completed.

What did PolyNovo management say?

Bruce Peatey, Chief Executive Officer of PolyNovo, said:

We’re pleased to have finished the financial year strongly, with record sales recorded in the U.S. in June and manufacturing production output increasing significantly compared to H1, increasing gross margin and profitability for the year and therefore an improved cash position. The competitive environment in the U.S. continues to evolve following significant shifts to the reimbursement landscape, and additionally we’ve experienced seasonal decline to the presentation of major burns across many direct markets. However, the performance of our products is undisputed. The strategy employed to date, leveraging our strength in major trauma and burns to drive clinician confidence elsewhere, is succeeding, as we see total revenue associated with other complex wound indications growing at a faster rate than large burns.

What’s next for PolyNovo?

Looking ahead, PolyNovo says it is well placed to keep delivering sustainable growth into FY27, supported by expanded manufacturing capacity and further product catalysts. The company remains focused on the commercial launch of NovoSorb SynPath and capitalising on growing use of its MTX product.

Management also highlighted ongoing investment in its United States sales team, expanded market presence, and new leadership appointments, following a recently completed strategy review. PolyNovo will detail its full FY26 results and updated strategy in August 2026.

PolyNovo share price snapshot

Over the past 12 months, PolyNovo shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

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The post PolyNovo FY26 earnings: Record revenue and cash flow 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 positions in and has recommended PolyNovo. 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.