S&P/ASX 200 Index (ASX: XJO) stock Orica Ltd (ASX: ORI) has slowly climbed back from yearly lows hit in March of this year. 

Since that time, its share price is up 20%.

The company manufactures, distributes, and sells commercial blasting systems, explosives, and mining and tunnelling support systems to the mining industry, as well as various chemical products and services in Australia, Canada, the US, and internationally.

Investor concerns

Lately, there has been concern surrounding the company’s North American ammonium nitrate (AN) supply arrangements. 

This has come following the termination of a key contract with CF Industries (NYSE: CF), which supplied around half of the company’s North American blasting business. 

This comes at a time when the AN supply and demand conditions in the US have tightened. 

Subsequently, this could make it more difficult for Orica to secure new contracts on attractive terms.

Why the concerns may be overblown

However, the team at Ord Minnett appear less concerned. 

The broker said the North American blasting business generated only about 10% of Orica’s FY25 operating profit (EBIT).

And the part connected to the CF Industries contract was only a portion of that.

So, even if this business becomes less profitable, the overall impact on Orica could be manageable rather than disastrous.

Orica is also looking at ways to reduce costs in this division, which could help protect its profit margins.

There is another, potentially more important story.

Orica also produces sodium cyanide (NaCN).

Sodium cyanide is a chemical that is very important for extracting gold from ore.

Demand for this chemical is strong, and supply is tight.

The two biggest producers, one of which is Orica, have said their production capacity is essentially fully booked.

Target price intact 

The team at Ord Minnett said stronger NaCN pricing and improved plant utilisation could drive returns in the company’s chemicals division back towards historical levels (before the acquisition of Cyanco in 2024) and closer to the company’s broader target range of 13% to 15%. 

We increase our earnings forecasts for the chemicals segment to capture the stronger market fundamentals in NaCN. However, this has been more than offset by a stronger Australian dollar since our last note. Consequently, our EPS estimates are revised down by 1.9%, 2.9%, and 3.3% in FY26, FY27, and FY28, respectively. Our target price of $26 is unchanged.

This ASX 200 stock closed trading last week at $22.61. 

Based on the retained price target from Ord Minnett, there is 15% upside for this ASX 200 company. 

The post This ASX 200 stock just received a fresh buy rating and is tipped to climb 15% appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Ramelius Resources Ltd (ASX: RMS) share price is in focus after the gold miner upgraded its FY30 production outlook and released new FY27 guidance, flagging production growth of up to 610,000 ounces by 2030 and an 11% lift on its October 2025 plan.

What did Ramelius Resources report?

• FY30 gold production target upgraded to 560,000–610,000 ounces at an AISC of A$2,100–2,400/oz (11% increase)
• FY27 gold production guidance: 205,000–225,000 ounces at an AISC of A$2,150–2,350/oz
• FY27 growth capital expenditure: A$480–570 million; Mt Magnet plant expansion costs increased (now A$280 million)
• Sale of Edna May hub delivered A$210 million in cash and A$90 million in Forrestania Resource Limited shares
• Current cash, gold and investments exceed A$1 billion

What else do investors need to know?

Ramelius’ production targets are underpinned by expanded operations at Mt Magnet, discoveries at Galaxy and Cue, and development of Rebecca-Roe. Enhanced capital outlays reflect capacity upgrades, infrastructure to future-proof operations, and inflationary impacts.

The company’s outlook assumes a higher gold price (A$5,500/oz) and cost base reflecting sector-wide pressures, but management expects to maintain one of the lowest cost positions among ASX gold miners. The recently appointed EPC contractor, Primero, will deliver a new 3Mtpa processing circuit at Mt Magnet, facilitating future production growth.

What did Ramelius Resources management say?

Managing Director Mark Zeptner said:

We are continuing to systematically unlock the full potential of our Top Tier Mt Magnet hub while de-risking Rebecca-Roe through permitting progress and advanced design work. We expect to maintain our sector-leading AISC position, despite the cost pressures being felt by all gold miners, while delivering a 205% increase in production by FY30… Our targeted exploration strategy, combined with operational and technical expertise, has driven an 11 percent uplift in our FY30 production outlook to more than 600,000 ounces, reaffirming our position as Australia’s standout gold growth story, underpinned by a long term resilient low-cost advantage… These commitments are consistent with our delivery philosophy. FY26 marks our sixth consecutive year of meeting market guidance – demonstrating the discipline and reliability of our operating model. We remain focused on organic growth through investing in exploration and optimisation of existing infrastructure, an approach that we believe will result in superior returns for our shareholders.

What’s next for Ramelius Resources?

Ramelius is pushing ahead with growth plans at Mt Magnet, aiming for a steady-state run rate of 4.3Mtpa in March 2028 and a Life-of-Mine to 2043. The Rebecca-Roe project is advancing through final permitting, with early works capital brought forward to FY27.

The business remains focused on organic growth and ramping up production with a pipeline of resource definition and mine expansion projects, while maintaining a capital-efficient approach and strong balance sheet.

Ramelius Resources share price snapshot

Over the past 12 months, Ramelius Resources shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 1% over the same period.

View Original Announcement

The post Ramelius Resources boosts production outlook and sets new FY27 guidance 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 average annual return for the ASX share market over the long-term has been approximately 10%. It has been closer to 9% per year for the S&P/ASX 300 Index (ASX: XKO) in the last decade or so.

If any individual ASX share can deliver a double-digit return, there’s a good chance that it’ll be a market-beating return.

There are a few ASX stocks that expert analysts think could deliver enormous returns over the next year. Of course, that’s not a guaranteed return, but it can show how undervalued analysts think these ASX shares are. Let’s look at two potential winners.

Hansen Technologies Ltd (ASX: HSN)

Hansen describes itself as a leading global provider of software and services to the energy and utilities, and communications and media industries. It has customers in more than 80 countries.

The ASX share’s software enables customers to create, sell and deliver new products and services, manage and analyse customer data, and control critical revenue management and customer support processes. In other words, its customers couldn’t run the administration side of their business without Hansen’s software.

FY26 was a solid year of profit growth.

Operating revenue fell 1.5% due to its revenue ‘mix’, including lower licence fees and foreign exchange headwinds. Within that total, support and maintenance revenue grew 13.4% to $230.3 million.

The company also reported 7.2% growth in underlying operating profit (EBITDA) to $119.6 million and 22.5% growth in underlying net profit after tax (NPAT), driven by cost discipline and AI-driven productivity gains.

FY27 revenue is expected to be stable, with recurring support and revenue maintenance to grow between 6% and 8%. The underlying EBITDA margin is expected to exceed 26% – likely lower than FY26’s figure – due to reduced licence revenue and continued investment in AI capabilities, product investment and customer-led development opportunities.

It’s down 25% after revealing its FY26 result, but analysts think there’s a strong bounce back ahead. Hansen said it expects revenue growth in FY28 and the underlying EBITDA margin will return to its target of 30% or more.

According to CMC Invest, analysts have issued seven ratings on the business in the last three months: six buy and one sell. The average price target is $5.42, implying a possible rise of 70% over the next 12 months – that would be significantly higher than where it traded just before it reported FY26.

Nextdc Ltd (ASX: NXT)

Another ASX share worth looking at, according to expert analysts, is Nextdc. It’s a data centre developer and owner, with facilities in each major Australian mainland city, as well as multiple regional hubs.

It also has a growing international presence, with projects proposed in Bangkok, Kuala Lumpur, Singapore and Tokyo.

If you haven’t already seen the company’s FY26 result, I’m sure you won’t be surprised to learn that its revenue and operating profit (EBITDA) rose, while the underlying net loss, depreciation expense and capital expenditure also increased as it heavily invests.

FY26 revenue grew 16% to $496.5 million, while underlying operating profit (EBITDA) increased 15% to $248.8 million.

However, excluding positive property revaluations and a tax benefit (which I’d describe as non-operational items), it would have registered a net loss of $103.9 million – a worsening of 71.7%. Capital expenditure increased 100% to $3.4 billion, and the depreciation and amortisation expense grew 26% to $262.5 million.

In FY27, it expects revenue to grow at least 52%, underlying EBITDA to grow at least 55% and capital expenditure to grow at least 55%.

According to CMC Invest, the business has received nine ratings in the last three months. Eight of those ratings were a buy, and one was a hold. The average price target of $19.61 implies a possible rise of 72% over the next year.

The post 2 ASX shares tipped to surge 70% or more in the next 12 months appeared first on The Motley Fool Australia.

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• 2 ASX 200 shares tipped by brokers to return 73% and 83%
• Down 32%: 3 reasons to buy the BIG dip in NextDC shares today
• Experts name 3 top ASX shares to buy this week

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 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.