When it comes to Australian financial services companies, at the moment it can pay to look beyond the big four banks when looking for outsized returns.

The brokers at Macquarie have this week issued reports into three ASX finance companies which they believe will perform well over the next 12 months.

Let’s see who they like.

Australian Finance Group Ltd (ASX: AFG)

Shares in this company have fallen 22.4% over the past 12 months, but the team at Macquarie think they will tick upwards over the next year.

AFG recently said in a statement to the ASX that AFG mortgage brokers had lodged $28.1 billion worth of home loans in the fourth quarter, which was the strongest June quarter on record.

AFG Chief Executive Officer David Bailey said regarding the result:

Following the strongest March quarter on record, some easing in June was expected, especially after the Federal Budget announcements on 12 May and during a tightening rate cycle. Despite divergence across states and shifting borrower sentiment mid-quarter, we delivered positive year-on-year growth and a record-high average loan size. We believe the fiscal policy changes announced during the quarter will represent a period of readjustment rather than a structural shift in underlying demand.

Macquarie said they were forecasting some headwinds for AFG as the impact of tax policy changes in the Federal Budget rolled through, and reduced their price target on the company from $3.01 to $2.26.

This remains well above the current price of $1.64.

Navigator Global Investments Ltd (ASX: NGI)

Macquarie has reinitiated coverage of this stock with an outperform rating after the company released a quarterly update earlier this week.

In that report, the company said assets under management were up 6% to US$33.6 billion, while assets under management in its Lighthouse Partners division were up 8% to more than US$20 billion.

The company said:

Ongoing geopolitical uncertainty, interest rate volatility and changing market conditions continue to create both opportunities and challenges for alternative investment strategies. Most of Lighthouse Partners’ strategies performed strongly during the quarter and several of NGI Strategic’s Partner Firms delivered strong performance on an absolute and relative basis during the quarter.

Macquarie said the company had a strong platform entering FY27, and the broker has a price target on the company of $3.28 compared to the current price of $2.44.

Netwealth Group Ltd (ASX: NWL)

Macquarie said Netwealth’s fund inflows of $3.09 billion were slightly below consensus, while total funds under administration of $134.3 billion were in line with expectations.

The broker has maintained an outperform rating on the stock due to “robust” earnings per share growth.

Macquarie’s share price target for Netwealth is $32.25 compared to $23.79 currently.

The post Macquarie tips three ASX finance companies to return better than 30% 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 positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Alcoa Corporation Ltd (ASX: AAI) share price is in focus today after the company posted record quarterly revenue of US$4.0 billion and reported a sequential jump of 51% in adjusted EBITDA to US$901 million for the second quarter of 2026.

What did Alcoa report?

• Revenue rose 24% quarter-on-quarter to a record US$4.0 billion
• Net income attributable to Alcoa was US$407 million (US$1.53 per share)
• Adjusted net income grew 51% to US$562 million (US$2.12 per share)
• Adjusted EBITDA (excluding special items) increased to US$901 million
• Free cash flow reached US$422 million, finishing the quarter with US$1.4 billion in cash
• Set new year-to-date production records at four aluminium smelters and one alumina refinery

What else do investors need to know?

Alcoa announced a definitive agreement to acquire South32 Ltd’s (ASX: S32) interests in bauxite, alumina, and aluminium assets across Australia, Brazil, and South Africa for upfront consideration of approximately US$4.1 billion. This move is expected to bolster Alcoa’s position as a leading pure-play upstream aluminium company and deliver long-term value through operational synergies.

The company also celebrated the successful restart of its smelters in Spain, Brazil, Norway, and Australia, contributing to higher aluminium production and shipments this quarter. Alcoa completed collective bargaining agreements with unions in Australia, the United States, and Canada, ensuring stability for its workforce.

What did Alcoa management say?

President and CEO William F. Oplinger said:

During the second quarter, in addition to delivering strong financial results that captured favourable aluminium prices, our team executed on strategic initiatives, most notably the announced agreement with South32. We continue to demonstrate operational excellence and positive momentum in our disciplined approach to maximise value creation.

What’s next for Alcoa?

Looking ahead, Alcoa has lowered its 2026 alumina production and shipment guidance due to disruptions at the Pinjarra refinery following Cyclone Narelle. Nevertheless, aluminium production and shipment targets remain unchanged, and the company expects to benefit from cost efficiencies, gradual recovery in energy markets, and the integration of the newly acquired AliGroup assets.

Management anticipates a steady operational outlook for the third quarter, with forecast improvements from restored stability and lower energy prices offsetting planned maintenance activities. Alcoa remains focused on executing its growth strategy and leveraging its upgraded global portfolio for long-term shareholder returns.

Alcoa share price snapshot

Over the past 12 months, Acola shares have risen 49%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Alcoa smashes Q2 revenue record, boosts portfolio with South32 acquisition appeared first on The Motley Fool Australia.

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• Regis Resources upgrades FY27 production guidance and cost outlook
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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 Perseus Mining Ltd (ASX: PRU) share price is in focus after the company unveiled a growth-oriented update on its Yaouré Gold Mine, with highlights including strong open pit grade reconcilations and encouraging underground results.

What did Perseus Mining report?

• CMA underground successfully transitioned into production, ramping up towards steady-state operations
• The Yaouré open pit delivered over 24% more gold than modelled from September 2025 to March 2026
• Extension drilling at CMA underground and other areas identified potential to grow Mineral Resources
• Perseus committed $34 million in FY27 for resource drilling to expand the Mineral Resource base
• The five-year outlook for Yaouré is being reviewed as drilling continues to define new targets

What else do investors need to know?

Perseus reports that since the initial 1.52 million-ounce Ore Reserve in 2020, the Yaouré Gold Mine has replaced 76% of mined ounces, maintaining a 1.44 million-ounce reserve while extending mine life from 9 to 15 years.

Production ramp-up at the CMA underground mine included development milestones and initial stoping, with ore recovery outperforming expectations. Exploration drilling also highlighted new prospects at adjacent deposits like CMA Southwest and ROZA, expanding the scope for future production and mine life extension.

An updated Ore Reserve statement, incorporating recent drilling, is expected in August 2026. This will help clarify the impact of positive grade reconciliation trends and newly defined resources.

What did Perseus Mining management say?

Managing Director & CEO Craig Jones said:

Yaouré continues to demonstrate why it is a cornerstone asset in our portfolio. The successful transition of CMA Underground into stoping operations reflects the strength of our in-house team and their ability to execute complex underground developments safely and to schedule. Equally pleasing is the performance of the Yaouré open pit, which has now delivered more than 20% additional gold relative to our Reserve model year to date, while our drilling continues to define new mineralisation domains both at depth and along strike. Extension drilling at CMA Underground has produced encouraging results pointing to mineralisation beyond the currently defined Mineral Resource, and our exploration success beyond the boundary fence reinforces our confidence that Yaouré’s mine life can be extended well beyond current estimates. Our optimistic outlook provides confidence to invest in $34M exploration and in-fill drilling studies at Yaouré in FY27 and underscores our disciplined approach to organic growth — investing in the drill bit to convert Inferred Resources and extend the life of an asset we know intimately. This is precisely the model that has consistently created value for our shareholders, and we look forward to updating the market as these programs progress.

What’s next for Perseus Mining?

Perseus Mining is targeting further resource conversion and near-mine exploration at Yaouré, with a focus on potentially extending the mine’s operating life and increasing gold output. The $34 million investment in FY27 will fund around 123km of drilling and related studies on site.

Management’s strategy remains focused on low-risk organic growth, leveraging in-house technical teams to extract more value from existing assets. Additional drilling and resource model updates are planned for the coming year, underpinning the company’s positive production outlook and reinforcing Yaouré as a key contributor to the group’s performance.

Perseus Mining share price snapshot

Over the past 12 months, Perseus shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Perseus Mining: Yaouré growth drilling pays off appeared first on The Motley Fool Australia.

More reading

• Alcoa smashes Q2 revenue record, boosts portfolio with South32 acquisition
• Regis Resources upgrades FY27 production guidance and cost outlook
• Coles ends talks for Greencross acquisition
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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.