ASX small-cap shares are underperforming on Thursday with the S&P/ASX Small Ordinaries Index (ASX: XSO) down 1% while the S&P/ASX All Ords Index (ASX: XAO) is just 0.15% lower.
At the start of 2026, fundies had high hopes for global small-caps given many Western nations, including the US, appeared poised to cut interest rates.
The war in Iran has changed that outlook.
A two-week ceasefire is now in place, however, the shock to energy supplies will take months to filter throughout Western economies.
Given oil’s flow-through effect to so many parts of the economy, including grocery prices, the impact may be enough to push up inflation.
Central banks are likely to respond by either hiking rates, or delaying previously anticipated rate cuts.
In Australia, inflation was resurgent even before the war began.
We’ve had two rate hikes already this year, and the market is pricing in a 60% chance of another one next month.
Higher interest rates are typically a headwind for small-caps, which are typically young companies using debt to fund their growth.
Here are 3 ASX small-cap shares that fund manager, Blackwattle, is backing for solid growth.
Blackwattle holds all three of these ASX shares in its Small Cap Quality Fund.
The Lindian Resources share price is 88 cents, up 1.4% today.
This ASX rare earths mining share rose 26% over the past month, and is 782% higher over the past year.
Portfolio managers Robert Hawkesford and Daniel Broeren said:
Lindian Resources (+24.7%) is a rare earths miner in the final stages of bringing online its lead project, Kangankunde.
This is a unique asset given its low mining cost and extremely low capex requirements versus other rare earth projects globally.
For these reasons the company should be able to transition to production quickly, with first ore due later this year.
In March, Lindian announced a JV with a rare earths processor, which will allow it to produce a higher-grade concentrate.
This has materially increased the value of the company as it captures more of the value chain and taps into Western markets looking to pivot away from China supply.
The Ridley Corporation share price is steady at $2.74 on Thursday.
This small-cap ASX agribusiness share rose 2% over the past month, and is 14% higher over 12 months.
Blackwattle also holds this ASX share in its Small Cap Quality Fund.
Hawkesford and Broeren comment:
While the business may appear on the boring side, the excitement for us comes from the operational improvements executed by the management team under the current CEO, Quinton Hildebrand.
Hildebrand has guided the share price from 75c in 2020 to $2.90 by taking a strict focus on ROIC discipline.
Looking forward we are particularly excited about what can be delivered from the newly acquired fertiliser business, Incitec Pivot.
This small-cap ASX telecommunications share rose 13% over the past month, and is 60% higher over 12 months.
Hawkesford and Broeren said:
Shares rose strongly in February following a well-received 1H26 result that demonstrated clear operating leverage and broad-based growth across all key metrics and segments.
Superloop continues to take market share from incumbent telecommunications providers, supported by its competitively priced high-speed broadband offerings and vertically integrated network.
Management commentary also reinforced confidence in the company’s growth trajectory, with continued subscriber additions and improving scale across the platform expected to drive meaningful earnings expansion over the coming years.
Should you invest $1,000 in Superloop Limited right now?
Before you buy Superloop Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Superloop Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bronwyn Allen 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.
Growth shares such as Zip were among the biggest winners from that improved mood.
But by today, that optimism has already faded.
Why Zip shares are falling today
The recent weakness comes as fresh Middle East developments again weigh on risk appetite across the share market.
Reports of Israeli attacks in Lebanon have raised doubts over how long the temporary ceasefire can last, reversing much of the confidence that drove yesterday’s rebound.
As a higher-growth fintech stock, Zip often sees larger swings when investors move away from riskier parts of the market and into more defensive areas.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) has also come under pressure again today, down 6.93%, which has added to weakness across local tech shares.
That backdrop helps explain why Zip has gone from a near 20% rally yesterday to a fall of close to 10% today. And this is even without any company-specific update driving the move.
Big swings are nothing new for Zip
This kind of volatility has become a regular feature for Zip shares.
The stock has been moving wildly for months as investors respond to changing views on interest rates, consumer spending, and now the Middle East war.
Even before this week’s geopolitical developments, Zip had already seen some large moves.
Its half-year result in February triggered a big share price drop, despite the company reporting strong earnings growth, and continued momentum in the US business.
Since then, the stock has regularly bounced hard on good news, only to pull back again when market nerves return.
This week’s price action is another example of just how quickly the market’s view on Zip can change.
Foolish takeaway
Zip is clearly capable of delivering huge short-term moves, but that level of volatility would make it too unpredictable for my own portfolio.
While the growth story still has appeal, I would rather focus on more stable businesses that are also delivering solid earnings growth without the same headline-driven swings.
For me, there are simply better risk-reward opportunities elsewhere on the ASX.
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip Co wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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.
Should you invest $1,000 in iShares Core S&P/ASX 200 ETF right now?
Before you buy iShares Core S&P/ASX 200 ETF shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and iShares Core S&P/ASX 200 ETF wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
PLS Group Ltd (ASX: PLS) shares are up slightly at the time of writing on Thursday, trading 0.47% higher at $5.30 a piece.
While the share price isn’t storming higher today, it comes off the back of some strong and consistent gains.
Over the past month PLS shares have climbed 19.5%, they’re up 23% for the year-to-date and a huge 321% higher over the year.
With an upsized market cap of $17 billion, PLS was recently added to the ASX 50 index. At the time of writing, its shares are also the third highest annual performer on the ASX 200 Index.
What pushed PLS shares higher?
The Australian lithium miner’s shares have had an incredible run over the past year soaring from a 52-week low of $1.07 a piece in June last year to a 12-month high of $5.30 on Wednesday last week.
A lot of the share price increase is due to a rally in lithium prices and sentiment, primarily driven by a surge in interest in electric vehicles (EV) and battery energy storage.
Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy storage amid a shift towards renewable energy is also soaring.
This is especially the case recently after ongoing conflict in the Middle East threatened global fuel supply and caused a rotation towards EVs as an alternative.
As owner and operator of one of the world’s largest independent hard rock lithium mines, Pilgangoora in Western Australia, PLS has naturally scooped up a lot of the demand.
But it’s not just market fundamentals which have pushed the company’s share price from strength to strength over the past year. The business is also booming too.
In February, the miner posted a bumped first-half FY26 results. It revealed a huge 47% jump in revenue, its underlying EBITDA flew 241% higher and net profit came in at $33 million (reversing a $69 million loss in the prior period).
PLS said that looking ahead, it will prioritise balance sheet strength and operational flexibility as lithium market conditions evolve. The company is also progressing projects in Australia and Brazil.
In other exciting news, the board has also indicated it would consider paying shareholders a dividend from its full-year results if the market remains promising. It hasn’t paid a dividend since 2023.
Can the share price keep storming higher? Or is it time to sell up?
Analyst sentiment on PLS shares is still mostly positive, even after the latest price rises.
TradingView data shows that nine out of 16 analysts have a buy or strong buy rating on the stock. Another seven analysts have a hold rating.
The average target price of $4.87 implies a potential 8% downside at the time of writing, but others think the shares could jump another 26.5% to $6.70.
Earlier this year UBS said it expects that an 11% increase in lithium demand could push the market into a deficit from 2026 onwards. Based on that, the broker has lifted its lithium (SC6 CFR China) forecast by 64% in 2026 to US$1,800 per tonne. The broker anticipates lithium prices could jump up to US$2,625 per tonne in 2028.
This is great news for PLS as it positions itself to pick up even more demand. I think we could see plenty more out of the miner this year.
Should you invest $1,000 in Pilbara Minerals Limited right now?
Before you buy Pilbara Minerals Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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.
Shares in Electro Optic Systems Ltd (ASX: EOS) were trading more than 5% lower on Thursday after the company revealed it had copped a $4 million fine from the Federal Court.
Disclosure issues to blame
Late on Wednesday, after trade on the ASX had closed for the day, EOS issued a brief statement saying it had been issued with a $4 million penalty in the Federal Court.
The company also agreed to pay the court costs of the corporate regulator, the Australian Securities and Investments Commission (ASIC).
EOS Chair Garry Hounsell said regarding the matter:
In recent years, the EOS Board and executive leadership team have been focused on strengthening the foundations of the business for sustainable growth, including resolving legacy issues connected to the challenging conditions the Company faced in 2022 and its market announcements in that year. The conclusion of the ASIC matter represents a key inflection point and enables greater focus on future growth and strategic priorities.
ASIC released a statement on Thursday saying the case regarded EOS failing “to disclose a materially significant downgrade to its 2022 revenue forecast to the market for approximately 14 weeks”.
The regulator went on to say:
Between May and June 2022, EOS advised the ASX that it expected its 2022 revenue to equal or exceed $212.3 million. By 25 July 2022, EOS became aware that its revenue was likely to be approximately $164 million, with a possibility of an additional $27 million. Despite this, EOS did not explicitly correct its guidance until 31 October 2022.
Boards on notice
ASIC Chair Joe Longo said the outcome reinforced the importance of timely and accurate disclosure to Australia’s financial markets.
This result demonstrates that continuous disclosure is fundamental to keeping investors properly informed. When a listed company becomes aware of material changes to guidance, it must act promptly to disclose these to the market. Delays in correcting marketâsensitive information undermine market integrity and investor confidence.
Federal Court Justice Ian Jackman accepted that a $4 million penalty was appropriate, giving regard to EOS’ size and financial resources, “to achieve both specific and general deterrence, without being oppressive or disproportionate”.
ASIC said it has separately commenced proceedings against the former Chief Executive Officer and Director of EOS, Dr Ben Greene, in relation to alleged breaches of directors’ duties.
Electro Optic Systems shares were 5.6% lower in early afternoon trade at $9.34.
Should you invest $1,000 in Electro Optic Systems Holdings Limited right now?
Before you buy Electro Optic Systems Holdings Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Electro Optic Systems Holdings Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Cameron England has positions in Electro Optic Systems. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.
Tamboran Resources Corporation (ASX: TBN) shares are tumbling on Thursday after returning from a trading halt.
In early afternoon trade, the Tamboran share price is down a massive 17.46% to 26 cents, following a major funding update.
The move stands out even more given the stock remains up 60% over the past 12 months, driven by rising confidence in its Beetaloo Basin gas plans.
Today’s sell-off suggests investors are weighing the dilution from the capital raise against the company’s next phase of growth.
Let’s take a closer look.
Big capital raise completed as trading resumes
According to the release, Tamboran has completed the US public offer and institutional entitlement component of its latest equity raise.
The company secured gross proceeds of US$103 million from the underwritten public offer, equivalent to roughly $147.1 million. This was alongside a further $86 million through the institutional entitlement offer.
That lifts funds already locked in to about $233 million, with the retail entitlement offer still to come. Eligible retail holders can subscribe for 1 new CDI for every 20 held at 25 cents each, with the offer closing on 27 April.
With the new CDI’s priced well below the last traded price of 31.5 cents before the halt, the market now has a clear short-term pricing reference.
Tamboran said the proceeds will be used to fund additional drilling in the Pilot Area and drilling in EP 161. Funds will also go toward further resource delineation across the Orion acreage and Beetaloo Central Development Area, as well as working capital and general corporate purposes.
Management says Beetaloo buildout is accelerating
Chief executive officer Joel Riddle said the raise supports what is expected to be the company’s busiest development phase yet.
Management said the funds should support Beetaloo Basin operations through to 2028, including lifting capacity above the contracted 40 terajoules a day.
The company also said first gas sales remain targeted for the September quarter of 2026, alongside continued appraisal work across its acreage.
That gives investors a clearer view of what the dilution is funding and which commercial milestones are coming next.
Foolish takeaway
The discounted raising appears to be the main reason for the sell-off, though broader market weakness is also adding pressure today.
A discounted raising of this size will often weigh on the share price in the short term, especially after such a strong 12-month run.
Even after the 17% drop, Tamboran remains up 60% over the past year, which shows investors are still backing the Beetaloo growth opportunity.
The next thing to watch is whether the newly funded drilling program can keep first gas timelines and development momentum on track.
Should you invest $1,000 in Tamboran Resources Corp right now?
Before you buy Tamboran Resources Corp shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tamboran Resources Corp wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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.
Last month, Betashares provided a roadmap for investors based on two outcomes in The Middle East.
Yesterday, markets reacted positively to the news that Iran and the US have agreed to a conditional two-week ceasefire.
During this period, shipping traffic will be allowed through the Strait of Hormuz.
What did Iran and the US agree to?
According to The BBC, Trump said he had agreed to “suspend the bombing and attack of Iran for a period of two weeks” if Tehran agrees to reopen the Strait of Hormuz.
As a refresher, The Strait of Hormuz is a critical chokepoint for global oil shipments. Any threat or disruption there raises fears of reduced supply and higher energy prices.
In the past month, those concerns have rippled through global markets. Equities have largely fallen as investors worry about inflation, economic slowdown, and geopolitical instability.
However, following the ceasefire announcement, the S&P/ASX 200 Index (ASX: XJO) jumped 2.5%. Investors clearly perceived the news as the beginning of a potential resolution.Â
Elsewhere, the S&P 500 Index (SP: .INX) also climbed higher, shooting above its 200-day moving average for the first time since mid-March.Â
While it’s important to note that there are still plenty of hurdles still to come, it’s worth revisiting the ASX ETFs that Betashares have listed as potential beneficiaries of a de-escalation in the Middle East.
According to Betashares Senior Investment Strategist Cameron Gleeson, history shows that emerging markets often perform strongly when global risk appetite improves and trade flows normalise.
A resolution of the crisis could see the US dollar weaken, which may provide a tailwind for emerging markets.
This ASX ETF provides exposure to large and mid-cap stocks across 24 emerging market countries.
This is the only ASX ETF which provides Ex-US, Ex-Australia developed global market equities exposure.
According to Betashares, Ex-US equities provide greater exposure to cyclical sectors like financials and industrials than the US equity market and, as such, greater exposure to a strong global growth environment.
This fund provides exposure to 900+ large and mid-cap companies from 22 developed markets excluding the US and Australia.
BetaShares Geared Australian Equity Fund (Hedge Fund) (ASX: GEAR)
This ASX ETF provides between 200-286% exposure to the daily returns of the S&P/ASX 200. This can magnify both gains and losses, and is only suited to investors with a very high risk tolerance.
According to Betashares, using leverage can amplify returns if equities rally following improving sentiment.
We’ve seen geared equity ETFs being used by investors during past periods of market volatility. For example, at the market lows after the Liberation Day sell off last year we saw increased buying of geared equity ETFs.
In that instance, as equity markets recovered those ETF products amplified gains for their investors. However, it’s important to recognise that investing in a geared investment, rather than an ungeared investment, involves significantly higher risk, particularly during a period of elevated volatility.
Should you invest $1,000 in Betashares Msci Emerging Markets Complex Etf right now?
Before you buy Betashares Msci Emerging Markets Complex Etf shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Betashares Msci Emerging Markets Complex Etf wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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 Bubs share price is steady at 11 cents, and down 12.5% over 12 months.
This week, Shaw & Partners gave the ASX consumer staples share a buy rating.
The broker said its DCF valuation remained 18 cents per share following the company’s 2026 Strategy Day.
We are particularly impressed by BUB’s success in the USA.
Having only entered the USA in 2022 under the FDA’s enforcement discretion, US distribution is expected to reach circa 10,000 doors by end 2026, up over 100% on 2025.
Given that Kendamil only recently received permanent FDA approval, we expect BUB’s permanent approval to come through shortly.
BUB re-iterated its FY26 guidance for Revenue of $120-125m and reported EBITDA of $4- 6m.
Our forecasts remain $121.5m and $4.5m, respectively.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Soul Patts shares are $43.26, up 0.7% today, and up 23.8% over 12 months.
Morgans maintains a hold rating on this ASX financial share following its 1H FY26 report.
The diversified investment group reported statutory net profit after tax (NPAT) of $2,303 million, up 604.3%.
The extraordinary increase reflected the Brickworks merger, the sell-down of Tuas Ltd (ASX: TUA) and Aeris Resources Ltd (ASX: AIS) shares, and a realised gain from the sale of Apex Healthcare.
Underlying regular NPAT increased 6.7% to $304 million.
The pre-tax net asset value (NAV) climbed 14.6% to $13.8 billion, and the portfolio generated a 9.7% return for the first half.
Soul Patts increased its interim dividend by 9.1% to 48 cents per share, fully franked.
Morgans commented:
We continue to like the SOL story, particularly its track record of growing distributions and history of uncorrelated and above market returns.
Endeavour shares are $3.28, down 0.2% today, and down 16.2% over 12 months.
The Endeavour share price fell to a record low of $3.13 on Tuesday.
On The Bull this week, Mark Elzayed from Investor Pulse revealed a sell rating on Endeavour shares.
In our view, key concerns emerged in its first half result in fiscal year 2026.
Underlying group earnings before interest and tax of $563 million fell 5.4 per cent despite a 0.9 per cent increase in group sales to $6.7 billion.
While the hotels segment generated a 4.4 per cent increase in sales, the retail division, comprising Dan Murphy’s and BWS, posted a 11.6 per cent decline in underlying EBIT.
Statutory net profit after tax fell 17.1 per cent to $247 million, impacted by $45 million in significant items.
Downward revisions in consensus earnings per share suggest the bottom may not have been reached at this point.
Should you invest $1,000 in Endeavour Group Limited right now?
Before you buy Endeavour Group Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Endeavour Group Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bronwyn Allen 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
For most investors, targeting a return of 10% or so each year is pretty respectable.
Every now and then though it’s worth casting your eye over stocks which could outperform the market by a significant amount, and deliver outsized returns.
I’ve had a look at the analyst reports which have come out recently, and selected three such companies which, at least if the analysts are to be believed, are significantly undervalued at current levels.
Catapult is a global leader in providing technology for professional sports teams to monitor, track and evaluate their players.
The company held an investor day recently and also put out a trading update in March which indicated that the company expected management EBITDA to grow by about 50% year on year, “as the company’s profitability continues to outpace its strong top-line growth”.
The analysts at Canaccord Genuity attended the investor day and said the company was targeting growth to 5000 teams in the next two to three years, then 7-10,000 teams in five to six years.
They added:
Management has identified several greenfield opportunities across global Soccer (lower division levels not using any tech) and Basketball (currently about 100-150 teams weighted to US-based collegiate level), with potential expansion into other US college sports (e.g. Athletics, Ice hockey).
Canaccord has a price target of $8 on Catapult shares, compared with $3.22 now.
Clarity has two Phase III clinical trials in the prostate cancer space which will report this year, which could be the trigger for a major rerating of the company’s shares, the analysts at Canaccord Genuity say.
The addressable market for the company’s drugs would be about $US2.9 billion annually in the US, Canaccord said, providing the potential for major revenue for the company.
They added:
Should 64Cu-SAR-bisPSMA be approved, and subsequently launch in 2H28, by FY35 we see Clarity generating US$860m in sales, representing 29% share.
Canaccord has a  price target of $8.41 on Clarity shares compared with $3.15 currently.
Shaw and Partners has just initiated coverage on this company with a buy recommendation and a very bullish share price target.
Global Lithium is developing the Manna Lithium Project in Western Australia, and released a definitive feasibility study on it in December, envisaging a 14.3 year mine life with a payback period of 3.5 years.
Shaw’s report on the company said the Manna project was of “world class scale and quality”.
They added:
The project is designed for high efficiency, utilising ore sorting to optimize mill feed and reduce waste. This results in an extremely competitive all in sustaining cost of $1,101/t on our numbers, positioning Manna in the lowest quartile of the global lithium cost curve. This low-cost profile ensures the project remains resilient and commercially viable even during periods of lithium price volatility.
Shaw has a price target of $1.50 on Global Lithium shares compared with the current price of 51.5 cents.
Should you invest $1,000 in Catapult Group International right now?
Before you buy Catapult Group International shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Catapult Group International wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
We learned an important lesson from COVID. But we didn’t do anything about it.
The lesson: redundancy and resilience matter as much as efficiency and profitability.
Or, in investing terms, ‘In good times, people focus on the profit and loss statement. In bad times, they focus on the balance sheet’.
We have, over decades, optimised for efficiency. And that has made us more fragile.
‘Just in time’ supply chains work only if the last two words remain true. ‘Just late’ means things start to break.
We see it across all facets of life, too: the finer and more precise an instrument, the more impressive the results⦠but the more easily it tends to break.
And so that’s the too-often undiscussed balance that we need to strike: keeping costs down (which improves living standards), while making sure we have sufficient ability to roll with whatever punches life throws at us.
If it feels like I’m talking about fuel, I absolutely am.
But it’s fuel this time. It was PPE during COVID.
It’ll be something else next time.
Now, I’m absolutely not suggesting Australia should be fully self-sufficient, even if we wanted to.
I mean, full self-sufficiency is a pipe dream. Just look around you. Look at the materials, products and services you own and consume. Now imagine if every one of them had to be sourced, made and/or provided here.
Phones. Computers. Cars. And every component therein. The full supply chain. Including how those things are supported (think networks, satellites, the internet itself).
Now, let’s say you wanted to do all of that. Just imagine how much it would cost, given Australia’s wage levels (being a high wage country is a wonderful thing, by the way), and the tiny size of our market, which would mean economies of scale would be equally tiny, compared to the rest of the world.
I haven’t done the numbers, but it would be catastrophic for our living standards. We’d be paying multiples of the current price of almost anything made overseas.
With what? Tax? We’d have to get used to paying a lot more of that. So we’d have much less to spend, which would decimate our own living standards, as well as costing truckloads of jobs.
What about no extra tax, but just paying more for everything? At a national level, the result would be identical â we’d buy many fewer things, and everything we did buy would cost a motza⦠decimating our living standards and costing jobs!
But at least we’d be self-sufficient, right?
Ask yourself whether you want to go back to the 1800s. Early 1900s, if we’re lucky. Including all of the technology and devices we’d have to give up because they’re made overseas, only some of which would be made here instead, at hugely more expensive prices.
Plus there’d be less choice. A lot less choice. Not only between items, but some things wouldn’t be available at all, because the people who currently provide them here would be doing other jobs, because of the requirement of self-sufficiency.
If you think productivity growth is poor now (it is!), just wait until you see it plummet as we lose all of the advantages of international trade.
No, it wouldn’t be North Korea. But Cuba might be close.
Which⦠might feel somehow romantic or nostalgic. But there are more Cubans going to America on fishing boats than the other way around.
And don’t get me wrong⦠I’m not fetishising hyper-capitalism or the United States.
I’m just making the point that it’s easy, and seductive, to want to ‘make things here’.
We just need to recognise it’s also⦠what’s that technical term, again?… bloody expensive to do so, and at a significant national cost.
But hang on⦠didn’t I start this piece by talking about redundancy and resilience?
Am I not trying to have my cake and eat it too?
Yes⦠and no.
The answer to a brittle and fragile ‘efficient’ supply chain isn’t to replace it with much more expensive (and often unsuitable) local supply.
It’s to hold a constructive tension between efficiency and redundancy.
Regular readers will know my family tends to take a mid-year road trip holiday, usually somewhere north and west of here.
We don’t go hyper-remote, usually, so we’re not doing Bush Tucker Man stuff, and I don’t need to be MacGyver (kids, ask your parents about both⦠and do yourself a favour and look it up on YouTube).
But I always try to make sure I’m prepared, in case of emergency.
Extra fuel, just in case. A well-stocked first aid kit. A basic toolkit. A personal locator beacon, in case of medical emergency. Maps. Enough food for an extended, unplanned stop.
There’s more than that, but you get the idea.
What I don’t take is an entire second vehicle, weeks and weeks of food. I haven’t done a medical degree, and I can’t make a helicopter out of paper clips and palm fronds, as MacGyver might.
My point? I’m not entirely self-sufficient for every possible emergency. But I have enough to be resilient, either to get myself out of trouble or to be comfortable and safe for as long as it might take for help to arrive.
Oh, and we almost always travel with others.
Back to Australia: my point is that I think self-sufficiency is an expensive vanity project. I don’t think it’s truly possible other than at massive cost⦠and if it’s not possible, being partly self-sufficient is like being half-pregnant.
There’s a lot going on in the world – and the financial markets aren’t immune.
Inflation. Oil. Interest Rates. Artificial Intelligence and the SaaSpocalypse.
And – most importantly of all – the way we bring our temperament to bear on all that.
So… I’m running a YouTube LIVE at 12pm AEST tomorrow (Friday, April 9) to chat about all of that.
And, more importantly, I’ll be taking your questions, live, too!
Why not grab a sandwich and a coffee and join me?
Just click here to join (and if you do it now, you can set a reminder, so YouTube will alert you!).
See you tomorrow!
Instead? Instead, we should plan to be resilient.
That would mean things like multiple sources of supply and multiple export markets.
It would mean sufficient stockpiles of critical supplies, calculated to allow us to minimise disruption, based on reasonably likely scenarios.
Why not every scenario? Because, for example, a years-long nuclear winter is possible to prepare for, but we’re back to the 1800s at that point, and at some point there’s a trade-off between risk and reward (or in this case, risk and cost).
Again, we could choose to make those preparations if we wanted to⦠we just need to decide what cost we’re prepared to pay.
It strikes me that a sensible, wealthy country blessed with our benefits, but which can benefit even more from international trade, is best to use strategic stockpiles, rather than aim for absolute self-sufficiency, when it comes to vital or important goods.
Yes, like fuel. And PPE. And more besides.
That would give us redundancy and resilience. And yes, it would cost a little more, but it would resemble a (relatively cheap) insurance policy, in keeping with a sensible assessment of risk and implications.
And importantly, it would give us very similar outcomes as attempting to be self-sufficient, other than in the extreme outlying cases, but at a tiny fraction of the cost.
One other thing, too, which is a little passe these days: just as our supply chains have become more fragile, so has our personal resilience.
We are â how do I put this nicely â just a little precious, aren’t we? Our ability to endure discomfort is not just a little questionable. That doesn’t excuse mismanagement or poor governance, but man⦠I’m not sure our forebears who lived through a couple of world wars would think particularly fondly of our sense of entitlement or expectation!
Everything is a drama, and we always want someone to blame. Have we lost just a little perspective? I suspect so.
Now, all of that is important from a national interest perspective. But just as it applies to our country, it might be worth applying it to our personal circumstances and finances, too.
Maybe the boy scout I once was is still deep inside me, but the creed ‘Be Prepared’ has always stuck with me.
I had an extra pack of toilet paper in the cupboard long before COVID made it fashionable. The freezer always has some extra food, as does the cupboard. No, not in a prepper ‘world is ending’ kinda way â if the zombies come, I’m woefully underprepared for that eventuality.
Just in a ‘just in case’ kinda way.
Similarly, while I like to be fully invested at all times (rather than have cash ready to invest ‘opportunistically’), we have an amount of cash set aside for emergencies.
It’s also why my portfolio is diversified â to make it more resilient in the face of specific geographic or industry risks.
I could make more money if I invested that emergency fund. I could make more money if I bet correctly on a single company, or theme, or trend, rather than being diversified⦠but I could lose a lot more if I’m wrong.
One of my favourite underquoted Warren Buffett lines is the one he used to describe a hedge fund that blew itself up: “To make money they didn’t have and didn’t need, they risked what they did have and did need. And that’s foolish.”
Rather than optimising my finances for the highest possible return, I’ve chosen to optimise for resilience.
Not for disaster â if I was doing that, I’d be investing in baked beans and shotguns instead â but for resilience.
And that’s not unusual, when you think about it. The safest way to live life on a day-by-day basis is probably to stay in bed. But we walk, drive, climb ladders and clean our teeth â all things that have killed people â because we have learned to assess and manage risk.
We take sensible precautions and weigh risk and return instinctively in our personal lives.
Doing it at a national level, and in our individual financial lives, isn’t quite as instinctive â but it’s equally important.
By all means, we should optimise our outcomes. But we should be optimising for the best outcomes possible while balancing that against our ability to respond to less-than-ideal circumstances.
We should have built-in redundancy, and aim for national- and personal resilience.
And, as our grandparents might have told us, that should probably begin at home.
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