Author: openjargon

Many Aussies may be looking for a source of passive income, and I’m going to talk about three ASX dividend shares that I believe are solid picks today.

I’m expecting all three businesses I’m going to highlight to increase their payouts in 2026 and, hopefully, beyond.

On top of that, all three ASX dividend shares are likely to provide shareholders with a compelling dividend yield that’s better than savings in the bank.

Charter Hall Long WALE REIT (ASX: CLW)

The first business I want to highlight is a real estate investment trust (REIT) that owns a diversified portfolio of properties across a variety of sectors, including Bunnings properties, hotels, service stations, telecommunications exchanges, data centres, distribution centres, and more.

The business has built a portfolio that has long rental agreements with tenants. At June 2025, its weighted average lease expiry (WALE) was approximately nine years, giving investors pleasing rental security.

It’s benefiting from steady rental growth with either fixed annual increases or inflation-linked increases, which has helped it provide guidance that its distribution will increase to 25.5 cents per security in FY26. This would be a distribution yield of 6.4% at the time of writing.

MFF Capital Investments Ltd (ASX: MFF)

This business is best-known as a listed investment company (LIC) which invests in a high-quality portfolio of international stocks that are likely to deliver compounding profits for the foreseeable future.

MFF can translate the investment profits that it makes into a rising dividend thanks to the company’s structure and the ability of the board of directors to decide on the level of the passive income.

The ASX dividend share has been steadily increasing its regular dividend per share over the past several years, and the company expects to increase its biannual dividend to 10 cents per share, implying a grossed-up dividend yield of at least 5.9% for FY26, including franking credits, at the time of writing.

I believe the portfolio’s investment returns can continue to perform well thanks to numerous strong businesses, including compelling recent additions.

Coles Group Ltd (ASX: COL)

Food retailing is one of the most defensive industries on the ASX, in my opinion. Coles has an important role in Australian society, and it’s doing better than Woolworths Group Ltd (ASX: WOW) at growing sales thanks to its product offering.

Coles has invested significantly in new automated distribution centres and customer fulfilment centres, which should help improve its margins, efficiencies, product freshness, and e-commerce offering.

The completion of those assets should help the ASX dividend share’s earnings and cash flow, helping fund larger passive income in the coming years.

The projection on CommSec suggests the business could pay an annual dividend per share of 79 cents in FY26. That translates into a potential grossed-up dividend yield of 5.3% at the time of writing, including franking credits.

The post 3 top ASX dividend share buys for passive income in February appeared first on The Motley Fool Australia.

More reading

• Here’s how you could turn the stock market into a $1,000 monthly passive income machine
• Any ASX investor can use this simple 3-stock portfolio to build wealth
• 5 ASX stocks to hold for the next decade
• 2 ASX blue-chip shares offering big dividend yields
• Passive income: How to earn safe dividends with just $20,000

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. 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 positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Iluka Resources Ltd (ASX: ILU) have tumbled after the company announced it would recognise $565 million in impairment charges in its upcoming first-half results.

The mineral sands miner said in a statement to the ASX that the suspension of operations at its Cataby mine in Western Australia and changes to price expectations for some of its inventory had led to the decision to make two separate write-downs.

Shutdown impacting on value for ASX rare earths share

The company said it announced in September that it would suspend operations at the Cataby mine and the synthetic rutile kiln number two from the start of December.

Iluka added:

The suspension was enacted given subdued demand for mineral sands and their associated downstream products, particularly pigment. The persistence of these demand conditions has impacted price expectations in the nearer term. Iluka expects to record a non-cash impairment charge of about $350 million pre-tax in its FY25 Results, the majority of which relates to the Cataby mine, synthetic rutile kilns 1 and 2 and associated project study costs for the South West region of Western Australia.

In terms of the adjustments to inventory, Iluka said price expectations had led to changes to the net realisable value, “resulting in some product inventory items falling below their weighted average cost, leading to a reduction in inventory value of about $215 million pre-tax”.

This reduction is mainly related to ore at the Cataby site, Iluka said.

Iluka said it expected its underlying mineral sands EBITDA to be about $300 million, before the one-off charges were factored in.

Good news on development project for ASX rare earths share

Separately, Iluka announced an increase to the mineral resource at its WIM100 deposit in Western Victoria, which is currently the subject of a definitive feasibility study for the potential long-term supply of rare earths and zircon.

The company said:

The updated mineral resource estimate for WIM100 comprises a total of 540 million tonnes grading at 4.6% heavy minerals for 25 million tonnes of heavy minerals. Relative to the previous mineral resource estimate, there is a 19% increase in total reported heavy mineral tonnage; an 8% increase in the heavy mineral tonnage classified as measured; and a 53% increase in heavy mineral tonnage classified as indicated. This represents a significant increase in heavy mineral tonnage and improvement in the confidence level of the WIM100 mineral resource estimate.

The company said the mineral sands from WIM100 were an important potential future feedstock for the company’s Eneabba refinery in Western Australia, which is currently under construction.

The company added:

Upon commissioning in 2027, Eneabba will be one of the few rare earths refineries operating outside of China; a multi-decade infrastructure asset capable of processing a diverse range of feedstocks, from Australian and international projects, and producing both light and heavy separated rare earth oxides.   

Iluka shares were 9.4% lower at $5.85 in early trade.

The company was valued at $2.77 billion at the close of trade on Wednesday.

The post This mineral sands miner’s shares are falling sharply on write-down news appeared first on The Motley Fool Australia.

More reading

• Iluka Resources shares in focus as 2025 production beats guidance
• 4 ASX 200 stocks smashing the benchmark this week
• Why this ASX 200 resources stock is off to a flying start in 2026
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 Ramelius Resources Ltd (ASX: RMS) share price is in focus today after its December 2025 quarterly activities report, which revealed group gold production of 45,610 ounces at an all-in sustaining cost (AISC) of A$1,977 per ounce and operating cash flow of A$149.7 million.

What did Ramelius Resources report?

• Group gold production of 45,610 ounces for the quarter at an AISC of A$1,977/oz
• Operating cash flow of A$149.7 million and underlying free cash flow of A$54.7 million
• Gold sales of 45,531 ounces at an average price of A$5,175/oz, delivering revenue of A$235.6 million
• Year-end cash and gold balance of A$694.3 million (down from A$827.7 million last quarter)
• Final fully franked FY25 dividend of A$0.05/share paid in October, totalling A$95.7 million
• FY26 production and cost guidance maintained

What else do investors need to know?

Ramelius advanced its growth projects during the quarter. Development was underway at the Never Never underground and open pit mines, with ore stockpiled ahead of haulage and processing scheduled for March 2026.

The Mt Magnet plant upgrade is progressing, with engineering and site works underway and the execution team now established. Rebecca-Roe Gold Project also reached a milestone, receiving Board approval for investment, pending final environmental permits.

On the corporate front, Ramelius launched a $250 million share buyback program and increased its minimum dividend commitment to 2 cents per share per annum for FY26 and FY27. The company also finalised a key native title mining agreement for the Rebecca-Roe project.

What did Ramelius Resources management say?

Managing Director Mark Zeptner said:

Our strong operating cash flow this quarter allows us to continue investing in growth while maintaining returns to shareholders and a robust balance sheet.

What’s next for Ramelius Resources?

Looking ahead, management reaffirmed guidance for FY26 and signalled a continued focus on developing the Never Never mine, completing the Mt Magnet plant upgrade, and progressing the Rebecca-Roe Gold Project.

The company will also reduce forward gold sales to increase exposure to market prices, which could further benefit shareholders if gold prices remain elevated. Capital allocation will balance investment in operations, shareholder returns, and maintaining a strong financial position.

Ramelius Resources share price snapshot

Over the past 12 months, Ramelius Resources shares have risen 110%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Ramelius Resources shares: December 2025 quarterly earnings highlights appeared first on The Motley Fool Australia.

More reading

• Nickel Industries December 2025 quarter: Strong HPAL margins, mining rebounds
• 2 ASX 200 gold stocks making moves on big news today
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• Liontown earnings: Revenue surges and underground transition completed in Q2 FY26
• Liontown shares in focus as LG Energy Solution swaps $250m debt for equity

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 Nickel Industries Ltd (ASX: NIC) share price is under the spotlight today after the company released its December 2025 quarterly report, highlighting US$37.3 million in adjusted EBITDA from operations and strong margins from its HPAL division, despite mining headwinds.

What did Nickel Industries report?

• Adjusted EBITDA from operations: US$37.3 million, down 57% from Q3
• RKEF division production: 31,561 tonnes nickel, up 1%; adjusted EBITDA of US$35.0 million, down 13%
• HPAL division (HNC) attributable EBITDA: US$17.2 million, up 32%; record margin of US$8,012/t Ni
• Mining operations adjusted EBITDA: –US$14.9 million, hit by a delayed RKAB extension
• Cash and cash equivalents as at 31 December: US$361.1 million
• No lost time injuries reported in the quarter; TRIFR of 0.68

What else do investors need to know?

Nickel Industries’ mining segment was impacted by a late government approval for its mining plan (RKAB), which delayed ore sales until mid-December and led to higher operating costs for the quarter. However, operations rebounded strongly in the final weeks and are on track for over 1.4 million wet metric tonnes (wmt) of ore sales in January.

On the corporate front, the company secured Sphere Corp – a SpaceX supplier – as a 10% strategic partner in its Excelsior Nickel Cobalt HPAL project (ENC), marking the first long-term offtake agreement for ENC nickel cathode into Western aerospace markets. During the quarter, Nickel Industries also made progress commissioning its ENC HPAL project, with full production targeted towards the end of the March quarter.

What did Nickel Industries management say?

Managing Director Justin Werner said:

Whilst the quarter was impacted by a delay in the issuance of an extended RKAB for 2025, the Company was able to ramp up mine operations quickly once an extended RKAB was secured and is on track to sell approximately 1.4 million wmt of ore in January. Approval of the revised AMDAL during the quarter to support an increased RKAB of 19 million wmt for 2026 was a major milestone, and the Company remains confident of securing its increased RKAB imminently. Pleasingly, our HNC operations recorded their strongest margin of $8,012/t, which bodes very well for the commissioning of ENC, which is targeted to commence towards the end of the March quarter. … Finally, with both LME and NPI prices off to a strong start in 2026, the imminent commissioning of ENC and increase in ore sales should set the Company up for a strong 2026.

What’s next for Nickel Industries?

Investors can watch for the full commissioning and ramp-up of the large-scale ENC HPAL project, which is set to lift production and diversify market exposure. The company is focused on securing a higher 2026 mining quota and boosting ore sales volumes.

Nickel Industries continues prioritising sustainability and safety, including delivering Indonesia’s largest solar project to supply renewable energy for the ENC HPAL plant. These initiatives aim to strengthen its reputation as a low-carbon nickel producer with recognised ESG credentials.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Nickel Industries December 2025 quarter: Strong HPAL margins, mining rebounds appeared first on The Motley Fool Australia.

More reading

• Ramelius Resources shares: December 2025 quarterly earnings highlights
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• Liontown earnings: Revenue surges and underground transition completed in Q2 FY26
• Liontown shares in focus as LG Energy Solution swaps $250m debt for equity
• Whitehaven Coal posts strong Q2 production and cost control

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.

Two S&P/ASX 200 Index (ASX: XJO) gold stocks are grabbing headline news today following the release their December quarterly results.

Ramelius Resources Ltd (ASX: RMS) shares are up 1.0% in early morning trade on Thursday, trading for $5.05 apiece.

And Perseus Mining Ltd (ASX: PRU) shares are up 0.1%, changing hands for $6.45 each.

For some context, the ASX 200 is down 0.3% at this same time.

Both miners will be enjoying some added tailwinds from the big overnight leap in the gold price. Gold has surged 4.6% since this time yesterday, currently trading for US$5,417 per ounce. That sees the gold price up 96% over 12 months.

Here’s what else is catching investor interest.

ASX 200 gold stock edging higher despite production decline

Perseus Mining shares are in the green despite the miner reporting an 11% quarter on quarter decline in gold production to 88,888 ounces over the three months to 31 December. That decline was partly driven by “operational headwinds” at Perseus’ flagship Yaoure gold mine.

Costs ramped up over the quarter, with the ASX 200 gold stock reporting an all-in site cost (AISC) of US$1,800 per ounce, up 18.8% from the prior quarter.

And with bullion prices surging, Perseus reported an average realised gold price of US$3,437 per ounce, up 11.8% from the September quarter.

As at 31 December, the miner had a cash and bullion balance of US$755 million.

Looking ahead, Perseus CEO Craig Jones said, “We remain well placed to deliver on our FY26 production targets and continue investing in the future of Perseus.”

The ASX 200 gold stock is forecasting FY 2026 gold production in the range of 400,000 ounces to 440,000 ounces. On the cost front, management expects AISC to be in the range of US$1,600 to US$1,760 per ounce.

Which brings us to…

Ramelius Resources shares jump as FY26 guidance maintained

Ramelius Resources shares are lifting after the miner reported quarterly gold production of 45,610 ounces.

This was down from 55,013 ounces of gold in the September quarter. However, the decline looks to have been largely priced in by the market already.

The ASX 200 gold stock noted:

Lower production was the result of lower grades which was in line with plan expectations and as advised in the September 2025 Quarterly Report. The decline in grade was primarily due to lower grades mined from Cue during the Quarter.

Ramelius also saw un uptick in costs, reporting an AISC of AU$1,977 per ounce, up from AU$1,836 per ounce the prior quarter.

The miner sold 45,531 ounces of gold over the three months, at an average realised price of AU$5,175 per ounce.

As at 31 December, the ASX 200 gold stock held cash and gold of AU$694 million, down 16% quarter on quarter.

Ramelius Resources maintained its full year FY 2026 production and cost guidance.

The post 2 ASX 200 gold stocks making moves on big news today appeared first on The Motley Fool Australia.

More reading

• Ramelius Resources shares: December 2025 quarterly earnings highlights
• Perseus Mining posts quarterly gold output and solid cash, progresses key projects
• ASX All Ords shares smashing 52-week highs today
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben 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 Mesoblast Ltd (ASX: MSB) share price is in focus after the company reported net revenues of US$30 million for the December 2025 quarter, up 60% from the prior period, on the back of strong Ryoncil® sales and new financing arrangements.

What did Mesoblast report?

• Ryoncil® gross sales reached US$35 million, a 60% lift quarter-on-quarter
• Net revenues for the quarter totalled US$30 million
• US$130 million in cash on hand at 31 December 2025
• Net operating cash outflow of US$16 million for the quarter
• Secured a US$125 million non-dilutive credit facility at 8% interest, with an unsecured US$75 million tranche drawn
• No interim dividend declared

What else do investors need to know?

Mesoblast enhanced its financial flexibility this quarter, drawing US$75 million from a new lower-cost debt facility. This replaces more expensive loans and gives the company greater room to fund strategic partnerships as well as potential product expansion.

Clinically, Mesoblast provided positive updates on Ryoncil®’s use in paediatric patients with steroid-refractory acute graft-versus-host disease (SR-aGvHD), as well as progress in extending Ryoncil®’s label to treat adults—an addressable market about three times larger. The company also received constructive feedback from the US FDA regarding its chronic low back pain therapy, with pivotal Phase 3 studies close to completing enrolment.

What did Mesoblast management say?

Mesoblast Chief Executive Dr. Silviu Itescu said:

This quarter was highlighted by continued strong Ryoncil® sales and the establishment of a new lower-cost non-dilutive financing facility both of which enable greater flexibility for strategic partnerships and pursuit of label expansion for Ryoncil®.

What’s next for Mesoblast?

Looking ahead, Mesoblast expects net cash outflows to decline, driven by stable or growing product revenues and tight cost controls. The company aims to complete the pivotal trial for Ryoncil® in adults and finish key patient enrolment in its chronic low back pain program during the next quarter.

Management also flagged its plans to pursue new regulatory submissions and further manufacturing scale-up, as it seeks to establish additional cell therapies for inflammatory conditions. Strategic partnerships and global commercial expansion remain key sections of Mesoblast’s long-term roadmap.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Mesoblast posts revenue jump and new funding: Key takeaways for investors appeared first on The Motley Fool Australia.

More reading

• Ramelius Resources shares: December 2025 quarterly earnings highlights
• Nickel Industries December 2025 quarter: Strong HPAL margins, mining rebounds
• Liontown earnings: Revenue surges and underground transition completed in Q2 FY26
• Liontown shares in focus as LG Energy Solution swaps $250m debt for equity
• Whitehaven Coal posts strong Q2 production and cost control

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.

Mineral Resources Ltd (ASX: MIN) shares are pushing higher on Thursday morning.

At the time of writing, the mining and mining services company’s shares are up 3% to $65.79.

Why are Mineral Resources shares pushing higher?

Investors have been buying the company’s shares after it delivered a strong quarterly update that included a meaningful upgrade to its lithium production guidance to capitalise on higher prices.

According to the release, for the three months ended 31 December, Mineral Resources produced 138,000 dry metric tonnes (dmt) of attributable spodumene concentrate (SC6) and sold 143,000 dmt.

This comprises production of 85,000 dmt at Wodgina and 81,000 dmt at Mt Marion.

Management revealed that the Wodgina operation achieved a notable processing milestone during the quarter, with recoveries averaging 70% following ongoing optimisation work. This helped offset the impact of lower-grade ore being processed under the mine plan.

At Mt Marion, higher feed tonnes and improved plant utilisation drove an 11% lift in quarterly production, despite some wet weather disruptions.

Mineral Resources’ average achieved lithium price jumped 29% from the prior quarter to US$1,094 per tonne CIF, reflecting stronger market conditions.

Off the back of this performance and stronger prices, management has upgraded its FY 2026 lithium volume guidance at both of its operating assets.

At Wodgina, expected production has been lifted to 260,000 to 280,000 tonnes of SC6, up from 220,000 to 240,000 tonnes previously. Whereas at Mt Marion, its guidance has been increased to 190,000 to 210,000 tonnes, from 160,000 to 180,000 tonnes. Importantly, cost guidance at both sites has been maintained.

Iron ore

While lithium grabs the headlines today, Mineral Resources’ iron ore business also delivered a solid result.

Onslow Iron shipped 8.7 million tonnes during the quarter and 17.3 million tonnes in the first half, with FOB costs of $50 per wet metric tonne in the quarter. Costs continue to track toward the bottom end of its FY 2026 guidance, underlining the benefits of Onslow Iron operating at nameplate capacity.

Balance sheet improvements

The company’s balance sheet continued to strengthen during the quarter. Liquidity increased to more than $1.4 billion during the first half, while net debt was reduced to approximately $4.9 billion.

This is down from $5.4 billion three months earlier and reflects strong cash generation and ongoing deleveraging as major projects move through their ramp-up phase.

Mineral Resources also highlighted progress on its strategic partnership with POSCO, which has agreed to acquire a 30% interest in the company’s lithium joint venture covering Wodgina and Mt Marion for upfront cash consideration of around $1.1 billion, subject to conditions precedent.

The post Mineral Resources shares charge higher on lithium guidance upgrade appeared first on The Motley Fool Australia.

More reading

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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.

The Liontown Ltd (ASX: LTR) shares are in focus today as the company reported a 91% jump in quarterly revenue to $130 million and a 17% fall in unit operating costs, reflecting lower costs and a transition to full underground mining.

What did Liontown report?

• Revenue up 91% quarter-on-quarter to $130 million from six concentrate parcels sold
• Unit operating costs (FOB) down 17% to $910/dmt; all-in sustaining cost down 22% to $1,059/dmt
• Operating cash flow improved to near break-even, with $390 million cash at quarter end
• Concentrate production increased 21% to 105,342 dmt at an average grade of 5.1% Li₂O
• Underground ore mined up 37% to 308 kt, marking full transition to 100% underground operations
• New binding offtake signed with Canmax for 150,000 wmt per year from 2027

What else do investors need to know?

Liontown marked a key milestone by completing open pit mining at Kathleen’s Corner, positioning its Kathleen Valley operation as fully underground. Underground ramp-up is continuing as planned, targeting 1.5 million tonnes per annum by the end of Q3 FY26 and 2.8 Mtpa steady-state by end FY27.

A highlight was the company’s first successful spodumene spot auction in November, which closed at US$1,254/dmt SC6, pointing to strong buyer demand and a favourable price discovery mechanism.

Liontown ended the period with solid liquidity: $390 million in cash and 13,800 dmt of saleable concentrate on hand. Production cash flow was almost neutral for the quarter, with improving sales volumes and prices helping offset costs.

What did Liontown management say?

Tony Ottaviano, Managing Director and CEO

The December Quarter represented a major operational and financial inflection point for Liontown, with open pit mining completed on schedule and the operation now 100% underground. Underground ore production increased by 37% during the quarter, supported by strong development progress and improving operational leverage, resulting in cashflow-neutral operations. Our US$900 / dmt realised price for the quarter, on an SC6 equivalent basis, reflects the timing of offtake pricing, which was largely set prior to the strong rally in spodumene prices late in the quarter. Pricing strength has continued into 2026, with market conditions now the most favourable experienced since the commencement of production. With underground production continuing to scale, costs trending lower and higher pricing expected to flow through in coming quarters, Liontown is well positioned to deliver a strong financial performance in the second half of FY26.

What’s next for Liontown?

Liontown remains on track to meet its FY26 guidance, with the underground ramp-up expected to deliver lower costs and higher production. Management expects rising spodumene prices from late 2025 to flow through to realised prices in coming quarters, supporting stronger margins.

The company is refreshing its expansion study for a potential 4Mtpa pathway at Kathleen Valley, assessing options for staged growth with a decision contingent on sustained market recovery. Liontown also continues to focus on optimisation initiatives now embedded as routine operations.

Liontown share price snapshot

Over the past 12 months, Liontown shares have soared 213% outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Liontown earnings: Revenue surges and underground transition completed in Q2 FY26 appeared first on The Motley Fool Australia.

More reading

• Ramelius Resources shares: December 2025 quarterly earnings highlights
• Nickel Industries December 2025 quarter: Strong HPAL margins, mining rebounds
• Mesoblast posts revenue jump and new funding: Key takeaways for investors
• Liontown shares in focus as LG Energy Solution swaps $250m debt for equity
• Whitehaven Coal posts strong Q2 production and cost control

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 Liontown Ltd (ASX: LTR) share price is in focus after the company announced LG Energy Solution will convert its entire US$250 million convertible note into equity, resulting in LG Energy Solution holding around 8% of Liontown’s shares. The move will eliminate future interest costs and simplify Liontown’s capital structure.

What did Liontown report?

• LG Energy Solution to convert its full US$250 million convertible note plus accrued interest into equity
• Conversion results in LG Energy Solution holding about 8% of Liontown’s issued shares
• Conversion price set at A$1.62 per share, following adjustment after the August 2025 capital raising
• Convertible note fully eliminated, removing future interest obligations
• Leaves only A$300 million Ford facility and A$15 million WA Government interest-free loan as borrowings
• Balance sheet strengthened with A$390 million cash at bank as at 31 December 2025

What else do investors need to know?

The note conversion simplifies Liontown’s capital structure, freeing up capacity for future growth. By removing a major debt instrument, Liontown can reduce its future interest expenses and present a stronger balance sheet to investors and partners alike.

The conversion also deepens the company’s ties with LG Energy Solution, already a strategic customer and now a substantial shareholder. This relationship supports Liontown’s ambitions to become a leading global lithium supplier.

What did Liontown management say?

Managing Director and CEO Tony Ottaviano said:

LG Energy Solution’s decision to convert their entire holding to equity is a strong endorsement of Kathleen Valley’s tier-one quality and our operational execution.

This conversion delivers immediate benefits to shareholders. It simplifies our capital structure, eliminates future interest obligations on the notes, and strengthens our balance sheet — giving us real financial firepower as we scale production, while remaining focussed on shareholder returns and disciplined capital allocation.

Importantly, it deepens an already important strategic partnership with LG Energy Solution. LG Energy Solution was instrumental in supporting our transition to producer, and their decision to become a significant equity holder further aligns our interests. We now have one of the world’s leading battery manufacturers as both a cornerstone shareholder and a long-term offtake customer — a powerful combination as we execute on Liontown’s full potential.

We look forward to continuing this partnership as we deliver on our shared ambition to supply high-quality, responsibly sourced lithium to the global energy transition.

What’s next for Liontown?

With a more streamlined capital structure and enhanced cash position, Liontown aims to scale up production at the Kathleen Valley lithium project. Management has emphasised a disciplined approach to capital allocation and remains focussed on delivering value to shareholders.

The strengthened strategic partnership with LG Energy Solution is expected to support Liontown’s plans for further downstream growth and long-term offtake, positioning the company strongly for the global shift towards battery minerals.

Liontown share price snapshot

Over the past 12 moths, Liontown shares have risen 213%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Liontown shares in focus as LG Energy Solution swaps $250m debt for equity 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.

If investors are going to buy shares on the Australian stock market, it may as well be some of the most compelling S&P/ASX 200 Index (ASX: XJO) blue-chip shares around.

Some people may love to have a portfolio stuffed full of the greatest names we can buy. This seems like a great time to do it because of lower valuations.

For investors who have been wanting to own a piece of the ASX’s tech shares, but high prices have been off-putting, I think it’s time to pounce.  

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading healthcare informatics company that provides a full range of medical imaging software and services to hospitals, imaging centres, and healthcare groups worldwide.

It provides clients with offerings across radiology imaging solutions (RIS), picture archiving and communication systems (PACS), AI, and e-health solutions.

Despite the wonderful progress that the company’s financials have seen recently, the Pro Medicus share price has dropped by more than 40% in the last six months, as the chart below shows.

The FY25 result was a powerful performance by the ASX 200 blue chip, with revenue growth of 31.9% to $213 million and net profit after tax (NPAT) growth of 39.2% to $115.2 million. It has one of the highest operating profit (EBIT) margins on the ASX.

Since the end of FY25, it has won a number of contracts, including new clients, add-on module contracts with existing clients, and the achievement of the authority to operate (ATO) from the US Department of Veterans’ Affairs.

It’s not cheap, but it’s much better value now. Net profit is still expected to compound strongly in the coming years. The Pro Medicus share price is now valued at 124x FY26’s estimated earnings and 75x FY28’s estimated earnings, at the time of writing.

Xero Ltd (ASX: XRO)

Xero has been on a fast-growth journey for many years, and it continues to have big ambitions.

However, despite having the most subscribers and the most operating revenue in its history, the Xero share price has dropped by approximately 45% over the last six months, at the time of writing.

The company’s accounting software is proving to be very popular, as shown by the very high subscriber retention rate (around 99%) each year, as well as the ongoing subscriber count. In the FY26 half-year result, the business reported its total subscriber base increased 10% year over year to 4.6 million.

I’m also pleased to see that Xero’s average revenue per user (ARPU) is growing over time, meaning that the ASX 200 blue-chip share is extracting value from its subscriber base.

The company’s profitability is rapidly increasing, which I think helps justify a higher Xero share price – more than today’s current valuation. In HY26, net profit grew 42% to NZ$135 million and free cash flow rose 54% to NZ$321 million.

For the coming years, I’m predicting Xero’s global subscriber base will continue growing thanks to the tailwind of digitalisation of accounting and financial reporting (including to taxation authorities). I’m also expecting rapid profit growth thanks to its very high gross profit margin of close to 90%.

The post 2 top ASX 200 blue-chip shares worth a spot in your portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.