Author: openjargon

Stanmore Resources Ltd (ASX: SMR) has been one of the best ASX materials stocks to own in 2026. 

Since the start of the year it has risen an impressive 22.08%. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 2.36% in the same period. 

However, yesterday this ASX materials stock fell 2.33%. 

This was despite reporting a record December quarter coal production and strong cash generation on January 27.

Investor sell-off  

Stanmore Resources is an Australian coal producer with operations and exploration projects in the Bowen and Surat Basins in central and southern Queensland.

It is one of Australia’s largest suppliers of metallurgical coals to global markets with three major assets including the Isaac Plains complex and the Poitrel and South Walker Creek coal mines.

Stanmore also has a 50% ownership stake in the Millennium and Mavis Downs mines.

Its most recent quarterly report included: 

• Record quarterly run-of-mine (ROM) coal production of 6.0 million tonnes (Mt), saleable production of 3.9Mt, and sales of 4.0Mt
• Full-year saleable coal production of 14.0Mt.
• Net debt reduced by US$57 million in Q4
• Total liquidity climbed to US$482 million at 31 December 2025
• Serious Accident Frequency Rate for the year was 0.33, significantly below industry benchmarks
• Average sales price achieved was US$133 per tonne, with a late-quarter rally in coal markets

Despite these results, investors have been trimming their positions in this ASX materials stock over the last couple of days. 

The stock price has dropped almost 4% since Tuesday’s open. 

What’s Morgans’ view?

The team at Morgans have provided fresh guidance for this ASX materials stock following its quarterly results. 

The broker highlighted that Stanmore Resources delivered record quarterly results in 4Q25 across run-of-mine (6.0Mt), saleable product (3.9Mt) and product sales (4.0Mt) whilst dealing with unseasonably high rainfall.

Increased sales helped operational cash flow that saw total cash increase to US$212m and net debt reduced by US$57m to US$33m. 

Morgans said the Isaac Downs site is expected to deliver materially lower output in 2026 as mining progresses deeper into the pit and approaches less economic zones. 

Poitrel’s production is also forecast to ease after a standout 2025 performance. 

Based on this guidance, Morgans has downgraded its recommendation to TRIM. 

It also has a revised target price of $2.95ps. 

It would appear based on this target that this ASX materials stock is fully valued, after closing yesterday at $2.93 per share. 

Our target for SMR is set at a discount to NPV to reflect opacity in the short-term coal price outlook.

The post After rising 22% this month, it could be time to sell this booming ASX materials stock appeared first on The Motley Fool Australia.

More reading

• Stanmore Resources delivers record December quarter coal production and strong cash generation

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.

Income investing should make life simpler, not more stressful. The goal is not to chase the highest dividend yield on offer, but to build a portfolio that can keep paying through different market conditions without requiring constant attention.

For me, building income without losing sleep comes down to focusing on predictability, resilience, and restraint. Here is how I think about it.

Start with businesses that provide essential services

The first step is to focus on ASX shares that sell or provide services that people rely on, regardless of economic conditions. These are businesses tied to everyday needs rather than discretionary spending.

Infrastructure, communications, and utilities tend to fit this profile. Demand may fluctuate at the margins, but the underlying services remain necessary. That provides a strong foundation for ongoing cash flow generation, which is what ultimately supports dividends.

This is why companies like APA Group (ASX: APA) often appeal to income-focused investors. Its assets underpin energy delivery rather than competing for consumer attention. That distinction matters when markets become unsettled.

Look beyond the headline yield

A high dividend yield can be tempting, but it is rarely the full story. In some cases, a generous yield reflects genuine cash generation. In others, it reflects a falling share price or unsustainable payout ratio.

I prefer to look at how dividends are funded. Stable cash flows, long-lived assets, and sensible payout ratios tend to support more reliable income over time. Modest but repeatable dividends are often easier to live with than high yields that come with uncertainty.

That mindset shifts the focus from short-term income maximisation to long-term consistency.

Prioritise balance sheet strength

Debt is not automatically a problem, particularly for capital-intensive businesses. But it does increase risk if conditions deteriorate.

When assessing income stocks, I pay attention to whether a company has room to absorb higher costs, lower volumes, or unexpected disruptions. Strong balance sheets and manageable debt profiles reduce the risk of dividend cuts during tougher periods.

Infrastructure operators such as Transurban Group (ASX: TCL) often illustrate this balance. Their assets are expensive to build and difficult to replace, but long concession periods and predictable usage patterns help support financing over time.

Accept that boring can be a feature

Some of the most dependable ASX income stocks are also the least exciting. They operate in mature industries and grow slowly. Think Telstra Group Ltd (ASX: TLS) or Commonwealth Bank of Australia (ASX: CBA).

I think that is often a positive for income investors. Stable demand and incremental improvement can be more valuable than rapid expansion when the priority is regular cash returns.

Telecommunications is a good example. Companies like Telstra serve a broad customer base with services that have become part of daily life. While growth may be limited, the consistency of demand can support ongoing distributions.

Diversify ASX income sources

Relying on a single company or sector for income can increase stress, in my opinion. Regulatory changes, operational issues, or industry shifts can affect even the most reliable businesses.

Spreading income across different sectors helps reduce reliance on any one outcome. Infrastructure, financials, consumer staples, and communications often respond differently to economic changes, which can smooth income over time.

Diversification does not eliminate risk, but I think it can make income streams more resilient.

Foolish Takeaway

Building income without losing sleep is less about chasing opportunity and more about avoiding unnecessary risk. By focusing on essential services, sustainable cash flows, sensible balance sheets, and diversification, investors can build income portfolios that feel manageable even when markets are volatile.

The post How to build income on the ASX without losing sleep at night appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The market may be nearing its record high, but that doesn’t mean there aren’t cheap ASX shares out there for investors to buy.

For example, the team at Bell Potter recently identified two ASX 200 shares that it thinks are being undervalued by the market at present.

Let’s see what it is saying about these shares:

CAR Group Ltd (ASX: CAR)

CAR Group is an ASX 200 share that is highly rated by Bell Potter. It operates leading online automotive classifieds platforms across Australia and offshore markets. These platforms benefit from strong network effects, where buyers attract sellers and vice versa, reinforcing market leadership over time.

Bell Potter believes CAR Group can continue growing earnings through pricing power, product enhancements, and international expansion. Even when vehicle sales volumes fluctuate, the company’s dominant platforms and recurring revenue streams help support long-term value creation.

Commenting on the company, the broker said:

CAR is trading around two-year lows at a P/E of ~28x, despite a defined product rollout map to drive value from its market-leading networks in its large, addressable markets, which includes C2C payments, pay-per-lead model, regional expansion and scope to develop market-based legacy advertising practices, underpinning a steady growth profile in our forecast EPS through FY26e-FY28e.

Bell Potter has a buy rating and $42.20 price target on its shares.

Elders Ltd (ASX: ELD)

Elders provides a very different type of exposure, one tied to Australia’s agricultural sector.

This ASX 200 share offers a range of services to farmers, including agency, livestock, wool, real estate, and financial products. This diversified model allows Elders to benefit from activity across multiple parts of the rural economy rather than relying on a single commodity or season.

Bell Potter’s positive view reflects Elders’ scale, national footprint, and strong position in agribusiness services. As conditions normalise across parts of the agricultural cycle, the broker believes Elders is well placed to deliver earnings resilience and attractive returns over time. It said:

We see encouraging signs for FY26e, with livestock turnoff values up ~35% YOY through 1Q26TD, stable to rising crop protection active ingredient values and modestly higher fertiliser price indicators. A more normal selling pattern in FY26e, delivery on SYSMOD and backward integration initiatives, sector activity tailwinds and consolidation of Delta are expected to drive high double-digit EPS growth in FY26-27e. This view does not look reflected in the current share price, with ELD trading at ~11x FY26e EPS.

Bell Potter has a buy rating and $9.45 price target on its shares.

The post Why these ASX 200 shares could be dirt cheap appeared first on The Motley Fool Australia.

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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 recommended CAR Group Ltd and Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

If you are looking for exposure to the booming defence sector for your portfolio, then the ASX stocks in this article could be worth considering.

That’s because analysts at Bell Potter think they are investment weapons with very bright futures. Here’s what the broker is recommending:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The first ASX defence stock that Bell Potter is bullish on is defence and space company EOS.

Following the release of a stronger than expected fourth quarter update, the broker has retained its buy rating and $12.00 price target on the ASX defence stock.

As a market leader in C-UAS solutions, Bell Potter believes the company is well-placed to be a big winner from increased spending on these technologies. It explains:

We retain our Buy rating and raise our TP to $12.00. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from C-UAS and RWS contract awards. At 44x CY26e EV / EBITDA, EOS trades at a 26% discount to the Global drone peer group mean.

Elsight Ltd (ASX: ELS)

Bell Potter is also feeling very positive about Elsight, which is a supplier of communication modules to drone original equipment manufacturers (OEMs).

In response to its quarterly update, the broker has retained its buy rating on the ASX defence stock with an improved price target of $5.50.

It believes that Elsight has developed a market leading product and is well-positioned to benefit from growth in the unmanned systems industry. It said:

We retain our Buy rating. We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 70% hardware sales revenue growth estimate.

We believe ELS shares offer relative value at 37x CY26e EV/EBITDA given its recurring revenue, capital-light business model, relative valuation vs. other drone exposed stocks (42% discount to mean of global peers) and long runway of growth. We believe ELS can close this valuation gap via a broadening in its customer base (an estimated >80% of revenue generated from one customer in CY25e). We view ELS as a prime candidate for an OEM looking to vertically integrate.

The post Broker says these ASX defence stocks are investment weapons appeared first on The Motley Fool Australia.

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• This ASX defence stock is down 10% in a week. Is the next leg higher already lining up?
• Why Dateline, EOS, Karoon Energy, and Pro Medicus shares are charging higher today
• Up 50% in 2026. This ASX tech stock just delivered another record quarter
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• ASX defence stocks to target according to Bell Potter

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 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.

These days, building a passive income stream does not have to mean picking individual dividend ASX shares.

ASX exchange trade funds (ETFs) make it possible to access diversified income streams in a simple, low-maintenance way. By combining different income styles, investors can spread risk while still targeting regular payouts over time.

Here are five ASX ETFs that could be worth considering for passive income investors.

Vanguard Australian Shares Index ETF (ASX: VAS)

The first ETF to consider is the Vanguard Australian Shares Index ETF. While it is not designed specifically for income, this ASX ETF provides exposure to the broad Australian share market, which has historically been one of the more generous dividend markets globally. Banks, miners, and industrials all contribute to a steady stream of distributions, often with franking credits attached.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

Another ASX ETF to look at is the Betashares S&P Australian Shares High Yield ETF. It focuses on higher-yielding Australian shares, using a rules-based approach to tilt the portfolio toward companies paying above-average dividends. It offers a more income-focused alternative to broad market ETFs. It was recently recommended by analysts at Betashares.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A different style of passive income comes from the Betashares S&P 500 Yield Maximiser Complex ETF. Rather than relying purely on dividends, this clever fund uses an options-based strategy over the S&P 500 to generate income. This can result in higher cash distributions than you would expect, but it also means capital growth may be more limited compared to traditional equity ETFs.

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF offers an unconventional source of passive income. The ASX ETF invests in global stocks that earn royalties from assets such as music, energy infrastructure, and intellectual property. These revenue streams are often contract-based and less sensitive to economic cycles. For income investors, the Betashares Global Royalties ETF can provide diversification away from traditional dividend sectors like banks and resources. It was also recently recommended by analysts at Betashares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final ASX ETF to consider is the popular Vanguard Australian Shares High Yield ETF. It concentrates on Australian shares with higher forecast dividend yields, offering an income-focused alternative to the Vanguard Australian Shares Index ETF. But it does this with diversification in mind, limiting how much is invested in individual shares and sectors.

The post 5 ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

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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 positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think most ASX dividend investors would agree that seeing a popular ASX income share trading with a dividend yield of 8.5% is well worth a second look. That’s exactly what’s on display with WAM Capital Ltd (ASX: WAM) shares right now.

Yep, WAM Capital shares are currently trading at a price of $1.82. At this price, this dividend share and listed investment company (LIC) is indeed trading with a trailing dividend yield of 8.49% at the time of writing.

That’s more than double what you could expect from a term deposit or savings account right now. And well north of what most popular ASX dividend shares are paying investors at the moment.

So does this make WAM Capital shares a slam-dunk buy for income?

As with any investment offering such an outsized yield, it’s worth digging a little deeper to determine whether this is a compelling cash flow opportunity or a dreaded dividend trap.

Is the 8.5% yield on WAM Capital shares too good to be true?

Well, WAM Capital shares’ 8.5% yield is indeed legitimate. The company paid out two dividends over 2025. The interim dividend that was doled out in April, as well as October’s final dividend, were both worth 7.75 cents per share. That annual total of 15.5 cents per share gets us to that 8.49% yield at the current $1.82 WAM Capital share price. In an added bonus for investors, those payments also came with some franking credits attached. Both payments were partially franked at 60%.

However, as any good dividend investor knows, dividend yields represent the past, not the future. For WAM to truly be a slam-dunk buy for income, investors would need to have a high degree of confidence that this LIC is able to continue to fund annual dividend payments of at least 15.5 cents per share for the foreseeable future. And that’s where some red flags start to pop up.

Each month, WAM Capital tells investors how much cash it has in its ‘profit reserve’, which funds its dividends. This profit reserve is filled by both the underlying dividends that WAM Capital receives from its portfolio, as well as the proceeds of stock sales.

As of 31 December, this profit reserve stood at 21.1 cents per share. That means that WAM Capital only has enough cash to cover its payouts for about 18 months. As such, future dividends are highly dependent on this company’s ability to continue to pick the right stocks.

Risk and reward

Now, it could get lucky. But there’s also not much of a cushion for mistakes or misfortune. And unfortunately, WAM Capital’s recent share price track record is not fantastic. If you had bought shares of this company five years ago today, you would have lost 18.5% of your capital investment. Over that same period, the S&P/ASX 200 Index (ASX: XJO) is up a healthy 35% or so.

The market doesn’t let high-quality dividend payers sit with an 8.5% dividend yield for long. As such, the market consensus is that WAM Capital’s dividend is highly likely to be unsustainable and that this stock is a high-risk investment. Now, things could work out well for WAM Capital shares. But they might also continue to go pear-shaped. And based on this company’s recent performance, it’s not a bet I’d be willing to take.

The post Does an 8.5% yield make WAM Capital shares a slam-dunk buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Holdings Ltd (ASX: EOS) have pulled back over the past week, sliding almost 10% to around $9.69 at the time of writing.

That dip comes after an extraordinary run. EOS shares are still up more than 700% over the past year, making it one of the ASX’s standout performers.

After a move like that, some profit-taking from short-term traders was inevitable.

What matters the most is that nothing has changed inside the business.

Let’s take a closer look.

A contract book that keeps growing

This week’s pullback followed EOS’ latest quarterly update, which met expectations but did not deliver a fresh surprise.

However, the numbers themselves still point in the right direction.

The standout figure remains EOS’ contract backlog, which climbed to around $459 million at the end of December. That marks a sharp increase over the past year and provides clear revenue visibility into 2026 and beyond.

During the quarter, EOS continued delivering remote weapon systems across multiple regions, including Australia, Europe, North America, and the Middle East. Manufacturing activity lifted as production rates increased, and customer receipts jumped sharply as more contracts moved into the delivery phase.

That translated into positive operating cash flow for the quarter, a key milestone after years of heavy investment. Cash on hand also rose to more than $100 million, leaving the balance sheet in a much stronger position.

Why investors are focused on what comes next

What keeps investors interested is not just what EOS has already delivered, but what could come next.

Management confirmed it is in advanced discussions with several customers around high-energy laser systems and expanded counter-drone capabilities. These programs are moving beyond development, with EOS demonstrating working systems and progressing toward operational deployments.

There has also been ongoing speculation around a potential South Korean contract, following recent conditional agreements and inspection milestones. While nothing has been confirmed, any conversion into a firm order would likely be a significant sentiment boost.

More broadly, rising global tensions continue to support higher defence spending. Counter-drone systems have shifted from optional to essential, and EOS operates in a niche with relatively few credible competitors.

My Foolish take

After a 700% run, some volatility is normal. A 10% pullback looks far more like a reset within a strong uptrend than the start of any meaningful reversal.

EOS has moved into execution mode, with positive cash flow, a deepening contract book, and clear visibility as production scales. With multiple potential contract announcements still ahead, the setup increasingly favours upside rather than downside.

Looking at the long-term outlook, this dip looks like a chance to add exposure at more attractive levels.

The post This ASX defence stock is down 10% in a week. Is the next leg higher already lining up? appeared first on The Motley Fool Australia.

More reading

• Why Dateline, EOS, Karoon Energy, and Pro Medicus shares are charging higher today
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• Another record in sight? Why this ASX defence stock is back in rally mode
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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 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.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.47% for the day at $150.77 a piece, at the time of writing. For the year to date, the shares are down 6.42% and they’re 5.34% below this time last year.

In 2025, CBA shares enjoyed a strong share price rally, peaking at an all-time high of $192 per share in June. But strong headwinds sent the share price plummeting. 

This week, the banking giant dropped out of first place as the largest stock on the S&P/ASX 200 Index (ASX: XJO). BHP Group Ltd (ASX: BHP) shares crossed over $50 a share for the first time in more than a year yesterday. Although CBA stock is also in the green at the time of writing, BHP’s move has pushed the miner to a market capitalisation of just over $253.5 billion. CBA is now in second place with a value of around $251.9 billion.

Now the question is, is it time to sell up? Or is there any upside ahead for CBA shares in 2026?

CBA shares: Buy, hold or sell for 2026?

I personally think CBA shares could crash below $100 this year. I’d look at potentially selling up before the downturn accelerates further.

Analysts are pessimistic about the outlook for CBA shares too. TradingView data shows that 13 out of 15 analysts have a sell or strong sell rating on the banking giant. The average target price is $124.60, which implies a potential 17.18% downside at the time of writing. 

But some thing the share price could slump even lower to $99.81 a piece. That implies a 33.54T downside at the time of writing.

Why is sentiment so negative?

The issue is, CBA’s share price is overvalued versus its peers and the bumper price tag isn’t supported by the bank’s earnings results or business fundamentals. CBA’s current price to earnings (P/E) ratio, at the time of writing, is 24.86, which is much higher (and therefore more expensive) than other major banks.

For comparison, ANZ Group Holdings Limited (ASX: ANZ)’s P/E ratio is 18.43, National Australia Bank (ASX: NAB)’s P/E ratio is 19.18 and Westpac Banking Corp (ASX: WBC)’s P/E ratio is 19.43.

Not only is the valuation high, but CBA is facing ongoing net interest margin pressure due to intense market competition in home loan lending and deposit products, and also regulatory changes. 

And not to mention, it looks like the Reserve Bank will keep the cash rate on hold for an extended period in 2026, or even hike rates. This puts even more pressure on banks to compete.

The post Should I sell my CBA shares in 2026? appeared first on The Motley Fool Australia.

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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WA1 Resources Ltd (ASX: WA1) has delivered another busy quarterly update, yet the share price reaction has been relatively modest.

WA1 shares are up 1.51% to $18.14 at the time of writing. Zooming out, the stock is still nearly 10% lower than this time last year, even as activity ramps up at the Luni niobium project.

Here is what the company reported.

Drilling delivers standout niobium grades

The key highlight from the quarter was another strong set of drilling results from the Luni Niobium Project in Western Australia.

WA1 reported further infill and extensional drilling across high grade zones, with results continuing to exceed expectations.

Some of the standout intercepts included 67.3 metres at 5.4% Nb2O5, including a higher grade core of 30 metres at 9.8% Nb2O5. Additional holes returned 28.1 metres at 4.6% Nb2O5 and 36.5 metres at 2.9% Nb2O5.

Importantly, drilling to the east of Luni extended mineralisation beyond the current mineral resource envelope. That included wide intercepts of 73 metres at 1.8% Nb2O5 and 35 metres at 3.2% Nb2O5, pointing to potential future resource growth.

In total, around 35,000 metres of drilling was completed during 2025, with the results expected to feed into an updated mineral resource estimate later this year.

Major Project Status adds momentum

WA1 also confirmed that the Luni Niobium Project has been granted Major Project Status (MPS) by the Australian Federal Government for an initial 3-year period.

This designation recognises Luni as a project of national significance and provides WA1 with coordinated access to federal agencies through the Major Projects Facilitation Agency.

At the same time, pre development works continued on site, including construction of a temporary airstrip and completion of bore installation and pump testing to support hydrogeological studies.

A very strong balance sheet

The company finished the December quarter with roughly $138.5 million in cash and no debt. Based on current spending levels, WA1 estimates it has close to 10 quarters of funding available, giving it significant flexibility to progress studies without near term capital raising risk.

Quarterly exploration and evaluation spend came in at $13.4 million, with most of that directed toward drilling and on-site programs.

What to watch next

While WA1 shares remain below last year’s levels, operational momentum at Luni continues to build.

The market will now be watching for an updated resource estimate and further drilling success. Progress on development studies could be key to unlocking the project’s longer-term value.

WA1 remains a stock worth watching this year.

The post This ASX stock just delivered more standout niobium results. Why is the market still on the fence? appeared first on The Motley Fool Australia.

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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.