Author: openjargon

The BHP Group Ltd (ASX: BHP) share price is having a rough session on Thursday.

At the time of writing, the mining giant’s shares are down over 3% to $62.71.

That is a meaningful move for a business of BHP’s size, particularly after the stock has had such a strong run recently.

So, what is going on?

Iron ore concerns are weighing on sentiment

The weakness appears to be linked to concerns about the iron ore market.

Iron ore remains a major earnings driver for BHP, so anything that changes the supply outlook can quickly affect investor sentiment toward the stock.

The latest concern is coming from Africa, where exports from Guinea’s giant Simandou iron ore project have surged.

According to Bloomberg, shipments from the project’s Morebaya port reached 2.2 million tonnes in May, up from 1.3 million tonnes in April. That compares with 0.6 million tonnes or less in each of the first three months of the year.

That ramp-up has caught investors’ attention because Simandou has long been viewed as a project with the potential to upend the global iron ore market over time.

More supply from a large, high-grade project can add pressure to prices, particularly if demand does not grow quickly enough to absorb it.

Why this impacts BHP

BHP is a diversified miner, but iron ore is still central to its earnings and cash flow.

When the market becomes more cautious on iron ore prices, large producers such as BHP, Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) can all come under pressure.

There has also been broader caution around the sector. RBC downgraded Rio Tinto shares this week on expectations of a weaker iron ore price outlook. While that downgrade was about Rio Tinto, the concern is relevant to BHP as well, as both companies remain heavily exposed to the iron ore market.

If investors believe iron ore prices could be weaker in the future, they may mark down the expected earnings, cash flow, and dividends of the big miners.

Why I remain positive

Even so, I do not think today’s fall changes the long-term BHP investment case.

Iron ore weakness is a real risk, and investors should not ignore it. Commodity markets can turn quickly, and BHP’s earnings will always be affected by prices it cannot control.

But I still like BHP shares as a long-term buy and hold.

The biggest reason is copper.

Copper demand could be supported for many years by electrification, data centres, renewable energy, electricity networks, industrial growth, and electric vehicles. At the same time, new copper supply can be difficult, expensive, and slow to bring online.

That gives BHP a valuable long-term growth angle beyond iron ore.

I also like that BHP has scale, strong assets, financial strength, and a diversified commodity base. Iron ore may be under pressure today, but the group also has copper and potash exposure, which could become more important over the next decade.

Buy the dip?

I think today’s weakness in the BHP share price could be a buy-the-dip opportunity for patient investors.

That does not mean BHP will rebound immediately. If iron ore prices remain under pressure, the share price could stay volatile.

But I would rather buy a high-quality resources giant when the market is worried about one part of the business than wait until everything looks perfect again.

BHP is not cheap after its strong run, and the iron ore outlook deserves attention. But I think the company’s copper exposure, balance sheet strength, and long-term optionality still make it one of the best ASX mining shares to own.

Foolish Takeaway

The BHP share price is sinking today as investors react to a weaker-looking iron ore backdrop, including the faster ramp-up of exports from Guinea’s Simandou project.

That is a valid concern. Iron ore remains extremely important to BHP.

But I do not think it is the only story. BHP’s copper exposure is a powerful long-term growth driver, and I think that could become increasingly important over time.

For investors willing to look through short-term commodity worries, today’s pullback may be an opportunity to buy a world-class miner at a more interesting price.

The post Why is the BHP share price sinking today? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX shares at 52-week highs I’d still buy
• Guess which ASX 200 share is jumping 17% on earnings guidance upgrade
• China’s PMI data beat forecasts. Investors should be looking at these ASX resource stocks
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Motley Fool contributor Grace Alvino 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.

It has been a rough session for IperionX Ltd (ASX: IPX) shares on Thursday.

The S&P/ASX 300 Index (ASX: XKO) critical minerals stock is sliding even after releasing a major update on its US project.

At the time of writing, the IperionX share price is down 10.30% to $5.31.

Today’s weakness follows a strong run for the stock. IperionX shares are still up around 18% in a month and 43% over the past year.

Here’s what was in the update.

A big US project update

According to the release, IperionX has completed the definitive feasibility study for its Titan Critical Minerals Project in Tennessee.

The project is designed to produce titanium minerals, zircon concentrate, and heavy rare earth concentrate from the McNairy Formation.

IperionX said the DFS showed an after-tax net present value of US$813 million, an after-tax internal rate of return of 39%, and a payback period of 3.6 years.

It also forecast life-of-mine EBITDA of US$2.8 billion and after-tax free cash flow of US$1.9 billion.

The project has a 14-year mine plan and is expected to be developed in stages. Phase 1 development capital is estimated at US$228 million, while Phase 2 requires a further US$153.2 million.

That brings total development capital to US$381.3 million.

The maiden ore reserve was another major part of the update. Titan has a reserve of 117 million tonnes at 3.2% total heavy minerals.

IperionX said this includes about 3.7 million tonnes of heavy minerals.

Why the US wants projects like Titan

IperionX is positioning Titan as a domestic US source of critical mineral feedstocks at a time when supply chains remain sensitive.

The project is expected to produce heavy rare earth concentrate, titanium minerals, and zircon concentrate.

At Phase 2, annual production is forecast to include 5,287 tonnes of heavy rare earth concentrate, 118,658 tonnes of ilmenite, 24,656 tonnes of rutile, and 65,668 tonnes of zircon concentrate.

IperionX said they have potential uses across defence, aerospace, energy, robotics, semiconductors, and advanced manufacturing.

Titan is also located near road, rail, power, water, and gas infrastructure in Tennessee.

Why are the shares falling?

Today’s fall looks like a mix of profit-taking and caution around what comes next.

IperionX shares had already climbed 45% over the past year, so some investors may have used the DFS as a chance to lock in gains.

The project numbers are large, but Titan still needs US$381.3 million in total development capital across Phase 1 and Phase 2.

The next test is whether IperionX can secure funding and turn the study into a working project.

The post Why this red-hot ASX 300 stock is tumbling 10% today 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.

SpaceX (NASDAQ: SPCX) has revealed it will issue new shares in its initial public offering at US$135 apiece, valuing the company at US$1.75 trillion and setting the stage for the biggest IPO in US history.

Records to tumble

The new valuation of the company will also make Elon Musk the first trillionaire on record, once his shareholdings in various companies, such as Tesla Inc (NASDAQ: TSLA), The Boring Company, and SpaceX, are combined.

The share price was announced in an update to the company’s prospectus, which stated it would issue 555,555,555 new shares via the IPO, raising about US$75 billion.

The new filing also reveals that Mr Musk will retain majority control of the company, with the “founder, Chief Executive Officer, Chief Technical Officer and Chairman of our board” holding 82.4% of the voting stock in the company once it is listed.

The company said this meant Mr Musk would have free rein as far as decision-making goes.

The company said regarding Mr Musk’s majority stake:

As a result, Mr. Musk will be able to control the outcome of matters requiring shareholder approval. This includes the election of (i) a majority of our board, through his ownership of Class B shares (as Class B Directors), for so long as he holds a majority of the voting power of the Class B common stock, and (ii) the remainder of our board, for so long as he holds a majority of the combined voting power of the Class A and Class B common stock. As a result, we will be a “controlled company” under the corporate governance rules of Nasdaq following the completion of this offering and, as a result, we intend to rely on exemptions from certain corporate governance requirements.

Strong revenue but profits elusive

SpaceX comprises three divisions: the SpaceX rocket division, the Starlink satellite internet division, and the artificial intelligence division.

Of the three, only Starlink is turning a profit at the moment, with SpaceX overall posting a US$2.59 billion loss on revenue of US$18.7 billion in 2025.

For the first three months of 2026, the Space division lost US$662 million, the AI division lost US$2.47 billion, and the connectivity division made a profit of US$1.19 billion.

The company’s prospectus is littered with lofty ambitions, saying, for example, “Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars”.

Australian investors still waiting

In terms of Australian investors who want to get in on the action, CommSec wrote to its customers last week, saying the IPO is “expected” to include an Australian retail offer and that it will be the lead Australian retail broker.

CommSec said the shares will not be listed on the ASX, and its customers will need an international shares account.

CommSec has not updated its IPO page since, and there is still no listing for SpaceX shares there.

It will also be possible for Australians with an international trading account to buy and sell shares once trading begins on the NASDAQ exchange, expected around June 12.

The post SpaceX reveals its share price and huge valuation, with Musk to retain control appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

S&P/ASX 300 Index (ASX: XKO) stock Propel Funeral Partners Ltd (ASX: PFP) is taking a tumble today.

Propel Funeral shares closed yesterday trading for $3.54. In early-morning trade on Thursday, shares are changing hands at $3.06 apiece, down 13.6%.

For some context, the ASX 300 is down 0.9% at this same time amid investor concerns over renewed fighting in the Middle East.

This underperformance follows a trading update released before market open this morning.

Here’s what’s happening.

ASX 300 stock tumbles on guidance update

Propel Funeral shares are getting walloped after the company, which counts as the second largest provider of death care services in Australia and New Zealand, reported on three new acquisitions as well as its full-year FY 2026 revenue and earnings guidance.

Turning to guidance first, the ASX 300 stock is forecasting FY 2026 revenue in the range of $225 million to $230 million. Should revenue come in at the low end of that range, that would represent a decline from the $225.8 million in revenue Propel Funeral Partners reported in FY 2025.

On the earnings front, the company expects FY 2026 operating earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in the range of $54.5 million to $56.5 million. As with revenue, should full-year earnings come in towards the lower end of that range, it will be well below the $56.2 million in operating EBITDA the company reported in FY 2025.

Management noted this guidance is based on a number of assumptions.

Those include the ASX 300 stock seeing a roughly 1% year-on-year increase in the number of funerals it performs, or roughly 22,850 for the full year.

The company also expects the average revenue per funeral it receives to increase by around 2% from last year.

As for those acquisitions…

Propel Funeral Partners expands in New Zealand

In news that could support the ASX 300 stock longer term, the company reported that it has inked binding agreements to acquire three funeral services providers as well as the related assets, including one cremation facility.

Propel Funerals said it will pay $9.1 million for the acquisitions, which are all located in regional markets in New Zealand.

The three businesses together were reported to generate $4 million in revenue. Operating from four locations, all of which Propel will acquire on settlement, they conduct more than 700 funerals a year.

Subject to meeting customary conditions, management expects the acquisitions to be completed in Q4 FY 2026 and/or Q1 FY 2027.

The new assets are expected to be earnings accretive in year one.

The post Why is this ASX 300 stock crashing 14% today? appeared first on The Motley Fool Australia.

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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.

If you are in the market for new investment ideas this month, then it could pay to listen to what Bell Potter is saying.

The broker has been busy updating its core portfolio, highlighting three key themes that it is focusing on. These are:

1) Resources and the global capex cycle 2) Inflation and rate cycle beneficiaries 3) Non-cyclical growth with strong competitive positions.

With that in mind, let’s look at three ASX 200 shares that it rates as best buys:

Computershare Ltd (ASX: CPU)

This share registry company could be an ASX 200 share to buy in June according to Bell Potter.

The broker believes it is well-placed to benefit from interest rates staying higher for longer. It explains:

Computershare offers high-quality, defensive exposure to a “higher for longer” global rate environment through its margin income franchise, layered with cyclical upside from accelerating corporate action and IPO activity. Tokenisation is priced as a structural risk but increasingly looks like an opportunity CPU is positioned to capture.

Mineral Resources Ltd (ASX: MIN)

Another ASX 200 share that has been named as a best buy is mining and mining services company Mineral Resources.

Bell Potter likes the company due to its exposure to a tightening lithium market. It also highlights that there are a number of potential catalysts for a re-rating. It said:

Mineral Resources offers leveraged exposure to a tightening lithium market through ramping volumes at Wodgina, Mt Marion, and Bald Hill, with spodumene spot prices sitting well above the long-term assumptions embedded in the current share price. The investment case rests on a three-way path to re-rating: volume growth, consensus catch-up on earnings, and balance-sheet repair through FY27–FY28 de-gearing.

Worley Ltd (ASX: WOR)

A third ASX 200 share that gets the thumbs up from Bell Potter is global professional services company Worley.

The broker believes the company is well-placed to deliver strong earnings growth over the remainder of the decade. It believes this could support a re-rating of its shares. Bell Potter explains:

Worley is set to enter a period of stronger demand for its services driven by rising commodity prices and a structural shift toward energy security, with the recent investor day flagging double-digit EBITA CAGR to FY30 versus consensus at just 3%. Depressed valuation, low earnings expectations, and disciplined capital allocation create a positive risk/reward where investors should benefit from both EPS upgrades and a P/E re-rate.

The post Bell Potter names the best ASX 200 shares to buy in June 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 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 S&P/ASX 200 Index (ASX: XJO) has fallen into the red again on Thursday morning, reversing most of the gains made so far in June, and continuing the run of volatility.

I always think that when markets look uncertain, it’s a good idea to review your share portfolio and make sure your investments are in the right place.

Here are two ASX 200 shares I’d buy this month, and one I’d sell.

I’d buy Catalyst Metals Ltd (ASX: CYL) shares

Catalyst Metals shares are down around 2% at the time of writing on Thursday morning, and are trading at $5.28 a piece. The drop means the shares are now around 29% lower for the year to date and 26% lower than 12 months ago.

It’s been a volatile run for the ASX gold producer this year. Its share price spiked to an all-time high in January after it announced a significant new high-grade discovery at its Plutonic Gold Belt. 

But it has lost around 44% of its value ever since. The downturn is likely due to a significant increase in mining costs and a weaker ASX gold sector after a strong run late last year. Fluctuating sentiment has led many investors to sell their gold shares and rotate into larger, more stable assets. 

But Catalyst Metals has shown a long period of operational consistency and organic growth. The miner expects production to increase towards the latter half of FY26 as well. 

It also posted a positive drilling update in early May. The results included visibility of a potential mine life of more than 10 years at approximately 60,000 ounces per annum.

I think the Catalyst Metals’ share price will rebound soon enough, and I’d buy in the dip while they’re still going for cheap.

Analysts rate the ASX 200 shares as a strong buy and tip an average target price of $13.75. That implies a potential 160% upside at the time of writing.

I’d buy Guzman Y Gomez (ASX: GYG) shares

The Mexican-themed fast-food restaurant chain’s shares hit a historic low in early April but have since rebounded 25%. At the time of writing, the ASX consumer discretionary shares are changing hands for $19.05 a piece. The shares are still 12% lower year to date and 37% lower than a year ago.

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look like they have finally changed course. The latest rebound comes on the back of news that the company closed its struggling US stores to focus its business expansion on Asia and Australia.

The company’s long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales. Its Singapore expansion has already become successful, and it looks like the company can quickly build its presence in the right markets.

Most analysts rate the ASX 200 shares as a buy and tip a 28% upside to an average $24.53 target price, at the time of writing.

I’d sell Beach Energy Ltd (ASX: BPT) shares

Beach Energy shares are slightly higher today, up around 0.2% to $1.10 at the time of writing. The oil and gas exploration and production company’s shares are now around 7% lower year to date and 20% lower than 12 months ago.

While the oil and gas explorer and producer’s shares flew higher off the back of geopolitical tensions in March, they tumbled just as quickly.

Investor sentiment was slashed when the company posted its third-quarter update in April. It revealed softer sales, a guidance downgrade, and ongoing operational disruptions. 

The update spooked investors, and now many are worried about the company’s earnings outlook.

The majority of brokers have a sell rating on the shares. But the $1.12 average target price still implies a potential 3% upside, at the time of writing.

The post 2 ASX 200 shares I’d buy and 1 I’d sell this month 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 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.

Pro Medicus Ltd (ASX: PME) shares are in the spotlight again on Thursday after the health imaging technology company announced yet another contract win.

At the time of writing, the ASX 200 tech stock is up 3% to $164.65.

This compares favourably to the S&P/ASX 200 Index (ASX: XJO), which is down 0.85% in early trade.

It also means the company’s shares are now up 23% since this time last week.

Pro Medicus shares higher on new contract win

As a reminder, earlier this week Pro Medicus revealed that its wholly-owned U.S. subsidiary, Visage Imaging, signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN).

AHN is one of the largest health networks in the Pittsburgh metro area, providing care to 29 Pennsylvania counties, as well as portions of New York, Ohio, and West Virginia. It is a unified network comprised of 14 hospitals, a total of 2,500 beds, and more than 200 primary-care and specialty-care practices in more than 300 clinical locations and offices.

The contract renewal came with increased per-transaction fees.

This morning, Pro Medicus shares are rising after it advised that Visage Imaging has signed a five-year, A$16 million contract renewal, including the additions of Visage 7 Workflow and Visage 7 Cardiology Imaging, with The Ohio State University Wexner Medical Center (OSUWMC).

The company notes that OSUWMC is a large multidisciplinary academic medical center located in Columbus, Ohio. It employs approximately 22,000 staff, 2,000 physicians, supporting over 1,400 inpatient beds, across six hospitals. OSUWMC is also the teaching hospital for The Ohio State University College of Medicine.

Commenting on the renewal, Pro Medicus’ CEO, Dr Sam Hupert, said:

OSUWMC provides world class, acclaimed patient care. Renewing this contract, to now include the additions of Visage 7 Workflow and Visage 7 Cardiology Imaging, confirms our belief that we have extensive native capabilities that Visage customers appreciate as they seek to retire legacy solutions and continue to scale their Visage 7 Enterprise Imaging Platform.

Dr Hupert revealed that this latest renewal brings the total renewals for the financial year to A$141 million. He believes this is a testament to the strong returns on investment the software provides for healthcare institutions. He said:

This contract brings our total renewals for the financial year to A$141M, maintaining our track record of client retention. This underpins our belief that our solution provides unparalleled return on investment from both a financial and a clinical perspective.

The post Up 23% in a week! Why are Pro Medicus shares charging higher again today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. 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.

Treasury Wine Estates Ltd (ASX: TWE) shares are pushing higher on Thursday morning.

The wine giant’s shares are up 12% to $4.64.

This is a welcome lift after a very difficult period for investors.

Prior to today’s rise, Treasury Wine shares were down approximately 50% over the past 12 months.

Why are Treasury Wine shares rising?

Investors appear to be responding positively to the company’s Investor Day update and the transformation plan outlined by management.

Treasury Wine is aiming to become a more focused, simpler, and financially stronger wine business through a program called Ascent.

This strategy will focus the company on the brands and markets where it believes it can win, while cutting costs, simplifying operations, reshaping its supply chain, and strengthening its balance sheet.

What is changing?

A major part of the plan is a sharper focus on Treasury Wine’s strongest brands.

The company is putting more emphasis behind its Power Brands and Regional Heroes. These include key brands such as Penfolds, DAOU, and Matua.

Management plans to increase investment behind these brands, while progressively reducing its focus on non-priority brands.

Treasury Wine is also planning to rationalise its portfolio over time. This could include transitioning, retiring, or selling some lower-priority brands and supporting assets.

The company believes this will improve returns and allow it to put more resources behind the brands with the best growth prospects.

Cost savings and supply chain changes

Treasury Wine advised that it is targeting $100 million per year in cost reductions, which are expected to be fully realised by FY 2029.

This will be supported by a new regionally-led operating model, simpler decision-making, and a more accountable performance culture.

The company is also planning a major supply chain transformation, particularly in Australia and the United States.

This includes reducing excess winery and packaging capacity, exiting surplus and underperforming assets, and better aligning production with long-term demand.

Americas review

The Americas business remains an important focus for investors.

Treasury Wine said the region contains market-leading luxury brands, but also faces challenges from elevated inventory levels and excess supply chain capacity.

The company is accelerating actions to address these issues, including reviewing options to improve long-term shareholder returns.

This is important because weakness in the Americas business has been one of the big concerns weighing on the Treasury Wine share price over the past year.

Outlook

Management provided an update on its outlook at the event.

It expects FY 2026 EBITS to be in the range of $480 million to $490 million.

For FY 2027, management then expects EBITS to be at least equivalent to FY 2026, while the company continues to rebalance customer inventory levels in China and the United States.

Revenue growth is expected from FY 2028 once this inventory rebalancing is completed.

The company also expects leverage to peak at approximately 2.9 times in FY 2026 before returning to its target of below 2.0 times by the end of FY 2028.

Unfortunately, dividends will remain suspended for now, with the board to consider resuming payments as leverage moves back toward target.

Overall, after a painful 12 months for shareholders, investors appear to be taking encouragement from Treasury Wine’s clearer strategy, cost reduction plans, and pathway to a stronger balance sheet. However, there is still a long road ahead.

The post Treasury Wine shares jump 12% on big investor update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the world’s largest gold miner, Newmont Corporation (ASX: NEM) is one of the first places that investors look when they want exposure to gold.

But being the biggest doesn’t necessarily mean it is the best ASX gold stock to buy.

Right now, Bell Potter believes one smaller player in the sector could be destined to deliver material returns to investors over the next 12 months.

Which ASX gold stock?

The gold stock that the broker is bullish on is Waratah Minerals Ltd (ASX: WTM).

It is a New South Wales based gold-copper exploration and development company.

Bell Potter highlights that Waratah Minerals’ flagship project is its 100%-owned Spur gold-copper project, which is an advanced stage, pre-resource exploration project in the Lachlan Fold Belt.

This is close to the Cowal Gold Mine owned by Evolution Mining Ltd (ASX: EVN).

The broker points out that the ASX gold stock is ramping up its drilling program. It said:

WTM has ramped up an 80,000m drilling program planned for 2026 which now comprises 10 active drill rigs. The program’s objective is to deliver rapid resource growth and high-grade discoveries at the Spur and Consols Zones. To date, the program has expanded known mineralisation, infilled existing zones and discovered new high-grade shoots beyond previously drilled areas. These results support the view that the Spur Project may host a major epithermal-porphyry gold system comparable to the known world-class deposits in the East Lachlan region.

The good news is that initial met testing shows high gold recoveries according to the broker, which bodes well for the future. The broker commented:

 WTM has received successful early-stage metallurgical test work results from the Spur Zone, achieving gold recoveries of 90-97% via gravity and conventional cyanide leaching. This is a material initial de-risking milestone for WTM, pointing to a straightforward, conventional process route likely centred on a gravity circuit followed by carbon-in-leach (CIL) or similar. These conventional processing methods typically imply lower processing costs, lower capital requirements as well as reduced technical and operability risks.

Should you invest?

According to the note, Bell Potter has retained its speculative buy rating on the ASX gold stock with an improved price target of $1.05 (from 95 cents).

Based on its current share price of 70 cents, this implies potential upside of 50% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter said:

The Spur project is showing strong indications of delivering a gold-copper deposit of substantial scale and grade in a strategic setting. We see potential for the delineation of a regionally significant gold Resource of 2.5-3.0Moz at competitive gold grades between 0.8-1.0g/t Au. This informs our valuation, which is based on a 50:50 blended EV/Resource ounce multiple and risk-adjusted notional mining scenario. We increase our Valuation to $1.05/sh and retain our Speculative Buy recommendation.

The post Forget Newmont, this ASX gold stock could rise 50% 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 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.

When share market volatility arises, the wisest investment decision is to lean into ASX defensive stocks.

Defensive stocks are companies whose earnings tend to remain relatively steady throughout times of economic instability. They typically operate in “non-discretionary” industries where demand remains relatively stable even when consumer confidence dips. 

Their stable nature means they can help reduce the volatility of an overall investment portfolio.

This is particularly important during the current economic climate, where geopolitical tensions, stubbornly high inflation, and erratic sentiment are causing some ASX stocks to fluctuate wildly in value.

Here are three excellent ASX defensive stocks I’d have in my portfolio to weather the next storm.

Telstra Group Ltd (ASX: TLS)

Telstra is a dominant Australian telecommunications company. 

It owns and operates the nation’s largest mobile network and is a major fixed-line internet provider. Mobile phone and internet services are not considered daily necessities but rather discretionary items, which makes Telstra a classic ASX defensive stock.

The company is well-positioned to record a stable revenue and earnings, regardless of the stage of the economic cycle or how the ASX is faring overall.

Telstra’s defensive nature also means it can pay shareholders a consistent, reliable passive income. 

The telco’s most recent dividend was paid out in March. Shareholders were given an interim dividend of 10.5 cents per share, 90.48% franked. 

For FY26, Telstra is forecast to pay a total dividend of 21 cents (up from 19 cents in FY25). This translates to a forward dividend yield of around 4.1% excluding franking credits, at the time of writing. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a leading Australian blue-chip company. At the time of writing, the business is the 7th largest company listed on the ASX with a market cap of around $90 billion. 

The company is well-established and financially sound with a history of reliable growth and stability. 

It’s this stability and consistent long-term net profit growth that make the company a fantastic ASX defensive stock. It also means Wesfarmers is able to pay a reliable and consistent passive income to shareholders.

Wesfarmers’ most recent dividend payment was handed out to investors in February. The Kmart and Bunnings owner paid a fully-franked interim dividend of $1.02 per share, up 7.4%.

For FY26, the ASX defensive stock is expected to pay a total $2.13 dividend per unit, which translates to a forward dividend yield of around 2.7% at the time of writing.

Transurban Group (ASX: TCL)

Transurban is a global infrastructure business that builds and operates major urban toll road networks, tunnels, and bridges. It operates 22 assets across Australia, the US, and Canada.

It is widely considered a high-grade defensive ASX dividend stock. 

That’s because roads are an essential service. Even in the event of a downturn, people still need to travel to work or transport goods and services. Transurban’s toll roads typically have stable traffic volumes year-round, which means the business enjoys resilient cash flow regardless of economic conditions. 

Another bonus is that most of its toll roads are on an annual contract. This means Transurban is able to increase its toll prices each year in line with rising inflation.

In February, the toll road operator paid an interim dividend of 34 cents per share, unfranked, to its shareholders.

For FY26, the company has forecast a distribution of 69 cents per security, which implies a forward dividend yield of around 4.6%, at the time of writing.

The post 3 ASX defensive stocks to buy while sharemarkets are volatile 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 positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.