Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Wednesday. In afternoon trade, the benchmark index is down 0.4% to 8,635.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is up 11% to 36.75 cents. This morning, this rare earths developer announced a binding offtake term sheet with Traxys North America. This will see Arafura supply 500 tonnes per annum of NdPr oxide from the Nolans project. Arafura’s managing director, Darryl Cuzzubbo, said: “We have long believed that the right partners would define the quality and durability of Arafura. The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.”

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat Leisure share price is up 12% to $51.51. This morning, the gaming technology company released its half-year results and revealed normalised revenue of $3.03 billion. This was up 6.4% in constant currency. Normalised EBITA increased 6.2% to $1.12 billion, or 14% in constant currency. Another positive is that the company has increased its on-market share buy-back program by $1 billion (up to $2.5 billion in aggregate) and extended it through to 12 May 2027. Aristocrat’s CEO and managing director, Trevor Croker, said: “Aristocrat delivered a strong first half, with clear progress across the business and market share gains in key segments. Our earnings growth reflects disciplined execution, strong revenue momentum throughout our portfolio, and a continued focus on efficiency and extracting operating leverage.”

BHP Group Ltd (ASX: BHP)

The BHP share price is up a further 3% to $61.78. This follows yet another strong rise in the copper price overnight, taking the base metal to a record high. In other news, this morning BHP announced the appointment of Mark Vassella as a non-executive director. Vassella has over 40 years’ experience in the global steel industry and materials value chain. He was the CEO and managing director of BlueScope Steel Ltd (ASX: BSL) from January 2018 to January 2026.

Perenti Ltd (ASX: PRN)

The Perenti share price is up 7% to $2.17. This morning, the mining services company announced that its Barminco business has been awarded an $850 million four-year contract by Bellevue Gold Ltd (ASX: BGL). The company’s CEO, Mark Norwell, said: “This contract award reinforces Barminco as a global leader in underground mining, further strengthening Barminco’s underground mining portfolio and earnings in Australia.”

The post Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Why are Sandfire, Capstone and BHP shares jumping in Wednesday’s sinking market?
• $10,000 invested in BHP shares 12 months ago is now worth…
• Which ASX 200 mining services provider is charging higher on a big contract win?
• Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again today?
• Aristocrat shares charge higher on strong result and $1b buy-back

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

Share prices for three of Australia’s major fast food operators have all been under pressure in recent months, with the analysts at Morgans saying this means it could be a good time to buy.

Consumers looking for quality

In a research note distributed to clients this week, the broker said it had done extensive market research, as well as its own consumer survey, which indicated that more than half of consumers cited food quality and taste as the most important factors affecting which fast food they bought, with only a small number citing cost as the primary issue.

The research also indicates that the sector has an opportunity to capitalise on changing consumer trends.

As Morgans said in its research note:

As alcohol consumption falls sharply among younger Australians, discretionary capacity is migrating toward food experiences that meet a quality threshold. Nearly six in ten Gen Z diners expect to spend more on eating out in 2026 than in 2025, making them the most growth-oriented dining cohort in the market.

All three of the companies analysed by Morgans have a buy rating, so without further ado, let’s have a look at what they’re saying.

Guzman Y Gomez Ltd (ASX: GYG)

Morgans said Guzman Y Gomez is in favour because of its high-quality, health-led proposition.

They added:

This supports structural long-term growth. Material earnings growth is well supported by daypart expansion, strong unit economics, a large white space opportunity and operating leverage, with the pace of US loss narrowing the key variable to monitor.

Morgans has a price target of $26.70 on Guzman Y Gomez shares compared with $17.14 currently.

Guzman Y Gomez is among the most-shorted stocks on the ASX.

Collins Foods Ltd (ASX: CKF)

The KFC and Taco Bell operator is a “defensive compounder”, Morgans says, having a cash-generative business, “with a management team set to navigate a difficult macroeconomic backdrop, and a value proposition that makes it a natural beneficiary of casual dining trade-down”.

Morgans said the German growth pipeline was effectively unpriced at current levels, “and the valuation is undemanding”.

Morgans has a price target of $12.50 on Collins Foods shares compared with $8.02 currently.

Colins Foods is valued at $935.6 million.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Morgans said Domino’s had been an unintentional case study for the sector by training customers to expect discounts, eroding the pricing power needed to maintain franchisee profitability.

The broker said Domino’s is now a turnaround story, with strong foundations and a solid management team.

They added:

However, we require consecutive results showing improved EBIT margins and evidence of returning franchisee profitability without further top-line deterioration before full conviction is warranted. We view their value proposition as weaker than peers.

Morgans has a price target of $25 on Domino’s shares compared with $15.63 currently.

The post Which 3 ASX fast food operators are going cheap at current levels according to Morgans? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Brokers say these 2 ASX shares are highly undervalued — here’s why I agree
• 3 ASX shares to buy for magnificent long-term growth
• Here are the top 10 ASX 200 shares today
• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement

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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Collins Foods and Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The fund managers in charge of the listed investment company (LIC) WAM Capital Ltd (ASX: WAM) are excited about the potential returns of certain ASX shares.

Smaller ASX shares may have more growth potential than larger companies because they are earlier on in their growth journeys.

WAM Capital aims to find the most compelling undervalued growth opportunities in the Australian market. Let’s look at two of them that were recently highlighted.

Artrya Ltd (ASX: AYA)

The fund manager described Artrya as a medical technology company that uses artificial intelligence (AI) to help detect coronary artery disease using non-invasive scans in emergency and primary care settings.

WAM noted that the Artrya share price increased in April after the release of the FY26 third-quarter results.

The investment team said the result highlighted a key milestone: the company has entered a revenue-generating phase with its foundation customer, Tanner Health, and is commencing patient scanning using Artrya’s platform.

Multiple major US partners, including Northeast Georgia Health and Cone Health, continued onboarding and are expected to commence scanning by early FY27, according to WAM, supporting a pathway to multi-site revenue growth.

The ASX share also progressed its Salix Coronary Flow module, an AI tool that assesses coronary blood flow from CT scans, towards US Food and Drug Administration (FDA) submission for regulatory approval, targeting rollout in the first half of FY27.

The fund manager concluded its thoughts on the business with the following:

We believe the share price performance demonstrates increasing confidence in execution, with scan volumes and revenue conversion being key near-term milestones.

FINEOS Corporation Holdings PLC (ASX: FCL)

The other ASX share WAM highlighted from the WAM Capital portfolio is FINEOS, which develops software used by global health insurers to manage core functions such as policy administration, claims handling, and customer billing.

The fund manager noted that the FINEOS share price rose during the month after a solid quarterly update that supported confidence in improving cash generation and contract momentum.

FINEOS reported free cash flow of €11.1 million and a closing cash balance of €47.1 million (up €19.3 million on the prior quarter), highlighting continued progress towards its FY26 profitability and cash targets.

WAM said that new contract wins, including a North American client and the Motor Accidents Insurance Board of Tasmania, also demonstrated continued demand for the platform.

Guidance was reaffirmed for FY26 revenue of €147 million to €152 million.

The fund manager concluded:            

We believe the April share price strength reflects growing confidence in the company’s ability to increase cash generation, and translate contract wins into sustainable earnings.

The post 2 exciting ASX shares to buy with big growth potential! appeared first on The Motley Fool Australia.

More reading

• Why Artrya, Cleanaway, DroneShield, and Nuix shares are pushing higher today
• Bell Potter just initiated coverage on this ASX AI stock with a buy rating

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on track to finish the day in the red. At the time of writing, the benchmark index is down 0.4% to 8,632.9 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 10% to $154.64. This follows the release of the big four bank’s third-quarter update this morning. CBA revealed that its operating income was flat on the first-half quarterly average, with higher net interest income offset by lower other operating income. Cash profit was down 1% on the first-half quarterly average. This was softer growth than the market was expecting. However, the federal budget overnight also appears to have impacted sentiment and could be adding further pressure to CBA shares on Wednesday. The team at Morgan Stanley has warned that the budget creates more downside risk for bank earnings multiples.

Healius Ltd (ASX: HLS)

The Healius share price is down 21% to 38.2 cents. This morning, the pathology company released a trading update and revealed that it expected to report EBIT of $30 million to $35 million in FY 2026. The company also spoke critically about the federal budget, highlighting that inadequate funding is causing challenges. It said: “Last night’s Federal Budget contains no new funding for pathology, a sector already operating under an indexation freeze for most tests. […] Inadequate funding has resulted in difficult decisions to cut staff, close collection centres and regional laboratories. This year’s Federal Budget will put additional pressure on a sector which is a critical part of Australia’s primary healthcare system.”

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 11% to $11.29. This follows the release of a trading update from the uranium producer this morning. Paladin Energy posted a 51% increase in revenue to US$209.1 million for the nine months. However, its net profit after tax was only US$1.7 million. It also recorded an operating cash outflow of US$36.4 million. Investors appear to have been expecting stronger financial results for the nine months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 4% to $5.10. This morning, the online furniture retailer revealed that FY 2026 revenue is expected to be in the range of $665 million to $675 million. This will be an increase of 11% to 12% on the prior corresponding period. Temple & Webster’s EBITDA is expected to be in the range of $20 million to $22 million. This will be an increase of 6% to 17% over the prior corresponding period. Temple & Webster’s outgoing founder and CEO, Mark Coulter, said: “We remain firmly focused on growing our market share and reaching $1 billion in revenue by FY28, and becoming a larger, more profitable business. However right now, given the uncertainty in the Australian economy, we have prudently chosen to rebalance between profit and growth in our core business.”

The post Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday
• Why is this ASX uranium stock crashing 11% after returning to profitability?
• Why did this ASX 300 stock just crash 15% to a 52-week low?
• Why are CBA shares crashing 8% today?
• Why the big four banks could keep delivering for income investors

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

Zip Co Ltd (ASX: ZIP) shares are sliding on Wednesday after the buy now, pay later group lost a long-running trade mark battle.

At the time of writing, the Zip share price is down 4.68% to $2.345.

That leaves the stock down around 19% in 2026, although it remains up about 18% over the past year.

The latest fall follows an ASX update confirming that the High Court of Australia has delivered judgment in proceedings involving Firstmac Limited.

Let’s take a closer look at the release.

Zip loses its High Court fight

In its announcement, Zip said the High Court has ruled against it in the ongoing Firstmac trade mark case.

The decision means Zip and relevant subsidiaries must stop using the “Zip” trade mark in Australia in relation to their products and services.

That change must happen within 28 days, unless the Federal Court allows another date.

Zip is one of the best-known names in Australian buy now, pay later (BNPL). Its brand appears across its app, merchant network, customer products, and marketing.

A forced change creates extra work at a time when investors have been hoping the company could stay focused on growth and profitability.

What changes from here?

The key point here is that this decision applies only to Australia.

Zip said the ruling does not affect its US business, which now represents about 80% of divisional cash earnings. It also said the decision does not affect the New Zealand business.

Both markets will continue using the Zip brand.

While that softens the blow somewhat, it can complicate things from a consumer perspective.

Australia remains the company’s original market, and the Zip name is still a visible part of the business locally.

Zip said it is prepared for this outcome and will use the change to evolve its Australian brand.

The company also said it will provide further updates in the coming weeks.

With that in mind, investors will now be watching how quickly the rebrand happens, how much it costs, and whether it creates customer confusion.

Foolish Takeaway

Zip’s US business is the main driver of group earnings, which helps explain why the sell-off has been contained.

Still, losing the right to use the Zip name across Australian products is not ideal and can appear messy.

Nonetheless, the company says it is ready to make the change.

For now, it seems that today’s decline looks like the market is just pricing in an unwanted distraction.

The post Zip shares sink after court loss. Is this ASX comeback stock in trouble? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 8 ASX 200 shares with renewed buy ratings this week
• Why Amcor, Credit Corp, Neuren, and Zip shares are charging higher today
• Why are Zip shares storming higher on Thursday?
• Why Zip shares rocketed 55% in April (and could keep rising)

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.

ASX technology stock Hipages Group Ltd (ASX: HPG) is trading close to its 12-month low. This makes it a compelling buy, according to the analyst team at Shaw and Partners.

Outlook impresses analysts

Hipages was among the companies which presented at Shaw and Partners’ recent TechRise conference held in Sydney, with founder and Chief Executive Officer Roby Sharon-Zipser apparently delivering a “confident” update.

The Shaw and Partners research note issued this week goes on to say:

FY26 guidance was reiterated, with management noting softer subscriber volumes but strong yield trends and another price increase from 1 July tied to new AI-enabled products. Management also appeared increasingly confident that growing job management adoption, disciplined cost control and AI-driven efficiencies can support structurally higher retention, monetisation and margins, while positioning AI as a competitive advantage supported by proprietary data and trusted marketplace infrastructure.

The Shaw report says Hipages management acknowledged that the second quarter had been “tough”. However, also noted the third quarter was better, and expects the fourth to further improve on that.

While Hipages said growing volumes was difficult, “stronger lead pricing and subscription upgrades are supporting improved yield outcomes despite softer volume trends”.

Hipages is planning to increase its pricing from July 1, and added that premium offerings might not be included in base subscriptions.

The Shaw report says:

Management said several AI capabilities ‘may not be part of the subscription’ and instead become “add-ons, so expansion revenue.’ The upcoming AI virtual assistant was framed as incremental monetisation rather than bundled functionality.

Diversification in train

Hipages also recently acquired a majority stake in VIZ Insurance – a digital first insurance provider which specialises in providing insurance for tradespeople.

Shaw said regarding that deal:

Management positioned the VIZ Insurance acquisition as a fast-track entry into embedded financial services rather than a standalone insurance investment. The acquisition adds ~4,500 insured trade businesses, expands HPG’s serviceable customer base and provides AFSL capability not previously held internally. Commentary also suggested VIZ could become a broader platform for future lending and financial products over time.  

Hipages’ guidance is for revenue of $90-$91 million, with free cash flow of $8-$10 million.

Hipages shares were changing hands for 74 cents on Wednesday, well down on the high over the past 12 months of $1.50.

Shaw and Partners has a price target of $2.50 on the shares, implying a return of well over 200%.

The company is valued at $101.3 million.

The post This ASX technology stock could more than triple in value: Broker appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX shares to buy with big growth potential!
• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Zip shares sink after court loss. Is this ASX comeback stock in trouble?
• Budget 2026: 3 investing changes you need to know about
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday

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

As you’ve no doubt heard about by now, last night saw the 2026 budget handed down.

Most Federal Budgets are blockbuster events, particularly for those interested in politics, economics, or both. But the one handed down last night was something special. Regardless of how one views the policy changes that Treasurer Jim Chalmers unveiled, it cannot be denied that this is one of the most ambitious and consequential budgets Australians have seen in years.

Today, let’s break down three major tax changes that will affect ASX investors.

3 budget changes that investors need to know about

Capital gains tax (CGT) reform

One of the biggest changes coming to ASX investors is the reform of the capital gains tax (CGT). As we’ve already discussed today, CGT is the tax that most ASX investors would already be intimately familiar with, given it is applied to the sale of investable assets like shares. Since changes were made to the CGT in 1999, all gains on assets held for longer than 12 months were eligible for a 50% discount.

However, from 1 July 2027, CGT will revert to its pre-1999 structure of using inflation indexing rather than a flat discount rate. This means that capital gains will be liable on all proceeds from selling investable assets. Investors will only be able to deduct inflation from assets owned longer than 12 months.

A 30% minimum rate will also apply. Plus, any assets owned prior to 1985 will also become taxable for the first time.

Negative gearing abolished

Another big change announced in last night’s budget was the abolition of negative gearing. This controversial policy has had its critics for years. It mostly applies to property investing, though. Negative gearing refers to the practise of being able to deduct a net loss from an investment property against other sources of income. It is beloved by many investors, particularly those in high-income tax brackets.

However, this policy has effectively been abolished for most investors. Any property purchased after last night will not be able to be negatively geared going forward, with investors only able to use net losses to offset against future income earned from the property itself.

There are exceptions for new builds and for properties that have already been purchased. Investors also have a grace period before the changes kick in on 1 July 2027. Even so, this is a major change to the Australian investing landscape.

A minimum 30% tax rate for trusts

Our final policy change that will impact investors is a new minimum tax rate for trust distributions. Until now, trusts have functioned as pass-through vehicles for income. The practice of ‘income splitting’, where income is funnelled from the earner to other people (often family members) through a trust, has long been controversial.

This has been addressed in the budget, with a new minimum tax rate of 30% to apply to all discretionary trust distributions. These changes will kick in on 1 July 2028, giving investors a couple of years to get their affairs in order.

Again, there are exceptions. Farmers will be exempt. As will charitable, superannuation, and testamentary trusts. But this is still a change that will affect many investors.

The post Budget 2026: 3 investing changes you need to know about appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX shares to buy with big growth potential!
• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Zip shares sink after court loss. Is this ASX comeback stock in trouble?
• This ASX technology stock could more than triple in value: Broker
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday

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.

Commonwealth Bank of Australia (ASX: CBA), Core Lithium Ltd (ASX: CXO), and Fortescue Ltd (ASX: FMG) shares are turning heads today.

During the Wednesday lunch hour, two of the big-name ASX stocks are charging ahead of the 0.2% losses posted by the S&P/ASX 200 Index (ASX: XJO) at the time of writing, while one is getting pummelled.

Here’s what’s grabbing investor interest.

Fortescue shares lift on legal news

Fortescue shares are up 2.3%, changing hands for $22.41 apiece.

The ASX 200 mining giant is making headlines after announcing, after market close on Tuesday, that the Federal Court had reached a decision regarding the Native Title Compensation Claim lodged by the Yindjibarndi Ngurra Aboriginal Corporation RNTBC.

The court found that Fortescue was liable to pay compensation for actions relating to the Solomon Hub, located in the Pilbara region of Western Australia.

Fortescue will pay $150 million for cultural losses and around $100,000 for economic losses.

“Fortescue accepts that the Yindjibarndi People are entitled to compensation,” the miner stated following the court decision.

Core Lithium shares jump on Finniss restart progress

Like Fortescue shares, Core Lithium is also enjoying a strong day of outperformance.

Shares in the resurgent ASX All Ords lithium stock are up a sharp 9% at the time of writing, trading for 36.5 cents each.

Core Lithium shares are making waves after the miner reported another big step towards restarting its flagship Finniss lithium project, located in the Northern Territory.

The miner halted operations at Finniss in January 2024 after global lithium prices crashed. In March this year, management announced a formal restart was underway.

Today, investors learned that Core Lithium has awarded a major underground mining contract at Finniss to Develop Global Ltd (ASX: DVP). Valued at $274 million, the contract spans three years of mining services.

First works are scheduled to commence in July.

Which brings us to…

CBA shares tank on Q3 profit decline

Joining Core Lithium and Fortescue shares in making waves today, CBA released its March quarter results (Q3 FY 2026) this morning.

And investors are reacting less than favourably, with CBA shares down a steep 9.7% at the time of writing, swapping hands for $154.96 apiece.

That selling pressure looks to be driven on two fronts.

First, the ASX 200 bank stock reported an unaudited cash net profit after tax (NPAT) of around $2.7 billion. That’s down 1% on CommBank’s first-half (H1 FY 2026) cash NPAT.

CBA shares also look to be catching headwinds from ongoing uncertainty stemming from the Iran war.

“Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty,” CommBank CEO Matt Comyn said.

Comyn noted:

Notwithstanding an already strong level of provisioning, we have chosen to further top up our collective provisions in the quarter to reflect heightened macroeconomic risks.

The post Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Core Lithium shares jump again after a major Finniss milestone
• Why are CBA shares crashing 8% today?
• Fortescue shares push higher despite order to pay Yindjibarndi $150m damages
• ASX mining stock drops despite big lithium news

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.

Catalyst Metals Ltd (ASX: CYL) shares are moving higher on Wednesday after the gold miner reported more high-grade drilling results from its Plutonic Gold Belt.

At the time of writing, the Catalyst Metals share price is up 3.24% to $5.73.

That gives shareholders another positive session after a stronger week. Catalyst shares are now up almost 14% over the past 5 trading days.

But despite the recent bounce, Catalyst shares are still down about 22% since the start of 2026.

Let’s take a closer look at the release.

Cinnamon drilling delivers again

In its ASX announcement, Catalyst said drilling at the Cinnamon underground deposit had returned more high-grade gold results.

The key result is that the underground strike length at Cinnamon has grown to 700 metres.

That is up 75% from the 400-metre strike length previously reported.

Catalyst said drilling has continued to confirm consistent, wide, high-grade underground zones. It also said those zones show strong potential to form a sixth underground ore source.

The location is also worth pointing out. Cinnamon sits around 25 kilometres from the underused Plutonic processing plant.

And because it sits close to the Plutonic plant, the latest drilling results could have a clearer path into future production growth.

What did the drilling show?

The latest drilling returned several strong intersections beneath the existing open pit.

Results included 38 metres at 10.5 grams per tonne gold from 45 metres, including 17 metres at 21.5 grams per tonne.

Other results included 37 metres at 3.7 grams per tonne, 7 metres at 14.6 grams per tonne, and 4 metres at 22 grams per tonne.

Catalyst said these results add to earlier high-grade intersections reported at Cinnamon.

Managing director and CEO James Champion de Crespigny said the drilling had built the company’s confidence in the deposit.

He said Cinnamon has the potential to become a fifth underground ore source feeding the centralised Plutonic processing plant.

Foolish bottom line

The bigger focus is Catalyst’s growth plan for the wider Plutonic Gold Belt.

Catalyst said it is aiming to lift production from 410,000 ounces over 3 years to 200,000 ounces a year for more than 10 years.

But Cinnamon could become one of the extra ore sources needed to support that target.

The company said Plutonic currently has 1.5 million ounces of reserves across 5 mines. These include Plutonic Main and East, K2, Trident, and Old Highway.

About two-thirds of the 10-year production target is already underwritten by reserves, with another 15% sitting in inferred resources and 21% in exploration targets.

The post This ASX gold stock is climbing today after a big drilling update appeared first on The Motley Fool Australia.

More reading

• This ASX 200 gold miner is rising on big news
• 2 ASX mining shares to buy: experts
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy right now

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.

Sandfire Resources Ltd (ASX: SFR), Capstone Copper Corp (ASX: CSC), and BHP Group Ltd (ASX: BHP) shares are shaking off the broader market malaise today and charging higher.

As we head into the Wednesday lunch hour, the S&P/ASX 200 Index (ASX: XJO) is down 0.3%.

Here’s how these three ASX 200 mining giants are tracking at this same time:

• Capstone Copper shares are up 4.5% at $13.84 each
• Sandfire shares are up 6.0% at $20.24 each
• BHP shares are up 2.8% at $61.42 each

Any guesses what links these three stocks together?

If you said they’re all ASX copper shares, go to the head of the virtual class.

And, as you can likely guess by their surging shares today, global copper prices are heating up.

Sandfire, Capstone, and BHP shares lift on copper surge

The red metal gained 1.4% overnight to currently be trading for US$14,021. This sees the copper price up more than 47% in 12 months and trading right near its all-time highs.

Now, while Sandfire Resources and Capstone Copper are both fairly pure play copper stocks, BHP is a relative new comer to the ASX 200 copper stock list.

However, in the first half of the 2026 financial year, surging copper prices and increased production offered a big boost to BHP shares. Indeed, H1 FY 2026 marked the first time that, at US$8 billion, copper drove more than 50% of BHP’s earnings, surpassing iron ore.

For the full 2026 financial year, BHP expects copper production to come in at the higher end of its guidance of between 1.9 million to 2.0 million tonnes.

And, with BHP stock charging higher this past month while Commonwealth Bank of Australia (ASX: CBA) shares have gone in retreat, BHP’s crown as the biggest company on the ASX is looking more securely in place.

BHP currently has a market cap of some $312.6 billion, compared to a market cap of $260.9 billion for CBA shares.

What’s driving the copper price higher?

You may have heard of copper referred to as ‘Dr Copper’, for the red metal’s close links to the global economy.

If that link is in play today, then the near record copper prices we’re seeing portend ongoing economic growth.

Among the reasons copper, and by correlation Sandfire, Capstone, and BHP shares, are enjoying another lift today is a reported rebound in demand from China. This comes as global supply growth remains tight.

The world’s push towards electrification and the fast-rising demand from copper hungry AI-enabled data centres is also supporting copper’s bull run.

Commenting on the surging copper price, Ewa Manthey, commodity strategist at ING Group, said (quoted by The Australian Financial Review):

Breaking above US$14,000 highlights how tight the copper market has become. Low inventories outside the US and ongoing supply constraints are leaving prices highly sensitive to any incremental demand.

The post Why are Sandfire, Capstone and BHP shares jumping in Wednesday’s sinking market? appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in BHP shares 12 months ago is now worth…
• Are these ASX ETF giants still worth buying today?
• How much do I need to invest in ASX shares for $500 a month of passive income?
• Why BHP, GQG, Inghams, and Symal shares are pushing higher today
• Copper is going ballistic. Which ASX shares are riding the boom?

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