Author: openjargon

Sims Ltd (ASX: SGM) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) metal and electronics recycler closed yesterday trading for $20.17. During the Thursday lunch hour, shares are changing hands for $19.93 apiece, down 1.2%.

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

Taking a step back, Sim shares have strongly outperformed over the past year. Shares in the ASX 200 industrial stock have gained 45% in 12 months, racing ahead of the 15.4% one-year gains posted by the benchmark index.

And that doesn’t include the two fully-franked dividends the company paid eligible stockholders over this time. Sims stock trades on a fully-franked trailing dividend yield of 1.4%.

And looking to the months ahead, Shaw and Partners’ Jed Richards expects the stock is well-placed to deliver more outperformance (courtesy of The Bull).

Here’s why.

Should you buy Sims shares today?

“Sims offers exposure to long term stronger and sustainable commodity themes through its global metals recycling operations, particularly in Europe,” said Richards, citing the first reason you might want to buy Sims shares today.

As for the second reason, Richards noted, “Demand for recycled inputs, such as lithium, copper and gold, continue to grow as electrification and decarbonisation trends advance.”

Richards concluded:

The business provides leverage to improving industrial activity, although earnings can be volatile given commodity price swings and cyclical end markets.

In our view, the strategic positioning justifies a buy despite near term volatility.

The (slightly less) bullish case for the ASX 200 industrial stock

DP Wealth Advisory’s Andrew Wielandt also ran his slide rule over Sims shares on The Bull this week.

“Sims is a global metals and electronics recycler providing exposure to North America, the United Kingdom, Australia and New Zealand,” said Wielandt, who has a hold recommendation on the ASX 200 stock following the strong run higher in its share price.

According to Wielandt:

The outlook for Sims is encouraging in response to the company upgrading full year earnings guidance. Impressive share price gains in the past 12 months leaves SGM a hold for now and a potential buy on further weakness. The stock has risen from $12.51 on April 9, 2025 to trade at $20.62 on April 9, 2026.

What’s the latest on Sims shares?

As Wielandt mentioned above, on 18 March, Sims announced that it expects full-year FY 2026 underlying earnings before income on tax (EBIT) to be in the range of $350 million to $400 million.

That’s a big leg up from FY 2025 underlying EBIT of $175 million.

Sims shares closed up 9.9% on the day of the announcement.

The post Up 45% in a year, 3 reasons to buy Sims shares today appeared first on The Motley Fool Australia.

More reading

• Forget CBA shares and buy this ASX 200 stock: Shaw & Partners
• Sims Group earnings: SLS now core to growth
• Sims Group posts robust US growth through SA Recycling in FY26
• 3 ASX 200 stocks screaming higher in this week’s sinking market
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares hit an all-time high today, extending one of the ASX’s strongest large-cap runs.

At the time of writing, the PLS share price is up 4.17% to $3.615, marking a new record and taking its 12-month gain to more than 300%.

The rally builds on what has already been a huge run, with stronger lithium sentiment and institutional buying continuing to support the shares.

The latest move suggests buyers are still comfortable backing the stock even at peak levels.

Here’s what the company announced.

PLS upsizes its debt raise to US$600 million

According to the release, PLS has priced a US$600 million senior unsecured notes offering due 2031. The size is above the original US$500 million flagged earlier this week.

The notes will carry a 6.875% coupon and settle on 22 April, subject to customary conditions.

Management said that part of the proceeds will be used to refinance the company’s existing $375 million revolving credit facility and its $1 billion revolving credit facility.

The balance will be used for general corporate purposes, giving the lithium producer added flexibility as it continues expanding its battery materials footprint across Australia, Brazil, and South Korea.

At the same time as the deal closes, PLS said it plans to reduce the size of its revolving credit facility from $1 billion to $500 million.

Why investors are backing the funding strategy

PLS is making this move while its share price is at record highs and while lithium market sentiment has continued improving through 2026.

That gives management a stronger position to lock in longer-dated capital without leaning on equity markets.

The announcement also follows Fitch assigning the company a BB issuer rating with a stable outlook earlier this week. The rating likely helped support institutional demand for the notes.

The update looks less about near-term balance sheet pressure and more about strengthening funding capacity ahead of future growth options.

That can include downstream lithium chemicals, Brazilian project development, and broader strategic partnerships.

Foolish Takeaway

I still think this looks like a smart funding move from PLS while sentiment and balance sheet strength are working in its favour.

The company is locking in longer-dated capital without touching equity, which should help preserve upside if lithium conditions keep improving.

After a 300%-plus run over 12 months, I would not expect the same pace of gains from here.

Still, stronger financial flexibility and improving lithium sentiment can keep supporting the valuation at these levels.

The post Why the PLS share price just hit an all-time high appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about New Hope, PLS and Viva Energy shares on Thursday?
• PLS Group prices US$600m in senior notes for growth and refinancing
• Will these top-performing ASX stocks keep charging higher?
• This ASX lithium giant just hit a record high again. Here’s why investors keep chasing it
• Up 106% in six months, here are the latest growth forecasts for the PLS Group share price

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.

After hitting levels higher than $3 in early January, shares in Mesoblast Ltd (ASX: MSB) have largely been on the slide, which is creating a buying opportunity, according to the analyst team at Canaccord Genuity.

Mesoblast actually had some good news this week, which we’ll get to later, but first, let’s look at why the Canaccord team is bullish on the stock.

Strong product pipeline

The company held a research and development day last week, which the Canaccord team attended.

They said they came away maintaining their buy rating on the stock with a bullish share price target, which we’ll get to shortly.

They added:

The R&D Day reiterated Mesoblast’s expectations to double its current revenue run-rate of About US$100m for RYONCIL in paediatric aGVHD in the medium term. Ongoing revenue growth efforts for the paediatric population include on-site access to RYONCIL, and progressing the treatment into 1L therapy. We garnered more colour on trial design for RYONCIL’s expansion into the adult population…its likely current off-label use in adults suggests to us that uptake will likely be rapid (about US $600m peak sales), should the trial read positive in less than 18 months.

Canaccord said they still had questions about another Mesoblast compound, Revascor, around its regulatory and commercial strategy in heart failure, “mainly related to guiding physicians to understand which patients may benefit (and how the FDA will view this)”.

Further down the track, Canaccord said, Mesoblast was also targeting a chronic lower back pain treatment, with clinical trial results and potential approval 12 and 24 months away, respectively.

Canaccord has a price target of $3.23 on Mesoblast shares, which would be a return of 44.2% if achieved.

More good news

The broker’s research report was issued before this week’s news that Mesoblast had acquired chimeric antigen receptor (CAR) platform technology, which would enable the manufacture of precision-enhanced cell products.

Mesoblast said it “plans to incorporate the engineered CARs to further boost effectiveness of Mesoblast’s products, with the goal of enhancing the target specificity and augmenting inherent properties of immunomodulation and tissue regeneration”.

The company added:

Mesoblast’s mesenchymal lineage stromal cell (MSC) technology platforms, including the first and only FDA-approved MSC product in the U.S., are designed for the treatment of tissue-specific inflammatory diseases due to their inherent homing capabilities and immunomodulatory properties. The aim of genetically engineering CAR constructs into MSCs is to substantially enhance targeted homing to inflamed tissue resulting in greater potency.

Mesoblast is currently valued at $2.8 billion.

The post Down almost 20% this year, how high could Mesoblast shares go? appeared first on The Motley Fool Australia.

More reading

• Why are Mesoblast shares jumping 8% today?
• Why Evolution Mining, Mesoblast, Nufarm, and Virgin Australia shares are storming higher today
• Why Amaero, Mesoblast, Telix, and Tivan shares are charging higher today
• Why Challenger, Lotus Resources, Mesoblast, and Wildcat shares are falling today
• Mesoblast shares are back in the red on Tuesday. Here’s why

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the lookout for some investment ideas, then read on. That’s because Bell Potter has been busy picking out its best ideas for April from the smaller side of the market.

Listed below are two more ASX shares that the broker has just named as best buys for the month ahead. Here’s what it is saying about them:

Cogstate Ltd (ASX: CGS)

This digital cognitive assessment-focused healthcare technology company could be an ASX share to buy according to Bell Potter.

It highlights that the company has a significant contracted revenue backlog, which should be supportive of growth in the near term. The broker commented:

Cogstate is a healthcare technology company specialising in digital cognitive assessments, primarily for biopharma clinical trials across central nervous system indications including Alzheimer’s disease, rare diseases, and broader CNS conditions. Founded in 1999 and ASX-listed since 2004, the company’s core offerings span digital assessments for trial endpoints, rater training and certification, and central monitoring solutions.

CGS has worked with over 160 biopharma customers and is currently active across more than 130 clinical trials. The business model is underpinned by a contracted revenue backlog — currently $92.3m — though revenue recognition can be lumpy given its dependence on trial size, phase, and duration.

Praemium Ltd (ASX: PPS)

Another ASX share that has been named as a best buy in April by the broker is investment platform provider Praemium.

Bell Potter highlights that the company’s shares are attractively priced at around 16x forward earnings and suspects that a re-rating could take place if it continues to grow its market share and funds under administration (FUA).

Commenting on the company, the broker said:

Praemium Ltd was formed in 2001 as a financial technology company that operates an investment platform offering alongside a branded online portfolio administration service, supporting financial intermediaries and individual investors in their managing wealth. The integrated technology simplifies portfolio management end-to-end and delivers a complete value proposition. Today, PPS manages +$60bn in custodial and non-custodial FUA.

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~15.9x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The post Bell Potter names more of the best ASX shares to buy in April appeared first on The Motley Fool Australia.

More reading

• Are Cogsgate shares a buy, hold or sell after rocketing 12% higher yesterday?
• This ASX healthcare stock is up 70% in a year and climbing again today

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

The Insignia Financial Ltd (ASX: IFL) share price is in focus today as the company announced court approval for its acquisition by Daintree BidCo Pty Ltd, enabling shareholders to receive $4.80 per share cash if all proceeds as planned.

What did Insignia Financial report?

• The Federal Court approved Daintree BidCo’s takeover of Insignia Financial by scheme of arrangement.
• Shareholders to receive a total of $4.80 cash per Insignia Financial share, subject to implementation.
• The scheme will become legally effective upon lodgement of court orders with ASIC, expected 17 April 2026.
• Shares will be suspended from trading on the ASX after close of trading, 17 April 2026.
• Implementation of the scheme expected 28 April 2026 for those on the register at 5:00pm 21 April 2026.

What else do investors need to know?

The scheme is being facilitated by Daintree BidCo Pty Ltd, an entity established by CC Capital Partners. Once the court orders are lodged with ASIC, the scheme will become effective and Insignia Financial shares will be suspended from the ASX.

The proposed acquisition will result in eligible shareholders being paid a cash consideration of $4.80 per share. The current timetable is still indicative, and investors should be aware that dates and times may change if required.

What’s next for Insignia Financial?

Looking ahead, if all regulatory processes complete as anticipated, the scheme will be implemented on 28 April 2026. At that point, shareholders on the register as of the record date will receive their cash payment.

Insignia Financial will keep investors informed should any further changes arise regarding the timing or details of the transaction.

Insignia Financial share price snapshot

Over the past 12 months, Insignia Financial shares have risen 33%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Court approves Insignia Financial scheme: $4.80 per share for holders appeared first on The Motley Fool Australia.

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• Whitehaven Coal announces US$900m notes issue and debt refinancing
• Viva Energy share price halted pending update on Geelong Refinery fire
• AMP posts Q1 2026 results, launches $150m buyback
• Netwealth Group lifts FUA to $125.8B with strong quarterly flows
• PLS Group prices US$600m in senior notes for growth and refinancing

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on track to record a decline. At the time of writing, the benchmark index is down 0.25% to 8,957.6 points.

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

29Metals Ltd (ASX: 29M)

The 29Metals share price is down 32% to 25.2 cents. Investors have been selling this copper producer’s shares following the release of an update on its progress to reestablish mining at the Xantho Extended orebody at the Golden Grove operation in Western Australia. It advised that based on a new assessment, additional works to further reduce the risk of future potential production interruptions will be needed prior to recommencement of mining. And while there is no change to its copper production guidance for FY 2026, it has downgraded its guidance for zinc, gold, and silver materially.

DGL Group Ltd (ASX: DGL)

The DGL Group share price is down 25% to 40 cents. This has been driven by the release of the chemicals logistics and services supplier’s half-year update. DGL Group reported a 5.8% decline in sales revenue to $225 million, a 5% decline in underlying EBITDA to $24.7 million, and a statutory loss after tax of $12.8 million. It notes that its revenue was impacted by ongoing scarcity in used lead acid batteries due to illegal exports.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down 1% to $2.44. This morning, the building products company released a quarterly sales update and revealed improvements in volumes. Fletcher Building’s CEO, Andrew Reding, said: “Quarterly volumes for the March quarter continued to show early signs of improvement across the portfolio, with the important caveat that this quarter largely preceded the current geopolitical escalation.” One negative was the company warning that the “overall impact of the Middle East crisis on the Group’s financial performance, including for the FY26 year, cannot be ascertained with certainty at this time.”

Newmont Corporation (ASX: NEM)

The Newmont share price is down 5% to $156.82. This is despite there being no news out of the gold miner today. However, it is worth noting that most ASX gold stocks are under pressure today. This has led to S&P/ASX All Ordinaries Gold index falling 2.15% this afternoon.

The post Why 29Metals, DGL, Fletcher Building, and Newmont shares are falling today appeared first on The Motley Fool Australia.

More reading

• Fletcher Building posts positive Q3 volumes amid new global risks
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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 Santos Ltd (ASX: STO) share price has tumbled in early morning trade on Thursday. At the time of writing the share price is down 1.3% to $7.63. 

But the decline has barely dented gains made this year. For the year-to-date Santos shares have stormed 24% higher and they’re up 39% from 12 months ago.

Rising oil prices have acted as a strong tailwind for Santos shares so far in 2026. Conflict in the Middle East has severely restricted global oil supply causing oil prices to become incredibly volatile. 

Trading Economics data shows that earlier this month the price of WTI crude oil surpassed the US$115 mark. While it has dropped back to just over US$91 per barrel at the time of writing, it is still nearly double its value earlier in the year.

Ongoing conflict in the Middle East, tighter oil supply and higher prices could continue to act as a tailwind for Santos going forward. But the situation is incredibly unstable and it’s not clear how it will progress from here.

In the near term, I think geopolitical uncertainty will push Santos shares from strength to strength, but there are also three other reasons why I think the ASX energy shares are a screaming buy right now.

1. Santos production is ramping up

In January, Santos announced that its FY25 fourth quarter production was up 15% on the prior quarter which brought full year production to the upper end of guidance at 87.7 million barrels of oil equivalent (mmboe).

Santos is guiding production of 101-111 mmboe for FY26, which represents a significant 25% (or higher) potential uplift year-on-year.

2. Cash flow is improving

As production ramps up, Santos projects are producing steady cash volumes. In January, the Adelaide-based oil and gas company revealed that its quarterly cash flow was around $380 million, up 30% on the prior quarter. This also brought cash flow for the full year to about $1.8 billion.

At the time, the company said it had a cash flow breakeven target of $45-$50 per barrel of oil (far below current values) for the current year, which “will position Santos over the next few years to deliver sustainable results and provide strong returns for our shareholders”.

3. Analysts are tipping attractive upside

TradingView data shows analysts are mostly very bullish on Santos shares over the next 12 months.

Out of 14 analysts, 11 have a buy or strong buy rating on the energy shares. The average target price is $8.47, which implies a potential 10.7% upside at the time of writing. But some think the shares could jump another 34% to $10.17 a piece.

The post 3 reasons why Santos shares are a screaming buy right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• How ASX 200 energy stocks like Woodside and Santos are surging in Monday’s sinking market
• 5 things to watch on the ASX 200 on Monday

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.

PLS Group Ltd (ASX: PLS), New Hope Corp Ltd (ASX: NHC), and Viva Energy Group Ltd (ASX: VEA) shares a catching plenty of investor interest today.

Two of the large-cap S&P/ASX 200 Index (ASX: XJO) stocks are outpacing the 0.2% losses posted by the benchmark index in late morning trade on Thursday, while one of the ASX 200 stocks shares have been temporarily frozen.

Here’s what’s happening.

Viva Energy shares halted following refinery fire

Viva Energy shares are making headlines today following the outbreak of a fire last night at its Geelong refinery in Victoria. The refinery is one of two remaining operational refineries in Australia, and officials expect the incident could push fuel prices even higher across the nation.

Viva Energy shares entered a trading halt before market open today.

The ASX 200 energy stock requested the trading pause pending an announcement regarding the impact of the “significant” fire at its refinery.

CEO Scott Wyatt said that while fuel refining at Geelong would continue, it will initially be “very low relative to what we were doing before”.

According to Wyatt (quoted by The Australian Financial Review):

In the days ahead, we will look at how we can continue to operate the refinery without the need to use these two units that have been affected. We have operated in this way before, so we have a high degree of confidence that we can do that.

Paused at Wednesday’s closing price of $2.53, Viva Energy shares are up 65% over 12 months, not including dividends.

Which brings us to…

PLS shares eyeing $847 in new funding

PLS – formerly known as Pilbara Minerals – is catching investor interest after announcing a new US$600 million (AU$847 million) debt funding issuance.

Shares in the ASX 200 lithium stock are up 3.7% at time of writing, trading for $5.59 each.

Management said that the initial offer size of the senior unsecured notes was increased by US$100 million from US$500 million. They come due in 2031 at an annual interest rate of 6.88%. PLS expects settlement next week, on 22 April.

The lithium miner intends to use to proceeds to refinance its AU$375 million drawn on revolving credit facility and for general purposes.

The PLS share price is up a blistering 308% in 12 months.

New Hope shares lift on refinancing deal

Atop PLS and Viva Energy shares, New Hope is also making financial headlines today.

Shares in the ASX 200 coal stock ae up 1.9% at $5.49 each after the company announced its own new funding arrangement.

The coal miner reported the launch of $300 million in senior unsecured convertible notes due 2032. New Hope said it will also repurchase of up to 100% of the existing $300 million convertible notes, which are due 2029.

The coupon rate for the new notes is set in the range of 2.38% to 2.88% per year.

“Through this transaction, we are proactively refinancing our 2029 notes at improved terms, extending our debt maturity profile and reducing our financing costs,” New Hope chief financial officer Rebecca Rinaldi said.

New Hope shares are up 54% in a year.

The post Why is everyone talking about New Hope, PLS and Viva Energy shares on Thursday? appeared first on The Motley Fool Australia.

More reading

• Why the PLS share price just hit an all-time high
• Viva Energy shares frozen as overnight refinery fire puts fuel markets on edge
• Viva Energy share price halted pending update on Geelong Refinery fire
• PLS Group prices US$600m in senior notes for growth and refinancing
• New Hope launches $300m convertible notes offer and buyback

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.

Viva Energy Group Ltd (ASX: VEA) shares are off the board on Thursday after one of the ASX’s best-performing energy stocks was forced into a trading halt.

The stock last traded at $2.53, having fallen 4.53% on Wednesday before trading was paused ahead of market open.

Even with that decline, the Viva Energy share price remains up 23% in 2026. Roughly 18% of that gain has come over the past month alone as investors rotated back into energy and fuel-exposed names.

That recent momentum makes today’s freeze stand out as investors wait for more detail on the operational impact.

Here’s what has happened.

Trading halt follows major Geelong refinery incident

In a statement to the ASX, Viva Energy requested an immediate trading halt pending an announcement on the impact of a significant fire at its Geelong refinery.

The halt will remain in place until the earlier of Monday’s market open or when the company releases a fuller update.

The overnight blaze broke out in the motor gasoline production unit at the Geelong site, which is one of only two remaining oil refineries in Australia.

News coverage indicates the incident was linked to equipment failure in the petrol production area, with multiple reports of explosions before the fire was contained.

Management said most other refinery units are still operating at minimum rates to maintain site safety, while the affected fuel production systems remain offline pending further assessment.

Why investors will be focused on earnings risk

The Geelong refinery supplies more than 50% of Victoria’s fuel needs and around 10% of Australia’s total fuel supply. That tells us the incident has both financial and broader market significance.

Early analyst estimates suggest even a short disruption could strip roughly $20 million from earnings. A prolonged outage stretching into months could push the hit closer to $70 million.

The market will also be watching whether petrol production downtime forces higher-cost imports. That could compress refining margins at a time when global fuel supply is already under pressure from Middle East disruptions.

Lost production, higher import costs, and uncertainty around repairs likely explain why the shares were frozen before investors could quickly reprice the stock.

The bigger issue goes beyond the share price

Fuel security now becomes the major sticking point.

Only two domestic refineries are still operating nationally. That means any extended outage at Geelong immediately raises concerns around supply reliability, pricing pressure, and whether the government needs to lean harder on imports.

Viva Energy has already said unaffected units can continue limited operations and management appears confident imported product can help bridge any shortfall.

The next announcement will likely decide whether this remains a short-term sentiment shock or develops into a larger earnings hit.

The post Viva Energy shares frozen as overnight refinery fire puts fuel markets on edge appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about New Hope, PLS and Viva Energy shares on Thursday?
• Viva Energy share price halted pending update on Geelong Refinery fire
• Oil is surging and this ASX fuel stock is one of Monday’s winners
• ASX 200 energy shares whipsaw amid fragile ceasefire
• ASX shares to watch as oil price crashes

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.

Gold project developer Ausgold Ltd (ASX: AUC) recently released new drilling results from its Katanning gold project in Western Australia, which have caught the eye of the analyst team at Canaccord Genuity.

Firming up a larger project

Ausgold is looking to develop the Katanning project, where it has already completed a definitive feasibility study (DFS) envisaging a mine operating for 10 years, producing 140,200 ounces of gold per year for the first four years.

The mine is expected to cost $355 million to build and pay itself back in just 13 months.

The company is continuing to drill at the project, however, and this week announced some of its recent results.

The company said “significant intercepts” were returned from a further 77 reverse circulation and diamond drill holes targeting grade increases within the central zone of the gold deposit.

Results returned included 11m at 7.88 grams per tonne of gold and 21m at 3.27 grams per tonne.

There were also “wide zones of mineralisation encountered in areas of Inferred Resources beneath the current DFS Update pit design and outside the current Ore Reserve, highlighting strong potential for reserve growth and mine life extension”.

The company said further:

Broad, high-grade intercepts (were) returned from in-fill drilling at the Jinkas and White Dam lodes within the first two years of planned mine life, increasing confidence in grade continuity in the initial phases of the DFS Update mine plan.

Ausgold Executive Chair John Dorward said regarding the results:

The ongoing drilling campaign continues to deliver exceptional results across multiple fronts at the Katanning Gold Project. The consistency of high-grade results from both in-fill and extensional drilling continues to strengthen the Katanning growth story. With extensions of the mineralisation confirmed beneath the DFS Update pits and outside current reserves, we see a clear opportunity to grow the production base and extend mine life, while simultaneously optimising the early years of production. With regional drilling at Nanicup Bridge now complete, we are looking forward to reporting results from this exciting satellite project along with the balance of results from the Katanning Gold Project.

The team at Canaccord Genuity analysed the most recent results and has maintained their speculative buy recommendation on Ausgold shares, and a price target of $3.45.

If this were achieved, it would represent a 238% return, with Ausgold shares currently trading at $1.02. The shares are up 85.5% over a 12-month period.

Ausgold is currently valued at $567 million.

The post This ASX gold project developer could more than triple in value: Broker appeared first on The Motley Fool Australia.

More reading

• Why investors are buying this ASX All Ords gold share today

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.