Author: openjargon

ASX growth shares can be volatile, but I think some are still worth considering when they are exposed to powerful long-term trends.

One share that stands out to me is DroneShield Ltd (ASX: DRO).

A counter-drone specialist

DroneShield is not a traditional defence company.

It does not build ships, fighter jets, or tanks. It develops counter-drone and electronic warfare technology, helping customers detect, track, and respond to drone threats.

I think that makes it one of the more interesting ASX growth shares today.

Drones are changing modern conflict and security planning. They are relatively cheap, increasingly capable, and can be used in ways that create serious challenges for defence forces, airports, prisons, public events, and critical infrastructure.

That is where DroneShield’s opportunity comes from.

A market with a long runway

What I like about DroneShield is that counter-drone technology could become far more mainstream over the next decade.

This is no longer a niche issue limited to one battlefield. Governments, military customers, and security organisations are having to rethink how they protect people, assets, and infrastructure from unmanned systems.

In my view, that gives DroneShield a large and expanding addressable market.

The company has already shown it can win attention in a fast-growing category. The next step is execution. It needs to keep converting demand into contracts, scaling production, maintaining technology leadership, and deepening customer relationships.

If it can do that, I think the business could be much larger in five or 10 years.

It can be volatile

I would not describe DroneShield as a quiet blue-chip investment.

The share price can move sharply, contract timing can be uneven, competition could increase, and the market may punish the stock if growth does not meet expectations.

That is why I would treat it as a higher-risk growth share rather than a core portfolio holding.

Even so, I think it remains worth considering.

The appeal is the combination of a powerful defence trend, specialist technology, and the possibility of strong long-term revenue growth if customer adoption keeps building.

I would not rely on DroneShield for dividends or stability. But I would be willing to own it for growth.

If counter-drone technology becomes a standard part of military and security spending, I think DroneShield could be well placed to benefit.

Foolish takeaway

DroneShield shares will not suit every investor.

The company still needs to prove that it can turn a strong thematic position into durable earnings growth.

But I think the long-term opportunity is compelling. Drones are changing the security landscape, and the need for counter-drone systems could keep rising for many years.

For investors comfortable with higher risk, I would be happy to consider buying DroneShield shares today.

The post Why I’d buy DroneShield shares in May appeared first on The Motley Fool Australia.

More reading

• Why I think these ASX 200 shares could outperform the market over 10 years
• Why I’d buy DroneShield and this ASX share in May
• Here are the top 10 ASX 200 shares today
• Why did DroneShield shares tumble more than 7% in April?
• These are the 10 most shorted ASX shares

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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 Westpac Banking Corp (ASX: WBC) share price is down 2.2% versus a 1.6% decline for the S&P/ASX 200 Index (ASX: XJO) today.

Westpac shares are trading at $37.70 apiece at the time of writing.

So, why are Westpac shares underperforming today?

Why is the Westpac share price in the red?

Firstly, all the major ASX 200 bank shares are underperforming today, and financials are the weakest of the 11 sectors, down 2.3%.

This follows three days of gains for the banks after the Reserve Bank lifted interest rates, and hopes grew of a US-Iran peace deal.

The Westpac share price rose 2.34% between Tuesday and Thursday.

That’s all changed today, with fresh clashes between the US and Iran overnight threatening to derail a peace plan under consideration.

The US is awaiting Iran’s response to a plan aimed at reopening the critical oil shipping channel, the Strait of Hormuz, and ending the war.

Trading Economics analysts said:

According to reports, Tehran is expected to deliver its response through Pakistan within the next two days.

Separately, the IEA warned that the war was disrupting roughly 14 million barrels per day of global oil supply and noted that any post-conflict production recovery would likely proceed gradually.

However, Middle East tensions are not the only thing weighing on the Westpac share price today.

It’s also ex-dividend day, which means Westpac shares are no longer trading with the next dividend entitlement attached.

Westpac shares are among 16 ASX stocks with ex-dividend dates this month.

Westpac shares will pay a fully-franked interim dividend of 77 cents per share on 26 June.

That’s 1.3% lower than last year’s interim dividend, and represents a payout ratio of 77.1%.

A recap on Westpac’s 1H FY26 results

The bank revealed its 1H FY26 results earlier this week.

Westpac reported statutory net profit of $3.4 billion, up 3% on 1H FY25 and down 5% on 2H FY25.

The net profit excluding notable items was $3.5 billion, up 1% on 1H FY25.

Westpac said total lending and deposits both grew by 7% year over year.

The bank’s common equity tier 1 (CET1) capital ratio was 12.4%, which is above the 11.25% target.

Westpac CEO Anthony Miller said:

Our strong balance sheet and disciplined focus will allow us to support customers through global uncertainty.

Growth is solid across lending and deposits, with several highlights.

We are managing costs while backing Australians through current challenges.

Westpac share price snapshot

The Westpac share price is up 24% over 12 months and down 3% in 2026 to date.

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

More reading

• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today
• 7 ASX 200 shares just upgraded this week
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• What is Morgans saying about Flight Centre, Sigma, and Westpac shares?
• Warning! Experts name 3 ASX 200 shares to sell

Motley Fool contributor Bronwyn Allen 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.

QBE Insurance Group Ltd (ASX: QBE), Block (ASX: XYZ) and Macquarie Group Ltd (ASX: MQG) shares are stirring up investor interest today.

Two of the blue-chip ASX shares are outpacing the 1.6% losses posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is trailing that performance.

Here’s what’s happening.

Macquarie shares slide following Thursday’s record close

After notching a new all-time closing high yesterday, Macquarie shares are down 2.2% at time of writing, trading for $236.45 apiece.

Investors are pressuring the ASX 200 diversified financial stock despite the company reporting some strong full year FY 2026 results.

For the 12 months to 31 March, Macquarie achieved growth across all of its operating groups.

This saw the company post a 30% year on year increase in net profit after tax (NPAT) to $4.85 billion. The second half of the financial year was particularly strong, with Macquarie reporting H2 NPAT of $3.19 billion, up 93% from the first half.

On the passive income front, management declared a final partly franked dividend of $4.20 a share, up 7.7% from last year’s final dividend payout.

Commenting on the results that have yet to boost Macquarie shares today, CEO Shemara Wikramanayake said:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities

Block shares charge higher rising profits

Also grabbing headlines, and bucking the broader market sell down today, Block shares are up 5.1% at time of writing, changing hands for $103.38 each.

Investors are bidding up the ASX 200 buy now, pay later (BNPL) company, which acquired Afterpay in 2022, following the release of its first quarter update (Q1 2026).

Highlights for the first quarter included 5% year on year increase in  net revenue to US$6.06 billion. And Block’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) hit a record US$1.01 billion for the quarter.

On the bottom line, Block’s gross profit was up 27% from Q1 2025 to US$2.91 billion.

“We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers,” Block CEO Jack Dorsey said.

Which brings us to…

QBE shares slip on Q1 update

Joining Block and Macquarie shares in turning heads today, QBE also released its first quarter update this morning.

Shares in the ASX 200 insurance giant are modestly outpacing the losses on the benchmark index today, down 1.4% at $22.33 apiece.

Highlight for the quarter include an 11% year on year increase in QBE’s gross written premium (GWP), or 7% on a constant currency basis.

The insurer reported total funds under management of $36.1 billion at the end of the quarter.

And with interest rates on the rise, QBE’s core fixed income yield increased to 4.1% over Q1. That’s up from an average of 3.7% achieved in FY 2025.

The post Why QBE, Block and Macquarie shares are grabbing headlines on Friday appeared first on The Motley Fool Australia.

More reading

• Macquarie shares slip despite FY26 profit jump
• Afterpay and Square owner Block shares jump 6% on strong results
• Block shares: Profit jumps 27% as outlook upgraded
• QBE Insurance Group reports Q1 2026 earnings
• Macquarie Group posts strong FY26 earnings growth

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

The market has pushed parts of the ASX higher over the past year, but not every growth share has joined in.

Some former market favourites have been sold down heavily as investors reassess valuations, growth expectations, and the potential impact of artificial intelligence (AI).

I think that has created a buying opportunity for WiseTech Global Ltd (ASX: WTC) shares.

A sticky software platform

WiseTech Global has been one of the ASX’s great technology success stories.

The company is best known for CargoWise, its software platform used by logistics companies to manage complex global freight operations.

That might not sound as exciting as consumer technology, but it is very important. Global logistics is messy, document-heavy, highly regulated, and operationally complex. Freight forwarders, customs brokers, carriers, and warehouse operators need systems that can handle that complexity across multiple countries.

WiseTech sits right in the middle of that.

For me, the most important point is that CargoWise is not a lightweight tool that customers can easily swap out. Once a logistics business has built workflows, staff training, customer processes, and compliance systems around it, changing providers can be disruptive.

That creates stickiness, and I think sticky software businesses can be very valuable over the long term.

Why the sell-off interests me

WiseTech shares have fallen 55% over the last year, and I can understand why some investors have stepped back.

The market has become less forgiving toward growth stocks. There have also been concerns about acquisitions, leadership changes, valuation, and the potential for AI to disrupt traditional software models.

Those are real questions.

But I do not think they automatically destroy the long-term investment case.

In my view, WiseTech still has several qualities I want in an ASX growth share. It operates in a huge global market, has a specialist product, generates recurring revenue, and serves customers that rely on its software to run important parts of their operations.

That is a strong base to build from.

AI could help rather than hurt

The AI question is probably one of the biggest issues investors are thinking about.

Could AI reduce the need for logistics software? I am not convinced.

I think it is more likely that AI becomes another layer inside platforms like CargoWise. Logistics involves routing, compliance, documentation, exception management, customs rules, pricing, and workflow automation. These are areas where smarter tools could make the platform more useful.

WiseTech already has the industry knowledge, customer base, data, and workflow position. I think that gives it a reasonable chance of using AI to strengthen its product rather than being pushed aside by it.

Of course, execution matters. Management still needs to prove that investment in AI and product development translates into better outcomes for customers and stronger earnings over time.

The valuation looks interesting

WiseTech is unlikely to look cheap on traditional valuation metrics. High-quality software shares rarely do.

But after such a large fall, I think the share price now gives investors a better chance of attractive long-term returns than it did when sentiment was much stronger.

The key is patience.

WiseTech is not a share I would buy for a quick bounce. I would buy it because I think the business could be materially larger in five to 10 years if it keeps deepening its position in global logistics software.

Foolish Takeaway

WiseTech is still facing uncertainty, and I would not pretend the risks have disappeared.

But I think the market may be giving investors a chance to buy a high-quality ASX tech share at a far more reasonable price than before.

The post Down 55%, why WiseTech shares could be a bargain hiding in plain sight appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX growth shares to buy in May with $20,000
• Down 60% and 80%, 2 ASX shares I’d buy on the cheap
• Top brokers name 3 ASX shares to buy today
• Why WiseTech shares could shoot 70% higher
• 5 things to watch on the ASX 200 on Wednesday

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

Another contract win has sent SKS Technologies Group Ltd (ASX: SKS) shares to a record high on Friday.

This adds to what has already been a massive run for shareholders.

At the time of writing, the SKS share price is up 7.68% to $8.13. The stock traded as high as $8.20 earlier this morning, before easing slightly from that level.

That still leaves SKS shares up around 101% in 2026 and about 345% over the past 12 months.

Another contract lands

In its ASX release, SKS said it has received written confirmation from Buildcorp Group for a new contract.

The contract is worth about $22 million.

It covers the supply and installation of a fully integrated electrical technology solution for a major retailer’s new headquarters in Melbourne’s Docklands precinct.

The project is expected to take about 13 months to complete, with final completion due in the first quarter of 2028.

The scope includes core electrical infrastructure, distribution systems, advanced lighting, communications and IT, and smart building system integration.

Chief Executive Matthew Jinks said the contract reflects the company’s reputation for quality and delivery capability. He also said it reinforces SKS as a trusted partner on complex, large-scale, commercial developments.

Order book keeps growing

SKS also said its order book now sits at $355 million. That includes about $270 million of work extending beyond the traditional 12-month horizon into the second half of FY27.

Since February 2026, SKS said its work tenders have increased by almost 120%, from $572.26 million to $1.25 billion.

Data centre tenders now account for more than $1 billion of that pipeline.

More funding room

SKS also released a separate update, giving investors another reason to look at the stock.

The company said it has been approved by Commonwealth Bank of Australia (ASX: CBA) for a further $20 million in its bank guarantee facility.

That lifts its total bank guarantee facility to $48 million. Including equipment finance, its total facilities now sit at $52 million.

Management said the extra capacity will support the company’s growth plans and help it manage working capital through larger projects.

That is worth noting because SKS is now dealing with a much larger order book and tender pipeline than it did a year ago.

Its total bank debt facilities have increased by 6.5 times in less than 4 years.

The company also said the expanded bank facilities will support its organic growth strategy over the next 4 years.

The post This ASX rocket just hit a record high. Here’s why investors are still buying appeared first on The Motley Fool Australia.

More reading

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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 recommended Sks Technologies Group. 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 having a solid finish to the week.

At the time of writing, the ASX 200 gold miner is up 3% to $5.54.

Why is this ASX 200 gold miner rising today?

Investors have been buying the company’s shares today after responding positively to the release of another strong drilling update from the Trident deposit at the Plutonic Gold Belt in Western Australia.

According to the release, drilling at Trident continues to extend mineralisation and points to further growth potential for the deposit.

This is important because Trident is expected to be one of the key mines supporting Catalyst’s plan to lift annual gold production at Plutonic from around 100,000 ounces to around 200,000 ounces.

Strong drilling results

The latest drilling results were focused on converting inferred resources and testing extensions to known mineralisation.

Catalyst reported a number of high-grade intercepts, including 7 metres at 40.5 grams per tonne gold, 17 metres at 15.4 grams per tonne gold, and 14 metres at 9.2 grams per tonne gold.

Many of these intercepts sit outside the current Trident resource envelope, which suggests the resource could continue to grow over time.

Management noted that the results increase visibility on a potential mine life of more than 10 years at approximately 60,000 ounces per annum.

Commenting on the drilling, the ASX 200 gold miner’s managing director and CEO, James Champion de Crespigny, said:

The drilling programs at Trident have delivered a Resource base which will underwrite a 10 year mine plan at ±60koz per annum. In time, we expect continued drilling will convert this Resource base into Reserves. Catalyst’s business plan is to have multiple ore sources to feed the Plutonic processing plant for the reason that by doing so, Plutonic becomes a more stable, long term, lower cost operating centre able to provide sustained exposure to gold.

To achieve this, and to build out inventory from multiple different sources, drilling at other prospects like Cinnamon, Old Highway and K2 become very important. Accordingly, these projects are consuming exploration resources now that Trident has such an established mine life. Once Trident is up and running, we will return and fill in the drilling at depth to further extend its life.

Despite today’s rise, Catalyst Metals’ shares are underperforming in 2026. Since the start of the year, the ASX 200 gold miner’s shares are down over 25%.

The post This ASX 200 gold miner is rising on big news 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.

Shaw and Partners hosted its own TechRise conference this week, and came out of it with some strong recommendations for companies which they think are doing good things.

Let’s have a look at what they’re saying, and how much they think the shares in these companies will rise.

Playside Studios Ltd (ASX: PLY)

This company recently released a game which it had been working on for some time, Mouse: P.I. For Hire, which has been performing well.

In an update to the ASX just this week, the company said the game had sold about 730,000 units, for estimated gross sales revenue of US$21.4 million.

The net revenue to Playside is about US$13 million.

Playside said the game continued to perform well on player wish lists, and has a 94% review score on the Steam platform.

The company added:

Based on the current performance of MOUSE: P.I. For Hire, PlaySide now expects FY26 revenue to be in the range of $50m to $53m. This compares to the Company’s prior guidance that FY26 revenue would exceed FY25 reported revenue of $48.7m. The upgrade primarily reflects stronger than-expected unit sales and ongoing wishlist conversion of MOUSE: P.I. For Hire across PC and console platforms, and has been achieved despite the delayed launch of the title and the absence of major External Project wins during the year to date.

Shaw and Partners said the performance of Mouse: P.I. For Hire continued to materially exceed expectations.

The broker has a price target of 44 cents on Playside shares, compared with 25.5 cents currently.

Hansen Technologies Ltd (ASX: HSN)

This company, which provides software to the utilities and telco sectors, delivered a “constructive update” at the TechRise conference, Shaw and Partners said.

The Shaw research note on the company goes on to say:

Management reiterated FY26 remains weighted to a stronger 2H, with DigiTalk contributing about $10–11m revenue and FX remaining a top-line headwind. Margin commentary was incrementally more confident, with management suggesting ‘30% plus’ margins are realistic over the medium term, supported by AI-driven productivity gains.

The Shaw team said mergers and acquisitions remain central to Hansen’s growth strategy, and with the company set to move to a net cash positive position later this calendar year, there was scope for more deals to be made.

 Shaw has a price target of $7.60 on Hansen shares, compared with $4.93 currently.

Objective Corp Ltd (ASX: OCL)

The Shaw team said Objective Corp founder and Chief Executive Officer Tony Walls delivered a “confident and at times feisty update” to the conference.

They added:

Management framed OCL as being in its strongest position in years despite broader SaaS disruption narratives, with FY26 ARR guidance unchanged at 10–14% and 15% reiterated as the core long-term target.

Shaw said the company’s Information Intelligence division had exceeded expectations during the half and the Build Australia division “remains on track to have customers signed and live by June 30 and become a more meaningful contributor in FY27”.

They added:

Management also suggested margins are increasingly within its control and pushed back constructively on AI disruption concerns.

Shaw has a price target of $22.10 on OCL shares compared with $11.17 currently.

OCL is valued at $1.07 billion.

The post Here’s 3 ASX technology companies Shaw and Partners has flagged as a buy appeared first on The Motley Fool Australia.

More reading

• 3 under-the-radar ASX AI shares that could be the next WiseTech
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• This ASX tech firm presents a “unique” opportunity, Shaw and Partners says

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

When investors think about artificial intelligence (AI), they usually go straight to technology shares.

That makes sense. Software companies, chipmakers, data centres, and cloud platforms are the obvious beneficiaries.

But I think there is another group of companies worth watching: large businesses that already have customers, data, scale, and the ability to use AI to improve how they operate.

One ASX blue chip I think fits that description is Wesfarmers Ltd (ASX: WES).

A different kind of AI opportunity

Wesfarmers is not an AI stock in the usual sense.

It is best known for Bunnings, Kmart, Officeworks, Priceline, and its industrial and chemicals operations. That makes it look more like a retail and industrial conglomerate than a technology play.

But I think that is what makes the opportunity interesting.

Wesfarmers has millions of customer interactions across its businesses. It has large store networks, major supply chains, digital platforms, loyalty programs, pricing systems, and inventory decisions being made every day.

That gives it plenty of places where AI and data can potentially make a difference.

This is not about replacing the core business. It is about making strong businesses even better.

OpenAI deal

Late last year, Wesfarmers entered into a partnership with OpenAI to make ChatGPT Enterprise available across the group, along with customised training programs.

Wesfarmers’ Managing Director Rob Scott said:

We continue to increase the use of AI across the Group, in areas such as demand forecasting, product design, customer service and experience, marketing effectiveness and conversational commerce.

By working with OpenAI, we can continue leveraging technology to enable growth and support productivity. We believe Australian businesses should adopt AI-driven solutions to remain globally competitive and this collaboration provides our team members with another tool and further training to take advantage of this transformative technology.

Small improvements can matter

In a company like Wesfarmers, I do not think AI needs to create a brand-new business to be valuable.

Small improvements across a large base can add up.

If Bunnings can forecast demand more accurately, manage stock better, improve online search, or help team members answer customer questions faster, that can support sales and efficiency.

If Kmart can use data to improve ranging, pricing, supply chain planning, and product availability, that can reinforce its value proposition.

If Officeworks can make its digital experience more useful for households, students, and small businesses, that could help defend its market position.

None of these ideas sounds as exciting as a new AI chatbot or chip design. But in my opinion, they may be more practical and easier to monetise.

Why I would buy it

Wesfarmers shares are rarely the cheapest on the ASX.

But I think that is partly because the market understands the quality of the group.

For long-term investors, I believe the appeal is its ability to keep adapting. Wesfarmers has shown over many years that it can manage capital well, improve businesses, and invest in new opportunities when they make sense.

That is why I think it could be a quiet AI winner.

It has the data, scale, brands, and management discipline to use technology in ways that actually improve the business.

Foolish Takeaway

I would not buy Wesfarmers because it is suddenly an AI stock.

I would buy it because it is a high-quality ASX 200 blue-chip share that may have more technology upside than the market gives it credit for.

The best AI opportunities may not all come from companies selling the tools. Some may come from businesses that use those tools well.

The post Why this ASX 200 blue-chip share could be an AI winner appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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.

Shares in Asara Resources Ltd (ASX: AS1) have jumped more than 10% on Friday after the company announced it had raised $60 million to fast-track exploration drilling.

Cashed up to explore

While shares typically fall on news of a capital raise, Asara shares were 11.5% higher in early trade at 14.5 cents, despite the new raise being conducted at 12.5 cents.

It’s a substantial amount of new equity for the company, which is valued at $208.8 million.

Asara said in its statement to the ASX that the raise had enjoyed strong demand from existing and new tier-1 international and domestic institutional investors.

The money will be used for an accelerated exploration program at the company’s flagship Kada gold project in Guinea.

Asara Managing Director Matthew Sharples said:

We are delighted with the outstanding outcome of the Placement, which was supported by overwhelming demand and resulted in the introduction of a number of high-calibre institutional investors to our share register. This Placement significantly strengthens our shareholder base with long-term, supportive investors and provides a strong financial platform from which Asara can aggressively fast-track exploration at Kada toward development and production readiness. Importantly, the funding will also support expansion of our land position and broader exploration footprint as we work to grow the Kada project into a Tier 1 gold development asset.  

Shareholder approval will be required for $10 million of the raise.

The company said in its statement that the funds would be used for resource definition drilling to increase the current 923,000-ounce gold resource at Kada.

Funds would also be used for regional drilling, mine design, geotechnical drilling, and reconnaissance exploration to identify satellite deposits.

Building on success

Asara also announced in recent days good drilling results from the Massan deposit within the Kada project.

Mr Sharples said re those results:

These initial results from drilling the newly interpreted Southern High-Grade Extension are extremely encouraging and confirm the potential of this zone as a significant high-grade extension of the Massan Core. Intercepts such as 5m @ 31g/t Au, including 1m @ 155g/t Au in MSRC26-041, and 6m @ 4.5g/t Au, including 2m @ 12.6g/t Au in MSRC26-045, highlight the strength and continuity of mineralisation across the extension. Importantly, this Southern High-Grade Extension links directly with the recently discovered Northeast High-Grade Extension, where we continue to see consistent high-grade results.

Aara shares have traded as low as 3.7 cents over the past year and as high as 16.5 cents.

The post Why are shares in this junior ASX gold explorer charging higher today? appeared first on The Motley Fool Australia.

More reading

• Here’s 3 ASX technology companies Shaw and Partners has flagged as a buy
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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 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.

REA Group Ltd (ASX: REA) shares are pushing higher on Friday after the property listings giant released its third-quarter update.

At the time of writing, the REA share price is up 2.37% to $178.61.

The gain comes despite a weaker session for the broader market, with the S&P/ASX 200 Index (ASX: XJO) down 1.2% to 8,767 points. This follows reports of Iranian attacks on 3 US destroyers in the Strait of Hormuz overnight.

REA shares have now gained around 12% over the past month, although the stock is still down about 28% over the past year.

Let’s take a closer look at the release.

The numbers behind today’s move

In a statement to the ASX, REA reported revenue from core operations of $398 million for the 3 months ended 31 March, up 11% on the prior corresponding period. After adjusting for mergers and acquisitions, revenue was up 6%.

The earnings line also looked solid. EBITDA excluding associates rose 11% to $220 million, while operating expenses increased 5% to $178 million.

That is probably helping the share price today. The stock has been sold down hard over the past year, but the business is still growing revenue and earnings.

Across the first 9 months of FY26, REA reported revenue of $1.31 billion, up 5%. EBITDA excluding associates increased 7% to $789 million.

Australian property listings are doing the work

The Australian business did most of the heavy lifting during the quarter.

Australian revenue rose 12% in the quarter, helped by stronger yield growth and a small lift in national buy listings. Residential revenue also increased 12%, supported by higher prices, add-on products, subscriptions, and a better mix of listings.

National buy listings were up 1% for the quarter. Sydney rose 4%, while Melbourne was up 7%.

REA also pointed to record audiences across realestate.com.au. The platform reached an average of 12.9 million people a month during the quarter, including 6.3 million people who used it exclusively.

Costs and April listings help sentiment

Another reason investors may be feeling better is the cost outlook.

REA lowered its FY26 cost growth guidance, with group operating costs now expected to rise in the low to mid-single digits. Australian operating costs are expected to grow in the mid to high single digits.

The company still expects national residential buy listings to fall by 1% to 3% across FY26. But April was much stronger, with listings up 20% in Melbourne and 25% in Sydney.

Foolish Takeaway

After reporting a decent quarterly update, I can see why REA shares are finding buyers today.

The share price has had a rough year, but the company is still putting up growth in revenue, earnings, and audience numbers. The lower cost guidance also helps quite a bit.

I wouldn’t call the stock cheap after today’s bounce. But if listings keep improving, I’d be taking another look.

The post REA shares rise as investors look past a rough year 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.