Category: Stock Market

Capstone Copper Corp (ASX: CSC) shares are pushing higher on Thursday morning.

At the time of writing, the ASX 200 copper stock is up 2% to $11.67.

Why is this ASX 200 copper stock pushing higher?

Investors have been buying Capstone Copper shares today after responding positively to the company’s first quarter results.

According to the release, consolidated total contained copper production for the first quarter was 47,960 tonnes at C1 cash costs of $2.66 per pound.

This underpinned revenue of US$652.5 million for the first quarter, which is up 22% from US$533.3 million a year earlier.

This helped the company swing to a net profit attributable to shareholders of US$102.5 million, compared to a loss in the prior corresponding period.

Adjusted earnings were also strong, with record adjusted net income of US$94.8 million and adjusted EBITDA of US$329.1 million.

The ASX copper stock highlights that this marks the sixth consecutive quarter of record adjusted EBITDA, driven largely by higher realised copper prices and supportive gold and silver prices.

Operating cash flow (before changes in working capital) came in at $217.9 million compared to $166.1 million in the prior corresponding period.

Net debt is now $737.5 million, which is a decrease from $780.1 million at the end of December.

Management commentary

Commenting on the quarter, the ASX 200 copper stock’s president and CEO, Cashel Meagher, said:

Q1 marked our sixth consecutive quarter of record EBITDA generation driven by solid operations and all-time high copper prices. For the remainder of 2026, we are focused on operational execution and continuing to advance our high-return organic growth opportunities, including executing the Mantoverde Optimized Project, advancing Santo Domingo to a sanctioning decision, and progressing our exploration strategy centered around district-scale growth.

Despite recent geopolitical volatility, copper prices remain strong and fundamentals support continued momentum, reinforcing our ability to deliver significant value through our peer-leading growth pipeline.

Outlook

Capstone Copper advised that it continues to expect production of 200,000 to 230,000 tonnes of copper and C1 cash costs of $2.45 to $2.75 per payable pound of copper in 2026.

In addition, its capital expenditure, capitalised stripping, and exploration expenditure guidance is unchanged.

However, it will continue to monitor and manage the impacts stemming from the conflict in the Middle East.

And while to date it has not experienced any inventory or operational impacts, cost pressures, notably from higher diesel and sulphuric acid prices, represent a headwind.

The post This ASX 200 copper stock is pushing higher on record profits 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.

Mineral Resources Ltd (ASX: MIN) shares are surging on Thursday after the mining and services group delivered a fresh quarterly update.

At the time of writing, the Mineral Resources share price is up 7.29% to $66.29.

That adds to what has already been a strong run. The stock is up around 22% in 2026 and has rocketed by more than 220% over the past 12 months.

So, what did the company report?

Guidance lifted across key operations

According to the release, Mineral Resources has upgraded its full-year guidance across several core parts of the business.

Onslow iron ore is now expected to produce between 17.7wmt and 19.4wmt for FY26, up from 17.1wmt and 18.8wmt.

Mining services volume guidance has also been lifted to 320Mt to 330Mt, pointing to strong demand across its contracting business.

Lithium guidance has also been lifted, with Wodgina now expected to produce 270k dmt to 290k dmt of spodumene concentrate, while Mt Marion is set to deliver 210k dmt to 230k dmt.

Production dips while pricing improves

Despite the lift in guidance, the March quarter was a bit uneven, with a few factors getting in the way of production across the business.

Iron ore shipments took a hit from cyclone activity, which slowed crushing and logistics at Onslow for a period.

On the lithium side, both Wodgina and Mt Marion also ran into some short-term interruptions, mainly due to weather and operational factors.

Even with those setbacks, pricing helped balance things out.

Average realised iron ore prices moved higher across both Onslow and the Pilbara Hub, sitting around the low US$100’s per tonne.

Lithium pricing also improved over the quarter, lifting into the US$900 to US$1,000 per tonne range.

The stronger pricing helped offset the softer volumes and kept revenue fairly steady across the group.

Costs and balance sheet in focus

Costs are still something to keep an eye on, particularly with diesel moving higher during the quarter.

That is expected to flow through into unit costs in the June period, which could add a bit of pressure in the short term.

Even so, the company has kept its full-year cost guidance unchanged across the business, suggesting things are still tracking within expectations.

On the balance sheet side, there was some improvement.

Net debt came down to around $4.5 billion by the end of March, from roughly $4.9 billion in the prior quarter.

Foolish takeaway

The update shows the business is still moving forward across a few key areas.

Guidance is higher, debt is coming down, and the main projects are progressing.

From here, I would be watching how Onslow ramps through the rest of the year and whether lithium volumes can stay consistent.

The post Mineral Resources shares jump 7% on guidance upgrade appeared first on The Motley Fool Australia.

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• Mineral Resources upgrades FY26 volume guidance and posts robust lithium prices
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• Mineral Resources just made a $2 billion move. Here’s why the stock is climbing again

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.

Broker analysts are always on the hunt for good opportunities that could produce strong returns. There are some wonderful businesses inside the S&P/ASX 200 Index (ASX: XJO) which the market may be overlooking. So, we’ll look at two potential ASX share opportunities.

These stocks have multiple buy ratings and are among the highest-quality names on the ASX, yet their share prices have dropped considerably from former heights. Therefore, it looks like a good time to be greedy while other investors are fearful.

REA Group Ltd (ASX: REA)

REA Group owns Australia’s leading property portal, realestate.com.au. According to Commsec, there are currently 12 analysts that rate the business as a buy.

I’m not sure how higher interest rates and elevated inflation will affect property listings, but it’s possible that there could be an increase in forced sales, boosting demand for its portal.

The company’s market position allows it to implement regular price rises for vendors to use its portal, with little detrimental effect (so far). In the FY26 half-year result, the business reported that 12.7 million people visited its portal – it reportedly received 105.9 million more monthly visits than its nearest competitor, on average.

The ASX 200 share also revealed that 2.9 million people visited realcommercial.com.au (another of its businesses) each month on average, 1.9 million more people than the nearest competitor.  

The digital nature of its business model allows it to achieve rising profit margins. In the FY26 half-year result, core revenue grew 5% to $916 million , operating profit (EBITDA) grew 6% to $569 million and net profit rose 9% to $341 million.

It’s expecting buy yield growth of between 12% to 14% in FY26, which is an excellent tailwind for earnings.

Using the forecast on Commsec, the REA Group share price is valued at 31x FY27’s estimated earnings.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is best-known as an enterprise resource planning (ERP) software provider to well over 1,000 clients across numerous sectors including corporations, government agencies, local councils and universities.

According to Commsec, the business is currently rated as a buy by 10 different analysts, which is also a very bullish view by the market.

While some investors may by concerned about the impacts that AI could have on the software sector, TechnologyOne talks about how its software as a service (SaaS) and its products are being “turbocharged through AI”.

The ASX 200 share is confident that it’s going to deliver strong double-digit growth in the 2026 financial year. Management are guiding that in the current financial year, its annual recurring revenue (ARR) could rise by between 16% to 18%, while profit before tax (PBT) growth could be between 18% to 20%.

Using the earnings estimate on Commsec, the TechnologyOne share price is valued at 58x FY26’s estimated earnings. Its earnings per share (EPS) is projected to grow by 38% between FY26 and FY28.

The post 2 high-quality ASX 200 shares experts rate as buys appeared first on The Motley Fool Australia.

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

Capstone Copper Corp (ASX: CSC) shares drifted slightly higher on record earnings results for the first quarter, but the company warned that diesel price increases going forward could be costly.

A string of good results

The Canada-based mining company said in a statement to the ASX on Thursday that it had recorded its sixth consecutive quarter of record EBITDA generation, “driven by solid operations and all-time high copper prices”.

The company’s total consolidated copper production came in at 47,690 tonnes, at a cost of US$2.66 per pound, compared with 53,796 tonnes at a cost of US$2.59 per pound in the first quarter last year.

The period this year included a 35-day strike at the company’s Mantoverde mine.

Net income for the quarter came in at US$102.5 million compared with a net loss of US$6.8 million for the same period last year.

Adjusted EBITDA was a record US$329.1 million, up from US$179.9 million.

Capstone also reiterated its 2026 production guidance of 200,000 to 230,000 tonnes of copper at a cost of US$2.45 to US$2.75 per pound.

The company noted that the war in the Middle East could present cost issues.

As they said:

We continue to monitor and manage the impacts stemming from the conflict in the Middle East. To date we have not experienced any inventory or operational impacts, however cost pressures, notably from higher diesel and sulphuric acid prices, represent a headwind.

Capstone said average copper prices were 16% higher in the first quarter, despite the issues in the Middle East.

But in the company’s 2026 outlook, they explained the exact impact of higher diesel prices.

We expect to consume approximately 134 million litres of diesel over the remainder of 2026 (75% in Chile, 24% in the USA, and 1% in Mexico) and our guidance assumed US$60/bbl oil. From April, every 10% change in oil prices (including refining margins) is estimated to impact direct costs by approximately US$13 million, split between US$9 million (or $0.02 per payable pound) impact to our consolidated C1 cash costs and US$4 million impact to capitalised stripping.

The company said 55% of its sulphuric acid costs were locked in for the remainder of the year, while 45% were variable.

The company said:

From April, every 10% change in sulphuric acid prices is estimated to impact consolidated C1 cash costs by approximately $5 million (or $0.01 per payable pound).

Shares looking cheap

Morgans recently issued a research note on Capstone Copper, with a price target of $15.40, up 0.7% on Thursday from the current price of $11.51.

The post This major ASX copper company just reported record earnings but warned on diesel prices appeared first on The Motley Fool Australia.

More reading

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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.

The Mesoblast Ltd (ASX: MSB) share price is in focus today after the company reported net revenues of US$30.3 million from its flagship Ryoncil® product in the March quarter and improved its net operating cash spend to just US$4.1 million.

What did Mesoblast report?

• Ryoncil® gross sales: US$35.3 million for the quarter, with net revenues of US$30.3 million
• Net operating cash spend: US$4.1 million for the quarter
• Total cash at quarter end: US$122 million
• Receipts from customers: US$34.6 million
• Total Ryoncil® revenue since launch approaches US$100 million
• Patient recruitment target achieved for pivotal phase 3 trial of rexlemestrocel-L in chronic low back pain

What else do investors need to know?

Mesoblast achieved a key milestone by hitting its patient recruitment goal in a pivotal phase 3 trial for chronic low back pain, marking progress on its next-generation product pipeline. The company also obtained US FDA clearance for registrational trials of Ryoncil® in new indications, including Duchenne’s muscular dystrophy and adult steroid-refractory acute graft versus host disease (SR-aGvHD).

During its inaugural R&D day, Mesoblast announced the acquisition of a patented chimeric antigen receptor (CAR) technology, aiming to bolster its cell therapy portfolio, especially in autoimmune diseases like lupus nephritis and inflammatory bowel conditions. The company noted a strong cash position and prudent expense management, supporting its ongoing research and commercial activities.

What did Mesoblast management say?

Mesoblast Chief Executive Dr. Silviu Itescu said:

We’ve had a busy and exciting March quarter marked by a series of major achievements. Ryoncil® revenues are now approaching US$100 million since last year’s launch, we have substantially improved our net operating cash spend, our pivotal trial in inflammatory back pain has successfully achieved its patient recruitment target, and we have bolstered our long-term leadership in the field by acquiring genetically modified technology for precision-enhanced cell therapy products.

What’s next for Mesoblast?

Mesoblast plans to keep expanding Ryoncil® use into more indications, with new clinical trials for adults and rare paediatric diseases now cleared to proceed in the United States. The next phase of the company’s strategy centres on advancing its CAR technology and next-generation MSC therapies into new auto-immune conditions and growing international commercial opportunities.

With over US$120 million in cash and ample funding facilities, management says the company is well-positioned to invest in research, regulatory approvals, and further market launches in 2026 and beyond.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Mesoblast shares: Cash burn falls and Ryoncil® sales climb appeared first on The Motley Fool Australia.

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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.

Boss Energy Ltd (ASX: BOE) shares are under pressure on Thursday.

In morning trade, the uranium producer’s shares are down 3% to $1.49.

Why are Boss Energy shares falling?

Investors have been selling the company’s shares today following the release of its quarterly update.

According to the release, Boss Energy’s Honeymoon operation reported third-quarter production of 203,000 pounds of U3O8 drummed, which is down 56% quarter on quarter.

This was achieved with a C1 cost of $60 per pound (US$41 per pound), which is double what it recorded in the last quarter.

Management advised that this reflects adverse weather conditions and expected declines in tenor.

One thing that remained flat was its average realised price, which was US$74 per pound.

Sales volumes fell 7% to 325,000 pounds, and its cash and liquid assets balance improved 2% to A$211 million.

Guidance downgraded

In light of its tough quarter, Boss Energy has downgraded its FY 2026 production guidance.

It now expects production of 1.40 Mlbs to 1.45 Mlbs U3O8 drummed, from its previous guidance of 1.6 Mlbs U3O8 drummed.

The company’s FY 2026 C1 cost guidance of $36-$40 per pound (US$24-US$26 per pound) and AISC guidance of $60-$64 per pound (US$40-US$42 per pound) have been reconfirmed but towards the upper end of their guidance ranges.

Boss Energy’s CEO and managing director, Matthew Dusci, acknowledged that it was a tough quarter. He said:

Operationally, this was a difficult quarter for the business. Production at Honeymoon of 203 klbs U3O8 was below our expectations. As a result, we have revised our FY26 production guidance to 1.40 Mlbs to 1.45 Mlbs U3O8. The primary driver was the impact of heavy and repeated rainfall events during March, which restricted access to site and limited the delivery of key reagents required to maintain stable leaching conditions. This was compounded by the knock-on effect of delays in commissioning critical infrastructure.

Costs increased during the quarter, mainly reflecting lower uranium production. We remain on track to meet full-year cost guidance, albeit towards the upper end of the guidance range.

Following today’s move, Boss Energy shares are now down over 50% since this time last year.

It is also worth noting that its shares are among the most shorted on the Australian share market. At the last count, it had 11.3% of its shares held short.

The post Boss Energy shares tumble on guidance downgrade 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.

Woolworths Group Ltd (ASX: WOW) shares are getting hammered today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $37.29. In earlier morning trade on Thursday, shares just crashed to $33.63, down 9.8%. After some likely bargain hunting, shares are currently changing hands for $34.74 apiece, down 6.8%.

For some context, the ASX 200 is down 0.5% at this same time.

This underperformance follows the release of Woolworths’ third quarter sales results (Q3 FY 2026).

Here’s what’s catching investor interest.

Woolworths shares sink on looming headwinds

For the 13 weeks to 5 April, Woolworths reported total sales of $18.1 billion, up 4.5% from Q3 FY 2025.

Up 5.9% year-on-year to $13.8 billion, Australian Food sales remain a cornerstone for the ASX 200 supermarket. The company noted that underlying trading momentum remained solid.

However, investors may be feeling jittery today with management noting they have seen “some signs of increased customer caution”.

Management expects that Australian Food earnings before interest and tax (EBIT) growth for FY 2026 will remain in the mid to high single digits, but no longer at the upper end of that range.

Woolworths shares also aren’t getting a boost today, despite eCommerce sales increasing by an impressive 20.2% to $2.7 billion. Woolworths eCommerce segment now represents 16.6% of all its Australian Food sales.

The supermarket had a more challenging quarter with its New Zealand Food sales, which decreased by 5.2% in Aussie dollar terms to $1.81 billion. (In New Zealand dollar terms, Food sales of NZ$2.15 billion were up 1.4% quarter-on-quarter.) Management said this reflected lower market growth and a highly competitive market.

Rounding off the company’s major segments, sales at its W Living division, which comprises BIG W and Petstock, were up 4.8% year on year to $1.27 billion. The company said that despite BIG W sales growth “remaining modest”, the store is on track to deliver positive EBIT and cash flow for FY 2026.

What did management say?

Commenting on the results that are pressuring Woolworths shares today, CEO Amanda Bardwell said:

In Q3 we made further progress on our strategic priorities with investment in value, fresh, convenience and execution delivering improved sales momentum in Australian Food which drove strong Group sales growth.

Looking ahead, Bardwell added:

The conflict in the Middle East is creating greater uncertainty for our customers, suppliers and team at a time when cost-of-living pressures are already acute. While the impact on the group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year…

The group has mobilised rapidly to respond to this environment, and we are engaging regularly with government as their response plans are developed.

With today’s intraday slump factored in, Woolworths shares remain up 10.0% over 12 months, not including dividends.

The post Why did Woolworths shares just crash 10%? appeared first on The Motley Fool Australia.

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

Shares in ASX Ltd (ASX: ASX) are edging higher on Thursday after the company announced a leadership change at the top.

At the time of writing, the ASX share price is up 3.01% to $59.59.

That comes off a solid run, with the stock up around 18% over the past month.

So, let’s take a closer look at the latest release.

Interim CEO steps in

Before the market opened, ASX confirmed that Darren Yip will take on the role of interim Chief Executive Officer.

Yip is currently Group Executive of Markets and Listings and will officially step into the position on 29 May 2026.

The move follows the earlier announcement that current CEO Helen Lofthouse is set to depart the business.

ASX said it is continuing its search for a permanent replacement.

Yip joined the company in 2023 and brings more than 20 years of experience across global financial markets.

His background includes senior roles in trading, derivatives, and equity markets, along with leadership experience across Asia Pacific.

What this means in the short term

There are no changes to the ASX’s earnings, guidance, or capital allocation in the update.

Instead, the focus is on maintaining continuity while the board looks for a long-term appointment.

Management noted that Yip’s experience across both markets and listings should help keep operations running smoothly through the transition.

That includes oversight of ASX’s core businesses, such as equities trading, derivatives, and clearing services.

The exchange operator also flagged that planned projects and day-to-day operations will continue as expected during this period.

Pay details and timing

Alongside the appointment, ASX released details on Yip’s interim pay structure.

He will receive an additional fixed allowance of $600,000 per year on a pro rata basis while in the role.

There is also a lift to his short-term incentive opportunity, which is reflected from the added responsibility.

The interim arrangement will stay in place until a permanent CEO is appointed or the board decides otherwise.

Foolish Takeaway

The business is still doing what it has been doing, generating steady revenue from trading, listings, and clearing activity.

Short-term leadership changes can create noise, but they do not always change the underlying performance of a company.

With no financial impact flagged, this update is more of a transition.

I still see ASX as a solid, defensive-style holding that benefits from stable market activity and its position in Australia’s financial system.

From here, I would be watching trading volumes and listings activity much more closely than the CEO timeline.

The post ASX shares climb after CEO news. Here’s what investors are watching 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.

The Regis Healthcare Ltd (ASX: REG) share price is in focus after the company announced FY26 underlying EBITDA is expected at about $135 million, hitting the top end of its guidance amid strong occupancy across mature homes.

What did Regis Healthcare report?

• FY26 underlying EBITDA expected to be approximately $135 million
• Average Q3 FY26 occupancy in mature homes reached 95.9%, up on the prior period
• Net refundable accommodation deposit (RAD) inflows of $223 million year to date (March FY26)
• Total paid-up RAD balance at $2.3 billion as at 31 March 2026
• One-off profit before tax of $25 million from divestment of two homes in Far North Queensland

What else do investors need to know?

Regis Healthcare’s ongoing momentum was supported by targeted sales initiatives and a tightening market for available beds. The company’s recent acquisitions, including Rockpool and OC Health, and room pricing adjustments also helped drive RAD inflows.

A structured cost-savings program is underway, focusing on streamlining management, improving operational efficiency, and adopting data analytics and AI tools to optimise workforce planning and automate processes. Regis is actively recycling capital, through both acquisitions and divestments, to strengthen its portfolio’s quality and earnings profile.

Regis is closely monitoring the Federal Government’s accommodation funding reforms and a new $3 billion package to support sector sustainability, with further details expected in the May 2026 Budget.

What did Regis Healthcare management say?

Managing Director and CEO Dr Linda Mellors said:

The release of the Accommodation Pricing Review and the Government’s initial funding response represent an important step toward improving the long-term sustainability of residential aged care. While further detail and consultation will be important, the direction of reform is positive and aligns with the sector’s need for a more sustainable funding and capital framework.

What’s next for Regis Healthcare?

Regis intends to keep investing in quality acquisitions and new developments in attractive locations, while continuing its efficiency and capital management push. Management will be watching the Federal Government Budget and aged care policy updates closely, considering their potential impact on funding and resident mix.

Over time, the progressive repricing of RADs is expected to deliver substantial operating cash inflows, supporting future growth and earnings.

Regis Healthcare share price snapshot

Over the past 12 months, Regis Healthcare shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Regis Healthcare expects FY26 EBITDA to hit top end of guidance appeared first on The Motley Fool Australia.

More reading

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• Stockland reports higher 3Q26 sales and maintains FY26 guidance
• Woolworths Group Q3 sales grow as shoppers turn to value and convenience
• Mineral Resources upgrades FY26 volume guidance and posts robust lithium prices

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.

South32 Ltd (ASX: S32) shares are sinking in early trade on Thursday after the mining giant released a detailed update on its Hermosa project in the United States.

At the time of writing, the South32 share price is down a massive 8.45% to $3.90.

Despite the stock trending lower since mid-April, it’s still up around 10% in 2026.

Here’s what the company released to the market.

Major update on Hermosa project

Most of the focus in this release sits with the Taylor deposit, and it gives a clearer picture of how the project is coming together.

South32 said the Taylor deposit continues to shape up as a long-life, low-cost operation with strong production potential.

One of the key changes is a longer expected mine life, which has been extended from 28 years to 33 years. That gives the project a much larger production window than previously planned by management.

The company also reported a 32% increase in mineral resources and a 52% lift in ore reserves at Taylor. Both upgrades were driven by ongoing drilling and a better understanding of the deposit.

There is also potential for future growth beyond Taylor, with the nearby Clark and Peake deposits offering additional upside over time.

Production outlook and timing

South32 is targeting first production from Taylor in the second-half of FY28.

Annual output is expected to average around 346,000 tonnes of zinc equivalent over the life of the mine. That includes zinc, lead, and silver production.

The operation is designed to ramp up to steady-state production by FY31.

From there, the project is expected to deliver consistent output for decades, supported by underground mining and a large processing facility.

Costs increase as the project moves forward

While the project is moving forward, there has been a notable increase in capital costs.

South32 now expects total growth capital expenditure of about US$3.3 billion. That is up from earlier estimates due to inflation, scope changes, and higher input costs.

Despite that, the company still sees strong economics.

At spot commodity prices, Hermosa is expected to generate around US$650 million in annual EBITDA at a steady state.

The project’s net present value is estimated at around US$3.1 billion, with solid margins built into the plan.

Foolish Takeaway

There is still a long runway before production begins, so timing and cost control will be important to watch from here.

Investors will also be looking at how quickly South32 can move through construction milestones and into commissioning.

Any further updates on capital spend or timelines could influence sentiment.

Keep in mind, this is still a multi-year build, so there is an execution risk along the way.

The post This ASX 200 mining stock is sinking 8% after a big project update. Here’s why appeared first on The Motley Fool Australia.

More reading

• South32 Hermosa project boosts reserves and mine life in FY26 update
• 5 ASX 200 shares with renewed buy ratings this week
• South32 shares are booming, but is the best still to come?
• South32 shares are rising again – what just happened?
• South32 lifts net cash and sets Brazil Alumina output record in March quarter

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.