Category: Stock Market

The BSP Financial Group Ltd (ASX: BFL) share price is in focus after the bank delivered an 18.5% jump in first quarter revenue and 14.6% growth in unaudited net profit after tax to K278 million.

What did BSP Financial Group report?

• Revenue rose 18.5% year-on-year to K900 million
• Net profit after tax (NPAT) reached K278 million, up 14.6%
• Cost-to-income ratio increased to 45.0% (up 140 basis points)
• Capital adequacy ratio stood at 23.9%, still above regulatory minimums
• Total operating expenses grew 22.3% as investment in modernising progressed
• Loans grew 9.7%; deposits climbed 17.9% compared to the prior corresponding period

What else do investors need to know?

BSP Financial Group continues to invest in its Modernising for Growth program, leading to a temporary rise in expenses and cost-to-income ratio. Management anticipates expenses will peak in 2026 and 2027, aiming to return to a 42–45% cost-to-income range after that.

Papua New Guinea’s addition to the Financial Action Task Force’s grey list in February has not materially affected BSP’s customers or operations. The bank reports robust compliance and continues to support efforts to have PNG removed from the grey list.

Credit impairment charges increased notably during the quarter, mostly due to a small number of customer-specific provisions; however, portfolio quality remains in line with expectations and overall provisioning has not materially changed.

What’s next for BSP Financial Group?

Looking ahead, BSP intends to keep investing in technology and infrastructure as part of its growth strategy, with the expectation that efficiency ratios will normalise once transformation spending eases. Management remains cautious given regional and global uncertainties, particularly the potential for inflation and economic pressures linked to international events.

Asset quality and portfolio performance are being closely monitored, with no immediate need for additional provisions, but the bank stays alert to emerging risks across its lending book.

BSP Financial Group share price snapshot

Over the past 12 months, BSP Financial shares have risen 12% outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post BSP Financial Group Q1 2026 earnings: Profit and revenue climb as bank continues investment appeared first on The Motley Fool Australia.

More reading

• Mesoblast shares in focus after key Phase 3 milestone for low back pain
• Stanmore Resources: Coal output recovers in March quarter
• Zimplats shares: Production dips and costs rise
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Liontown shares: Expansion works begin at Kathleen Valley

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.

The Mesoblast Ltd (ASX: MSB) share price is in focus after the company announced it has reached its patient recruitment target in its pivotal Phase 3 trial for chronic low back pain. This milestone could pave the way for regulatory filing and potential commercial launch of rexlemestrocel-L, Mesoblast’s novel cell therapy.

What did Mesoblast report?

• Pivotal Phase 3 clinical trial (MSB-DR004) for rexlemestrocel-L in chronic low back pain reached full patient enrolment of at least 300 participants
• Trial is placebo-controlled, with 12-month primary endpoint of pain reduction
• Secondary endpoints include improvements in function, quality of life, and opioid cessation
• Top-line results expected mid-calendar year 2027
• Regenerative Medicine Advanced Therapy (RMAT) designation from US FDA, providing eligibility for priority review

What else do investors need to know?

Mesoblast’s Phase 3 trial is evaluating a single intra-discal injection of rexlemestrocel-L, aiming to replicate earlier results that showed clinically meaningful pain reduction and reduced opioid use for up to three years. The company plans to use positive trial outcomes to support a regulatory submission to the US FDA in the second half of 2027, seeking approval for commercialisation.

The company notes that chronic low back pain associated with degenerative disc disease affects more than 7 million Americans. This indication could represent a substantial market opportunity, and Mesoblast’s proprietary cell therapy technology is positioned as a potential disease-modifying, non-opioid alternative.

What did Mesoblast management say?

CEO Silviu Itescu said:

This is a major milestone toward delivering on our corporate goal of bringing to market a non-opioid, disease-modifying therapy for patients suffering from chronic low back pain, a condition with significant unmet medical need.

What’s next for Mesoblast?

Mesoblast expects to deliver top-line Phase 3 results by mid-2027, after the last patient completes follow-up. If successful, the company aims to file a Biologics License Application with the FDA in the third quarter of 2027. RMAT designation may help accelerate review processes.

Meanwhile, Mesoblast continues to advance its broader pipeline in inflammatory diseases and maintains a strong intellectual property portfolio, with over 1,000 patents worldwide. The company’s commercial partnerships in Japan, Europe, and China also provide additional revenue potential.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have risen 17%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Mesoblast shares in focus after key Phase 3 milestone for low back pain appeared first on The Motley Fool Australia.

More reading

• BSP Financial Group Q1 2026 earnings: Profit and revenue climb as bank continues investment
• Stanmore Resources: Coal output recovers in March quarter
• Zimplats shares: Production dips and costs rise
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Liontown shares: Expansion works begin at Kathleen Valley

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.

Two of the ASX’s hottest shares are starting to wobble.

Shares in 4DMedical Ltd (ASX: 4DX) and Electro Optic Systems Holdings Ltd (ASX: EOS) have delivered eye-watering gains over the past year, but recent pullbacks are raising eyebrows.

4DMedical has surged an astonishing 1,520% over 12 months, though it’s slipped 28% in the past month. Meanwhile, Electro Optic Systems is still up around 676% for the year, but dropped more than 5% on Tuesday.

If you’ve been along for the ride, it’s been spectacular. If not, the big question now is simple: Is there any upside left for these 2 red-hot ASX shares?

4DMedical

The company develops advanced medical imaging technology that creates detailed, real-time 3D and 4D views of lung function. Its platform helps doctors diagnose and monitor respiratory diseases more accurately than traditional imaging methods.

This $3 billion ASX share has delivered a remarkable growth story. A $3,000 investment just a year ago — buying 10,000 shares at $0.30 — would now be worth roughly $47,100.

But after such a massive run, valuation becomes far less clear. The company remains in a growth and commercialisation phase and is still loss-making, with much of the share price momentum driven by contract wins and future expectations.

While its technology is gaining traction and new deals continue to support sentiment, the lack of consistent earnings adds a layer of risk. Much of the recent share price strength appears tied to what the growth stock could achieve, rather than what it is currently delivering financially.

According to TradingView data, the average analyst price target sits at $4.47, about 5% below the current share price. That suggests expectations may already be stretched in the near term.

Electro Optic Systems

Electro Optic Systems operates in the defence and advanced technology space, an area currently benefiting from rising geopolitical tensions and increased military spending.

That backdrop has helped drive strong investor interest and price gains for this ASX share over the past year.

However, as with many high-growth companies, sentiment can shift quickly. Any slowdown in contract momentum or changes in defence spending outlooks could weigh on performance.

At the time of writing, the ASX share is trading at $9.70, and analyst views remain mixed. Price targets range from around current levels up to $16, implying potential upside of roughly 65%.

That widespread highlights the uncertainty surrounding the stock, even after its strong run.

Foolish Takeaway

Both companies have delivered extraordinary gains, but recent pullbacks suggest momentum may be cooling.

For existing investors, the focus may shift to protecting gains. For those on the sidelines, the decision is less straightforward. When shares climb this quickly, expectations can outpace fundamentals, and that’s when the risks start to rise.

The post The ASX’s hottest shares just stumbled — warning sign? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Electro Optic Systems. 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.

ANZ Group Holdings Ltd (ASX: ANZ) shares are rising on Wednesday morning.

At the time of writing, the banking giant’s shares are up 0.5% to $36.22.

Why are ANZ Bank shares rising?

Investors have been buying the big four bank’s shares today following the announcement of an acquisition.

According to the release, ANZ has entered into a binding agreement to acquire Worldline S.A’s 51% share in Worldline Australia. It is the joint venture between ANZ and Europe’s leading payment and transaction provider, Worldline S.A, that commenced in 2022.

Worldline Australia, which is also known as ANZ Worldline, is headquartered in Melbourne and provides Australian-based businesses with access to point of sale and online payments technology.

At its launch in 2022, the bank highlighted that the service would give Australian merchants access to some of the world’s most advanced payment solutions, proven internationally and adapted to meet the unique requirements of the Australian market.

Why is it acquiring the stake?

The release states that management believes the acquisition is consistent with ANZ’s 2030 strategy and will enable the bank to directly provide its customers with a holistic bank offering. This is part of its ambition to be a leading payments and transaction bank in the region.

Commenting on the deal, ANZ’s managing director of institutional transaction banking, Lisa Vasic, said:

The ANZ 2030 strategy puts transaction banking at the centre of what we deliver to customers – whether it’s improving their experiences, offering them leading technologies and platforms, or keeping them safe.

This acquisition will allow us to strengthen our direct relationship with our customers and better meet our customer’s needs, as we continue to focus on providing our small business customers, right up to our largest Institutional customers, with a compelling merchant proposition.

How much will it cost?

ANZ advised that it has agreed to acquire Worldline S.A’s 51% share in ANZ Worldline for an enterprise value of $89 million (on a 51% basis), with an estimated implied equity value of approximately $30 million.

Subject to Australian Competition and Consumer Commission (ACCC) approval, completion is expected to occur in the second half of the 2026 fiscal year. The bank expects the transaction to have a 6 basis points impact on its Level 2 CET1 ratio.

It notes that there will be no change to the existing ANZ Worldline operations on completion. Its customers will continue to use ANZ Worldline services and products as they do today.

The ANZ Bank share price is X over the past 12 months.

The post ANZ Bank shares push higher on acquisition 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.

Woodside Energy Group Ltd (ASX: WDS) shares are pushing higher on Wednesday morning.

At the time of writing, the energy giant’s shares are up almost 2% to $32.97.

Why are Woodside shares rising?

Investors have been bidding the company’s shares higher today after it released a quarterly update which was ahead of expectations.

According to the release, Woodside reported production of 45.2 million barrels of oil equivalent (MMboe) for the March quarter.

This is ahead of expectations from Macquarie, which had forecast production of 43.7 MMboe for the period.

Management advised that Sangomar, Shenzi, North West Shelf Project and Pluto LNG all delivered outstanding reliability at or above 99% during the three months.

Strong sales

Woodside’s sales volumes also came in strong at 51.7 MMboe, comfortably above Macquarie’s estimate of 46.6 MMboe.

This helped drive operating revenue of US$3.26 billion for the quarter, which was also ahead of the broker’s expectation of US$3.09 billion.

The stronger than expected result was supported by a higher average realised price of US$63 per barrel of oil equivalent, up 11% on the prior quarter.

This reflects improved market conditions, including higher spot prices for LNG and oil-linked products.

Management commentary

Woodside’s new CEO, Liz Westcott, was pleased with the quarter. She said:

Production for the period was 45.2 million barrels of oil equivalent, underpinned by exceptional reliability of our world-class assets, including 99.9% at Sangomar and 99.0% at Shenzi. In Western Australia, Pluto LNG achieved 100% reliability for the third consecutive quarter, while the North West Shelf Project delivered 99.7%. Output from our Western Australian assets was impacted late in the quarter by Severe Tropical Cyclone Narelle. The team’s cyclone response ensured we maintained the safety of our people, assets and the environment throughout the shutdown and restoration of operations.

We have seen modest increases to our portfolio average realised pricing in the quarter, driven by elevated spot prices. Further benefits of currently higher spot prices will be realised in subsequent quarters for LNG due to lagged contract pricing.

Outlook

There have been no changes to Woodside’s guidance for FY 2026.

Total production is expected to be 172mmboe to 186mmboe with production costs of US$1.5 billion to US$1.8 billion and capital expenditure of US$4 billion to US$4.5 billion.

Following today’s gain, Woodside shares are now up 40% since the start of the year.

The post Up 40% in 2026: Why are Woodside shares charging higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Catalyst Metals Ltd (ASX: CYL) shares are under pressure on Wednesday.

At the time of writing, the ASX 200 gold stock is down 5.5% to $5.71.

Why is this ASX 200 gold stock falling today?

The weakness in the Catalyst Metals share price has been driven by a combination of a disappointing quarterly update and a softer gold price backdrop.

For the March quarter, Catalyst reported gold production of 26,127 ounces from its Plutonic operations.

This was delivered at an all-in sustaining cost (AISC) of A$2,901 per ounce, which is relatively high and above prior periods.

Although production itself remains steady and guidance for FY 2026 is unchanged at 100,000 to 110,000 ounces for FY 2026, the cost side of the equation has shifted meaningfully.

Management now expects its FY 2026 AISC to come in above its original guidance range, with revised expectations of A$2,750 per ounce to A$2,950 per ounce.

This compares to its previous AISC guidance range of A$2,200 per ounce to A$2,650 per ounce.

What is driving higher costs?

The ASX 200 gold stock pointed to several factors behind the increase in its cost guidance.

These include processing plant downtime during the quarter, lower material movements, and broader inflationary pressures such as rising diesel costs.

There were also costs associated with preparing for plant upgrades, including a crusher replacement, which impacted the quarter.

While some of these factors may be temporary, the upward revision to full year cost guidance suggests pressures could persist in the near term.

Nevertheless, the company recorded operating cashflow (after sustaining capital and corporate costs) of A$103 million. This boosted its cash balance by A$39 million to A$277 million.

Growth story intact

Importantly, Catalyst continues to make progress on its growth strategy.

The ASX 200 gold stock is advancing multiple mines across the Plutonic Gold Belt, with K2 expected to ramp up shortly and Trident transitioning to underground operations.

Exploration is also delivering encouraging results, including a high-grade discovery beneath the Cinnamon resource that could add another ore source.

Commenting on the quarter, management said:

The Catalyst business has now proven itself to be a stable, viable long-term going concern in the mid-cap ASX listed gold sector. This was not the case when we took over three years ago. Longer term production and cost guidance have been set and so it is a matter for our team to get on with the job of delivery. We expect to have some good and bad months, some good and bad quarters but generally we expect the forecast growth trajectory over time to remain as guided.

The post Why are Catalyst Metals shares sinking today? 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.

Doubling your money is something every investor dreams of when buying ASX shares.

But what if you could triple your money? Well, Bell Potter thinks that could be possible with the ASX share in this article.

However, as it is a small cap, it may only be suitable for investors with a high risk tolerance.

Let’s see what the broker is recommending.

Which ASX share?

The share that Bell Potter is recommending to clients is Biome Australia Ltd (ASX: BIO).

It is a developer and commercialiser of clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the Activated Probiotics brand.

Bell Potter was relatively pleased with the company’s performance during the third quarter, especially given that it is traditionally a seasonally weak quarter. It said:

BIO reported cash receipts of c.$4.9m, flat over the pcp and down on the previous two quarters. Net Operating Cash Outflow of c.-$1.2m, down from c.+$1.2m in 2Q26, reflected inventory build ahead of the peak 4Q cycle and softer cash receipts, which seems to reflect working capital timing issues. Sales were not disclosed, but we estimate sales were c.$5.5m, up c.21% yoy.

The March quarter is seasonally weak, affected by the holiday period, but this was weaker than expected based on historical patterns. BIO also increased marketing spend ahead of the cold & flu season. Cash finished flat at c.$3.4m with drawn debt at c.$2.1m and unused finance facilities at c.$2.9m.

The broker highlights that milestones are being achieved by the ASX share. This includes both sales milestones and cost milestones. It adds:

BIO has now passed the sale of 1 million boxes of its core brand Activated Probiotics on a R12M basis and is on track to deliver 100m doses through community pharmacy/ health practitioners. It is an important milestone for the business, with pharmacy scan data continuing to show BIO has the fastest growing probiotic brand within community pharmacy and is approaching the number one probiotic product in total pharmacy sales by volume and value.

BIO appears close to finalising its onshoring strategy and implementation that should deliver a structural improvement to COGS and gross margins. An update to the market is expected later this year, that should address the current concentration risk of importing 100% of product, along with freight and supply chain disruption risk. An efficient approach to onshoring should be supported by investors.

Big potential returns

According to the note, Bell Potter has retained its buy rating and $1.00 price target on the ASX share.

Based on its current share price of 31 cents, this implies potential upside of over 200% for investors between now and this time next year.

Speaking about its recommendation, Bell Potter said:

Despite some seasonal weakness, BIO has indicated that 4Q26 should be a record quarter and that FY26 should provide a step change in EBITDA performance v FY25. Our estimate of YTD sales is c.$18m and we have decided to lower our FY26e sales by c.4.1% to c.$25.6m (which would still result in a record quarter) and have offset this through a lift in our gross margin to reflect favourable movement in FX rates (AUDEUR) which have moved c.9% since 1H26.

Our EBITDA estimate is unchanged, and we have maintained our estimates beyond FY26. If BIO concludes an onshoring arrangement, there could be tailwinds to our gross profit / EBITDA estimates.

The post Top broker predicts 200% return for which ASX share? 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.

There are a few investments I believe are more likely to help build long-term wealth than many other options. The exchange-traded fund (ETF) Vanguard MSCI Index International Shares ETF (ASX: VGS) ticks a lot of boxes that I’m looking for.

There are plenty of other Vanguard ETF contenders, such as the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard Diversified High Growth Index ETF (ASX: VDHG).

But there are a few reasons why I’d rate the VGS ETF as the best option, particularly the first reason.

Globally diversified share portfolio

The purpose of this fund is to invest in major companies listed in ‘developed’ countries.

I like the fact that this portfolio is 100% (global) shares – the long-term returns are not diluted by being invested in bonds, and I think that global blue chips have a better collective earnings growth outlook than ASX blue chips.

The VGS ETF portfolio is invested in shares from the US, Japan, the UK, Canada, France, Switzerland, Germany, the Netherlands, Spain, Sweden, Italy, Hong Kong, Singapore, Denmark, Finland, Belgium, Israel, Norway, Ireland, and more.

I’m a fan of how this fund’s biggest industry exposure is IT, which is typically where the strongest long-term earnings growth is occurring this decade.

At the end of March 2026, IT had the largest allocation (26.1%), with financials (15.9%), industrials (11.9%), healthcare (9.7%), consumer discretionary (9.3%), and communication services (8.6%) as the other sectors with notable allocations.

In my view, the VGS ETF is an excellent option as an all-in-one investment.

High-quality businesses

There are numerous global leaders in the VGS ETF portfolio, though I wouldn’t choose to invest in the fund for specific stock exposure.

Instead, I think it’s important to recognise that the fund’s financial characteristics are so appealing.

For example, at the end of March 2026, the Vanguard ETF reported a return on equity (ROE) of 19.6% and an earnings growth rate of 21.3%.

In my eyes, earnings growth is what supports long-term share price growth. The ROE tells us roughly what earnings return a business may be able to achieve on additional retained earnings, so the ROE is an important characteristic.

To me, it’s not a surprise that the VGS ETF has returned an average of 13.26% per year over the last decade.

Low management fees

One of the best reasons to invest in Vanguard ETFs is because of their incredibly low management fees, allowing most of the returns to stay in the hands of investors, rather than being lost to management fees or performance fees.

The VGS ETF has an annual management fee of 0.18%, which I’d describe as low considering how much global diversification it provides.

How quickly this Vanguard ETF can grow into $1 million

I’m not sure what the next 10 years of returns will be, but if it’s an average of 13.26% per year, then the outlook is very promising with the VGS ETF.

Investing $1,250 per month would become $1 million in less than 19 years if it returned 13.26% per year.

The post 3 reasons why this could be the best Vanguard ETF to reach $1 million appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Stanmore Resources Ltd (ASX: SMR) share price is in focus as the company reported a resilient March quarter, with saleable coal production steady at 3.2 million tonnes and closing cash of US$166 million giving the miner a strong foundation for the year.

What did Stanmore Resources report?

• Saleable coal production: 3.2 million tonnes, broadly steady year-on-year
• Sales volumes: 3.0 million tonnes, including a higher share of thermal coal
• Closing cash: US$166 million and total liquidity of US$436 million
• Net debt: US$79 million after paying an US$80 million full-year dividend in March
• Average sales price: US$152 per tonne for the quarter, up from US$136/t in December
• Safety: Serious Accident Frequency Rate of 0.50, well below the industry average of 0.80

What else do investors need to know?

Operations bounced back in March after wet weather and ex-Tropical Cyclone Koji caused delays in early 2026. Strong opening inventories and a proactive approach helped Stanmore keep coal deliveries within annual guidance. South Walker Creek posted record production for March, and performance at Poitrel was underpinned by consistent processing and fleet upgrades.

Looking ahead, the Isaac Downs Extension approvals are progressing on track, with an Environmental Impact Statement due in the June quarter. The company also completed a key tailings project at Poitrel to cut costs, and infill drilling at several sites has kicked off for 2026.

What did Stanmore Resources management say?

Chief Executive Officer & Executive Director Marcelo Matos said:

The first quarter of 2026 reinforced the resilience of our business, with operations recovering strongly in the latter part of the period to deliver saleable production within the expected annual run rate of Guidance. This followed the arrival of ex-Tropical Cyclone Koji in early January, which caused widespread disruption across open-cut producers in Queensland. Strong opening inventories helped buffer the impact for Stanmore, supported by a proactive operational response to prioritise coal availability and record volumes at South Walker Creek in March.

What’s next for Stanmore Resources?

Full-year saleable production guidance is unchanged at 12.8–13.4 million tonnes, though cost guidance has been revised higher due to fuel price swings from global events. Stanmore has moved swiftly to secure fuel supplies and manage price risk, flagging that cost increases are driven mostly by external macroeconomic impacts.

Development continues on several projects in the Bowen Basin, with a steady pipeline of exploration, approvals, and infrastructure upgrades supporting Stanmore’s longer-term strategy. The company says its balance sheet and strong cash generation leave it well placed for ongoing volatility.

Stanmore Resources share price snapshot

Over the past 12 months, Stanmore Resources shares have risen 17%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Stanmore Resources: Coal output recovers in March quarter 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.

Aurelia Metals Ltd (ASX: AMI) recently released its third-quarter report, prompting the gold analysts at both Moelis and Shaw and Partners to take a closer look at the company.

Both have rated the company a buy and have bullish price targets on the gold producer. We’ll get to the details of those forecasts later.

Solid quarter

Firstly, let’s have a look at what Aurelia reported this week.

The company said it had produced 13,000 ounces of gold during the March quarter, as well as 600 tonnes of copper, 6,900 tonnes of zinc, and 4,300 tonnes of lead.

The company’s cash balance increased from $85.6 million at the end of December to $94.7 million at the end of March.

Aurelia also increased its full-year production guidance, saying gold production was now expected to come in at 45,000 to 50,000 ounces, compared with the previous guidance of 35,000 to 40,000 ounces.

Forecast copper production, however, reduced from 3,000 to 4000 tonnes to 2.5-3000 tonnes.

Growth capital spending would also be reduced to $45 to $60 million from $65 to $70 million, due to some deferrals.

Aurelia also said its process plant expansion project was on track to increase capacity from 800,000 tonnes per annum to 1.1 to 1.2 million tonnes per annum, with ramp-up planned throughout FY27.

Managing Director Bryan Quinn said regarding the quarter:

The March quarter delivered higher gold production of 13koz, free cash flow generation, and improved FY26 gold guidance. Costs were in line with guidance and free cash flow was generated after adding to restricted cash for rehabilitation bonds, investments in growth capital and payment of taxes. This was achieved while also building ROM stocks at Peak during the quarter, in preparation for production growth in future quarters. The March quarter also saw us progress the refinancing process, culminating in execution of a financing commitment letter as announced in early April. This materially strengthens the balance sheet and enhances liquidity, positioning Aurelia to execute its strategy with greater flexibility and confidence.

Consensus is that shares look cheap

The analyst team at Moelis said Aurelia’s quarterly was “reasonably consistent with our expectations”, and demonstrated that the company could generate meaningful cash flow while concurrently executing multiple growth initiatives.

They added:

If AMI can sustain the drumbeat of delivery, we expect the stock to progressively rerate – shedding the discount it has carried since the material downgrade in the middle of CY25. With favourable metal prices, the business is well placed to convert improving production outcomes into accelerating near-term cashflow.

Moelis has a buy rating and a price target of 42 cents on Aurelia shares, compared with 28 cents currently.

Meanwhile, the team at Shaw and Partners called it “another strong quarter”.

They noted that the company’s growth projects were on track, while the company was also looking for a new Chief Executive, which should also provide impetus.

Shaw and Partners has a 50-cent price target on Aurelia shares.

Aurelia Metals is valued at $448.8 million.

The post 2 brokers rate this ASX gold stock a buy, with 50% upside forecast appeared first on The Motley Fool Australia.

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