Category: Stock Market

Shares in gold exploration minnow Redcastle Resources Ltd (ASX: RC1) jumped more than 50% in early trade on Monday after the company announced “exceptional” gold assays from its Redcastle Reef prospect.

The company said on Monday that the first results from grade control drilling at the prospect had delivered some very high gold results, including a 1m section measuring 3650 grams per tonne of gold at a depth of 15m.

The company did caution that such high results were indicative of “nuggety” gold, which was known to occur at the prospect, and which would be typically cut to a lower value during resource estimation.

Strong grades welcomed

Other results included 7m at a grade of 527 grams per tonne of gold across 7m (including the previously reported section) and 2m at 14.58 grams per tonne of gold from a depth of 24m.

Redcastle said the results were from the first eight holes planned as part of the grade control drilling program, which was being conducted by its joint venture partner BML Ventures.

The company went on to say:

The drilling program at Redcastle Reef is planned to include approximately 12,800m on an 8m x 6m grid and designed to improve grade definition for mine planning and gold production.

Redcastle Resources Chair Ray Shaw said on Monday:

These initial grade control results from Redcastle Reef are highly encouraging, with multiple high-grade intercepts reported over meaningful widths, demonstrating the continuity and tenor of the mineralised system. It is particularly encouraging to see that … grade control drilling is supporting Redcastle’s existing mineral resource estimate (MRE) drilling results. Redcastle Reef has long been recognised for the presence of coarse gold, and these results further confirm that characteristic. Redcastle is fortunate to have access to experienced personnel with extensive expertise in managing coarse-gold mineralisation in the Eastern Goldfields over many years.

Drilling is continuing at the prospect, and new results will be reported as they come in, the company said.

Happy hunting grounds

Redcastle’s portfolio of gold exploration assets is located about 60km east-southeast of the Gwalia gold mine, the company said.

The portfolio comprises a series of contiguous tenements centrally located within a region known as the ‘golden circle’, an area delineated by multi-million-ounce gold mining operations within the highly prospective Leonora-Laverton portion of the greenstone belt of the eastern Yilgarn.

Redcastle shares traded as high as 11.5 cents on the news, up 51.3%, before settling back to be 26.3% higher at 9.6 cents.

Redcastle Resources was valued at $9.1 million at the close of trade on Friday.

The post Gold junior’s shares jump more than 50% on “exceptional” drilling results 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Meta Platforms has a rare ecosystem

Meta Platforms ended the third quarter with 3.54 billion daily active users across its websites and mobile apps, an 8% year-over-year increase. The world’s population is about 8.3 billion people. If we remove all those who are too young to have an Instagram account, it may well be the case that something like half of eligible adults (or young adults) worldwide visit at least one of Meta’s websites and apps every single day. That user base is a veritable goldmine.

And the best part: Most of them are unlikely to go anywhere anytime soon, given the company’s strong network effects. Consider why people open Instagram accounts. It could be to keep up with friends and family, to become an influencer, or to promote products for their businesses, among other reasons. For each of these uses, the platform becomes even more valuable as more people join in, and for those who are already in those networks, it makes little sense to leave.

Meta Platforms’ ecosystem makes it an incredible target for advertisers. It also allows it to launch new monetization opportunities. Less than three years ago, Meta Platforms launched its X competitor, Threads — it already has 150 million daily active users. According to management, it’s on track to become the leader in its category.

Facebook Marketplace is another opportunity that fits naturally within the company’s strategy. Anyone else starting an online platform to connect buyers and sellers would have to work hard to attract an audience. For Meta Platforms, it wasn’t difficult since it already has a large one. So long as Meta Platforms’ vast ecosystem stays in place, the tech leader should find many more monetization schemes, even as advertising remains the most important.

Meta is a buy-and-forget stock

Meta Platforms’ work in AI is undoubtedly strengthening the business. For instance, AI-powered algorithms are helping it increase engagement while enhancing the return on investment marketers get from ads on its platforms. However, none of that would matter if not for the company’s existing user base. Meta still has ample growth potential over the long run, and much of the fuel for that will be its vast ecosystem. That’s why I am staying put.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 reason I will never sell Meta Platforms stock appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Prosper Junior Bakiny has positions in Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms. The Motley Fool Australia has recommended Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Neuren Pharmaceuticals Ltd (ASX: NEU) shares are starting the week strongly.

In morning trade, the ASX 200 stock is up 3.5% to $19.59.

Why is this ASX 200 stock rising today?

Investors have been bidding the pharmaceuticals company’s shares higher today after it received approval from regulators in the United States for a new product.

According to the release, its partner in the United States, Acadia Pharmaceuticals (NASDAQ: ACAD), has received US Food and Drug Administration (FDA) approval of Daybue STIX. It is a dye- and preservative-free powder formulation of trofinetide for the treatment of Rett syndrome in adult and paediatric patients two years of age and older. It is a rare genetic disorder that affects the way the brain develops, impacting the ability to use muscles for eye and body movements and language.

It notes that the new powder formulation offers children and adults living with Rett syndrome new flexibility and choice regarding the dose volume and taste of their Daybue treatment.

The ASX 200 stock advised that the approval of this new formulation was supported by the results of a bioequivalence study. This study demonstrated that both original Daybue oral solution and the new Daybue STIX powder formulation provide comparable exposure.

This confirmed bioequivalence means patients can expect the same efficacy and safety established by the oral solution formulation when using Daybue STIX.

Acadia has advised that it expects Daybue STIX to be available on a limited basis starting in the first quarter of 2026.

After which, it will be more broadly available early in the second quarter of 2026. The current oral solution formulation will remain available.

Acadia has an exclusive worldwide licence for the development and commercialisation of trofinetide (Daybue). This agreement sees Neuren receive royalties on all net sales of trofinetide and is eligible to receive additional payments on achievement of commercial and development milestones.

Neuren’s CEO, Jon Pilcher, was pleased with the news. Commenting on the approval, he said:

The Neuren team is excited about the approval of this new treatment option for Rett syndrome families and the continued investment and innovation for trofinetide by our global partner, Acadia. Caregivers can mix Daybue STIX with a variety of water-based liquids providing flexibility to modify the taste and volume of their loved-one’s dose. We look forward to seeing the impact as Daybue STIX becomes more broadly available during 2026.

The post This ASX 200 stock is charging higher on FDA approval 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.

The All Ordinaries Index (ASX: XAO) is down 0.6% today, but don’t blame this rocketing ASX All Ords gold share.

The surging stock in question is Gorilla Gold Mines Ltd (ASX: GG8).

Gorilla Gold shares closed on Friday trading for 47 cents. In early morning trade on Monday, shares are changing hands for 49.5 apiece, up 5.3%. The Gorilla Gold share price is now up 136% since the 12 February close, when you could have picked up shares for just 21 cents apiece.

Today’s outperformance follows news of a major mineral resource upgrade at the miner’s 100%-owned Comet Vale Gold Project, located in Western Australia.

Here’s what’s grabbing investor interest.

ASX All Ords gold share leaps on resource boost

Investors are bidding up the Gorilla Gold share price after the miner reported a 900% increase in the previously estimated mineral resource for Comet Vale to 860,000 ounces of contained gold (7.3 Mt at 3.7g/t Au).

The ASX All Ords gold shares noted that it delivered the additional ounces of gold at a discovery cost of around $25 per ounce.

The indicated component of the Comet Vale mineral resource estimate now totals 1.7 Mt at 4.1g/t Au for 220,000 ounces of gold.

Comet Vale has seen historical gold production of more than 200,000 ounces at 20g/t Au. Underground operations were running at the project until 2020.

The ASX All Ords gold share made a high-grade gold discovery at the nearby Lakeview Prospect in February 2025, with the miner noting new extensional lodes were also discovered at Cheer and Sovereign in January 2025.

Gorilla noted “clear potential” for additional increases in the gold resource base at Comet Vale. Three drill rigs are currently operating at the site.

What did management say?

Commenting on the resource upgrade helping to lift the ASX All Ords gold share today, Gorilla Gold CEO Charles Hughes said, “The Comet Vale Project is rapidly emerging as a camp-scale gold development project, with this resource update incorporating the three new, high-grade discoveries that Gorilla has made within the project area over the past year.”

Hughes added:

This update to the Comet Vale Resource comes hard on the heels of the delivery of a maiden mineral resource for the Vivien Project in April 2025 and an updated resource for Mulwarrie in August 2025, capping off what has been an exceptionally busy year of drilling for the company.

As a result of this upgrade, Gorilla now collectively holds 1.5 million ounces of high-grade gold in Resources across three key projects in prime Goldfields locations in Western Australia.

Looking ahead, Hughes said, “We are now forging ahead with development studies for all three Western Australian projects, while also continuing drilling programs to deliver further Resource growth.”

The post Guess which high-flying ASX All Ords gold share is rocketing again today on a ‘major upgrade’ 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 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 Westgold Resources Ltd (ASX: WGX) share price is in focus after the company announced plans to spin out its non-core Reedy and Comet gold projects into a new standalone vehicle, Valiant Gold Limited, with an associated IPO in Q3 FY26. Key highlights include a proposed $65–$75 million Valiant IPO and Westgold’s retention of a significant equity stake in the new entity.

What did Westgold Resources report?

• Westgold to demerge its non-core Reedy and Comet gold projects into Valiant Gold, a new ASX-listed company
• Valiant Gold to acquire projects hosting a combined Mineral Resource of 15.6 Mt @ 2.4 g/t Au for 1.2 Moz
• IPO expected to raise $65–$75 million with a $20 million Priority Offer for eligible Westgold shareholders
• Ore Purchase Agreement to be entered into between Valiant and Westgold, fast-tracking cash flow from mining
• Westgold to retain 44%–48% stake in Valiant post-IPO, preserving exposure to exploration and production upside

What else do investors need to know?

The move will allow Westgold to sharpen its strategy by focusing capital and resources on expanding core, higher-grade operations in the Murchison and Southern Goldfields regions. The demerger is structured so Valiant will have immediate access to Westgold’s processing plants under a commercial Ore Purchase Agreement, providing a clear pathway for early production.

Valiant’s establishment brings an experienced board and management team, including Westgold’s own Chief Growth Officer Simon Rigby as a non-executive director. The new company’s IPO is intended to foster accelerated drilling, mine restarts, and exploration across the demerged assets.

What did Westgold Resources management say?

Managing Director & CEO Wayne Bramwell said:

Westgold is focused on expansion of our larger, core operating assets. By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages. Valiant will have a fast-track to cashflow with an Ore Purchase Agreement (OPA) to be entered into with Westgold. This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG). This model saw NMG transition from explorer to producer, with gold production from NMG’s Crown Prince deposit now delivering high grade oxide ore to Westgold’s Meekatharra processing hub. Valiant can replicate this success. With several small underground mines in care and maintenance, a range of open pit opportunities, and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near term cashflow.

What’s next for Westgold Resources?

The demerger and IPO are scheduled for completion by late March 2026, subject to regulatory conditions and ASX approval. Eligible Westgold shareholders will have access to a $20 million Priority Offer in the IPO. Westgold will continue to support Valiant by providing an unsecured, interest-free loan to kickstart project activities ahead of listing.

Looking ahead, Westgold intends to sharpen its focus on growth in Western Australia’s prolific gold regions, while benefiting from any upside Valiant delivers through its equity stake and Ore Purchase Agreement.

Westgold Resources share price snapshot

Over the past 12 months, Westgold Resources shares have risen 103%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 5% over the same period.

View Original Announcement

The post Westgold unveils spin-out of non-core Reedy and Comet gold assets 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.

4DMedical Ltd (ASX: 4DX) has secured Canadian approval for its world-first imaging technology, sending its shares more than 7% higher on Monday.

The company said in a statement to the ASX on Monday morning that it had received approval for CT:VQ, “the world’s first and only, non-contrast, CT-based ventilation-perfusion imaging solution”.

The company went on to say:

This approval marks a significant expansion of 4DMedical’s presence in North America, enabling immediate commercial development of CT:VQ across Canada through the company’s strategic partnership with Philips.

Major market to open up 

4DMedical said Health Canada has granted regulatory approval for CT:VQ as a class 2 medical device.

The company added:

Canada represents a substantial market opportunity for CT:VQ. With a population exceeding 40 million and GDP of over US2.1 trillion (ranked 10^th globally), Canada’s healthcare system includes approximately 560 CT scanners, predominantly hospital-based (94%). The Canadian market performs over 6.4 million CT examinations annually, with 12.7% related to respiratory imaging, representing over 800,000 potential CT:VQ procedures per annum.

4DMedical said about 70% of Canada’s population lived near the US border, which was beneficial as it placed them with easy reach of its own and Philips‘ US-based commercial teams, “enabling efficient market penetration and support”.

The Canadian approval directly complements 4DMedical’s strategic partnership with Philips, announced on 3 December 2025, which includes distribution rights for CT:VQ across both the United States and Canada. Under that agreement, Philips has committed to deploy dedicated sales and clinical specialists carrying North American CT:VQ sales targets. With regulatory approval now secured in both markets, Philips can immediately activate its North American distribution infrastructure for CT:VQ, leveraging its established commercial networks and customer relationships to drive rapid adoption across hospitals and imaging centres.

Filling an unmet need

The CT:VQ technology measures lung tissue motion and density changes, “to generate comprehensive ventilation and perfusion maps without requiring radiotracers or contrast agents”.

The company explained further:

CT:VQ addresses several critical limitations of traditional nuclear VQ imaging. By eliminating radiotracers, the technology streamlines scheduling, improves patient access, and removes complex handling requirements and regulatory constraints. CT:VQ integrates seamlessly with existing CT protocols, requiring no additional infrastructure or specialised equipment, while delivering superior image resolution and precise quantification from a routine CT scan.

4DX was valued at $1.14 billion at the close of trade on Friday. The company’s shares traded as high as $2.38 early on Monday before settling back to be 4.5% higher at $2.32.

4DX shares have increased about 10-fold from their lows of 22.5 cents in the past year.

The post Key Canadian approval sends 10-bagger biotech’s shares higher 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.

The IperionX Ltd (ASX: IPX) share price is in focus today after the company announced a new project with Carver Pump to accelerate the production of critical titanium components for U.S. Navy ships. The initial purchase order includes prototype pump impellers valued at about US$100,000, with manufacturing scheduled to finish in May 2026.

What did IperionX report?

• Secured an initial purchase order from Carver Pump for four prototype titanium impellers
• Order value is approximately US$100,000
• Production of components to be completed by May 2026
• Titanium metal powder supplied from IperionX’s Virginia facility
• Components aim to replace traditional cast parts, reducing lead times from over 12 months to less than a week

What else do investors need to know?

The announcement marks a transition from project planning to prototyping under IperionX’s collaboration with Carver Pump. IperionX’s in-house manufacturing and titanium powder production recently reached steady-state at its Virginia facility, allowing the fast development of new components.

Titanium is a vital material for naval ships due to its strength, corrosion resistance, and durability in harsh marine environments. Current supply chain delays for cast titanium parts often cause bottlenecks in U.S. Navy shipbuilding, but IperionX’s process aims to significantly speed up production.

What did IperionX management say?

IperionX CEO Anastasios (Taso) Arima said:

Partnering with Carver Pump underscores how IperionX’s advanced titanium technologies can help resolve the most pressing supply chain challenges facing the U.S. defense industrial base, including for titanium casting and forging replacements. Transitioning from lead times measured in years to timelines measured in days allows us to better support on-time naval shipbuilding and sustainment, directly enhancing fleet readiness. We look forward to validating this capability in the prototyping phase and to advance towards scalable, enduring production programs with Carver Pump and the U.S. Navy.

What’s next for IperionX?

If the prototype manufacturing and testing phase is successful, the project could lead to larger scale supply agreements with Carver Pump and the U.S. Navy. IperionX aims to leverage its patented low-cost titanium powder and manufacturing process to secure more long-term opportunities in the defence sector.

The company remains focused on advancing its Titan mineral project and ramping up capabilities at its U.S. facilities to support growing demand from critical national industries.

IperionX share price snapshot

Over the past 12 months, IperionX shares have risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 5% over the same period.

View Original Announcement

 

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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.

Fortescue Ltd (ASX: FMG) shares are outperforming on Monday.

At the time of writing, the mining giant’s shares are up slightly to $23.01.

This compares to a 0.5% decline by the ASX 200 index.

What’s going on with Fortescue shares today?

Investors have been buying the miner’s shares after it made a big announcement relating to its copper ambitions.

According to the release, Fortescue has entered into a binding agreement to acquire Alta Copper Corp (TSX: ATCU).

The company revealed that it has agreed to acquire the remaining 64% of Alta Copper’s issued and outstanding common shares that it does not already own through a Canadian Plan of Arrangement.

Alta Copper shareholders will receive cash consideration of C$1.40 per share, which represents a significant premium of 50% to the 30-day volume weighted average price (VWAP). It implies a total equity value for Alta Copper of C$139 million (A$152 million).

Fortescue notes that the directors of Alta Copper who are entitled to vote have unanimously recommended to shareholders that they vote in favour of the transaction.

In addition, the directors and officers of Alta Copper and other shareholders who hold in aggregate 12.5% of the shares on issue have entered into voting support agreements committing to vote in favour of the transaction.

The transaction is also subject to the approval by the British Columbia Supreme Court and the satisfaction of other closing conditions which are customary for a transaction of this nature. If everything goes to plan, the transaction is targeted to close in the March quarter of 2026.

What is Alta Copper?

Alta Copper owns 100% of the Cañariaco Copper Project in Northern Peru, which is within an emerging porphyry corridor that hosts several large exploration and development opportunities.

The Cañariaco Project comprises 91 square kilometres of highly prospective tenure and includes the Cañariaco Norte deposit, the Cañariaco Sur deposit, and the Quebrada Verde prospect.

Fortescue highlights that he Cañariaco Project has a reported mineral resource of 1.1 billion tonnes at 0.42% copper equivalent grade and 0.9 billion tonnes at 0.29% copper equivalent grade.

Commenting on the proposed deal, management said:

The Transaction is consistent with Fortescue’s critical minerals strategy which has a focus on expanding the Company’s copper portfolio and related exploration footprint. Fortescue is well placed to advance the Cañariaco Project relying on its presence in Latin America since 2018 and its well established technical, permitting and community engagement expertise. Following completion of the Transaction, Fortescue will apply its proven approach of working collaboratively with local and indigenous communities to ensure the responsible, long-term development of the Cañariaco Project.

The post Why is everyone talking about Fortescue shares 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.

Shares in Electro Optic Systems Ltd (ASX: EOS) jumped more than 18% on Monday after the company said it had signed a contract to supply a high energy laser weapon to a South Korean customer.

The company said in a statement to the ASX that it had signed a binding conditional contract worth about $120 million to manufacture and supply a 100kW “high energy laser weapon” to a company in the Republic of Korea.

It would also establish a joint venture between itself and the customer to supply the weapons within South Korea, and would license the intellectual property around the weapon to the new joint venture company.

The product will be manufactured at the company’s new laser weapon manufacturing facility in Singapore, the company said.

Milestone payments to come

While the total amount payable was US$80 million, the company would also receive an initial deposit under the agreement.

The company went on to say:

The conditions of the contract include the payment by the customer of the initial deposit (US$18 million), the customer procuring the issuance of a letter of credit for the remaining amount of the contract, and the customer inspecting and being satisfied with EOS’ Singapore facility. The customer expects these to be completed prior to 31 January 2026.

The contract was also subject to customary terms, including milestone payments and full refund entitlements in the event of non-performance, EOS said.

EOS said it expected that the contract would be fulfilled by the end of 2027.

Contract follows year of testing

The company said the laser weapon was part of its technology suite, which included “using kinetic weapons, interceptors, rockets and high energy laser weapons to defeat drones”.

The EOS laser weapon development program included three years of field testing and numerous firing trials of the laser in close collaboration with customers. To ensure high performance, it is supplied with algorithms, radar, threat detection, target acquisition and beam locking systems. This conditional contract represents EOS’ second export order for a 100kW class laser defence system and follows a first export order to a Western European customer, announced on 5 August 2025.

The company said it would also be holding a webinar on Tuesday, 16 December, during which Managing Director Dr Anreas Schwer would discuss the new contract.

Electro Optic Systems was valued at $966.7 million at the close of trade on Friday.

The company shares traded as high as $5.96, up 18.9% on Monday morning before settling back to be 15.5% higher at $5.79.

Bell Potter has a buy rating and $8.10 price target on its shares. 

The post Counter drone company surges past $1 billion valuation with new contract win appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Electro Optic Systems. 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.

Resolute Mining Ltd (ASX: RSG) shares are rising on Monday morning.

In morning trade, the ASX gold stock is down 2% to $1.08.

Why is this ASX gold stock falling?

Investors have been selling the gold miner’s shares following the release of a major update on the Doropo Gold Project in Côte d’Ivoire.

According to the release, an updated definitive feasibility study (DFS) confirms a significantly larger, longer-life, and more valuable project than previously outlined.

The updated DFS expands the Doropo project’s scale materially, increasing ore reserves by approximately 55% and the expected mine life from 10 years to 13 years. Average annual gold production is now forecast at around 170,000 ounces per year, with total life-of-mine production of approximately 2.2 million ounces

The updated study also points to stronger financial outcomes. At a conservative gold price assumption of US$3,000 per ounce, the project is expected to generate a post-tax net present value (NPV) of US$1.46 billion and an internal rate of return (IRR) of 49%.

Importantly, the first five years are expected to be particularly strong, with average annual production of roughly 204,000 ounces and a projected payback period of less than two years

At current gold prices, which are well above the DFS base case, the economics improve further. The ASX gold stock notes that at a gold price of around US$4,200 per ounce, the project’s post-tax NPV could rise to approximately US$2.8 billion, with the IRR lifting to around 77% and a payback period of close to one year.

One negative, though, which could be weighing on its share price today is that upfront capital costs have increased to US$516 million. This is due to the larger project scope and updated cost assumptions.

What else?

Resolute also reaffirmed its broader growth ambitions, highlighting that Doropo strengthens its pathway toward becoming a diversified African gold producer targeting annual output of more than 500,000 ounces from 2028.

With permitting expected in early 2026 and construction targeted to begin in the first half of next year, the updated DFS as a meaningful step forward for Resolute and its long-term growth strategy.

The ASX gold stock’s managing director and CEO, Chris Eger, commented:

This update confirms the outstanding economics of the Doropo Gold Project which is poised to become another high-quality gold mine in West Africa. Doropo is a high-margin, long-life gold mine that will significantly strengthen Resolute’s operating portfolio, increasing group production to over 500koz per annum from 2028 and adding another jurisdiction to our production profile.

Doropo will produce approximately 170koz per annum for over 13 years at a competitive average AISC of US$1,406/oz, delivering a post-tax NPV5% of US$1.46bn and IRR of 49%. The average annual gold production of over 200koz in the first five years means the updated construction capital cost of US$516M will be paid back in under two years at a US$3,000/oz gold price.

The post This ASX gold stock is falling despite some 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.