Category: Stock Market

Three of the hottest ASX 200 stocks over the last year have been: 

• 4DMedical Ltd (ASX: 4DX)
• PLS Group Ltd (ASX: PLS)
• Electro Optic Systems Hldgs Ltd (ASX: EOS). 

These companies have all charged more than 300% higher in just a year. 

If you already have exposure to these high flying ASX 200 stocks – congrats! 

However for many investors on the outside looking in, the burning question is if there is any further upside. 

Here is the latest outlook from various experts on these ASX 200 stocks. 

4DMedical

The 4DMedical story has been historic. 

Its share price has rocketed more than 1,728% in the last 12 months. 

That kind of growth is hard to comprehend. 

A $1,000 investment in 4DX a year ago would now be worth approximately $18,285.70 today. 

However after this kind of run it can be difficult to pinpoint true value for a growth story like this. 

While holders will be jumping for joy, it’s important prospective buyers understand 4DMedical is still in a loss‑making, growth and commercialisation phase. 

In short, the company is not yet a profitable business.

The continued stock price growth is likely being driven by expectation as much as solid fundamentals. 

Analysts seem to agree it may have gone past fair value. 

The average analyst price target via TradingView sits at $4.47, which is approximately 13% below its current share price. 

Electro Optic Systems

This ASX 200 stock has been another red hot company over the last year, rising roughly 800%. 

It is an Australian company that develops and produces advanced electro-optic technologies. 

Geopolitical conflict has led to increased defence spending, benefiting sentiment around the company. 

At the time of writing, EOS shares are fetching $10.70 per share. 

There appears to be mixed outlooks on the future growth of the company. 

Price targets are ranging from $9.70 (9% downside) to highs of $16 (49% upside). 

PLS Group

PLS has enjoyed a 12 month rise of more than 300%. 

The company is an Australian lithium-tantalum producer positioning itself at the forefront of the rapidly growing global lithium industry. Its flagship development, the 100%-owned Pilgangoora Lithium-Tantalum Project, is located in the Pilbara region of Western Australia.

Recently, it has benefited from inflated oil prices.

When oil (petrol/diesel) gets expensive, running internal combustion cars becomes costlier. 

That tends to improve sentiment and drive investment in EVs, which rely on lithium-ion batteries. 

Since Pilbara Minerals produces lithium, rising EV demand translates to higher lithium demand and subsequently better pricing and margins for PLS.

If this tailwind continues, it could be good news long term for PLS shares. 

However, broker estimates indicate that upside could already be priced in. 

The lithium producers shares are currently trading for $5.92. 

Recently, Morgan Stanley downgraded this stock to a hold rating with a $5.25 price target. 

The post What are experts saying about these red hot ASX 200 shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Temple & Webster Group Ltd (ASX: TPW) shares are on the slide on Thursday.

In morning trade, the ASX 200 stock is down 15% to $5.61.

Why is this ASX 200 stock sinking?

Investors have been selling the online furniture retailer’s shares after it announced a change of leadership.

According to the release, Temple & Webster’s co-founder and CEO, Mark Coulter, will transition to the role of executive chair on 1 July.

The ASX 200 stock revealed that Coulter will be replaced by Susie Sugden, who will be appointed as the company’s next CEO from the same day.

The good news is that Sugden is very familiar with the company. She previously held the roles of chief commercial officer and chief marketing officer between 2016 and 2020 and was “instrumental in the company’s growth into one of Australia’s leading online retailers.”

In addition, Sugden is an experienced CEO and operator with a strong track record of building and scaling global consumer and ecommerce businesses.

She is currently a managing director at Genesis Capital, which is a leading Australian private equity firm, where she is responsible for portfolio oversight, mergers & acquisitions, and operational performance across a range of businesses.

Prior to that, Sugden was CEO of Love To Dream, which is a global sleepwear brand operating in more than 40 countries. During her tenure, she scaled the business into a fully integrated global wholesale and direct-to-consumer model, and expanded operations across North America, Europe and Asia.

Management commentary

Commenting on his transition to an executive chair role, Mark Coulter said:

I am so proud of everything we have achieved at Temple & Webster. We have navigated the early start-up years, public market turbulence, global pandemics and cost of living crises, to firmly become one of the most successful e-commerce businesses in Australia. We have built an incredible platform – a team, brand, customer base and operating business that has so much potential. Now is the time to take that incredible platform to the next level.

Bringing back Susie – a proven former executive at Temple & Webster, will provide me with more capacity to focus on strategy and longer-term growth opportunities, which will only become more important as we scale. I look forward to working closely with Susie as we continue our journey to become the largest retailer of furniture and homewares in Australia.

Sugden appears up for the challenge of running the ASX 200 stock. She said:

I am thrilled to return to Temple & Webster and to lead the business through its next chapter of growth. My focus will be on driving operational excellence and continuing to scale the business to meet the evolving needs of our customers. I look forward to working with Mark once again and leading this incredible team to deliver sustained, long-term growth.

The post Guess which ASX 200 stock is sinking 15% on CEO change appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans has been busy running the rule over a number of ASX shares this week.

Does it rate them as buys, holds, or sells? Let’s see what the broker is saying:

Cleanaway Waste Management Ltd (ASX: CWY)

Morgans notes that this waste management company released its investor day update this week.

While this has led to the broker trimming its medium-term earnings estimates and reducing its valuation, it still sees plenty of value in Cleanaway shares.

As a result, it has retained its buy rating with a new price target of $2.80. It said:

CWY hosted an investor strategy day and tour of its Melbourne Regional Landfill. It discussed how it intends to grow earnings and cashflows across its FY27-30 strategy period. We expect investors will be particularly pleased by management’s language about expected free cashflow growth (hasn’t historically kept pace with underlying earnings growth).

We moderate our EPS forecasts so as to move closer to CWY’s medium term growth expectations. FY27 consensus EPS looks likely to be downgraded as higher interest rates are reflected in interest costs. Target price reset to $2.80ps given lower long-term growth assumption. BUY retained given c.21% potential TSR at current prices.

Hub24 Ltd (ASX: HUB)

This investment platform provider delivered a third-quarter update that was largely in-line with expectations.

Overall, Morgans believes this leaves Hub24 well-placed to deliver on its FY 2027 targets.

This has led to the broker retaining its accumulate rating on Hub24 shares with a $96.50 price target. It said:

HUB’s 3Q26 net-flows of $4.0bn came in largely in-line with MorgF, albeit the period saw near-term run-rate momentum slow, with HUB’s flows only marginally exceeding NWL’s during the quarter. Positively, adviser growth accelerated in 3Q26, which remains supportive of net inflows outlook.

Market momentum remains positive month to date in Apr’26, placing mark-to-markets on track to recover lost momentum in Mar’26 (ASX200 +5.5% MTD) HUB’s FY27 FUA growth trajectory remains on track despite near-term headwinds. We retain our ACCUMULATE rating, with a revised price target of $96.50/sh.

Maas Group Holdings Ltd (ASX: MGH)

Another ASX share that Morgans has been looking at is Maas Group. It is a construction materials, equipment, and service provider.

Morgans highlights that the company is well-placed for growth thanks to work relating to Firmus data centre projects.

And after adjusting for its significant cash balance, the broker thinks Maas shares are being significantly undervalued by the market.

As a result, it has put a buy rating and $6.00 price target on its shares. It said:

MGH management have set a new course, underpinned by a growing pipeline of Firmus related data centre projects and $130m of EBITDA from the existing (and growing) civil construction and engineering division. The business currently has a market cap of $1.8bn, with a net cash balance of c.$650m (post transaction and Firmus investment) and an expanded data centre pipeline to potentially deliver c.$333m of value.

Netting out cash ($650m) and our estimate of the Firmus earnings (PV: $245m), we derive a net market cap of $870m, reflecting a PER (net of cash) of 11.8x (on the residual business) – cheap given the DC optionality and relative to peers (c.15x PER). Whilst the new strategic vision for MGH is in its infancy, the current share price is too cheap on a fundamental basis, while the blue sky potential gives investors the chance for outsized returns. On this basis, we reiterate our Buy recommendation with our target price increasing to $6.00/sh.

The post Buy, hold, sell: Cleanaway, Hub24, and MAAS shares 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 positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Santos Ltd (ASX: STO) share price could be on the move today, with the company reporting a 3% lift in March quarter revenue to US$1.27 billion and production of 22.5 mmboe, up 1% from the prior quarter.

What did Santos report?

• Production: 22.5 million barrels of oil equivalent (mmboe), up 1% quarter-on-quarter and 3% year-on-year
• Sales revenue: US$1.27 billion, up 3% from Q4 2025
• Free cash flow from operations: ~US$383 million, steady on the prior quarter
• Capital expenditure: US$441 million, down from US$619 million last quarter
• Full-year 2026 production and cost guidance unchanged

What else do investors need to know?

The first quarter saw major milestones across key projects. Pikka phase 1 in Alaska delivered early mechanical completion, with commissioning progressing and first oil sales expected soon. Barossa LNG reached its first equity cargoes, and ramp-up is set to accelerate as facilities return to full operation following commissioning works.

Santos also completed appraisal success at the Quokka-1 well in Alaska, pointing to high-quality resources that may boost future production. Meanwhile, operational reliability remained strong across the PNG LNG and GLNG projects, with new contracts such as the 10-year gas sales agreement with the South Australian Government supporting domestic energy security.

What did Santos management say?

Managing Director and Chief Executive Officer Kevin Gallagher said:

Our base business continues to perform reliably, supporting free cash flow generation. The Pikka phase 1 oil project is now mechanically complete with commissioning activities progressing well and first sales oil expected in the coming weeks. The Barossa project has had a few challenges during commissioning. Pleasingly we have now replaced the dry gas seals on the compressors and the FPSO is expected to commence ramping up as we complete the flushing and cleaning of the heat exchanger trains. The Quokka-1 appraisal well was a resounding success, confirming a high-quality resource that reinforces the strength of our Alaska portfolio. During the quarter, Santos strengthened its strategic position in Australia through key commercial outcomes, including a long-term gas supply agreement with the South Australian Government and a final investment decision on the Moomba Central Optimisation project. Our portfolio of high-quality LNG assets, located close to Asian markets, is well positioned to meet strong and growing LNG demand across this region. Our focus remains on safe and reliable operations across our base business, disciplined capital allocation and delivering our projects. As Barossa ramps up and Pikka phase 1 comes online, Santos is well positioned to deliver production growth within the $45 to 50 per barrel all-in free cash flow break even target range for the business. This will set Santos up to deliver sustainable, long-term value and competitive shareholder returns.

What’s next for Santos?

Santos reaffirmed its full-year 2026 guidance for production between 101–111 mmboe and capital expenditure of around US$1.95–2.15 billion. Key project ramp-ups are expected over coming quarters, including first sales oil from Pikka phase 1 and further Barossa production.

Looking forward, final investment decisions on optimisation and LNG expansion projects are progressing, and the company’s ongoing focus will remain on reliability, disciplined spending and maximising returns as market conditions evolve.

Santos share price snapshot

Over the past 12 months, Santos shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

View Original Announcement

The post Santos Q1 2026: Higher revenue, project ramp-up, steady guidance appeared first on The Motley Fool Australia.

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• Temple & Webster names Susie Sugden CEO as Mark Coulter becomes Executive Chair

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 Scentre Group (ASX: SCG) share price is in focus today, following news the company has launched a tender offer to repurchase all its outstanding US$1,312 million Non-Call 2030 Subordinated Notes (A$1,794 million equivalent). The repurchase will be funded using existing senior bank facilities.

What did Scentre Group report?

• Announced an “any and all” tender offer for US$1,312 million Non-Call 2030 Subordinated Notes
• Equivalent to around A$1,794 million in notes outstanding
• Repurchase to be funded through existing senior bank facilities
• Result of the tender will be reported in due course

What else do investors need to know?

Scentre Group’s move to repurchase its subordinated notes could help the company optimise its capital structure and manage its overall debt profile. Using its existing bank facilities for this transaction suggests the Group has access to sufficient liquidity.

Investors might also see this as the company taking a proactive stance in managing future interest costs and potential refinancing risks. The completion and financial impact of the offer will become clearer once the tender results are announced.

What’s next for Scentre Group?

The market will await further details once the tender offer closes, with a keen eye on how much of the outstanding notes are repurchased and the implications for future interest expenses. Scentre Group’s approach could provide benefits by reducing its long-term financing costs and supporting its ongoing strategy.

Watch for updates as the company discloses the outcome of the offer and any commentary on future capital management plans.

Scentre Group share price snapshot

Over the past 12 months, Scentre Group shares have risen 4%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

View Original Announcement

The post Scentre Group launches tender offer for 2030 subordinated notes appeared first on The Motley Fool Australia.

More reading

• Santos Q1 2026: Higher revenue, project ramp-up, steady guidance
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• Temple & Webster names Susie Sugden CEO as Mark Coulter becomes Executive Chair

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 ASX dividend stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has an incredible record when it comes to consecutive annual dividend growth. Its regular dividend has been hiked every year since 1998!

That dividend record is so old it’s almost a millennial! That’s impressive.

Think of all the things in that time that could have caused the business to stop its consistent dividend growth.

There was the dotcom bubble bursting 26 years ago.

The GFC in 2008 and 2009 was a huge financial crunch, but the Soul Patts dividend kept increasing.

The COVID-19 impacts were widespread in 2020, yet the Soul Patts payout continued to grow.

High levels of inflation meant plenty of ASX dividend stock’s streaks ended somewhere between 2022 to 2024, but Soul Patts’ payment increased year after year.

The latest result was the FY26 half-year result, where the interim dividend was hiked by 9.1% to 48 cents per share.

In my view, the business can continue increasing its dividend for many years to come because of a few key factors.

Sustainable dividend payout ratio

The investment house pays out a majority of its cash flow as a dividend each year, but it’s not like it’s paying out an extremely high figure like 98% of its earnings each year.

Each year, it’s retaining a significant portion of its cash flow so that it can invest in new opportunities and there’s room in the dividend payout ratio for the business to not achieve profit growth and still sustainably hike its dividend for multiple years before reaching a 100% dividend payout ratio.

In the FY26 half-year result, the business reported that its interim dividend was just 54.6% of net cash flow from investments, which I’d call extremely healthy.

Why I expect further payout growth from the ASX dividend stock

Soul Patts has invested in a variety of businesses and industries that generate defensive cash flow. These investments largely have good growth potential too. It can perform in all conditions.

Some of its larger investments include industrial property, swimming schools, telecommunications, ’emerging companies’, electrification, agriculture, water entitlements and plenty more.

Over time, Soul Patts’ investment portfolio steadily changes to be future-focused. For example, it recently sold down its TPG Telecom Ltd (ASX: TPG) position. Time will tell where it re-invests that money.

What I do know is that Soul Patts is looking internationally for opportunities, expanding its horizon to find the best ideas. Additionally, the company is staying aware of AI risks, which is good considering the level of disruption that could occur in the coming years.

With the ASX dividend stock deliberately pursuing private business investments, I think it’s a great option to own for the long-term, offering something quite different to the overall ASX share market.

The post Has your ASX dividend stock increased its payout 28 years in a row? appeared first on The Motley Fool Australia.

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

The Deep Yellow Ltd (ASX: DYL) share price is in focus today after the uranium developer released an exploration update for the March 2026 quarter, highlighting the completion of 133 drill holes at the Tinkas Prospect in Namibia and a seismic survey at the Alligator River Project in the Northern Territory.

What did Deep Yellow report?

• 133 holes (1,363m) drilled at Tinkas Prospect, Namibia, completed mid-March 2026.
• Uranium mineralisation confirmed in 38 drill holes (minimum 100 ppm eU₃O₈).
• Key intersections include 11m at 265 ppm and 4m at 244 ppm eU₃O₈.
• Seismic survey finished at Condor Prospect, Alligator River Project, NT.
• Five new priority drill targets identified at Condor for 2026 season.

What else do investors need to know?

Deep Yellow’s drilling at Tinkas Prospect, just north-west of its flagship Tumas Project, confirms uranium mineralisation in both calcretised palaeochannel sediments and basement rocks. The company states further work may be needed before declaring a resource in the Tinkas area.

At the Alligator River Project, a reflection seismic survey mapped highly conductive Cretaceous cover and helped highlight several basement faults—now priority targets for future drilling. The Northern Territory Government contributed $100,000 to support this seismic program.

Exploration in Namibia during 2026 will also focus on other prospects like S-Bend and Aussinanis, as Deep Yellow continues to develop its regional pipeline.

What’s next for Deep Yellow?

Deep Yellow will integrate new drill and seismic data to refine targets at both Namibian and Australian prospects. The next drilling campaign at Alligator River is scheduled for the second quarter of 2026 and may provide further resource upside if successful.

With projects in both Namibia and Australia, the company’s dual-pillar growth strategy aims to underpin a globally diversified uranium supply as nuclear energy demand rises. Ongoing exploration, along with continued project development and potential M&A, are central to Deep Yellow’s long-term plans.

Deep Yellow share price snapshot

Over the past 12 months, Deep Yellow shares have risen 109%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

View Original Announcement

The post Deep Yellow provides March 2026 exploration update appeared first on The Motley Fool Australia.

More reading

• Santos Q1 2026: Higher revenue, project ramp-up, steady guidance
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• West African Resources posts record cash, strong Q1 gold output
• Perseus Mining lifts gold production and maintains strong balance sheet in March 2026 quarter
• Temple & Webster names Susie Sugden CEO as Mark Coulter becomes Executive Chair

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 iShares S&P 500 ETF (ASX: IVV) is one of the most popular and effective ASX-listed exchange-traded funds (ETFs). It has been an excellent option for delivering capital growth, though it’s not known for passive income.

The fund is invested in many of the largest and most profitable US companies such as Nvidia, Apple, Alphabet, Microsoft, Amazon, Broadcom, Meta Platforms, Tesla and Berkshire Hathaway.

Investment performance has been exceptional, though past performance is not a guarantee of future returns, of course.

Over the past five years it has returned an average of 14.1% per year and in the past decade it has returned an average of 15.2% per year. In the past three years, it generated an average return of 17.2% per year.

Great at building wealth

I think any investment that can compound wealth at a faster rate than 10% per year is very attractive.

Imagine if it could continue to deliver returns of an average of 12% per year from here? I’ve chosen a return rate materially below what it has achieved over the last 10 and 15 years. If it returned 12% per year in that time, a $1,000 investment per month would become $1 million in around 20 years.

Allocating more money (such as $2,000 per month) to the IVV ETF could help create $1 million faster than 20 years, or generate a much stronger level of wealth after 20 years.

How I’d create passive income from the IVV ETF

The ASX ETF does have a small dividend yield which some investors may appreciate. But, due to the fact that the dividend yield of the underlying companies is low, the dividend yield of the fund itself is low.

At the end of March 2026, the fund reported a 12-month trailing dividend yield of just 1%. If someone had $1 million, then that dividend yield would only create $10,000 of passive income. I’d be looking for a lot more cash flow than that.

I’d utilise a strategy of selling down a small portion of the amount each year to create that desired cash flow/passive income of $50,000.

For example, in the first year, if I started with a $1 million in IVV ETF, I’d expect $10,000 of dividends and I could sell another $40,000 of the ASX ETF’s units after 12 months for a total of $50,000. In other words, we’ve tapped a 5% passive income ‘yield’ on the original $1 million balance.

If the fund delivered a total return of say 10% during that 12-month period, the $1 million would grow to $1.05 million (after accounting for the ‘withdrawal’ of $50,000). In this scenario, we’ve unlocked great cash flow/passive income and seen the nest egg grow in value.

I’d only want to take out around 4% to 5% each year (or less) because some years may only see a small return, or even declines. So, it’s a good idea to save some of the gains for when the market does temporarily decline.

By selling down a portion of a great capital growth investment each year, we can build wealth and generate cash flow.

The post How I’d use the iShares S&P 500 ETF (IVV) to create $50,000 annual passive income 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 positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The West African Resources Ltd (ASX: WAF) share price is in focus after the company posted record quarterly results, including a cash balance of A$847 million and Q1 gold production of 107,728 ounces at an all-in sustaining cost (AISC) of US$1,921/oz.

What did West African Resources report?

• Q1 2026 gold production: 107,728 ounces at AISC of US$1,921/oz
• Q1 gold sales: 104,145 ounces at a realised price of US$4,945/oz
• Record cash balance of A$847 million at 31 March 2026
• Operating cash flow of A$440 million for the quarter
• A$213 million in unsold gold bullion at quarter-end
• Ore Reserves increased to 7 million ounces, Mineral Resources up to 13.7 million ounces

What else do investors need to know?

West African Resources continued its strong safety performance during the quarter, reporting no significant health or safety incidents and an industry-leading injury frequency rate of 1.64.

Operationally, both the Sanbrado and Kiaka production centres performed well. Kiaka saw an 18% increase in mined ounces and a 6% rise in gold produced versus the previous quarter, while Sanbrado delivered production broadly in line with its annual plan.

Post-quarter, the Burkina Faso Government published a decree to acquire 25% of Kiaka SA for A$175 million. The company also updated its 10-year production outlook, targeting 5.3 million ounces of gold output from 2026 to 2035 and annual production peaking at 596,000 ounces in 2030.

What did West African Resources management say?

Executive Chairman and CEO Richard Hyde said:

With quarterly production of 107,728 ounces gold at an AISC of US$1,921/oz from our two large low-cost gold production centres of Sanbrado and Kiaka in Burkina Faso and based on our planned production profile for 2026, WAF is on-track to achieve annual production guidance of 430,000 – 490,000 ounces of gold at an AISC below US$1,900/oz.

Our updated Resources, Reserves and 10-year Production Plan also released in the quarter, reported further increases to the production plans for Kiaka and Sanbrado on the back of outstanding results from our 2025 drilling programs. At Kiaka we have also modelled higher production throughputs based on exceptional performance of the process plant. Planned production increases from Sanbrado and Kiaka underpin WAF’s goal of being a sustainable 500,000+ ounce gold producer.

WAF is on an exciting growth trajectory, and we continue to create value through the drill-bit with a US$20 million exploration budget and more than 100,000 metres of drilling planned at our Sanbrado and Kiaka production centres and surrounding exploration areas in 2026.

What’s next for West African Resources?

Looking ahead, West African Resources plans to maintain its annual gold production guidance of 430,000–490,000 ounces at an AISC below US$1,900/oz for 2026. Production is anticipated to rise further towards 500,000 ounces per year as the company executes its long-term expansion strategy.

The business is set to ramp up exploration activities with over 100,000 metres of drilling budgeted for 2026, aiming to extend mine life and boost resources. Upcoming milestones include reporting results from key drilling programs at M5 South and M5 North, and progressing pre-production mining activities at the Toega deposit.

West African Resources share price snapshot

Over the past 12 months, West African Resources shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

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The post West African Resources posts record cash, strong Q1 gold output 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.

While investing in proven ASX blue-chip stocks and diversified ASX ETFs can reduce volatility, some investors may also monitor ASX small-caps with large potential upside.

One such ASX small-cap that Bell Potter believes is worth keeping an eye on is Cyclopharm Ltd (ASX: CYC). 

Company overview

Cyclopharm is a medical device company operating in the specialist field of nuclear medicine. 

The main revenue driver is Technegas – a system indicated for functional lung imaging. 

The primary use of Technegas is diagnosis of pulmonary embolism in patients contra indicated for a CT scan. The product was approved for use in the United States in September 2023.

Investing in small-cap healthcare stocks like Cyclopharm is a high risk, high reward play. 

These types of companies often sit on a single product or technology that, if successfully commercialised or approved in a major market, can scale rapidly and generate outsized returns. 

Key catalysts to monitor are regulatory approvals or clinical results. These can sharply re-rate valuations.

In Cyclopharm’s case, the appeal lies in having an already commercialised product with recurring revenue potential and a major growth runway in the US. 

The bear case, however, is just as important. 

Small-cap healthcare is inherently risky due to heavy reliance on one product, execution challenges in new markets, regulatory uncertainty, and the constant need for capital, which can dilute shareholders. 

This volatility has been on full display this year for Cyclopharm shares, as it has fallen 26% year to date. 

Bell Potter’s view

In a new report from Bell Potter, it seems the broker is leaning more towards the bull case. 

The broker said the pace of deployment for Technegas generators in the US has begun to increase.

Cyclopharm Ltd installed six new devices in the first quarter of 2026, with at least 15 more expected by 30 June 2026. 

It previously took 21 months to reach 50 devices after pricing changes began in July 2024. However, the next 50 installations are expected to be completed much faster, within six to eight months from April 2026. 

Total installations are forecast to reach around 65 devices by the end of June.

Growth expected to lift

Bell Potter also noted a February 2026 capital raise at $0.95 per share increased cash to roughly $20 million. 

Cash burn in the second half of 2025 was $9.8 million and is expected to have peaked. Additionally, growth in the US is projected to lift gross margins toward 80%, up from around 55%.

We anticipate the company reaches breakeven at ~310 installed Technegas systems in the US, generating A$19m in revenues.

Elsewhere, Technegas has been explicitly recognised in draft guidelines issued by the two leading professional bodies in the US for nuclear medicine for ventilation perfusion and specifically for the assessment of pulmonary embolism This a significant item – recognition in guidelines for US healthcare providers is compliance matter which hospital operators take extremely seriously.

Strong upside for this ASX small-cap

Bell Potter has retained its buy recommendation for Cyclopharm shares. 

However the broker has reduced its price target to $1.00 (previously $1.50) following earnings downgrades and dilution from the recent capital raise. 

From yesterday’s closing price of $0.725, this indicates an upside potential of 38%. 

The post Down 26% year to date, is it time to buy low on this ASX small-cap? appeared first on The Motley Fool Australia.

More reading

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• Scentre Group launches tender offer for 2030 subordinated notes
• Has your ASX dividend stock increased its payout 28 years in a row?
• Deep Yellow provides March 2026 exploration update
• How I’d use the iShares S&P 500 ETF (IVV) to create $50,000 annual passive income

Motley Fool contributor Aaron Bell 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.