Category: Stock Market

Core Lithium Ltd (ASX: CXO) shares are climbing again on Wednesday after the lithium miner locked in a major contract at its Finniss operation.

At the time of writing, the Core Lithium share price is up 4.48% to 35 cents.

It marks another strong session for a stock that has already staged a huge recovery. Core Lithium shares are now up around 25% in 2026 and 372% over the past year.

Here’s what the company announced.

A major mining contract lands

According to the release, Core has awarded the BP33 underground mining contract at Finniss to Develop Global Ltd (ASX: DVP).

The contract is worth about $274 million and covers 3 years of mining services at BP33. Core also has the option to extend the deal by another year.

The work includes drill and blast, load and haul, decline development, production, and ground support.

Mobilisation is expected to begin in June 2026, with works due to start in July 2026.

Why BP33 is getting attention

BP33 is a key deposit within Core’s Finniss Lithium Operation in the Northern Territory.

The company said BP33 underpins a lower-cost, long-life production base, with more than 10 years of mine life and further exploration upside.

Core also said the contract followed a competitive tender process. Develop was selected because of its underground mining experience, technical capability, and alignment with Core’s delivery targets.

The project is expected to progress alongside open pit mining at the Grants deposit.

Core said first spodumene concentrate remains targeted for the December quarter of 2026. First BP33 ore is expected in mid-2027, with ramp-up to nameplate production planned by mid-2028.

Finniss restart gathers pace

Core’s Finniss project has been through a difficult period, largely due to weaker lithium prices and pressure across the battery materials sector.

But that backdrop is now looking much healthier. Trading Economics shows lithium carbonate prices in China have climbed strongly in 2026, supported by tighter supply and stronger demand.

The price is sitting at CNY 200,000 per tonne, up more than 200% over the past year.

While that doesn’t remove the risks around Finniss, it helps explain why investors are taking another look at Core.

Today’s underground contract follows the company’s final investment decision (FID) and funding package announced earlier this year.

Foolish takeaway

Core Lithium has come a long way from last year’s lows.

The once beaten-down stock touched 7.6 cents in June last year. It is now trading at 35 cents, helped by improving lithium sentiment and a clearer restart plan at Finniss.

The post Core Lithium shares jump again after a major Finniss milestone appeared first on The Motley Fool Australia.

More reading

• ASX mining stock drops despite big lithium news
• This $1 billion ASX lithium stock is in the spotlight today. Here’s why
• Why is everyone talking about Core Lithium, Ampol and Santos shares on Thursday?
• Up 444% in a year, what’s moving Core Lithium shares today?
• ASX lithium shares rally as oil shock highlights EV appeal

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

Over the years, CSL Ltd (ASX: CSL) shares have rarely been on the radar of income investors.

That’s not because the company doesn’t pay dividends.

The biotechnology giant has a long track record of payouts to its shareholders.

However, due to the high earnings multiples that its shares would trade on, the dividend yield has always been very modest.

But due to a significant multiple compression over the past 12 months, that has now changed.

So, rather than being a growth stock, is CSL now an ASX dividend stock? Let’s run the numbers and find out.

CSL dividends

According to a note out of Bell Potter this week, its analysts are expecting the company to pay dividends of $3.97 per share in FY 2026, then $4.25 per share in FY 2027, and finally $4.65 per share in FY 2028.

Based on the current CSL share price of $98.55, this would mean attractive dividend yields of 4%, 4.3%, and 4.7%, respectively.

It is a similar story at Morgans. Its analysts believe CSL shares could provide generous dividend yields in the near term.

The broker is forecasting dividends of approximately $4.42 per share in FY 2026 and then $4.74 per share in FY 2027. This equates to dividend yields of 4.5% and 4.8%, respectively.

Should you buy this ASX stock for dividends?

At present, Bell Potter is sitting on the fence with CSL shares.

In response to its disappointing guidance update, the broker has retained its hold rating with a reduced price target of $100.00. It said:

Earnings decreases drive large reductions to our PE and DCF-based valuations. We increase the PE valuation weighting to 75% and reduced the multiple to 12.0x. This leads to a reduction of our PT to $100 (from $155). We maintain our Hold recommendation. CSL’s global biopharma peers trade on a median of 14x FY27 PE.

We think a discount is warranted for CSL considering the declining underlying earnings outlook across FY26-27, the lack of stable management, and series of credibility hits following several disappointing results/trading updates. CSL is trading on ~12x our forecast NPATA for FY27. The difference between NPATA to statutory NPAT remains uncertain given the $5b of additional impairments announced today with unclear spread across FY26-27.

However, Morgans has retained its buy rating with a $147.59 price target. It said:

While forward earnings visibility remains limited, we believe the current valuation increasingly discounts a structurally impaired plasma franchise, which we do not believe the current industry dynamics support. We reduce FY26-28 forecasts and lower our blended DCF, PE and EV/EBITDA-based target price to A$147.59. Given CSL’s global leadership positions, structurally growing end markets and operational initiatives, we retain a BUY rating.

The post Is CSL now an ASX dividend stock to buy? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CSL, Macquarie, and REA Group shares
• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold
• ‘Blood on the Street’: What is Bell Potter saying about the CSL share price crash?
• How low can CSL shares go?
• Down 63%: Should you finally give up on CSL shares?

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

ASX uranium stock Paladin Energy Ltd (ASX: PDN) plunged 10.8% to $11.34 on Wednesday morning despite the company returning to profit and delivering strong revenue growth.

The sharp sell-off may surprise some investors given the ASX energy stock remains up an impressive 77% over the past 12 months, massively outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen roughly 5% over the same period.

So why is the market hitting the brakes?

Big turnaround in earnings

Paladin is a uranium producer best known for operating the Langer Heinrich Mine in Namibia, one of the key uranium projects benefiting from renewed global interest in nuclear energy.

The ASX uranium stock sells uranium into global markets, where demand has been strengthening as countries seek cleaner and more reliable energy sources.

Its latest results showed major operational and financial improvement. Revenue surged to US$209.1 million for the nine months to 31 March 2026, up sharply from US$138.2 million during the prior corresponding period.

Gross profit reached US$34.4 million, representing a huge turnaround from the US$21.7 million gross loss recorded a year earlier.

Most importantly, Paladin delivered a net profit after tax of US$1.7 million attributable to shareholders. That compares with a US$30.1 million loss in the prior period.

The ASX uranium stock has clearly benefited from stronger uranium pricing and improved operational momentum at Langer Heinrich.

Cash flow worries may be spooking investors

Despite the return to profitability, investors in the ASX uranium stock appear concerned about the company’s cash flow position.

Operating cash flow showed an outflow of US$36.4 million compared to an inflow of US$14 million during the prior corresponding period.

That may partly explain today’s aggressive share price reaction. Mining investors often focus heavily on cash generation and project funding requirements, especially for companies ramping up production and developing new projects simultaneously.

Paladin is currently spending heavily to support the Patterson Lake South (PLS) project in Canada while continuing the ramp-up of Langer Heinrich.

Balance sheet strengthened

The company has also been actively strengthening its financial position. During the period, Paladin completed a A$400 million equity raise and share purchase plan to support development activities and operational growth.

Management of the ASX uranium stock also restructured its syndicated debt facility, reducing total debt capacity from US$150 million to US$110 million while securing a US$70 million undrawn revolving credit facility. That provides additional financial flexibility as the company progresses its uranium growth strategy.

Paladin also reported a US$3.3 million impairment relating to exploration assets after relinquishing certain Canadian tenements as part of broader portfolio streamlining efforts.

Importantly, the company finished the period with unrestricted cash of US$219.5 million plus the undrawn debt facility.

What next for Paladin?

Looking ahead, Paladin remains focused on advancing the Patterson Lake South project toward a final investment decision while increasing uranium production at Langer Heinrich.

Management says a strong contract book, flexible pricing arrangements and solid liquidity position should support future growth.

Still, today’s sell-off highlights how volatile ASX uranium stocks can remain, even when profitability improves sharply.

The post Why is this ASX uranium stock crashing 11% after returning to profitability? appeared first on The Motley Fool Australia.

More reading

• Paladin Energy posts profit as revenue rebounds in FY26 earnings
• Temple & Webster posts record April profit and FY26 upgrade
• Commonwealth Bank of Australia posts Q3 2026 capital update
• Aristocrat Leisure posts double-digit profit and dividend growth in HY26
• 5 things to watch on the ASX 200 on Wednesday

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 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.

S&P/ASX 200 Index (ASX: XJO) gold stock Resolute Mining Ltd (ASX: RSG) has handed investors some outsized gains over the past year.

That outperformance has been spurred by the miner’s own operational successes on and beneath the ground, and a surging gold price.

In late morning trade today, Resolute Mining shares are up 1.1%, changing hands for $1.38 apiece. For some context, the ASX 200 is down 0.5% at this same time.

Taking a step back, shares in the ASX 200 gold stock are up an impressive 142.1% in 12 months, smashing the 4.3% one-year gains posted by the benchmark index.

Here’s why Resolute Mining shares are outperforming again today.

ASX 200 gold stock lifts on fourth mine potential

Resolute Mining shares are holding their own in today’s sinking market after the miner announced the results of a scoping study for its ABC Project, located in Cote d’Ivoire.

The ABC Project has a Mineral Resource Estimate (MRE) of 2.16 million ounces of gold.

The ASX 200 gold stock said the preliminary technical and economic study confirmed the ABC Project’s strong economic potential. Should the project get the green light, it will be Resolute Mining’s second operating gold mine in Cote d’Ivoire and fourth mine in total.

The scoping study revealed the ABC Project could produce around 141,000 ounces of gold per year over a 12-year mine life. Total gold production is estimated at 1.7 million ounces.

On the cost front, Resolute estimates an all-in sustaining cost (AISC) of US$1,614 per ounce, which it noted will support “robust operating margins”. Capital costs are expected to be around US$648 million.

The ASX 200 gold stock expects the project could deliver average annual free cash flow of US$262 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$323 million in the first five years of production. That’s based on a US$3,500 per ounce gold price.

To date, Resolute has drilled more than 25,000 metres, saying it expects the results of that drill campaign will support an updated MRE in the second half of 2026.

What did Resolute Mining management say?

Commenting on the study results helping lift the ASX 200 gold stock today, Resolute Mining CEO Chris Eger said, “Resolute is very pleased to announce the results of the scoping study for ABC which demonstrates the significant economic potential of the ABC Project.”

Eger added:

Building on the strong results from the ongoing step out drilling at the Kona South and Central deposit, we are confident the project has potential to grow and become more commercially attractive…

The scoping study now provides Resolute with the required technical platform to commence the DFS [Definitive Feasibility Study]. Progress on exploration, metallurgical testwork, site investigations and permitting has been prioritised with the target of completing the required workstreams to finalise a DFS by the end of 2027.

The post Up 142% in a year, ASX 200 gold stock lifting today on potential fourth operating mine appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Deep Yellow, Develop Global, Resolute Mining, and Santos shares are pushing higher today
• Why Resolute shares are on watch after this major quarterly update
• Will these top-performing ASX stocks keep charging higher?

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 BHP Group Ltd (ASX: BHP) share price has been an incredible performer compared to the S&P/ASX 200 Index (ASX: XJO) in the past year.

In the last 12 months, the ASX mining share has gone up by 55%, as the chart below shows, while the ASX 200 is only up by 5%. That means $10,000 is now worth around $15,500.

BHP has been one of the best-performing blue-chips on the ASX in that time. I think there are a few reasons why the business has performed so strongly for shareholders.

US tariffs in 2025

When we’re looking at how much a share has risen over a certain time period, it’s important to consider where the share price started and where it ended.

A year ago, the BHP share price was suffering amid investor concerns surrounding US tariffs and what impact that may have on the Chinese economy and demand for iron ore.

Understandably, as the months went by and China continued buying iron ore, investor concerns faded away amid ongoing strength for the iron ore price.

Resource prices

A key input of BHP’s profitability is the resource price. Its costs per tonne don’t change much month to month, so any extra revenue for that production is a great boost for its earnings.

The iron ore price has remained strong enough for the ASX mining share to deliver significant profits.

According to Trading Economics, the iron ore price is currently sitting at US$111 per tonne. That’s a lot stronger than I was expecting it would be by now. The iron ore price is up by 11% over the past year, with that extra revenue largely adding to net profit, aside from paying more to the government.

The copper price has also performed strongly – in the FY26 third-quarter, the company reported that its average realised price was US$5.47 per pound, up 31%. Again, a lot of this additional copper revenue is a strong boost for profitability.

Strong production

Resource prices are just part of the picture, the business is also capitalising on the higher resource prices by delivering high levels of production.

In the third quarter of FY26, the company reported that it produced 62.8kt of iron ore, representing 2% growth year-over-year.

Copper production of 476.8kt was 7% lower year-over-year, but that was still a strong output for the business.

With the company working on increasing its production at existing projections and building new ones, it can increase its output in the coming years.

The post $10,000 invested in BHP shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Are these ASX ETF giants still worth buying today?
• How much do I need to invest in ASX shares for $500 a month of passive income?
• Why BHP, GQG, Inghams, and Symal shares are pushing higher today
• Copper is going ballistic. Which ASX shares are riding the boom?
• Forget gold, BHP shares could be the better long-term buy

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 BHP Group. 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 under pressure again on Wednesday.

In morning trade, the ASX 300 stock sank 15% to a 52-week low of $4.54 before recovering slightly.

At the time of writing, the online furniture retailer’s shares are down 6% to $5.01.

Why is this ASX 300 stock sinking?

Investors have been selling Temple & Webster’s shares following the release of an update on its guidance for FY 2026.

According to the release, since its last trading update, consumer confidence has reached historic lows.

In response, the ASX 300 stock has rebalanced profit and growth in the short-term, successfully implementing a margin optimisation program.

It notes that following this, its EBITDA in April increased to ~$2.5 million. This is the most profitable April in the company’s history.

As a result of this rebalance, Temple & Webster’s FY 2026 revenue is expected to be in the range of $665 million to $675 million. This will be an increase of 11% to 12% on the prior corresponding period.

The company’s EBITDA is expected to be in the range of $20 million to $22 million. This will be an increase of 6% to 17% over the prior corresponding period.

Management also highlights that the current margin run-rates would lead to EBITDA almost doubling to ~$40 million in FY 2027, even in a low growth scenario.

It believes this significant uplift in profitability, combined with a strong balance sheet, positions the ASX 300 stock well for both organic and inorganic growth, and broader capital management initiatives.

However, judging from its share price performance today, the market isn’t as convinced.

Commenting on the change, Temple & Webster’s outgoing founder and CEO, Mark Coulter, said:

We remain firmly focused on growing our market share and reaching $1 billion in revenue by FY28, and becoming a larger, more profitable business. However right now, given the uncertainty in the Australian economy, we have prudently chosen to rebalance between profit and growth in our core business. Over the last two months, we have implemented a new promotional cadence, repriced the entire catalogue, obtained more support from our suppliers, restructured our marketing campaigns, and slowed our fixed cost growth.

These initiatives have led to a new profit record for the month of April by quite a long way, and a clear path to a doubling of EBITDA in FY27 to ~$40 million, despite the economic headwinds. This shows the incredible agility of our business model and the speed of which we can adjust our levers in response to external changes.

Coulter then concludes:

A more profitable core business allows us to keep investing in our consumer offering and platform – including a larger and more diversified private label and exclusive business, better and faster delivery options, and personalisation across all our customer touchpoints. It also allows us to take advantage of a more attractive M&A environment, particularly in our emerging growth areas such as home improvement, B2B and international, which all continue to perform well.

The post Why did this ASX 300 stock just crash 15% to a 52-week low? appeared first on The Motley Fool Australia.

More reading

• Temple & Webster posts record April profit and FY26 upgrade
• Here are the top 10 ASX 200 shares today
• Down 60% and 80%, 2 ASX shares I’d buy on the cheap
• 2 strong Australian stocks to buy now with $10,000
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows

Shares in Perenti Ltd (ASX: PRN) are trading higher after the company announced that its underground mining subsidiary Barminco had won an $850 million contract with Bellevue Gold Ltd (ASX: BGL).

Long-term body of work

The company said in a statement to the ASX that the contract would run for four years with the option to extend for another year.

The company said further:

The award follows a competitive tender process and marks the commencement of a new operating relationship between Barminco and Bellevue. The Bellevue Gold Project is a long-life, high-quality underground gold operation in a well-established mining jurisdiction and represents an important addition to Barminco’s Australian portfolio. Under the agreed scope of works Barminco will provide all underground mining services to support the ongoing development and production activities.

Perenti said the contract would require about $75 million of growth capital to be spent.

Perenti Managing Director Mark Norwell said:

We are excited to partner with Bellevue as we focus on delivering enduring value four our clioents, our people, the communities in which we work and ultimately our shareholders. This contract award reinforces Barminco as a global leader in underground mining, further strengthening Barminco’s underground mining portfolio and earnings in Australia. This award supports our strategy to deliver sustainable cash generation and future earnings growth.

Barminco also operates other mines in Western Australia, including the nearby Gold Fields-owned Agnew Mine, Regis Resources Ltd (ASX: RRL)’s Duketon underground mines, Ramelius Resources Ltd (ASX: RMS)’s Dalgaranga mine, and AngloGold Ashanti‘s Sunrise Dam Mine.

Bellevue Managing Director Darren Stralow said:

This was a highly competitive process, as shown by the strength of the tenders and the final result. Barminco presented an extremely attractive proposal across safety, operational capability, and technical expertise, positioning Bellevue strongly for the next phase of operational delivery and growth. Their depth of underground mining experience and global scale will further support Bellevue as the operation continues to mature and optimise.  

Building on a solid base

Perenti has solidly grown its revenue over the past four years, from $2.43 billion in FY22 to $3.48 billion in FY25.

Guidance for the current year is revenue of $3.45 to $3.55 billion, EBIT of $335 to $350 million, and free cash flow of more than $170 million.

In a recent investor presentation, the company said that in addition to its Australian operations, it was expanding in the US, growing from zero projects in FY19 to eight currently.

The company also recently announced that Dr Vanessa Torres will commence as the new Managing Director on June 1, having previously worked at South32 Ltd (ASX: S32).

Perenti shares were 3.5% higher at $2.10 in early trade. The company is valued at $1.89 billion.

The post Which ASX 200 mining services provider is charging higher on a big contract win? appeared first on The Motley Fool Australia.

More reading

• ASX mining stock drops despite big lithium news
• Here are the top 10 ASX 200 shares today
• 8 ASX 200 shares with renewed buy ratings this week
• How ASX 200 gold stocks like Newmont, Evolution Mining and Northern Star shares have their shine back today
• Here are the top 10 ASX 200 shares today

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.

Life360 Inc (ASX: 360) shares had a difficult session on Tuesday.

The family safety and location technology company’s shares crashed deep into the red following the release of its first-quarter update and a tech sector selloff.

Does this make the tech stock a bargain buy now? Let’s find out what Bell Potter is saying.

What is the broker saying about Life360 shares?

Bell Potter highlights that Life360’s first-quarter update revealed beats across everything but monthly active users (MAUs). However, the latter was impacted by a technical issue on Android devices, which has since been resolved. It said:

1Q2026 revenue and adjusted EBITDA of US$143.1m and US$17.1m were 4% and 18% ahead of our forecasts and 4% and 14% ahead of VA consensus. The key positive of the result was the strong paying circle growth of 201k q-o-q which was more than double our forecast of 99k and well ahead of VA consensus of 109k. The key negative was the MAU growth of only 2.0m q-o-q which was well below our forecast of 2.6m and further below VA consensus of 3.1m.

On the conference call, CEO Lauren Antonoff said the MAU growth in Q1 was negatively impacted by “technical issues” and these have now been largely resolved though there will still be some impact in Q2. The company also disclosed advertising revenue for the first time which was US$19.7m in Q1 and ahead of our forecast of US$18.2m.

It was also pleased to see management upgrade its revenue and earnings guidance. It adds:

Life360 upgraded its 2026 revenue and adjusted EBITDA guidance from US$640- 680m and US$128-138m to US$650-685m and US$130-140m. The company did, however, reduce the MAU growth guidance from 20% to 17-20%. The bottom end of that range requires average growth of 4.8m in each of the next three quarters – versus 2.0m in Q1 – while the top end requires 5.7m.

Big potential returns

According to the note, the broker has retained its buy rating on Life360 shares with a slightly trimmed price target of $32.50 (from $35.50).

Based on its current share price of $17.92, this implies potential upside of 81% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter concludes:

We have reduced the multiple we apply in the EV/EBITDA valuation from 35x to 30x and also increased the WACC we apply in the DCF from 9.5% to 9.6% for conservatism and the continued general weakness in the tech sector. The net result is an 8% decrease in our TP to $32.50 and we maintain our BUY recommendation. There is perhaps a lack of short term catalysts but we do see sequential improvement each quarter in revenue and EBITDA for the remainder of the year.

The post Does Bell Potter think the Life360 share price is dirt cheap? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why Amotiv, DroneShield, Life360, and WiseTech shares are tumbling today
• Why is everyone talking about WiseTech, GQG and Life360 shares on Tuesday?
• Why are Life360 shares sinking 8% today?
• Life360 Q1 2026 earnings: revenue climbs, advertising growth stands out

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XKO) rare earths stock Arafura Rare Earths Ltd (ASX: ARU) is charging higher today.

Arafura shares closed yesterday trading for 33 cents. In early morning trade on Wednesday, shares are swapping hands for 35 cents apiece, up 6.1%.

For some context, the ASX 300 is down 0.6% at this same time.

With today’s intraday gains factored in, Arafura Rare Earths shares are now up 105.9% in 12 months, smashing the 4.1% one-year gains delivered by the benchmark index.

Here’s what’s catching investor interest today.

ASX 300 rare earths stock leaps on offtake agreement

Arafura Rare Earths shares are in the green today after the company announced that it had signed a binding offtake term sheet with Traxys North America.

Traxys is a global physical trader and merchant in the metals and natural resources sectors.

Under the agreement, Arafura Nolans Project (a wholly owned subsidiary of the ASX 300 rare earths stock) will supply Traxys with 500 tonnes a year of neodymium-praseodymium (NdPr) oxide.

The supply agreement is for five years, with the companies having the option to extend this by two years if they both agree to do so.

The price Arafura Rare Earths receives for its NdPr oxide will be linked to an independent and transparent global seaborne index. Traxys will make payment in US dollars, leaving total revenue in Aussie dollars subject to foreign exchange moves.

What did Arafura management say?

Commenting on the offtake agreement helping boost the ASX 300 rare earths stock today, Arafura managing director Darryl Cuzzubbo said, “We have long believed that the right partners would define the quality and durability of Arafura.”

Cuzzubbo added:

The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.

As we advance this strategic agreement, we achieve another milestone in delivering the company’s broader long-term offtake objectives and financing strategy in support of a future investment decision.

The ASX 300 rare earths stock said it expects to finalise and execute a long form offtake agreement prior to the sunset date, which is six months from the execution of the term sheet.

The agreement remains subject to customary conditions, which include Arafura undertaking a Final Investment Decision (FID) for the Nolans Project.

Nolans is planned to be among Australia’s first ore-to-oxide rare earths processing facilities. Located in the Northern Territory, Nolans would provide a critical source of rare earths outside of China.

The post Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again today? appeared first on The Motley Fool Australia.

More reading

• Why did this ASX 300 stock just crash 15% to a 52-week low?
• Which ASX 200 mining services provider is charging higher on a big contract win?
• Does Bell Potter think the Life360 share price is dirt cheap?
• Why are CBA shares crashing 8% today?
• Fortescue shares push higher despite order to pay Yindjibarndi $150m damages

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.

Commonwealth Bank of Australia (ASX: CBA) shares are under pressure on Wednesday.

In morning trade, the banking giant’s shares are down over 8% to $157.16.

Why are CBA shares crashing?

Investors have been selling the big four bank’s shares today following the release of a quarterly update.

For the three months ended 31 March, CBA revealed that operating income was flat on the first-half quarterly average, with higher net interest income offset by lower other operating income.

Net interest income rose 1%, supported by lending and deposit volume growth, earnings on the replicating portfolio, and higher deposit margins. This was partly offset by cash rate lag, competition in home and business lending, the weaker New Zealand dollar, and two fewer days in the quarter.

Operating expenses rose 1%, excluding restructuring and notable items. This was due largely to higher cloud computing volumes, software licensing, and investment in artificial intelligence capabilities.

On the bottom line, the bank reported unaudited statutory net profit after tax of approximately $2.6 billion and unaudited cash net profit after tax of approximately $2.7 billion.

Cash profit was down 1% on the first-half quarterly average but up 4% on the prior corresponding quarter.

Lending and deposits grow

CBA revealed that it continued to grow across key lending and deposit categories.

For the 12 months to March 2026, home loan balances increased by $41 billion, household deposits rose by $38 billion, and business lending grew by $21.6 billion.

The bank noted that business lending grew at 1.2 times system, household deposits at 1.1 times system, and home lending broadly in line with system.

Retail transaction accounts also increased by more than 170,000 during the quarter, mainly driven by new-to-bank account openings.

Provisions increased

One area the market has been watching carefully in this tough economic environment is provisioning.

CBA’s loan impairment expense was $316 million for the quarter. The bank increased the forward-looking component of collective provisions by $200 million to reflect heightened geopolitical and macroeconomic risks.

However, management said underlying portfolio credit quality remains sound, with actual losses still low.

Consumer arrears increased modestly, while corporate troublesome and non-performing exposures also moved higher during the quarter.

Management commentary

Commenting on the quarter, CBA’s CEO, Matt Comyn, said:

Many Australian households and businesses are navigating cost-of-living pressures from higher energy prices and interest rates. Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty. As Australia’s largest bank, we are well placed to support our customers through this uncertain environment. Our balance sheet settings remain resilient with strong levels of capital, liquidity, deposit funding and provisioning in the context of economic and geopolitical uncertainty.

Our capital and liquidity ratios remain well above minimum regulatory requirements. Deposit funding represents 79% of total funding, and we are well progressed on our FY26 funding task, having raised A$32 billion in long-term wholesale funding to date. Notwithstanding an already strong level of provisioning, we have chosen to further top up our collective provisions in the quarter to reflect heightened macroeconomic risks. Our deliberate and long-term approach to balance sheet settings enables us to support our customers and the economy.

Speaking about the uncertain outlook, Comyn adds:

We are closely monitoring the impacts of the Middle East conflict and the broader macroeconomic environment. The Australian economy continues to demonstrate resilience, but supply chain disruptions, higher prices and interest rates are expected to weigh on household spending and business activity. We will continue to adjust our settings as appropriate and remain focused on executing our strategy to build a brighter future for all.

The post Why are CBA shares crashing 8% today? appeared first on The Motley Fool Australia.

More reading

• Why the big four banks could keep delivering for income investors
• Commonwealth Bank of Australia posts Q3 2026 capital update
• Are these ASX ETF giants still worth buying today?
• How much do I need to invest in ASX shares for $500 a month of passive income?
• 3 ASX ETFs that could be top picks for beginners

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.