Shares in Santos Ltd (ASX: STO) are trading higher after the company announced a major boost to cash flows over the December quarter.

The Adelaide-based oil and gas company said in a statement on Thursday that cash flow for the quarter was about $380 million, which was up 30% on the prior quarter.

This also brought cash flow for the full year to about $1.8 billion.

Production for the fourth quarter was 22.3 million barrels of oil equivalent (mmboe), up 15% on the prior quarter, bringing the full-year result to 87.7 mmboe, near the upper end of guidance of 87-88 mmboe.

Sales revenue for the fourth quarter was $1.2 billion, up 9% on the prior quarter, bringing the full-year result to more than $4.9 billion.

Solid result across the board

Santos Managing Director Kevin Gallagher said it was an operationally excellent result as well as being strong on the financial front.

The fourth quarter lifted free cash flow for the full year to approximately $1.8 billion, a strong result in a year of relatively soft commodity prices for the industry, which demonstrates the value of our focus on margin in our marketing and trading activities. The performance of the base business has been a real highlight in 2025 with strong production despite the impact of the biggest floods in the Cooper Basin since the 1970s. Santos now has a strong platform for production growth with Barossa’s first LNG cargo currently loading at Darwin. We have taken a very considered approach to the final stages of commissioning to ensure offshore operations achieve a steady state, high level of reliability as quickly as possible once full production is achieved.

Mr Gallagher said Santos was also moving close to first production from the Pikka oil project in Alaska, “positioning the company to deliver sustainable returns to our shareholders and continue to reinvest in the business to grow production”.

Drilling at Pikka continues to perform strongly, with the 23rd well achieving the highest productivity so far, with an initial rate of approximately 8,000 barrels of oil per day. The 24th well was the second combination well, developing two downhole reservoir sections with one well. The drilling capability and innovation developed at Pikka will underpin our strategy for future developments. Once at full rates, Barossa LNG and Pikka phase 1 together are expected to lift Santos’ production by around 25 to 30 per cent by 2027 compared to 2024 levels.

Mr Gallagher said the company had a cash flow breakeven target of $45-$50 per barrel of oil for the current year, which “will position Santos over the next few years to deliver sustainable results and provide strong returns for our shareholders”.

Santos’ production guidance for 2026 is for 101-111 mmboe, a significant uplift from 2025.

Santos shares were 2.9% higher in early trade at $6.23.

The company was valued at $19.68 billion at the close of trade on Wednesday.

The post Santos shares increase on strong quarterly cash flows appeared first on The Motley Fool Australia.

More reading

• Santos delivers strong Q4 cash flow and production
• 5 things to watch on the ASX 200 on Thursday
• 2 ASX shares to buy for growth and dividends
• Down 22% with 6% yield: Are Santos shares a serious buy?
• 5 things to watch on the ASX 200 on Wednesday

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 Santos Ltd (ASX: STO) share price is in focus after the energy producer reported fourth quarter free cash flow from operations of approximately $380 million, up 30% on the previous quarter, and full year sales revenue topping $4.9 billion.

What did Santos report?

• Fourth quarter free cash flow from operations: ~$380 million (up 30% quarter on quarter); full year: ~$1.8 billion
• Fourth quarter production: 22.3 mmboe (up 5% on previous quarter); full year: 87.7 mmboe
• Fourth quarter sales volumes: 24.8 mmboe (up 15% quarter on quarter); full year sales volumes: 93.5 mmboe
• Fourth quarter sales revenue: $1.23 billion (up 9% on previous quarter); full year: $4.94 billion
• Full year unit production cost: below $7 per boe (excluding Bayu Undan), within guidance
• Gearing: 26.8% (down 1.4% from end of prior quarter)

What else do investors need to know?

Santos reported strong operational momentum, with improved Cooper Basin production following post-flood recovery and the ramp-up of domestic gas in Western Australia after third quarter shutdowns. The company also received over 900,000 Australian Carbon Credit Units for its Moomba Carbon Capture and Storage project, reflecting strong compliance with emissions standards.

The Barossa LNG project reached a milestone, commencing LNG production, and its first cargo is now being loaded for delivery to Japan. Drilling in Alaska’s Pikka phase 1 project nears completion, positioning Santos for new oil volumes in early 2026.

Santos strengthened its balance sheet by raising $1 billion in new fixed-rate bonds, fully repaying legacy PNG LNG project finance, and divesting non-core assets. A favourable legal settlement also bolstered liquidity.

What did Santos management say?

Santos Managing Director and Chief Executive Officer Kevin Gallagher said:

The fourth quarter lifted free cash flow for the full year to approximately $1.8 billion, a strong result in a year of relatively soft commodity prices for the industry, which demonstrates the value of our focus on margin in our marketing and trading activities.
… Santos now has a strong platform for production growth with Barossa’s first LNG cargo currently loading at Darwin. … Once at full rates, Barossa LNG and Pikka phase 1 together are expected to lift Santos’ production by around 25 to 30 per cent by 2027 compared to 2024 levels.

What’s next for Santos?

Looking to 2026, Santos has issued production guidance of 101 to 111 mmboe, up from 2025’s level, and expects capital expenditure in the range of $1.95 to $2.15 billion. Increased LNG and oil volumes from Barossa and Pikka are expected to boost growth, alongside ongoing emissions reduction initiatives.

The company plans to continue disciplined capital allocation, maintaining a focus on cost and operational excellence. Several asset sales, a disciplined capital structure, and large-scale projects are expected to support shareholder returns.

Santos share price snapshot

Over the past 12 months, Santos shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Santos delivers strong Q4 cash flow and production appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares this fund manager says are buys for 2026
• Santos shares increase on strong quarterly cash flows
• Insignia Financial grows FUMA to $342bn in 2Q26: Key results for investors
• Sandfire Resources shares: December 2025 quarter results
• South32 grows output and returns cash: December 2025 quarterly earnings update

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 Insignia Financial Ltd (ASX: IFL) share price is in focus after reporting a modest $1.5 billion lift in funds under management and administration (FUMA) to $342.0 billion as at 31 December 2025, along with robust inflows into its Wrap and multi-asset solutions.

What did Insignia Financial report?

• FUMA increased by 0.4% to $342.0 billion over the quarter
• Net outflows for the quarter were $73 million
• Net inflows into Wrap products totalled $1.5 billion
• Multi-Asset solutions notched up net inflows of $779 million
• Master Trust (Superannuation) FUA decreased by $1.7 billion to $137.1 billion
• Asset Management FUM was $94.5 billion, down $66 million

What else do investors need to know?

Insignia Financial saw internal transfers as part of a product migration, with $1.9 billion moved from Master Trust into Expand Extra, aiming to streamline offerings and lower fees for customers. The company also rolled out a refreshed direct-to-consumer MLC Super Fund website and new branding, targeting better experiences and easier onboarding for members.

The business is advancing on its proposed acquisition by CC Capital, with regulatory approvals on track and a shareholder vote anticipated in the first half of 2026.

What did Insignia Financial management say?

CEO Scott Hartley said:

This quarter, our focus has been on maintaining momentum across the business, as we continue to deliver on the strategic priorities outlined in our 2030 Vision and Strategy. FUMA increased to $342.0 billion, supported by positive market movements, encouraging net inflows into Wrap, and continued net inflows into Asset Management’s retail multi-asset and Managed Accounts offerings.

What’s next for Insignia Financial?

Insignia Financial is continuing its work to become Australia’s leading and most efficient diversified wealth management company by 2030. The company is investing in adviser experience, member engagement, and digital innovation, while also focusing on continuous improvement in product offerings and operational efficiency.

The upcoming shareholder vote on the CC Capital acquisition is a major near-term event, with management expecting regulatory requirements to be resolved in the coming months.

Insignia Financial share price snapshot

Over the past 12 months, Insignia Financial has risen 5%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Insignia Financial grows FUMA to $342bn in 2Q26: Key results for investors appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares this fund manager says are buys for 2026
• Santos delivers strong Q4 cash flow and production
• Sandfire Resources shares: December 2025 quarter results
• South32 grows output and returns cash: December 2025 quarterly earnings update
• Deep Yellow quarterly update: Cash strong, Tumas Project on track

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 DroneShield Ltd (ASX: DRO) share price has been bouncing around in January.

But the good news for shareholders is that the overall trajectory has been upwards, with the counter-drone technology company’s shares up almost 30% year to date.

The even better news is that Bell Potter believes this run can continue.

What is the broker saying?

Bell Potter has been looking at the drone industry and likes what it sees.

As well as favourable defence trends from modern warfare, the broker believes the company stands to benefit from counter-drone usage at sports events.

In fact, it is expecting the company to be a big winner from the upcoming World Cup in North America. Commenting on its opportunity, Bell Potter said:

We believe the key catalyst for DRO in CY26 is the potential awards stemming from the US Public Safety market, notably from the US$250m funds allocated to states hosting the FIFA World Cup and the America 250 events for C-UAS protection. We would be disappointed if DRO did not receive material awards from these events.

The broker also notes that it has boosted its earnings estimates for the medium term to reflect a number of items. It adds:

We revise EPS higher by +4%/+8%/+3% across CY25-27e reflecting: lower diluted shares assumptions; higher tax rate; higher opex with DRO accelerating headcount ahead of expectations; and +5%/+5% higher revenue in CY26/27e due to the enactment of the Safer Skies Act.

Where next for the DroneShield share price?

According to the note, Bell Potter has retained its buy rating on the company’s shares with an improved price target of $5.00 (from $4.40).

Based on the current DroneShield share price of $4.32, this implies potential upside of approximately 16% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Consequently, we believe DRO should see material contracts flowing from its $2.5b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 47x CY26e EV / EBITDA, DRO trades at a 34% discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the soft-kill C-UAS industry.

The post Is the DroneShield share price heading to $5.00? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why 4DMedical and these ASX shares are up 200%+ in just a year
• These 2 ASX All Ords shares tripled in value last year. Can they keep going?
• Here are the top 10 ASX 200 shares today
• Should you buy DroneShield, Westpac, and BHP shares?

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 DroneShield. 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 Sandfire Resources Ltd (ASX: SFR) share price is in focus today after the company reported group sales revenue of $344 million and an underlying operations EBITDA of $187 million for the December 2025 quarter.

What did Sandfire Resources report?

• Unaudited group sales revenue of $344 million in Q2 FY26
• Underlying operations EBITDA of $187 million for the quarter
• Underlying EBITDA of $167 million and net cash of $13 million at 31 December 2025
• Group copper equivalent production of 72.1 kt in H1 FY26 (46% of annual guidance mid-point)
• MATSA copper equivalent production of 46.4 kt; Motheo copper equivalent production of 25.7 kt
• TRIF safety metric improved to 1.3 as of December 2025

What else do investors need to know?

Sandfire reported solid progress at its Spanish and Botswana mining hubs. MATSA’s production was on track with annual guidance, helped by higher grade ore and improved processing recoveries, while Motheo saw a temporary dip in production due to rescheduled maintenance and mobile fleet availability.

Investment in exploration remains a focus, with $10 million spent on regional and near-mine drilling across Spain, Portugal, and Botswana during the quarter. The company’s recent binding term sheet with Havilah Resources provides a pathway to acquire a majority stake in the Kalkaroo Copper-Gold Project and build an exploration alliance in South Australia.

What did Sandfire Resources management say?

Sandfire CEO and Managing Director Brendan Harris said:

The further reduction in our Group TRIF to 1.3 at the end of the December quarter reflects significant effort and focus from our operational teams. While this is a pleasing outcome, we continue to see high potential incidents in our workplace that we must learn from to ensure we further strengthen our control environment and raise awareness of the risks our people and contractors encounter every day.

While we have achieved our targeted balance sheet position and finished with $13M of net cash as at 31 December 2025, it should be noted that the proposed transaction with Havilah contemplates a A$31.5M cash payment upon the satisfaction of all conditions precedent, as well as a further A$15M payment to support the initial phase of the exploration strategic alliance in the Curnamona Province. Our talented people, strong balance sheet, modern mining complexes and exposure to a preferred suite of commodities, ensures the Group is exceptionally well positioned to fund these commitments and prosper in the current environment.

What’s next for Sandfire Resources?

Sandfire has maintained all production and cost guidance for FY26, with copper equivalent output expected to be more heavily weighted towards the second half of the financial year. The company will ramp up exploration activities at Motheo and advance the Kalkaroo transaction, pending Havilah shareholder approval in February 2026.

Management is also reviewing the Black Butte Copper Project’s role in the global portfolio, following an updated pre-feasibility study that supports the project’s economics and growth potential.

Sandfire Resources share price snapshot

Over the past 12 months, Sandfire Resources shares have risen 91%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Sandfire Resources shares: December 2025 quarter results appeared first on The Motley Fool Australia.

More reading

• South32 grows output and returns cash: December 2025 quarterly earnings update
• Deep Yellow quarterly update: Cash strong, Tumas Project on track
• Generation Development Group posts record December quarter earnings and inflows
• Greatland Resources posts record drilling and grades at Telfer
• Regis Resources posts record cash, resumes dividend, extends production outlook

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.

Shares in Evolution Mining Ltd (ASX: EVN) are trading near their record highs, but the team at Bell Potter thinks they can push even higher over the next 12 months.

Evolution this week released a quarterly report characterised as “strong” by the Bell Potter team, with record mine cash flow of $1.1 billion, which was a 57% increase from the September quarter.

The mining company said it was on track to deliver its full-year production at lower than the original cost guidance, with its December quarter production of 191,000 ounces of gold and 18,000 tonnes of copper produced at an all-in sustaining cost of $1275 per ounce.

The company’s cash balance also increased, up $187 million to $967 million, with Evolution’s gearing falling from 11% at the end of September to 6%.

Evolution’s guidance remained at 710,000-780,000 ounces of gold and 70,000-80,000 tonnes of copper, with copper expected to come in towards the lower end of this range due to a weather event at the Ernest Henry mine.

Lower costs key to cash flows

The Bell Potter team noted that the cost of production had fallen 26% quarter on quarter, “as copper by-product credits made a significantly increased contribution”.

They went on to say:

This was a very positive result, demonstrating consistent operational delivery, capital discipline and surging cash flows due to Evolution’s effectively unhedged gold exposure. It also highlighted Evolution’s copper kicker – a key aspect of its business that differentiates it from the majority of its peers but, in our view, is often overlooked by the market. Evolution’s annualised copper production of 70-80ktpa is a significant boost to margins, free cash flow and shareholder returns. The market is becoming more attuned to this with the rising copper price and, combined with Evolution’s other attributes, we expect this to continue driving Evolution’s outperformance.

Bell Potter has increased its earnings per share forecasts for Evolution by 32% for FY26 on the back of the quarterly update, increasing to a 62% uplift for FY27 and 53% for FY28.

They also noted that the company “has stated its intention to pass growing free cash flows on to shareholders”.

Bell Potter has increased its price target on Evolution Mining shares to $16.70, up from $12.35.

That would represent a 12.9% increase from current levels, and once dividends are factored in, the total shareholder return over a 12-month period is expected to be 16.7%.

Evolution was valued at $30.03 billion at the close of trade on Wednesday.

The post This gold and copper producer is forecast to deliver double-digit returns appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Evolution Mining, Lynas Rare Earths, Paladin Energy, and Sovereign Metals shares are racing higher today
• Up 156% in a year, Evolution Mining shares rocketing again today on record setting results
• Evolution Mining posts record cash flow in December quarter
• Prediction: Evolution Mining shares will halve in value in 2026

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.

If you have a high tolerance for risk, then it could be worth considering Adveritas Ltd (ASX: AV1) shares according to Bell Potter.

That’s because the broker believes this small cap ASX tech share could have major upside potential.

What is Adveritas?

This small cap ASX tech share is a technology company that develops software solutions for enterprise customers to help maximise the return on digital advertising spend.

Its key product is TrafficGuard, which is a SaaS platform that detects and intercepts fraudulent traffic in real time. This enables advertisers to reduce wasted ad spend and optimise their budgets.

Bell Potter notes that the market for ad fraud software like TrafficGuard is relatively nascent, but is growing rapidly and Adveritas is already a leading global player.

What is the broker saying about this small cap ASX tech share?

Bell Potter notes that Adveritas recently released its quarterly update and revealed annualised recurring revenue (ARR) ahead of expectations. It said:

ARR of $14.3m at the end of Q2 was up 17% on the end of Q1 and 2% ahead of our forecast of $14.0m. In absolute terms, ARR grew $2.1m in Q2 which was similar to the $1.7m in Q1 and $2.6m in Q4 of FY25 so there has now been three consecutive quarters of c.$2m growth.

And while the small cap ASX tech share’s cash generation was lower than expected, the broker thinks this was driven by a customer preference for monthly plans rather than annual plans. It adds:

Net operating cash was an outflow of $0.7m whereas we were expecting an inflow of $0.5m. The miss was driven by both lower cash receipts ($3.2m vs BPe $4.0m) and higher cash payments ($3.9m vs BPe $3.5m) than we were forecasting. The lower cash receipts appear to be largely driven by the continued shift from annual to monthly payments by customers. The cash balance at 31 December was $6.9m which was only marginally down on the $7.0m at 30 September.

Should you invest?

Looking ahead, Bell Potter continues to believe that the small cap can achieve ARR of $17.8 million in FY 2026. In light of this, the broker thinks it could be a good option for investors looking for exposure to the small side of the market.

According to the note, it has retained its speculative buy rating on Adveritas’ shares with a trimmed price target of 22 cents (from 23 cents).

Based on its current share price of 12.5 cents, this implies potential upside of 76% for investors over the next 12 months.

The broker concludes:

We have rolled forward our EV/Revenue valuation a year and now apply a 6x multiple to forecast FY27 revenue. We have also increased the risk-free rate in the DCF from 4.25% to 4.5% which has increased the WACC we apply from 9.9% to 10.1%. The net result is a 4% decrease in our price target to $0.22 which is >15% premium to the share price so we maintain our BUY recommendation.

Potential catalysts include the next quarterly in April where another quarter of c.$2m ARR growth will make our year end forecast of $17.8m look increasingly achievable if not conservative. There may also be positive news flow around new agency and/or channel partnerships.

The post This small cap ASX tech share could have 75% upside appeared first on The Motley Fool Australia.

More reading

• Is the DroneShield share price heading to $5.00?
• Sandfire Resources shares: December 2025 quarter results
• This gold and copper producer is forecast to deliver double-digit returns
• South32 grows output and returns cash: December 2025 quarterly earnings update
• How I’d invest monthly savings to generate over $50,000 passive income

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 South32 Ltd (ASX: S32) share price is in focus after the diversified miner delivered a solid Quarterly Report for December 2025, highlighting production growth in key assets and continued strong financial discipline.

What did South32 report?

• Alumina production rose 3% to 1,893kt for the December 2025 half year, with Brazil Alumina achieving record results.
• Aluminium production lifted 2% to 362kt, as Hillside Aluminium reached full technical capacity.
• Manganese production jumped 58% in the half, led by recovery at Australia Manganese.
• Received US$240 million in net distributions from equity interests, including US$180 million from Sierra Gorda.
• Returned US$152 million to shareholders via fully-franked dividends and share buy-backs.
• Invested US$338 million at Hermosa, progressing development of Taylor and Clark deposits.

What else do investors need to know?

South32 maintained FY26 production guidance across its operated assets, reinforcing ongoing operational consistency. For non-operated Brazil Aluminium, guidance is under review due to some ramp-up challenges, with updated production forecasts expected alongside the December half results.

The company completed the sale of Cerro Matoso, sharpening its base metals focus. Meanwhile, Mozal Aluminium will be placed on care and maintenance from March 2026, owing to power supply constraints. Several growth projects progressed, with Ambler Metals approving a fresh US$35 million work program and Hermosa making steady headway.

South32 continued its capital management program, returning most of its US$2.5 billion allocation to shareholders, now 96% complete. The company expects to finish the program ahead of the September 2026 review.

What did South32 management say?

Chief Executive Officer Graham Kerr said:

We continued to deliver consistent operating results, with FY26 production guidance maintained across our operated assets and first half operating unit costs tracking in line with guidance.

Our consistent operating performance, combined with strengthening market conditions, enabled the Group to maintain a strong financial position while investing in our high-returning growth options and delivering returns to shareholders.

Completing the divestment of Cerro Matoso during the quarter further simplified our business, consistent with our strategy to focus our portfolio on high-quality operations and growth options in base metals.

What’s next for South32?

South32 plans to maintain operational momentum, with FY26 production guidance unchanged at core assets. Investors should look out for updated guidance on Brazil Aluminium following ramp-up issues. Growth projects, including Hermosa and Ambler Metals, are progressing with significant capital investment, adding to future production and diversification.

Cost management remains a focus as the company aims to keep operating unit costs at or below guidance levels. South32’s capital management program is nearing completion, with more shareholder returns possible ahead of its September 2026 review.

South32 share price snapshot

Over the past 12 months, South32 shares have risen 17%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post South32 grows output and returns cash: December 2025 quarterly earnings update appeared first on The Motley Fool Australia.

More reading

• Sandfire Resources shares: December 2025 quarter results
• Deep Yellow quarterly update: Cash strong, Tumas Project on track
• Generation Development Group posts record December quarter earnings and inflows
• Greatland Resources posts record drilling and grades at Telfer
• Regis Resources posts record cash, resumes dividend, extends production outlook

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.

Building a meaningful passive income doesn’t usually happen overnight. Yet with time, discipline, and the power of compounding, even relatively modest monthly savings can snowball into something far more substantial.

The key lesson is simple: the earlier and more consistently you invest, the greater the long-term potential. Monthly contributions may feel small at first, but when they’re reinvested and allowed to compound over decades, the results can be powerful.

Rather than chasing quick wins or headline yields, I’d focus on building a diversified income portfolio designed to grow steadily and sustainably.

Working backwards from a $50,000 income goal

Let’s start with the maths.

If an investor wanted to generate $50,000 per year in dividends and distributions, a useful starting assumption is a 3% portfolio yield. That’s deliberately conservative and avoids relying on unusually high payouts.

At a 3% yield:

• $50,000 ÷ 3% = $1.67 million portfolio value

That figure can sound daunting at first glance. 

But it’s important to remember two things.

First, this is the end point, not the starting line. Most of the heavy lifting is done by compounding over time. Second, the yield itself isn’t static. Many quality income investments aim to grow distributions over time, meaning the income can rise even if the portfolio value stays the same.

For simplicity, this calculation does not include franking credits. In reality, franking can materially lift after-tax income for Australian investors. The benefit will vary depending on the mix of shares and funds held, but for portfolios tilted towards Australian equities, franking is typically a tailwind rather than a headwind.

Why starting early matters more than starting big

One of the biggest advantages an investor can give themselves is time.

Regular monthly investing achieves three things at once:

• It smooths out market volatility
• It builds the habit of saving and investing
• It maximises the compounding runway

Increasing contributions earlier in life can have an outsized impact on the eventual outcome. Even small increases in monthly savings, made early, can reduce the pressure to contribute far more later on.

Over decades, capital growth, reinvested income, and incremental increases in savings can work together in a way that’s difficult to replicate with lump-sum investing alone.

A simple foundation using diversified income investments

For a core portfolio, I’d keep things straightforward.

One option is the Vanguard Australian Shares High Yield ETF (ASX: VHY), which provides exposure to a diversified basket of Australian companies with above-average dividend yields. It spreads risk across sectors and offers access to franked income without needing to pick individual stocks.

To complement that, the L1 Long Short Fund Ltd (ASX: LSF) offers a different income profile. As a listed investment company, it aims to generate returns across market cycles, with the ability to smooth dividends using profit reserves. This can add diversification away from traditional long-only equity income.

Used together, funds like these can form a simple base designed to deliver income while reducing reliance on any single company or sector.

Adding quality businesses for dividend growth

For investors willing to be more hands-on, adding a selection of individual ASX dividend shares can provide another layer of income growth.

A long-standing example, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has built a reputation for steady dividend increases across multiple decades, supported by a diversified investment portfolio.

For more defensive income, Telstra Group Ltd (ASX: TLS) remains a widely followed option. It is essentially a monopoly on Australian telecommunications, so predictable cash flows have historically supported ongoing shareholder distributions.

Meanwhile, Jumbo Interactive Ltd (ASX: JIN) shows how niche digital businesses can translate recurring customer activity into growing cash returns for investors.

These types of companies can complement ETFs by introducing the potential for dividend growth over time.

Bringing it all together

Generating $50,000 a year in passive income isn’t about finding a single perfect stock or timing the market just right. It’s about building a diversified portfolio, contributing regularly, reinvesting early income, and letting time do the work.

The mix of ETFs and quality businesses will differ from investor to investor. So will the pace of contributions and the eventual yield. But the underlying principle remains the same: consistent investing, compounded over long periods, can turn monthly savings into a powerful income stream.

It may not be exciting week to week. But over decades, it can be remarkably effective.

The post How I’d invest monthly savings to generate over $50,000 passive income appeared first on The Motley Fool Australia.

More reading

• Passive income: How to earn safe dividends with just $20,000
• How many Telstra shares do I need to buy for $1,000 of annual passive income?
• Forget Telstra shares, I’d buy this ASX telco stock instead
• 3 great ASX dividend shares to buy in 2026
• How to build an ASX share portfolio for income and growth

Motley Fool contributor Leigh Gant owns shares in Jumbo Interactive.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Jumbo Interactive and Vanguard Australian Shares High Yield ETF. 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 as the uranium explorer reported a strong cash balance of A$187.1 million at 31 December 2025 and advanced staged development at its flagship Tumas Project in Namibia, with over 60% of detailed engineering now complete.

What did Deep Yellow report?

• Group cash balance of A$187.1 million at quarter end
• Tumas Project detailed engineering >60% complete; bulk earthworks 24% complete
• Power supply agreement executed for Tumas Project
• Exploration drilling at Tinkas Prospect confirmed uranium mineralisation with thicknesses up to 11 metres from surface
• Mulga Rock Project feasibility and trade-off studies underway after successful pilot programs
• Leadership transition with appointment of Greg Field as Managing Director and CEO, effective February 2026

What else do investors need to know?

Deep Yellow made progress across its diversified development pipeline last quarter. At the Tumas Project, the company completed a key independent technical expert report, meeting a major debt financing milestone. The Power Supply Agreement was executed and water infrastructure negotiations continue, helping de-risk the project ahead of a potential final investment decision.

The company’s exploration activities at the Tinkas Prospect and along the Tumas palaeochannel provided positive uranium mineralisation results, though follow-up drilling west of Tumas showed limited new discovery potential. Mulga Rock’s feasibility work and field surveys also advanced as Deep Yellow continues establishing a platform for future uranium output.

What’s next for Deep Yellow?

Deep Yellow aims to finalise detailed engineering and continue early works at Tumas in coming months, along with progressing power and water infrastructure agreements. Updated project schedules and financial models are being prepared to support a final investment decision when market conditions are right.

The company remains focused on its dual-pillar growth strategy, with coming milestones expected from project financing, feasibility studies at Mulga Rock, and exploration updates from its Namibian and Australian assets. Management highlights a commitment to becoming a globally diversified, long-term uranium supplier.

Deep Yellow share price snapshot

Over the past 12 months, Deep Yellow shares have climbed 58%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Deep Yellow quarterly update: Cash strong, Tumas Project on track appeared first on The Motley Fool Australia.

More reading

• Sandfire Resources shares: December 2025 quarter results
• South32 grows output and returns cash: December 2025 quarterly earnings update
• Generation Development Group posts record December quarter earnings and inflows
• Greatland Resources posts record drilling and grades at Telfer
• Regis Resources posts record cash, resumes dividend, extends production outlook

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.