The NEXTDC Ltd (ASX: NXT) share price is in focus after news that the company’s S4 Sydney Data Centre development in Horsley Park has been given State Significant Development approval by the NSW Department of Planning. This milestone supports NEXTDC’s ongoing expansion in the critical data centre sector.

What did NEXTDC report?

• Development application for the S4 Sydney Data Centre at Horsley Park approved
• State Significant Development (SSD) approval reference SSD-63741210 granted by NSW Department of Planning
• S4 will join NEXTDC’s growing network of Uptime Institute-certified Tier IV facilities
• Supports strategic growth in metro Sydney and accommodates rising digital infrastructure demand

What else do investors need to know?

The S4 Sydney Data Centre is expected to bolster NEXTDC’s position as a leading provider of data centre services not just in Australia, but across Asia. The company is known for its focus on sustainability, efficiency, and operational excellence, including a commitment to renewable energy and NABERS 5-star energy efficiency ratings.

This new facility is part of NEXTDC’s broader plan to expand infrastructure for the digital economy. The S4 centre will help serve the increasing needs of cloud providers, enterprise customers, and government agencies wanting secure, scalable, and energy-efficient infrastructure.

What’s next for NEXTDC?

With government approval in place, NEXTDC can progress to the next stages of design, construction, and eventual commissioning of the S4 Sydney Data Centre. The company aims to solidify its market presence further by supporting substantial digital growth in New South Wales while maintaining its sustainability initiatives.

Investors can watch for future updates as construction commences, including milestones on build progress and new customer signings at S4, alongside continued expansion and innovation across NEXTDC’s facility network.

NEXTDC share price snapshot

Over the past 12 months, NextDC shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post NEXTDC receives approval for new S4 Sydney Data Centre 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.

One ASX small cap is firmly back on investors’ radars today after releasing another market update just days after a blockbuster announcement.

At the time of writing, shares in Rocketboots Ltd (ASX: ROC) are trading at 34.5 cents, up 30.19%. This comes as investors digest news of a newly completed capital raise tied directly to its global expansion plans.

The update follows last week’s contract win, and suggests the market is now shifting its attention to what comes next.

Funding the next phase of growth

This morning, the company announced it has received firm commitments to raise $7 million via a placement priced at 25 cents per share.

The raise was supported by a mix of new and existing sophisticated investors, including several institutions entering the register for the first time.

While capital raisings can sometimes weigh on sentiment, the share price response suggests investors see this one as a positive step.

How the funds will be used

The funds will support international expansion and provide working capital as the company scales to service current and future customer contracts.

The additional capital will also be used to scale the platform and support the rollout of the recently announced global contract, while backing other enterprise customers already deep in the sales funnel.

Why investors are still paying attention

The placement comes just days after the company revealed a multi-year global deal expected to deliver around $9.1 million in annual recurring revenue (ARR), more than 10 times its existing ARR base.

Even after landing that contract, management has indicated it represents less than 10% of the company’s advanced sales pipeline.

With fresh capital in place, investors appear increasingly comfortable that the company can support multiple large customers simultaneously.

This also reduces balance sheet risk and gives the company flexibility to pursue additional opportunities.

The bigger picture

The company operates in AI-driven retail loss prevention. Rising shrinkage and labour pressure are pushing retailers to adopt scalable solutions as self-checkout expands. These trends provide a supportive backdrop for the business and continue to drive interest from especially large, global customers.

Together, the recent contract win and capital raise suggest the company is entering a new phase of growth.

Foolish Takeaway

For investors comfortable with small-cap risk, this update reinforces the momentum building behind the business. The combination of a major contract win and fresh funding improves visibility around the company’s near-term execution. After today’s move, this remains a stock I’ll be watching closely from here.

The post This ASX small-cap star just jumped 30% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Medibank, PLS, and Woolworths shares
• The smartest ASX ETFs to build wealth in the new year
• Why Brightstar, EVT, Monash IVF, and Pro Medicus shares are dropping today
• Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks
• Why Clarity, DroneShield, St Barbara, and Treasury Wine shares are charging higher today

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. 

There are a lot of ASX shares to choose from on the Australian share market.

To narrow things down, let’s look at what analysts are saying about a few popular options, courtesy of The Bull. Here’s what you need to know:

Medibank Private Ltd (ASX: MPL)

Shaw and Partners isn’t recommending investors buy health insurance giant Medicare just yet.

In response to its acquisition of Better Medical, the broker has put a hold rating on Medibank’s shares. It said:

MPL is a private health insurer. Medibank Private has entered into an agreement to acquire Better Medical, for about $159 million, highlighting its pivot into health services. The acquisition brings a network of 61 GP and medical clinics to MPL from Victoria, Queensland, South Australia and Tasmania. The company has  also strengthened governance and leadership after appointing new non-executive directors.

MPL generated group revenue from external customers of $8.604 billion in fiscal year 2025, an increase of 5.2 per cent on the prior corresponding period. Underlying net profit after tax of $618.7 million was up 8.5 per cent. The fully franked dividend of 18 cents in fiscal year 2025 was up 8.4 per cent.

PLS Group Ltd (ASX: PLS)

Over at Bell Potter, its analysts think that this lithium miner’s strong gains means that its shares are overvalued at current levels.

Especially given the risk of lithium prices staying lower for longer. It has put a sell rating on its shares. Commenting on PLS Group, which was previously known as Pilbara Minerals, the broker said:

Formerly Pilbara Minerals, this lithium miner’s operational performance remains sound. Despite a strong balance sheet and long term tailwinds from electric vehicles and energy storage, lithium supplies exceed demand in the short term and overshadow any catalysts. The recent share price rally has run stronger than most share market experts expected, with the stock still pricing in a cyclical rebound. Downside risk remains if lithium prices stay lower for longer.

Woolworths Group Ltd (ASX: WOW)

One ASX share that Bell Potter is recommending as a buy is supermarket giant Woolworths.

It is feeling positive about the company after its recent update showed signs of stabilisation. It said:

After a challenging period marked by margin pressure and earnings downgrades, Woolworths is showing early signs of stabilisation. Recent trading updates indicate improving momentum in core divisions, particularly Australian Food and B2B (Business-to-Business), suggesting the worst may be behind WOW. Given the supermarket giant generates solid cash flow, WOW stands out among consumer staples. As market sentiment improves, so too should investor confidence in the group’s earnings outlook.

The post Buy, hold, sell: Medibank, PLS, and Woolworths shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new year often brings a renewed focus on finances. For many investors, that means asking a simple but important question: how can I grow my wealth with minimal effort?

This is where exchange-traded funds (ETFs) really shine.

Instead of researching and trying to pick individual winners, ETFs allow investors to gain diversified exposure to entire markets or powerful long-term themes in a single trade.

For those looking to build wealth steadily in the year ahead and beyond, here are three ASX ETFs that stand out.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The BetaShares S&P/ASX Australian Technology ETF could be worth considering for 2026 and beyond. Rather than relying on traditional banks or miners, this ETF focuses on ASX stocks driving digital transformation.

Its holdings include tech stocks such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and TechnologyOne Ltd (ASX: TNE). These companies operate globally and generate a significant portion of their revenue offshore, giving investors exposure to international growth through Australian-listed stocks.

It has been a tough year for the Australian tech sector, which means investors are able to buy this fund at a deep discount to recent highs. It was recently recommended by analysts at Betashares.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity has become a non-negotiable part of the modern digital economy. Governments, corporations, and consumers all rely on secure networks, and spending in this area continues to rise regardless of economic conditions.

The BetaShares Global Cybersecurity ETF provides exposure to a global portfolio of stocks that are at the forefront of cybersecurity. Its holdings include names like Palo Alto Networks (NASDAQ: PANW), Infosys (NYSE: INFY), and Cloudflare (NYSE: NET).

Rather than betting on a single cybersecurity winner, this ETF spreads risk across the sector. This makes it a practical way to tap into a structural growth trend that is likely to persist for decades.

BetaShares Diversified All Growth ETF (ASX: DHHF)

For investors who want a true set-and-forget option, the BetaShares Diversified All Growth ETF is hard to ignore. This ASX ETF provides exposure to thousands of stocks across Australian and global share markets in one simple investment.

This fund holds a mix of Australian shares, global developed market shares, and emerging markets, with no exposure to defensive assets like bonds. This makes it suitable for investors with a long time horizon who are focused purely on growth.

Its diversified structure helps reduce the risk of relying too heavily on any one region or sector, while still capturing long-term equity market returns. It was also recently recommended by Betashares.

The post The smartest ASX ETFs to build wealth in the new year appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Cloudflare, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is on course to end the shortened week with a decline. At the time of writing, the benchmark index is down 0.6% to 8,742.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Brightstar Resources Ltd (ASX: BTR)

The Brightstar Resources share price is down 8% to 52.2 cents. Investors have been selling this gold miner’s shares following the release of a production revision. Brightstar revealed that it achieved production and sales of 4,652 ounces of gold in November. This is down from its unreconciled production update, which initially indicated total recovered gold production of 6,300 ounces. Brightstar’s managing director, Alex Rovira, commented: “Whilst this is an unfortunate set-back to the November processing campaign, all stakeholders remain confident that optimal conditions in future processing will see a material lift in recoveries in line with historical processing data.”

EVT Ltd (ASX: EVT)

The EVT share price is down 2% to $12.82. This morning, this hotel, cinema, restaurant, and resorts operator announced the acquisition of QT Auckland. It is a premium lifestyle hotel located in Auckland’s Viaduct precinct. EVT has agreed to pay NZ$87.5 million (~A$76 million) to secure the asset. Management believes the acquisition secures long-term brand presence in a key strategic location and further strengthens its owned hotel portfolio. EVT also announced the sale of Rydges Geelong for $24.5 million. It was previously designated as a non-core asset.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price is down 15% to 69.5 cents. This has been driven by news that the consortium comprising Genesis Capital Investment Management and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) has withdrawn its non-binding indicative proposal. It was looking at a deal to acquire 100% of Monash IVF at $0.80 per share by way of a scheme of arrangement. No reasons were given for the withdrawal of the proposal. It only stated: “If there are material developments in the future, Monash IVF will inform shareholders as required under its continuous disclosure obligations.”

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is down almost 3% to $225.64. This is despite there being no news out the health imaging technology company. However, it is worth noting that the tech sector is under pressure today ahead of the Christmas break. This has seen the S&P ASX All Technology index drop 1.2% on Wednesday.

The post Why Brightstar, EVT, Monash IVF, and Pro Medicus shares are dropping today appeared first on The Motley Fool Australia.

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

The copper price surged to a new all-time high on Tuesday, breaking above US$12,000 per tonne on the London Metal Exchange for the first time on record.

In total, the red metal has now rallied by almost 40% since the start of the year.

Not surprisingly, this powerful performance has outpaced the broader market, with the All Ordinaries Index up by 7% across the same period.

The latest leg higher appears to have been sparked by concerns over potential US copper tariffs.

Reports suggest this setting has triggered a rush of imports into the US, creating supply tightness amongst offshore manufacturers.

However, copper’s longer-term outlook also appears highly constructive, underpinned by both traditional and emerging applications.

Modern-day metal

Copper plays a key role in the global energy transition thanks to its use in electric vehicles (EVs) and associated charging infrastructure.

It is also a critical component in AI data centres due to its conductivity and efficiency in power distribution and cooling.

According to BloombergNEF, such trends could push copper into a structural supply deficit as early as 2026, as electrification-driven demand outpaces new mine supply.

The research firm believes copper is facing the most acute pressure amongst all transition metals.

This stems from rapid growth in data centres, grid expansion, and EV adoption worldwide. 

Overall, BloombergNEF estimates that energy-transition demand for copper could triple by 2045, pushing the market deeper into deficit unless investment into new supply ramps up.

And leading ASX 200 mining stocks appear to be taking notice.

In recent years, several of Australia’s largest mining companies have been actively increasing their exposure to copper.

Below, we present three ASX 200 mining stocks with a growing emphasis on copper.

BHP Group Ltd (ASX: BHP)

BHP is one of the world’s biggest diversified miners, best known for its iron ore and metallurgical coal production to support global steelmaking.

However, through a series of acquisitions and expansions, the company has significantly increased its exposure to copper in recent years.

Today, this ASX 200 mining stock is considered the world’s largest copper producer.

In FY25, BHP produced two million tonnes of copper from its portfolio of assets in Chile, Peru, South Australia, and Arizona.

Copper has also become a key earnings driver, accounting for 45% of the group’s underlying operating earnings (EBITDA) during the year.

In the past six months, BHP shares have jumped by 25% to $45.59 apiece at the time of writing.

They are trading near 52-week highs on Wednesday morning.

South32 Ltd (ASX: S32)

South32 is a diversified mining company producing a suite of commodities across three geographical regions: Australia, South America, and Southern Africa.

Its operations include the production of bauxite, aluminium products, nickel, zinc, lead, silver, metallurgical coal, and manganese.

And then there’s copper.

In 2022, South32 acquired a 45% interest in the Sierra Gorda mine in Chile, which is now helping to drive copper output for the company.

The project already boasts a mine life of more than 20 years, with potential for further upside through improved production efficiency, resource expansion, and exploration.

In FY25, copper production from Sierra Gorda grew by 20% from the previous year.

Separately, South32 has also been growing its pipeline of copper exploration opportunities.

In FY25, the group expanded its strategic alliance with Noronex Ltd (ASX: NRX) to explore for copper in Namibia and Botswana.

It also acquired a 19.9% stake in American Eagle Gold Corp and its NAK copper and gold project in Canada.

South32 shares have jumped by 21% over the past six months.

Fortescue Ltd (ASX: FMG)

Fortescue is renowned for its iron ore empire in the Pilbara region of Western Australia.

However, behind the scenes, the company has been growing its exposure to critical minerals, with a particular focus on copper.

Earlier this month, Fortescue moved to broaden its exposure to copper by agreeing to acquire the remaining 64% of Toronto-listed Alta Copper Corp (TSX: ATCU).

The $151 million deal will now give Fortescue control of the Canariaco copper project in Peru.

A recent economic evaluation of Canariaco forecasts annual production to average 134,000 tonnes of copper across a 27-year mine life.

Fortescue shares have lifted by 46% since the tail end of June.

The post Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks appeared first on The Motley Fool Australia.

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• Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year?
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• Guess how much $10,000 invested in these VanEck ASX ETFs a year ago is worth today?

Motley Fool contributor Bart Bogacz 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the shortened week in the red. At the time of writing, the benchmark index is down 0.6% to 8,744.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is up 5% to $3.34. Investors have been buying this pharmaceuticals company’s shares after it released an update on its Co-PSMA (NCT06907641) Investigator-Initiated Trial. Clarity revealed that its abstract has been accepted for oral presentation at the upcoming European Association of Urology (EAU) Congress 2026. It is Europe’s biggest urological conference, which will be held 13-16 March 2026 in London. Clarity’s executive chair, Dr Alan Taylor, commented: “This recognition not only highlights the impact of this research but also underscores the significant potential of 64Cu-SAR-bisPSMA to advance PSMA imaging and improve prostate cancer management. The abstract summary will be announced in mid-February, followed by the oral presentation in mid-March 2026.”

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 3% to $3.36. This morning, this counter drone technology company announced that it has received a standalone contract for $6.2 million from an in-country reseller for delivery to a military end-customer in an Asia Pacific country. The solutions that have been ordered include selected 3rd party hardware, interoperable with DroneShield’s command-and-control software platform, DroneSentry-C2. It is an advanced command-and-control (C2) platform that delivers a unified, real-time counter-drone operating picture. Management expects to complete this delivery and receive payment in 2026.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 3% to 60.2 cents. As well as getting a boost from a rising gold price, this morning the gold miner revealed that the $32 million deposit has been received from Lingbao Gold in relation to its strategic investment. The company advised that the deposit will be held in escrow and will be utilised towards the $370 million subscription amount to acquire 50% of St Barbara Mining. It is a wholly owned subsidiary of St Barbara, which will own 80% of the Simberi Gold Project.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is up 7% to $5.37. This appears to have been driven by news that French billionaire Olivier Goudet has built a 5.05% position in the beaten down wine giant. Goudet has been buying the Penfold owner’s shares since early October.

The post Why Clarity, DroneShield, St Barbara, and Treasury Wine shares are charging higher today appeared first on The Motley Fool Australia.

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

Many ASX investors buy shares in order to start a second stream of passive income. The dividends that ASX shares can pay make stock market investing a reliable and potentially lucrative source of secondary income. But exactly how much income can you realistically receive from an ASX dividend stock? Can you really get $1,000 a year from a $5,000 investment?

Well, on the surface, that looks to be a lofty goal. Investing $5,000 to get $1,000 back in dividends every year would require one to find an ASX dividend share with a dividend yield of 20%. Seeing as most investors would regard a yield of 5% as on the more generous side, 20% is a big ask.

I’ll be upfront. You are not going to get a reliable 20% yield straight up, unless you get incredibly lucky and find some under priced market gem that everyone else has overlooked.

However, not all hope is lost. A 20% yield on your capital is possible. You just need to give it some time.

To demonstrate, let’s use an example of one of the ASX’s best dividend growth stocks. Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares are a dividend favourite on the ASX. This investing house has the best dividend track record on our market, having increased its annual dividends every single year since 1998.

How can ASX dividend growth stocks build a second income?

Between 2021 and 2025, Soul Patts has raised its annual payouts from 62 cents per share to $1.03. That’s a compounded annual growth rate of 13.5% per annum.

Let’s, for a moment, assume that this rate of dividend growth will continue indefinitely (which is by no means guaranteed). Investing $5,000 today would get you approximately 138 shares at the current price of $36.18. You would start with a trailing dividend yield of 2.96%. Based on 2025’s payouts, this represents a starting cash flow of $142.14 in annual second income.

If Soul Patts increases its dividend by another 13.5% in 2026, its annual dividend would rise to $1.17 per share, meaning our second income would increase to $161.46.

This would continue to compound. By year five, we would be getting almost $236 in second income, rising to $444.30 by year ten.

Like a rolling snowball, the rate of increase gets faster and faster. We would reach our goal of $1,000 ($1,078 to be precise) in annual secondary income by year 17, and that’s assuming no additional investment or dividend reinvestment. Thanks to the power of compounding, it would only take another five years for our second income to double again to over $2,000.

Investing additional amounts, or reinvesting dividends each year (or both) would speed up the process and have our investor reach their goal even faster. ASX stock investing is generally not a get-rich-quick process. But I hope this exercise shows that if an investor is patient and disciplined, it can be an effective way of obtaining a reliable second income.

The post Is investing $5,000 enough to earn a $1,000 second income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Brightstar Resources Ltd (ASX: BTR) share price is under pressure today after the company released an update this morning.

At the time of writing, the emerging gold producer’s shares are trading at 51 cents, down 9.73%.

So, what did Brightstar announce, and why are investors selling today?

What was announced this morning?

According to the release, Brightstar confirmed it has formally completed corporate arrangements that were already approved by shareholders and the courts.

The update relates to tidying up the company’s structure as part of its broader asset consolidation plans. It’s worth noting that none of this was new, and the changes had already been flagged in earlier ASX announcements.

Importantly, the update did not include any new drilling results, production guidance, or resource upgrades.

That lack of fresh operational news appears to be what disappointed the market.

Why the share price is falling

Today’s sell-off looks to be more about expectations than fundamentals.

Brightstar shares had enjoyed a strong run in December, rising to a two-month high of 57 cents yesterday. This was supported by higher gold prices and growing confidence in the company’s Western Australian asset base.

Against that backdrop, some investors were likely hoping for something more concrete, such as exploration results or clearer development progress.

Instead, the update failed to provide any new details, giving the market little reason to push the share price higher in the short term. As a result, some investors have chosen to lock in profits heading into the holiday period.

The bigger picture hasn’t changed

Despite today’s share price move, nothing has changed in Brightstar’s broader strategy.

In recent months, the company has delivered solid growth in its gold resources, particularly across its Menzies and Sandstone projects. In turn, this has helped strengthen its position as a growing gold developer.

Brightstar continues to focus on building scale across its Western Australian portfolio, with the longer-term goal of progressing toward sustained gold production.

That work is also taking place against a strong gold price backdrop, with gold trading near record highs. That environment remains supportive for developers like Brightstar, particularly as projects move closer to production decisions.

Foolish Takeaway

There was nothing wrong with today’s update, but there was nothing in it to excite the market either.

Until Brightstar delivers its next operational milestone, the share price is likely to remain volatile. That comes with the territory for development-stage gold stocks.

For now, I’m happy to sit on the sidelines and wait for the next update.

The post ASX gold share sinks 10% on Xmas Eve update appeared first on The Motley Fool Australia.

More reading

• Why Brightstar Resources, Immutep, Pilbara Minerals, and Race Oncology shares are roaring higher

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.

If you have a high tolerance for risk, then Bell Potter thinks it could be worth taking a look at 6K Additive Inc (ASX: 6KA) shares.

In fact, the broker believes that this exciting ASX stock could rise materially from current levels.

What is the broker saying?

6K Additive is a newly listed US-based manufacturer, upcycling metal scrap into premium metal powders and alloying additives.

Its patented UniMelt technology can produce spherical powders for Additive Manufacturing (AM) across a range of high-end reactive metals, refractory metals, and alloys. This includes titanium, Inconel, C103, and tantalum.

Bell Potter notes that compared with incumbent spheroidisation processes, UniMelt has materially lower energy consumption. It also achieves higher product yield and upcycles manufacturing waste.

Key demand sources are the aerospace, defence, energy and medical sectors, with AM Research estimating the global AM powder market to grow by an average of 19% each year to around US$4.6 billion by 2033.

Bell Potter believes that this leaves the ASX stock well-positioned to be generating EBITDA of approximately US$36 million by 2028. It said:

Metal powders represent around 65% of current revenues from installed capacity of 290tpa. 6KA are expanding powder capacity to 1,340tpa over 2026-27, as part of a US$31m capital program. Funding includes a US$23m US Department of War Defence Production Act grant, the proceeds from its recent A$48m (US$32m) ASX IPO and a US$27m US EXIM Bank loan. By 2028, we estimate 6KA’s annual EBITDA run-rate at around US$36m.

ASX stock tipped to rocket

According to the note, Bell Potter has initiated coverage on the ASX stock with a speculative buy rating and $1.45 price target. Based on its current share price of 81 cents, this implies potential upside of almost 80% for investors over the next 12 months.

To put that into context, a $1,000 investment would be worth approximately $1,800 by this time next year if Bell Potter is on the money with its recommendation.

Though, with a speculative buy rating, investors need to be aware that they could just as easily make a loss on investment.

Commenting on its initiation, the broker said:

6KA has a competitive advantage in the production of high-value metal powders for the fast-growing global Additive Manufacturing sector. The company’s UniMelt systems are energy efficient, high yield and accept recycled metal feedstock. 6KA is supporting US-based reshoring of critical metal supply.

Company value is highly leveraged to the take-up of Additive Manufacturing, which has lead-time advantages over incumbent casting and forging production methods. We expect Additive Manufacturing to be a beneficiary of the US Department of War’s Acquisition Transformation Strategy to support rebuilding the country’s Defense Industrial Base.

The post Bell Potter says this newly listed ASX stock could rocket 80% appeared first on The Motley Fool Australia.

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