Investing in ASX dividend stocks for income can be a tricky process. Most income investors want relatively large upfront yields, as well as a high likelihood that a dividend share will continue to be able to fund payouts for the foreseeable future. Finding an ASX share that offers both of these traits is harder than many investors may think.

Today, let’s go over two such ASX dividend stocks that I think fit the criteria, and are thus built to just keep paying dividends.

2 ASX dividend stocks built to pay out dividends like clockwork

Coles Group Ltd (ASX: COL)

Coles is a relatively new ASX blue chip dividend stock, having listed in its own right back in late 2018. Ever since its listing, though, Coles has built an admirable track record of paying out reliable dividends. It has delivered an annual dividend increase every year since 2019, including in 2025. Its payouts tend to come with full franking credits attached too.

This reliability is arguably enabled by Coles’ nature as a consumer staples stock. As Coles sells food and household essentials – goods we tend to need to consistently buy – it is resistant to inflation, recessions and other economic problems that can damage other companies’ profits. As such, it is, at least in my view, a reasonable conclusion that Coles will continue to be able to pay a steadily rising dividend for years to come. Today (at the time of writing), this ASX dividend stock trades on a dividend yield of just under 3.3%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Next up, we have Washington H. Soul Pattinson, or Soul Patts for short, to check out. Soul Patts is an investing house. It manages a vast underlying portfolio of subordinate investments on behalf of its shareholders. This portfolio is highly diversified, ranging from stakes in other blue chip ASX dividend stocks to private equity, venture capital and private credit investments.

Soul Patts has been doing this for decades, and has a long and successful track record to point to. Last year, investors were informed that Soul Patts shares had produced an average total return (share price growth plus dividends) of 13.7% per annum over the 25 years to 23 September 2025.

Speaking of dividends, Soul Patts has one of the best track records on the ASX. It has delivered an annual dividend increase (with full franking credits attached) every single year since 1998, including in 2025. Given that this ASX dividend stock has such a long record of delivering clockwork-like dividend increases, I am confident that Soul Patts will continue to do so.

This stock is currently trading with a dividend yield of 2.72%.

The post These ASX dividend stocks are built to keep paying and paying 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.

NIB Holdings Ltd (ASX: NHF) has been a solid performer for investors over the past year. The private health insurer’s shares are up around 22% over the last 12 months, pointing to steady confidence in the business.

However, the share price has lost some momentum recently. Over the past month, NIB shares have slipped almost 4% and are currently trading around $6.69, suggesting some investors are taking profits after the recent run.

Let’s take a closer look at what’s driving the recent pullback.

A strong year, but momentum has cooled

Over the past year, NIB’s share price has climbed from the mid $5 range to around current levels. That puts it comfortably ahead of the broader S&P/ASX 200 Index (ASX: XJO), helped by steady earnings and reliable dividends.

That said, the shares have struggled to push higher recently. The price peaked late last year at $8.26 before pulling back, and it is now trading closer to the lower end of its recent range.

The relative strength index (RSI) shows the stock was previously in overbought territory, meaning it had risen too quickly. When that happens, a pullback is common as some investors lock in profits and momentum cools.

What the chart is saying

NIB shares are currently sitting near the middle-to-lower end of their Bollinger Bands, which often signals reduced momentum.

There appears to be support around $6.60 to $6.65, where buyers have stepped in before. On the upside, resistance sits near $6.90 to $7.00, a level the stock has struggled to break through in recent months.

Strong dividend profile is still a highlight

One reason investors continue to hold NIB is income. The company offers a dividend yield of about 4.3%, which is fully franked.

NIB has a long history of paying steady dividends, and payouts have been well supported by earnings.

What’s next on the financial calendar?

Investors should also keep an eye on several key dates in 2026:

• 23 February – FY26 half-year results

• 5 March – Interim dividend ex-dividend date

• 8 April – Interim dividend payment

• 24 August – FY26 full-year results

• 3 September – Final dividend ex-dividend date

• 7 October – Final dividend payment

• 11 November – Annual general meeting (AGM)

These events could move the share price, especially the upcoming February results.

Foolish takeaway

NIB looks like a steady, reliable business rather than a high-growth stock. The shares have done well over the past year, but short-term momentum has eased.

For long-term investors chasing income and stability, NIB still makes sense. For short-term traders, patience may be needed until momentum improves again.

The post NIB share price up 22% in 12 months, but could face short-term weakness. Here’s what investors should know appeared first on The Motley Fool Australia.

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S&P/ASX 200 Index (ASX: XJO) lithium stocks are enjoying a strong run today amid resilient global lithium prices.

In early afternoon trade on Thursday, the ASX 200 is up 0.2%, with the Aussie lithium miners broadly outpacing those gains.

At time of writing:

• Mineral Resources Ltd (ASX: MIN) shares are up 1.7% at $62.41
• Liontown Resources Ltd (ASX: LTR) shares are up 0.7% at $2.19
• Pls Group Ltd (ASX: PLS) – formerly Pilbara Minerals – shares are up 1.1% at $4.93
• IGO Ltd (ASX: IGO) shares are up 2.4% at $9.34

The miners aren’t just beating the benchmark returns today. In fact, all four of these ASX 200 lithium stocks have smashed the 8% returns delivered by the ASX 200 over the past year.

Here’s what I mean:

• Mineral Resources shares are up 69% in a year
• Liontown shares are up 279% in a year
• PLS shares are up 115% in a year
• IGO shares are up 83% in a year

What’s sending ASX 200 lithium stocks like Liontown shares soaring?

The common thread helping lift the Aussie lithium miners has been the rebounding lithium price.

Following the collapse in lithium prices in 2023, many global miners and ASX 200 lithium stocks reduced or entirely paused their lithium production. But with strong demand from energy storage systems (ESS) and electric vehicles (EVs), amid reduced global supplies, lithium prices just hit the highest levels in more than two years.

A lot of that growing demand is being driven by China.

According to Trading Economics, China intends to double its EV charging capacity by 2027. And with an eye on fast-growing EV sales, lithium producer Ganfeng expects lithium demand to increase by 30% in 2026.

“Fundamentals of the lithium market are strong,” Reg Spencer, a mining analyst at Canaccord Genuity, said in late December.

“The reality is that spodumene prices have doubled, chemical prices in China have almost doubled, and I still haven’t seen any new Western greenfield projects sanctioned,” he added.

And it takes a long time to build a new greenfield mine.

These tightening supply and demand dynamics appear favourable for ASX 200 lithium stocks, including IGO and Mineral Resources shares in the months ahead.

Indeed, Barrenjoey forecasts spodumene prices will rise to US$3,250 per tonne in 2026, forecasting a 40% year on year increase in ESS battery shipments.

(Spodumene, if you’re not familiar, is a lithium bearing ore mined in Australia.)

According to the broker (quoted by The Australian Financial Review), the factors pushing lithium prices higher are “set to sustain into 2026 and the medium term, particularly in regions with higher renewable energy penetration demanding increased ESS capacity for grid stability and reliability”.

Stay tuned!

The post Why ASX 200 lithium stocks like Liontown and Mineral Resources are making waves today appeared first on The Motley Fool Australia.

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

With The Lottery Corporation Ltd (ASX: TLC) set to release its results mid-next month, the team at Jarden has run the ruler over their expected performance and concluded that the company will come out with steady (but unremarkable) numbers.

That also seems to be the consensus across a broader survey of analysts, with Tradingview saying that based on 11 analysts recomendations, the consensus is for a neutral recommendation.

According to Jarden there is some mild upside left in the stock, although their target price of $5.30 was only just above the price at publication of their research note of $5.11.

Factoring in dividends, this would return 7% to investors if that share price target was achieved.

No luck from jackpots

The Jarden team said they were estimating first half lotteries turnover of about $3.2 billion, down 2% year on year for the first half, primarily due to fewer jackpots accruing in the half.

They went on to say this re the expected revenue result:

In our view, this is due to unfavourable jackpot sequences (Powerball/Oz Lotto aggregate jackpots -14% y/y), rather than underlying demand weakness. We estimate like-for-like draws have performed robustly through the period. First half FY26 turnover is also likely impacted by Saturday Lotto’s annual year-end draw falling in calendar year 2026.

Jarden said they expected the company to “look through” the jackpot weakness and declare a dividend of 8.5 cents per share, in line with the corresponding first half in the previous year.

The Jarden team also said that while there was a risk to earnings, this had likely been factored in.

While we see risk to consensus earnings, recent share price performance would suggest likely downgrades are more than reflected in market expectations given the high degree of visibility on jackpot activity. Consensus FY26 earnings per share downgrades since 1-Sep have been about 5% with Jarden estimates about 7% lower. Despite this, we now view current levels as already pricing in below theoretical jackpot activity near-term. With the stock trading on about 25x FY27 P/E (assuming normalised jackpot sequences), and at the low end of historical trade ranges, we now see positive risk/reward and upgrade our rating to Overweight (from Underweight).

Jarden said they saw the business as well-managed and cash-generative, “within an economically resilient, exclusive licensed market”.

Opportunities for structural earnings growth under new CEO Wayne Pickup will likely include digital penetration, cost and Victorian licence-related opportunities.

The Lottery Corporation was valued at $11.37 billion at the close of trade on Wednesday.

The post Are The Lottery Corporation shares a buy, sell or hold at current levels? appeared first on The Motley Fool Australia.

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

Healthcare was the worst performer of the 11 market sectors in 2025, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) falling 24.91%.

The typically small dividend paid by healthcare shares offset this only slightly, with the sector’s total returning negative 23.66%.

By comparison, the S&P/ASX 200 Index (ASX: XJO) rose 6.8% and delivered total returns of 10.32%.

The sector was dragged lower by a significant share price fall for its largest company by market cap, CSL Ltd (ASX: CSL).

The declining share price of the third largest company, Pro Medicus Ltd (ASX: PME), after a stellar run, also played a part.

The sector’s deterioration in 2025 can be seen in the comparatively tepid share price lifts of the top three stocks of the year.

Let’s take a look.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price leapt 49% to finish the year at $18.61.

For 1H FY25, the ASX 200 biotech reported revenue of $39.7 million, up 24%, and a net profit of $15 million, up 88%.

Neuren develops drug therapies to treat multiple serious neurological disorders with no or limited approved treatment options.

Its first approved drug, DAYBUE (trofinetide), for the treatment of Rett syndrome, was released to the market in April 2023.

Last month, the company got approval from US regulators for DAYBUE STIX.

DAYBUE STIX is a powder formulation of trofinetide for the treatment of Rett syndrome in adult and paediatric patients.

Yesterday, Neuren Pharmaceuticals informed investors that global sales could reach about US$700 million by 2028.

This would be a huge increase on the company’s 2025 sales guidance of US$400 million.

Neuren Pharmaceuticals will report its full-year results on 25 February.

Sigma Healthcare (ASX: SIG)

The Sigma Healthcare share price rose 12% to finish the year at $2.94.

The ASX 200 large-cap healthcare share rode a wave of positivity last year after completing the Chemist Warehouse merger in February.

For FY25, Sigma Healthcare reported normalised revenue of $6 billion, up 82.2%.

It also reported a normalised net profit of $579.1 million, up 40.1%.

Sigma Healthcare will report its 1H FY26 results on 26 February.

Ansell Ltd (ASX: ANN)

The Ansell share price lifted just 4% to close at $35.01 on 31 December.

For FY25, Ansell reported a 23.7% lift in reported sales to $2 billion, It also reported a 44.3% increase in EBIT to $282 million.

The results included the impact of its $635 million acquisition of Kimberly-Clark Corporation‘s PPE business (KBU) on 1 July 2024.

Ansell raised its prices last year to fully offset the cost impact of the new US tariffs.

Ansell will report its 1H FY26 results on 16 February.

The post Top 3 ASX 200 healthcare shares in 2025 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Ansell, CSL, and Pro Medicus. 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 record another gain. At the time of writing, the benchmark index is up 0.3% to 8,849 points.

Four ASX shares that have failed to follow the market higher on Thursday and named below. Here’s why they are falling:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is down 2% to $4.20. This morning, this respiratory imaging technology company revealed that it has received total firm commitments from wholesale, professional, and sophisticated investors for a $150 million single-tranche institutional placement. These funds are being raised at $3.80 per new share, which represents an 11.4% discount to its last close price. The company’s founder and CEO, Andreas Fouras, said: “We are pleased to welcome several high-quality global institutional investors to our share register and sincerely appreciate the strong ongoing support from existing shareholders. This placement provides 4DMedical with the balance sheet strength to accelerate U.S. commercialisation of CT:VQ at a time when unprecedented interest from clinicians is driving rapid adoption across leading academic medical centres.”

Amaero Ltd (ASX: 3DA)

The Amaero share price is down 21% to 25.5 cents. Investors have been selling this high-value refractory and titanium alloy powders producer’s shares after it downgraded its guidance for FY 2026. Amaero now expects revenue of $18 million to $20 million in FY 2026. This is down from its prior guidance of $30 million to $35 million. Management advised that this “primarily reflects timing delays in contract awards and revenue recognition associated with extended U.S government funding uncertainty and a temporary federal government shutdown during the December quarter.”

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is down 4% to $3.46. This is despite the pharmaceuticals company revealing that its Phase II SECuRE clinical trial will continue as planned. This follows a formal safety review by independent doctors. The SECuRE trial is testing a targeted treatment for advanced prostate cancer using a copper-based approach.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 5% to $5.08. This may have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the wine giant’s shares to a sell rating (from neutral) with a $4.80 price target. The broker has concerns over its outlook in the United States amid reports that distributor RNDC could sell operations in seven states. In addition, given recent share price strength, the broker thinks its shares are now overvalued.

The post Why 4DMedical, Amaero, Clarity Pharmaceuticals, and Treasury Wine shares are falling today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 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.

The S&P/ASX 200 Index (ASX: XJO) has defied weakness on Wall Street and is pushing higher on Thursday. In afternoon trade, the benchmark index is up 0.3% to 8,846.6 points.

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

BHP Group Ltd (ASX: BHP)

The BHP Group share price is up 3% to $49.69. Investors have been buying this mining giant’s shares following a broad rally in resources stocks. It seems that many investors believe that strong commodity prices are going to lead to a solid half year results in February. BHP’s shares are now up 25% over the past 12 months.

BlueScope Steel Ltd (ASX: BSL)

The BlueScope share price is up 4.5% to $31.15. This may have been driven by a broker note out of Macquarie. According to the note, the broker has retained its outperform rating on the steel producer’s shares with an improved price target of $34.05. In addition, investors may be picking up shares to gain exposure to the special dividend it announced on Wednesday. BlueScope will be returning $1.00 per share or a total of $438 million to shareholders from surplus cash. BlueScope’s managing director and CEO, Mark Vassella, said: “With a clear line of sight to the completion of our current significant capital investment program, BlueScope is positioned to not only return to the robust cash generation it has been known for, but to strengthen it further with the enhanced earnings of the business.”

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is up 4% to $7.99. Investors have been buying this gold miner’s shares following the release of a strong quarterly update. Catalyst Metals produced 28,176 ounces of gold with an average all-in sustaining cost (AISC) of A$2,565 per ounce. Looking ahead, the company has retained its FY 2026 guidance of 100,000 ounces to 110,000 ounces of gold production at an AISC of A$2,200 to A$2,650 per ounce.

Ryman Healthcare Ltd (ASX: RYM)

The Ryman Healthcare share price is up 2.5% to $2.59. This follows the release of the retirement living company’s third quarter trading update. Ryman Healthcare revealed that total sales were broadly flat on the second quarter with a shift in mix across product types. However, occupancy continued to grow in Ryman Healthcare’s recently opened aged care centres and remained strong in mature care centres at 96%.

The post Why BHP, BlueScope, Catalyst Metals, and Ryman shares are storming higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

One of the mistakes investors often make with technology stocks is focusing too much on what is exciting right now, rather than what will still matter in five or ten years. Share prices move quickly, sentiment swings wildly, but the businesses that quietly solve essential problems tend to endure.

Two ASX tech stocks that I think deserve serious consideration in 2026 are Megaport Ltd (ASX: MP1) and SiteMinder Ltd (ASX: SDR). They operate in different corners of the tech landscape, but both provide infrastructure that customers genuinely rely on, and both look better positioned today than their recent share prices suggest.

Megaport shares

When artificial intelligence (AI) is discussed, most attention goes to software platforms or semiconductor companies. What gets far less airtime are the infrastructure providers that make large-scale computing practical and efficient.

That is where Megaport fits in.

Megaport provides the connectivity layer that links data centres, cloud providers, and enterprise networks. Its network-as-a-service platform allows customers to provision bandwidth dynamically, scaling usage up or down as needs change. In a world of increasingly complex, multi-cloud architectures, that flexibility is becoming a genuine competitive advantage.

AI only strengthens this case. Training models, running inference, and moving vast datasets requires fast, reliable connectivity between multiple locations. As workloads become more distributed and data-intensive, the quality of the underlying network becomes critical.

What also stands out to me is how the business is evolving. Megaport is no longer positioning itself purely as a connectivity provider. The addition of compute capabilities through its Latitude platform expands its role across the digital infrastructure stack, allowing customers to both move and process data more efficiently.

Importantly, this expansion builds on Megaport’s existing footprint and customer relationships rather than requiring a completely new strategy. Over time, that should help increase wallet share and deepen customer engagement.

After a tough period for the share price and a reset in expectations, I think Megaport now offers a more balanced risk-reward profile. Structural tailwinds remain intact, while management’s focus on discipline and margins has become clearer.

SiteMinder shares

SiteMinder operates in a very different market, but its value proposition is just as practical.

The ASX tech stock provides software that helps hotels manage bookings, pricing, and distribution across multiple online channels. For accommodation providers, these systems are not optional. They sit at the centre of how rooms are sold and revenue is managed.

What I like about SiteMinder is the durability of demand. Travel can be cyclical, but the need for efficient digital distribution is structural. Hotels still need to fill rooms, optimise pricing, and manage visibility across dozens of platforms, regardless of broader economic conditions.

SiteMinder also benefits from scale. Its large global customer base reduces reliance on any single region and gives it opportunities to improve monetisation over time through additional products and services.

From an investment perspective, I am encouraged by the company’s path toward improved operating leverage. Revenue continues to grow, while cost growth is moderating. That is the combination that ultimately matters for long-term shareholder returns.

Why these two ASX tech stocks stand out to me

Megaport and SiteMinder are not speculative stocks. They are established platforms with global customers, recurring revenue, and clear use cases.

For investors looking to add ASX tech exposure in 2026, I think these two stocks stand out as businesses with real infrastructure value and long-term relevance, even if they are not the loudest names in the market today.

The post 2 magnificent ASX tech stocks to buy in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Megaport and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices have been back in focus this week after a strong short-term rally followed by a pullback.

After 5 straight days of gains, oil prices have cooled as traders reassess risks around supply and geopolitics. The focus now is on whether this move is a brief pause or the start of a new trend.

Let’s take a closer look at what’s driving oil prices and what it means for ASX energy stocks.

Oil prices cool after a strong run

Oil’s recent rally was driven mainly by rising geopolitical concerns, particularly in the Middle East.

Fears that unrest in Iran could disrupt global supply pushed prices higher earlier in the week. Iran is a major oil producer, so any threat to exports tends to quickly lift prices as traders factor in possible shortages.

At the time of writing, West Texas Intermediate (WTI) crude is trading around US$60.99 per barrel, down 1.66% on the day. Brent crude, the global benchmark, is sitting near US$65.38 per barrel, down 1.72%.

That pullback came after comments from US officials reduced expectations of immediate military action, easing fears of supply disruptions and prompting traders to lock in profits.

Why oil remains volatile

Oil prices are being pulled in different directions right now.

On one hand, geopolitical risks remain elevated. Any renewed escalation in the Middle East could quickly push prices higher again.

On the other hand, global supply is still relatively strong. Oil inventories have been building in key regions, and production from major exporters remains high. That has limited how far prices can rise and helps explain why oil is still well below last year’s highs.

As a result, oil is struggling to break out in either direction, leading to sharp moves from news headlines rather than long-term trends.

What this means for ASX energy stocks

For investors, movements in oil prices are especially important for large energy producers like Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

Woodside has a diversified business with exposure to oil, gas, and LNG. Higher oil prices generally support stronger cash flow and dividends, but its LNG exposure provides some protection when oil prices dip.

Santos is more sensitive to oil and gas prices. When oil prices rise, Santos can benefit quickly through higher realised prices. When prices fall back, earnings expectations tend to soften.

In the short term, the recent pullback in oil may limit upside for both stocks. Over the longer term, sustained price stability or renewed strength would be more supportive.

Foolish takeaway

Oil’s 5-day rally showed how quickly sentiment can shift when geopolitical risks rise. The recent pullback suggests traders are still cautious and waiting for clearer signals.

For investors watching Woodside and Santos, oil remains a key driver to keep an eye on. Volatility is likely to stay high, and that can create both risk and opportunity in the energy sector.

The post After 5 days of straight gains, is oil setting up for its next move? appeared first on The Motley Fool Australia.

More reading

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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.

The Australian government has this week made public further details of its planned Critical Minerals Reserve, saying it will stockpile specific minerals, including gallium, antimony, and rare earth elements.

While there are plenty of rare earth companies listed on the ASX, potential gallium producers are a bit harder to find, so I’ve done the work for you.

Top-tier producer

First cab off the rank, and the most advanced potential producer, is major aluminium company Alcoa Inc (ASX: AAI).

Alcoa announced last October that it would be working with both the US and Australian governments on a gallium plant to be co-located at the company’s Wagerup alumina refinery in Western Australia.

Under a non-binding agreement announced at the time, the governments and the company would contribute capital to the project, “and receive gallium offtake in proportion to their interests”.

As Alcoa said at the time:

Among other purposes, the capital would be used for preparation of final feasibility studies, and the development and construction of the project. Definitive agreements for the gallium joint venture will be prepared among the governments of the United States, Australia and Japan, and Alcoa and (Japanese company) Sojitz.

Gallium is naturally present in bauxite, the raw material used in the production of alumina, and can be extracted during the refining process. Gallium is a critical mineral essential to technology, especially the semiconductor industry and defence sectors and is recognized as vital to national security by the United States, Australia and Japan. Globally, gallium production is concentrated from a single source, and market controls have heightened interest in establishing and securing alternate supply chains. 

Juniors also stepping up

The other Australian companies with potential gallium projects are at the exploration and development phase, and often are also in the rare earths exploration sector.

One such company is RareX Limited (ASX: REE), which just this week announced it had been granted a mining lease for its Cummins Range project in Western Australia.

The company said the grant of the lease materially derisked the project, where it aims to mine rare earths, gallium, scandium and phosphate.

RareX in November said a historical review of drilling results at Cummins showed “extensive deposits of gallium-rich clays”.

The company also stated at the time that Cummins was “technically Australia’s largest undeveloped rare earths project.”

Another junior developer looking at progressing a gallium project is Mt Ridley Mines Ltd (ASX: MRD),

Mt Ridley Mines stated in a mid-December release that gallium at its Mount Ridley project was found within the same clay horizons being assessed for rare earths.

It went on to say:

The company currently expects that gallium mineralisation may represent a potential by-product opportunity within a rare earth element-focused processing flowsheet and is actively engaged with leading industry participants within allied Western jurisdictions to support the evaluation and development of appropriate processing pathways, rather than under a standalone gallium processing route.

And finally there is Victory Metals Ltd (ASX: VTM) which is aiming to develop a project in the Cue region of WA, targeting rare earth elements as well as scandium, hafnium and gallium.

Victory published a mineral resource estimate in August and said at the time the project could play a “pivotal role as a future supplier of critical minerals”.

The post Gallium has been earmarked as a critical mineral. Here’s how you can get exposure on the ASX appeared first on The Motley Fool Australia.

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