Neuren Pharmaceuticals Ltd (ASX: NEU) shares have returned from their trading halt and are deep in the red.

In morning trade, the ASX 200 pharma stock is down 9% to $13.30.

Why is this ASX 200 stock sinking?

Investors have been selling the pharmaceuticals company’s shares on Thursday after it provided an update from the US Food and Drug Administration (FDA) on the next steps for its second drug candidate, NNZ-2591.

According to the release, the FDA has given Neuren a clear pathway forward for advancing NNZ-2591 in two rare neurological conditions, though some additional work will be required.

What is NNZ-2591?

NNZ-2591 is the ASX 200 stock’s follow-on drug behind trofinetide (DAYBUE), which is already approved in the US for Rett syndrome.

It is being developed for multiple serious childhood neurological disorders, including hypoxic ischemic encephalopathy (HIE) and Pitt Hopkins syndrome (PTHS).

Neuren recently met with the US Food and Drug Administration to clarify what is required to move these programs into later-stage clinical development.

For HIE, which is a severe form of brain injury in newborns, Neuren plans to submit an Investigational New Drug (IND) application so it can begin clinical trials in infants.

The FDA generally agreed with Neuren’s proposed initial study design and dosing. However, it asked the company to provide additional juvenile animal study data to better support dosing in newborn babies before trials can begin.

Neuren said it plans to generate this data before submitting the IND and still expects to commence the first HIE clinical study later in 2026. Importantly, management said this feedback does not materially change the cost or funding position of the program.

Pitt Hopkins

Pitt Hopkins syndrome is an extremely rare and severe neurodevelopmental disorder.

The FDA has provided guidance on how the ASX 200 stock could structure a future trial to prove NNZ-2591 works.

The regulator indicated that Neuren may use a condition-specific clinical global assessment, as long as it is paired with an observer-reported functional measure. This is similar to the approach already being used in Neuren’s ongoing Phase 3 trial for Phelan-McDermid syndrome.

Because Pitt Hopkins is rarer and more disabling than related conditions, Neuren is still assessing the best trial design and expects further discussions with the FDA. Even so, the company still plans to initiate the next Pitt Hopkins trial in 2026.

Disappointment continues

This update comes just two days after the ASX 200 stock fell sharply following news that its partner, Acadia Pharmaceuticals (NASDAQ: ACAD), received a negative trend vote from European regulators for trofinetide in Rett syndrome.

That development weighed on sentiment, even though trofinetide is already approved and generating revenue in the US and other markets.

The post ASX 200 healthcare stock sinks 9% on FDA update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Neuren Pharmaceuticals shares FDA meeting feedback on NNZ-2591 clinical programs
• Neuren Pharmaceuticals shares paused pending announcement
• Are these 2 ASX healthcare shares a buying opportunity after yesterday’s crash?
• Why Brainchip, Credit Corp, Graincorp, and Neuren shares are falling today

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.

Elders Ltd (ASX: ELD) shares are on the slide on Thursday.

In morning trade, the ASX 200 stock is down 1% to $7.29.

Why is this ASX 200 stock falling?

Today’s decline is likely to have been driven by a leadership update from the agribusiness company.

Current Elders CEO, Mark Allison, tried to resign in 2022 but a suitable replacement was not found. He then signalled that he would be willing to stay on until September 2026.

The good news for Allison and Elders is that a suitable replacement has finally been found.

According to the release, Elders has named Rene Dedoncker as its new CEO, commencing 1 October 2026. Allison will continue to lead Elders until Dedoncker’s commencement.

Elders notes that Mr Dedoncker is coming over from Fonterra Group, where he has served for approximately 20 years. He held several senior executive roles, most recently CEO of Mainland Group. Prior to Fonterra, he held senior manager roles at Mars Corporation.

Commenting on the appointment, the ASX 200 stock’s chair, Glenn Davis, said:

We are delighted to welcome Rene as our next CEO. He brings deep agricultural roots and outstanding leadership experience to Elders. He has proven expertise from his years with Fonterra and Mars, where he drove operational excellence and strategic growth on a global scale. The Board has great confidence in his ability to lead Elders into its next phase of success.

Davis highlights that the appointment followed a comprehensive international and domestic search process and “aligns with Elders’ strategy to combine agribusiness expertise with operational excellence.”

He notes that the new CEO’s “strong strategic acumen, operational discipline and genuine passion for agriculture make him an excellent choice to lead Elders into the future.”

Dedoncker appears up for the challenge of leading this ASX 200 stock. He said:

I am truly honoured that the Elders Board has placed its trust in me. Elders is an iconic name with a proud history in Australian agriculture, and I have long admired its commitment to farmers and rural communities. I look forward to working with the Board, Mark, and the entire Elders team to continue delivering value for our clients, shareholders and people. Together, we will build on Elders’ strong foundations and drive its next stage of growth.

Outgoing CEO, Mark Allison, said:

This is the right time to hand over the leadership of Elders. The Board has chosen a strong successor in René who has my full support and endorsement. We have worked to position Elders for long-term success and I’m confident Rene will further that momentum. It has been a great privilege to serve as Managing Director and CEO of Elders – I’m incredibly proud of what our team has achieved, and I remain committed to supporting a smooth transition.

The post Guess which ASX 200 stock is falling on CEO news appeared first on The Motley Fool Australia.

More reading

• Elders appoints René Dedoncker as next CEO in planned succession
• Leading brokers name 3 ASX shares to buy today
• Elders FY25 earnings: resilient profit and strategic growth
• Why these ASX 200 shares could be dirt cheap
• Analysts say these ASX dividend shares are top buys

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 recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Long-term investing in ASX shares makes the most sense, in my view. It lets compounding work its magic and also reduces the frequency of capital gains tax (CGT) events that mean handing over money to the ATO, perhaps prematurely.

But, I’d only want to invest in businesses that it makes sense to own for the long-term. Owning a mediocre investment for the long-term won’t turn it into a good investment just because we’ve owned it for longer.

With that in mind, I rate the following investments as two of the highest-quality buys we can pick on the ASX.

TechnologyOne Ltd (ASX: TNE)

This ASX technology share provides enterprise resource planning (ERP) software for subscribers in multiple countries – important software for the operations of clients.

It has subscribers from across the economy such as local councils, businesses, universities, governments and other organisations.

The business is rapidly growing its annual recurring revenue (ARR) thanks to its software as a service (SaaS) offering, its ability to sell additional software to subscribers and its ongoing wins of new subscribers.

The business has a goal to increase its ARR from existing shareholders at a compound annual growth rate (CAGR) of 15% per year, which means a doubling of revenue in just five years.

If the business can achieve that level of growth then it will go some distance to justify a higher valuation than today. The ASX share seems cheap considering it’s down by more than 40% in the last six months.

According to the forecast on CMC Markets, the business is trading at 38x FY27’s estimated earnings.

Betashares Global Cybersecurity ETF (ASX: HACK)

One of the strongest global tailwinds over the last 10 to 15 years has been the digitalisation of our way of life and the economy, which has been (and continues to be) a tailwind for the earnings of a number of technology businesses.

But there has also been an increase in cybercrime, which is problematic for businesses and individuals alike, as they are hacked or have their bank accounts/details put at risk.

So many important activities are done online these days such as connecting with government services (including the tax office), work, communicating, education and so on.

All of this makes cybersecurity an essential service to protect people and organisations from cybercriminals.

The HACK ETF gives investors exposure to a portfolio of businesses involved in cybersecurity, which is a great way to get exposure to this industry and be on the side of companies trying to stop cybercrime. Some of its largest holdings include Cisco Systems, Infosys, Palo Alto Networks, Crowdstrike and Broadcom. Past performance is not a guarantee of future performance of course, but the HACK ETF has delivered an average annual return of 13.4% per year over the past five years.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and Technology One. 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.

Maas Group Holdings Ltd (ASX: MGH) has struck a deal to sell its construction materials business for $1.7 billion, with the money to be ploughed into the fast-growing digital infrastructure sector.

The deal with Heidelberg Materials Australia is expected to be complete during the second quarter of 2026 and includes $120 million in contingent payments related to the achievement of certain milestones.

Maas Group Chief Executive Officer Wes Maas said the deal made sense for the company.

We are extremely proud of the construction materials business we have built over many years. The scale, quality and performance of CM are a testament to the hard work and commitment of our people, and it is reflected in the value being recognised by Heidelberg Materials.  Heidelberg Materials is well-positioned to continue building on the CM business’ strengths, leveraging its global expertise and track record in delivering major infrastructure projects while providing continuity for the business and its people. This transaction allows MGH to crystallise value from a high-quality asset while positioning the group toward the next phase of infrastructure investment – including digital infrastructure, electrification and AI-enabled assets. The sale enables a strategic refocus and disciplined redeployment of capital into areas where we see strong structural tailwinds.

The deal will require regulatory approvals, including sign-off from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

It will also require a sign-off by Maas Group shareholders at a meeting to be held shortly.

Looking to the future

Maas said in its statement to the ASX on Thursday that the deal would help fund a strategic shift into digital assets.

As the company said:

Just as the Group positioned itself early into renewables-related infrastructure, MGH is now positioning to participate in the next wave of infrastructure investment, combining digital, AI, and electrification opportunities. The Australian data-centre and electrification markets present scalable, high-value -based delivery model.

The digital infrastructure earmarked as growth opportunities included “high-density power, fibre-connected hyperscale data centres and AI compute clusters”.

There would also be more focus on electrification, “leveraging MGH’s existing electrical business and selectively adding strategic capability to expand its participation in the growing electrification sector”.

As well as expanding in these areas, the money raised from the sale would be used to pay down debt.

There would also be “consideration of potential capital management initiatives including capital returns and share buybacks, subject to final transaction proceeds, post-transaction requirements and approvals”.

The post This ASX 300 company has just inked a $1.7 billion asset sale to fund a pivot to digital appeared first on The Motley Fool Australia.

More reading

• This ASX stock is edging lower today after a shareholder friendly move
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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.

The Champion Iron Ltd (ASX: CIA) share price is in focus today after the company announced a US$100 million private placement to fund its planned acquisition of Rana Gruber. The deal will see La Caisse de dépôt et placement du Québec take a larger stake and help support Champion Iron’s growth strategy.

What did Champion Iron report?

• Raised US$100 million via a private placement of 26,795,921 subscription receipts to La Caisse at US$3.7319 per receipt
• Proceeds earmarked to help fund the voluntary cash tender offer for all shares in Rana Gruber ASA
• Post-transaction, La Caisse’s stake in Champion Iron rises to approximately 8.5% on a non-diluted basis
• Dilution to existing shareholders of about 5.0% (non-diluted)
• Funds will be released from escrow once the minimum acceptance condition for the tender offer is satisfied

What else do investors need to know?

The private placement proceeds are currently held in escrow and will only be released once key conditions of the Rana Gruber acquisition are met. If the offer lapses or is not completed, the funds (plus interest) will be returned to La Caisse.

Upon conversion, La Caisse is entitled to a customary capital commitment fee and will be compensated for any dividends paid by Champion Iron between the placement’s closing and the issue of ordinary shares. The company’s overall ownership structure will see a modest shift with La Caisse further investing in Champion Iron’s trajectory.

What’s next for Champion Iron?

Champion Iron is focused on advancing the Rana Gruber acquisition, using the placement proceeds to help secure the deal and expand its asset base. With a strong balance sheet and the backing of a major institutional investor, the company continues to invest in higher-grade iron ore products and ongoing capacity upgrades at Bloom Lake.

Champion’s strategy aims to strengthen its position as a premium iron ore supplier, benefiting from growing demand for high-grade, low-contaminant iron ore products globally. Investors will be watching for progress on the Rana Gruber offer and updates on the next steps in Champion Iron’s expansion plans.

Champion Iron share price snapshot

Over the past 12 months, Champion Iron shares have risen 6%, tracking in line with the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post Champion Iron raises US$100 million for Rana Gruber acquisition appeared first on The Motley Fool Australia.

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• Beach Energy H1 FY26 earnings: Profit drops as costs rise and volumes slip
• 5 things to watch on the ASX 200 on Thursday
• Neuren Pharmaceuticals shares FDA meeting feedback on NNZ-2591 clinical programs
• Here are the top 10 ASX 200 shares today

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 Magnetic Resources Ltd (ASX: MAU) have been performing well recently, but according to a report by Shaw & Partners, there’s still plenty of upside to be had.

Magnetic’s flagship asset is the Lady Julie gold project in Western Australia, where the company in January released an updated mineral resource of 39.1 million tonnes of ore containing 2.24 million ounces of gold.

More than 80% of the resource was also in the high-confidence “indicated category”.

Deposit continues to deliver

Managing Director George Sakalidis said at the time that the LJN4 deposit at the project “continues to deliver” and was an “exceptional ore body”.

He added:

LJN4 is one of the largest and highest grade undeveloped open pit deposits in Western Australia. With the feasibility study completion and the permitting process advancing, Magnetic is rapidly evolving to a position of being ‘shovel ready’ for development.

The company said that further infill and extension drilling were being carried out to extend the resource.

The company explained:

LJN4 represents an excellent development proposition and is now significantly larger than the resource considered in the LJGP Feasibility Study (released to the ASX on 23 July 2025), both in scale and detail, with the depth of information now available providing increased confidence in the viability of the proposed development and associated value available to be unlocked.

Plenty of share price upside

Shaw & Partners analysts have had a look at Magnetic’s plans, and it’s fair to say they like what they see.

They said in a note to clients:

Magnetic Resources is entering a critical phase for regulatory de-risking. Management expects to satisfy all Mines Department requirements within 2-3 months, leading to mining approval. With native title in place, the current focus is on finalising technical studies required by regulators, including hydrogeological work and geotechnical drilling for waste and tailings infrastructure.   

They noted that Magnetic was also updating its economic studies to take into account a significantly higher gold price, with the feasibility study released in July using a gold price of $4000, while current spot gold prices were closer to $7000.

There were several catalysts for operational upside, as the Shaw team said:

The updated study will also incorporate an additional 280koz-350koz from underground that were excluded from prior iterations. MAU is shifting from an owner-operator model to contracting, which will reduce upfront capex materially. Metallurgical improvements are also being investigated, such as using gravity circuits instead of flotation, which could increase gold recoveries by 3%- 4% above the current 92% average.

Shaw has a target price of $4 per shares on the stock, compared with a share price of $1.61 currently.

If that price is achieved it would constitute a return of 148.4%.

The post This gold stock could deliver almost 150% upside, one broker says appeared first on The Motley Fool Australia.

More reading

• This gold producer has just boosted resources at its flagship WA project

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 Elders Ltd (ASX: ELD) share price is in focus today after the company announced René Dedoncker will succeed Mark Allison as CEO from 1 October 2026. The Board highlighted Mr Dedoncker’s deep agricultural expertise and track record in operational excellence as key reasons for his appointment.

What did Elders report?

• René Dedoncker, ex-Fonterra executive, appointed as incoming CEO starting 1 October 2026
• Outgoing CEO Mark Allison to continue until transition and support onboarding through to February 2027
• Mr Dedoncker’s remuneration: $1.15 million fixed per annum, plus short- and long-term incentives
• Comprehensive leadership search aligning with Elders’ agribusiness growth strategy
• Standard executive terms including post-employment restraints and transition allowance

What else do investors need to know?

The Board ran an international and domestic search before settling on Mr Dedoncker, whose background spans 20 years at Fonterra and senior leadership roles at Mars. His experience covers enterprise strategy, international market management, and driving organisational change.

Mark Allison, Elders’ outgoing CEO, has led significant transformation at the company, including a return to a pureplay agribusiness and dividend resumption in 2017. He will stay on in an advisory role until early 2027 to ensure a smooth leadership transition.

What did Elders management say?

In a statement, Elders Chair Glenn Davis said:

We are delighted to welcome René as our next CEO. He brings deep agricultural roots and outstanding leadership experience to Elders. He has proven expertise from his years with Fonterra and Mars, where he drove operational excellence and strategic growth on a global scale. The Board has great confidence in his ability to lead Elders into its next phase of success.

What’s next for Elders?

Elders is setting up for a carefully managed leadership transition, with Mr Allison mentoring Mr Dedoncker through to early 2027. The change aims to keep stability for shareholders and customers, supporting Elders’ long-term growth and continued focus on rural Australia.

Mr Dedoncker’s appointment supports the company’s strategic priorities: strengthening regional networks, supporting farmers, and driving operational performance. The Board expects his experience will complement Elders’ well-established platform in Australian agribusiness.

Elders share price snapshot

Over the past 12 months, Elders shares have risen 4%, slightly trailing the S&PASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Elders appoints René Dedoncker as next CEO in planned succession appeared first on The Motley Fool Australia.

More reading

• Champion Iron raises US$100 million for Rana Gruber acquisition
• Beach Energy H1 FY26 earnings: Profit drops as costs rise and volumes slip
• 5 things to watch on the ASX 200 on Thursday
• Neuren Pharmaceuticals shares FDA meeting feedback on NNZ-2591 clinical programs
• Here are the top 10 ASX 200 shares today

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 recommended Elders. 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.

This ASX healthcare share has been one of the standout success stories in the sector for decades.

However, in the past 6 months, ResMed Inc (ASX: RMD) has seen its share price tumble by 17% to $35.71 at the time of writing.

Investors are asking whether now is the right time to buy. A closer look at the ASX healthcare share suggests there are several compelling reasons to be optimistic.

Global leader, structural tailwinds

The $52 billion ASX healthcare share dominates the global sleep apnoea market, with its CPAP devices and masks deeply embedded in hospitals, clinics, and homes worldwide.

Sleep apnoea remains significantly underdiagnosed, and rising obesity rates, ageing populations, and greater awareness continue to expand the addressable market. That creates a steady flow of new patients, while existing users generate recurring revenue through masks, accessories, and consumables.

This combination gives ResMed resilience, pricing power, and visibility that few ASX healthcare shares can match.

Growing digital ecosystem

ResMed is no longer just a hardware manufacturer. Its connected devices, cloud platforms, and software solutions are increasingly central to the business. Digital health platforms such as patient engagement and care management software add higher-margin, recurring revenue, and deepen customer relationships.

At the same time, ongoing innovation in masks and devices helps protect market share and supports margin expansion. With strong cash flow and a disciplined balance sheet, the ASX healthcare share has the financial firepower to keep investing in growth while returning capital to shareholders.

Outlook and risks to watch

Looking ahead, ResMed is positioned to benefit from both demographic trends and technology-driven healthcare change. Continued innovation, digital adoption, and expanding treatment rates underpin a positive medium-to-long-term outlook.

That said, risks remain. Competition for the San Diego ASX healthcare share could intensify if rivals regain momentum. Pricing or reimbursement changes in key markets could pressure margins. Emerging alternative treatments for sleep apnoea may also reshape the landscape over time. And as a global business, currency movements can influence reported earnings for ASX investors.

What’s next for ResMed shares?

Analysts remain broadly constructive on ResMed. The consensus view sees the ASX healthcare stock as a high-quality compounder, capable of delivering steady long-term earnings growth.

Many brokers point to improving supply conditions, resilient demand, and operating leverage as key drivers of future profit growth. While the stock isn’t cheap on traditional metrics, supporters argue the premium reflects ResMed’s consistency, global scale, and long runway for expansion.

Most analysts see the ASX healthcare share as a strong buy. In a recent broker’s note, Morgans said the company’s recent share price weakness is “unjustified given sound fundamentals”.

The broker has a buy rating and a 12-month price target of $47.73 on ResMed. This implies a potential gain of 33% at current levels and is a bit higher than the average target of $44.50.

The post 3 reasons to buy this heavyweight ASX healthcare share appeared first on The Motley Fool Australia.

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

S&P/ASX 300 Index (ASX: XKO) gold stock Black Cat Syndicate Ltd (ASX: BC8) enjoyed another strong run on Wednesday.

Black Cat shares closed the day up 4.23%, changing hands for $1.48 apiece.

For some context, the ASX 300 gained 0.75% yesterday.

Atop from a rebound in the gold price to US$5,064 per ounce on Wednesday, the ASX 300 gold stock grabbed investor interest after announcing it had completed the acquisition of 90 square kilometres of tenements adjacent to its 1.2 million tonne per annum (mtpa) Lakewood processing facility.

Lakewood is part of Black Cat’s Kal East Gold Operation, located in Western Australia.

Commenting on that acquisition, Black Cat managing director Gareth Solly said, “The acquisition ticks numerous boxes including providing longer-term TSF [tailings storage facilities] capacity and potential additional water sources.”

Solly added that the miner’s Lakewood 1.5 mtpa expansion study “is well underway”. Black Cat expects the outcomes of the expansion study in the March 2026 quarter.

“Consequently, we look forward to ongoing production growth from Kal East as part of our More Gold Sooner strategy,” Solly said.

With the gold price having surged 80% in a year, and investors eyeing the gold miner’s growth potential, the Black Cat share price has rocketed 110% over the past 12 months.

And according to the analysts at Moelis Australia, the gold miner is well-placed to deliver more share price growth.

ASX 300 gold stock striking out on its own

Moelis noted that Black Cat is in the final stages of extricating itself from a series of historic joint venture agreements, freeing the miner up to operate independently.

According to Moelis:

BC8 has two operations. One of them (Paulsen’s) is gaining momentum after its restart, while Kal East continues to ‘tidy up’ numerous legacy commercial agreements for mining in a JV and toll-treatment of both others’ ore at its mill as well as its own ore at another facility.

Sound confusing?

What is important is that this structure is winding up, with progress towards wholly owned ore treatment on track thanks to the development of the Fingals and Majestic mines.

The broker said that the ASX 300 gold stock is unhedged, offering it unfettered exposure to the booming gold price. Black Cat also managed to hold its cash position in the December quarter while spending on its growth programs. The miner held $91 million in cash, bullion, and listed investments as at 31 December.

As for those pesky legacy commercial agreements, which are no longer part of Black Cat’s strategy going forward, Moelis said, “The March quarter should see the conclusion of the bulk of these agreements as the company rapidly approaches a more conventional structure where it mines its own ore and treats it through its own facilities.”

And patient investors should see the ASX 300 gold stock boost revenue without a material uptick in costs.

According to the broker:

The revenue line will grow as more of the gold it produces translates into revenue/receipts, while running costs remain broadly flat compared to activities today. This, along with exploration potential across the portfolio, should provide both momentum and catalysts for those seeking gold exposure who are willing to look into FY27 and beyond.

Connecting the dots, Moelis has a $1.80 price target on the ASX 300 gold stock.

That’s some 22% above Wednesday’s closing price.

The post Why this surging ASX 300 gold stock is forecast to keep on giving appeared first on The Motley Fool Australia.

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• Up 97% in a year, guess which ASX 300 gold stock is leaping higher again on Monday

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.

Given its struggles over the past couple of years, it has been tempting to sell CSL Ltd (ASX: CSL) shares on numerous occasions.

However, I’m hoping to never sell the biotechnology giant’s shares.

Why I’m never selling CSL shares

The reason I’m never selling CSL shares is simple. I believe the business can compound for decades.

That might sound like a bold claim, especially after a period where the share price has tested investor patience. But when you step back and look at what CSL actually does, how it reinvests, and the markets it operates in, the long-term picture still looks compelling.

A business built around lasting demand

CSL’s core strength starts with the nature of its products.

The company develops and manufactures life-saving therapies used to treat chronic and serious medical conditions. These are not discretionary purchases and they are not driven by fashion or economic cycles. Demand is underpinned by medical need, demographics, and improved diagnosis rates.

As global populations age and awareness of rare and chronic conditions increases, the need for plasma-derived therapies and vaccines is likely to grow rather than fade. That kind of demand profile is exactly what long-term compounding businesses are built on.

Relentless reinvestment

Another reason CSL stands out is how aggressively it reinvests.

Every year, the company commits over a billion dollars to research and development, manufacturing capacity, and plasma collection infrastructure. These investments are made with a long horizon in mind.

This approach has allowed CSL to expand its product portfolio, improve manufacturing efficiency, and maintain leadership positions in highly specialised areas of medicine. Over time, that reinvestment has been a key driver of earnings growth, even if the path has never been perfectly smooth.

Management that thinks in decades

Compounding for decades requires more than good products. It requires the right mindset at the top.

CSL’s management team has consistently demonstrated a willingness to make long-term decisions, even when they are unpopular in the short term. That includes investing through downturns, expanding capacity ahead of demand, and prioritising scientific capability over near-term profit optimisation.

This culture is not easy to replicate and is one of the reasons CSL has been able to build and defend its global position over such a long period.

M&A opportunities

CSL has also used mergers and acquisitions (M&A) to extend its reach and capabilities.

Not every deal has been a clear win. The acquisition of the Vifor business, for example, has delivered mixed results so far and has added complexity to the group. That said, it also highlights CSL’s willingness to pursue opportunities that can broaden its therapeutic footprint.

Over decades, a handful of imperfect acquisitions is not unusual for companies that continue to grow. What matters more is that CSL retains the balance sheet strength and discipline to pursue future opportunities when they make strategic sense.

Foolish takeaway

I’m never selling CSL shares because I don’t think the story ends in a year or two.

Between long-lasting demand for its therapies, heavy reinvestment in science and capacity, and a management team focused on building value over decades, CSL has many of the ingredients required for long-term compounding.

The post 1 reason I’m never selling CSL shares appeared first on The Motley Fool Australia.

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