In 2022 and 2023, amid surging global coal prices, New Hope Corp Ltd (ASX: NHC) shares were paying out record amounts of passive income as the miner’s profits swelled.

Indeed, taken together, the final 2022 dividend and interim 2023 dividend, both fully franked, came out to 96 cents a share.

With New Hope shares averaging around $5.80 in the early months of 2023, this saw the S&P/ASX 200 Index (ASX: XJO) coal stock trading on a fully franked dividend yield north of 16%.

But, as you’re likely aware, coal prices came down significantly since that price spike, which followed on Russia’s invasion of Ukraine. And so have New Hope’s profits and dividend payouts.

Which brings us back to our headline question.

Are New Hope shares a good passive income buy today?

New Hope paid its final fully franked dividend of 15 cents a share on 8 October.

The miner will pay its fully franked interim dividend of 10 cents per share on 20 April.

That last passive income payout is still up for grabs, by the way. The ASX 200 coal stock reported its half year (H1 FY 2026) before market open today. If you want to bank the interim New Hope dividend, you’ll need to own shares at market close on Monday, 30 March. The stock trades ex-dividend on 31 March.

Taken together then, New Hope has paid (or will shortly pay) 25 cents a share in dividends over 12 months.

Shares in the ASX 200 coal miner are down 5.7% in early afternoon trade today following the release of its half year results, trading for $5.00 each.

This sees New Hope share trading on a fully franked dividend yield (partly trailing, partly pending) of 5.0%.

Now, that’s a long way from the 16% plus yield the coal miner was offering three years ago.

But it’s still a solid passive income payout.

And it’s worth noting that thermal coal prices have risen more than 17% so far in 2026, fuelled in part by the conflict in the Middle East.

Should coal prices remain elevated, and New Hope not face any unexpected operational issues, there’s a good chance that investors will be rewarded with a bigger final dividend this October.

What did the ASX 200 coal stock report for H1?

With coal prices down over the half year, New Hope reported an 84.0% year on year fall in net profit after tax (NPAT) to $54.3 million.

That saw a lesser reduction in the coal miner’s passive income payout, with the 10 cent interim dividend down 47.4% from last year’s payment.

“The group achieved 5.5 million tonnes of saleable coal production for the half year, which was supported by the continued ramp up of production at New Acland Mine,” New Hope CEO Rob Bishop said.

“In a lower coal price environment, our assets remain resilient and continue to generate solid margins,” he added.

As for that passive income Bishop said, “As a result of our performance, we are able to reward shareholders with a fully franked interim dividend of 10.0 cents per ordinary share.”

The post Should you buy New Hope shares for passive income today? appeared first on The Motley Fool Australia.

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• Why I invested $3,000 into this great ASX share last week
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• New Hope Corporation 1H FY26: Profit falls, interim dividend declared
• Here’s why ASX 200 energy shares were the only risers last week

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.

Shares in Vulcan Energy Resources Ltd (ASX: VUL) are edging higher on Wednesday after the lithium developer released an update to the market.

At the time of writing, the Vulcan Energy share price is up 3.33% to $3.10 following the announcement.

However, despite today’s gain, the stock has had a difficult year and is still down roughly 30% in 2026.

Vulcan secures key lithium production licence

According to the release, Vulcan has been issued its first lithium production permit for its flagship Lionheart Project in Germany.

The permit relates to Vulcan’s LiThermEx lithium extraction facility in the Upper Rhine Valley Brine Field in Germany’s Rhineland Palatinate.

This marks the first lithium production licence granted in the region.

Lionheart is designed as an integrated lithium and renewable energy project targeting annual production of 24,000 tonnes of lithium hydroxide monohydrate (LHM).

To put that into perspective, Vulcan says this volume could supply enough material for roughly 500,000 electric vehicle batteries each year.

The project is also expected to generate renewable energy alongside lithium production. This includes about 275 GWh of renewable electricity and 560 GWh of renewable heat each year for local consumers over an estimated 30-year project life.

Construction already underway

The company noted that the permit comes shortly after Vulcan secured a 2.2 billion euro (A$3.9 billion) financing package in December 2025, which fully funded the first phase of development.

Construction of the project is now underway.

The licence applies to Vulcan’s Insheim geothermal production area, which already produces renewable heat and electricity. This means the lithium facility will sit within an existing energy-producing site.

Further production licences are expected to follow as Vulcan progresses development across the wider Lionheart licence area.

Management believes the approval represents an important step toward establishing a domestic lithium supply chain in Europe.

Vulcan managing director and CEO Cris Moreno said:

Securing the first lithium production licence within the Lionheart Project marks another important milestone.

Moreno added that the licence was granted alongside the project’s financing package, which supports construction activities now underway.

Foolish takeaway

Vulcan is attempting something few companies have done at scale.

Rather than mining hard rock lithium, the company plans to extract lithium from geothermal brines while producing renewable energy at the same time.

The goal is to create what Vulcan calls the world’s first carbon neutral lithium project.

If successful, the Lionheart development could become one of Europe’s largest domestic sources of battery grade lithium. This could help reduce reliance on imports as electric vehicle demand grows.

The post Why the Vulcan Energy share price is rising today appeared first on The Motley Fool Australia.

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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.

Orica Ltd (ASX: ORI) announced some big news this week: it had settled a major litigation in the US and would also forge ahead with a related acquisition.

Macquarie has had a look at the impacts of this and still retains a bullish price target on the stock, but we’ll get to that later.

Firstly, let’s look at what Orica announced this week.

Simplifying the business

The major chemicals and explosives company said it had settled litigation with CF Industries for US$169.5 million, “following careful consideration of the best interests of shareholders and customers”.

The company said the settlement removes litigation uncertainty and also allows it to establish a new, diversified supply base in the US.

The settlement will be funded from existing cash and undrawn bank debt facilities.

Orica also reached an agreement with its joint venture partner, Nelson Brothers, to acquire its explosives business for US$25 million, plus the retirement of US$48 million in debt.

Orica said it expected the combination of the legal settlement and the company acquisition to be earnings per share accretive in the first full financial year of ownership, and that the US business would be simplified, with growth potential and greater operational resilience.

The acquisition is expected to boost EBIT by about $35 million per year once fully integrated, “with further opportunities to grow revenue and realise additional business cost synergies”.

Orica Managing Director Sanjeev Gandhi said:

Orica has agreed to settle this litigation with CF following careful consideration and in the best interests of shareholders and customers. Our focus remains on executing our strategy, advancing our growth initiatives and delivering sustainable value for customers and shareholders. Importantly, our actions have ensured there has been no disruption to customer supply, and we remain committed to strengthening security of supply for our customers through a diversified and resilient sourcing strategy in North America. The combination of the settlement and the acquisition of Nelson Brothers’ US Explosives business will further strengthen our North American region, deliver immediate earnings benefits and support our strategy to grow in attractive downstream markets.

Orica shares looking cheap

The Macquarie team ran the ruler over this week’s transactions and said the settlement removed litigation overhang, estimating that legal action had cost the company $100 million over the past two years.

Macquarie has reduced its price target on Orica shares slightly from $25.50 to $25.40 on minor earnings per share changes; this is still well above the current share price of $19.63.

If achieved, the Macquarie price target would constitute a 29.4% gain, and Orica is also expected to pay a 3.2% dividend yield.

Orica was valued at $8.99 billion at the close of trade on Monday.  

The post How high does Macquarie think Orica shares will go? 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia’s fuel prices are soaring as the conflict in the Middle East continues to disrupt the global supply of oil. And Australia’s major airlines, Qantas Airways Ltd (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VGN), are feeling the pinch.

How does tight oil supply affect Qantas and Virgin Australia?

The largest operating cost for airlines is jet fuel, which is refined from crude oil. 

Australia produces very little of its own refined fuel and instead imports more than 90% of the fuel it uses. This means local prices closely follow global oil prices and currency movements. 

So when oil prices rise due to tight supply or geopolitical tensions, the cost of jet fuel also increases. 

If tight oil supply continues and jet fuel prices climb higher, airlines like Qantas and Virgin Australia face higher operating costs, which can pressure profits and potentially weigh their share prices.

Airlines could increase ticket prices or add fuel surcharges to help recover some costs, but if raised too high it could also reduce travel demand.

What has happened to Qantas and Virgin Australia shares?

Qantas shares are 0.64% higher at the time of writing on Tuesday morning, trading at $8.62 a piece. But for the year to date, the airline’s stock is down 17.79%. Since conflict in the Middle East ramped up at the beginning of the month, Qantas shares have shed 13.57% of their value.

Virgin Australia’s share price movements show an almost identical pattern. At the time of writing, the airline stock is 0.95% higher at $2.66 a piece, but it is 23.71% lower year to date. Virgin Australia shares have tumbled 15.45% in March alone.

It’s not only global oil supply concerns that have created headwinds for the two major airline businesses. News that Qantas has reached an agreement to settle the class action regarding flight credits during the global COVID pandemic has also dampened investor confidence.

Meanwhile, reports indicate that Virgin Australia’s partnership with Qatar Airways is being tested as the conflict in the Middle East continues to affect aviation routes. Qatar Airways currently owns 25% of Virgin Australia and provides aircraft and crew for several services under a wet lease arrangement.

What can we expect next?

As the market stands, analysts remain optimistic about the outlook for Qantas and Virgin Australia shares, with most tipping strong upside ahead.

TradingView data shows that 12 out of 15 analysts still have a buy or strong buy rating on Qantas shares. The average target price is $12.29, which implies a potential 42.73% upside at the time of writing.

Meanwhile, six out of eight analysts have a buy or strong buy rating on Virgin Australia shares. The average target price is $3.89, implying a significant 46.91% upside at the time of writing.

The post What’s next for Virgin Australia, Qantas shares as fuel prices surge? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

While a large part of my portfolio is focused on high-quality businesses with dependable earnings, I also think there can be a place for higher-risk companies that offer significant upside potential.

These types of shares can be volatile and may not suit every investor. But if the underlying businesses execute well, the potential rewards can sometimes be substantial.

Here are three ASX shares that I think fit the high-risk, high-reward category.

Zip Co Ltd (ASX: ZIP)

Zip has been on a rollercoaster ride over the past few years.

The buy now, pay later (BNPL) industry went through an enormous boom during the pandemic before sentiment turned sharply as interest rates rose and investors began focusing more on profitability.

That shift sent many BNPL shares sharply lower, including Zip.

However, the company has spent the past couple of years reshaping its business. Management has focused heavily on improving margins, reducing costs, and strengthening the balance sheet.

At the same time, demand for flexible payment solutions continues to grow globally, particularly in large markets such as the United States.

If Zip can continue improving profitability while expanding its customer and merchant networks, the upside from current levels could be significant. But like many fintech businesses, it remains a higher-risk investment.

DroneShield Ltd (ASX: DRO)

DroneShield operates in a rapidly emerging segment of the defence technology industry.

The company develops counter-drone technologies designed to detect and neutralise unmanned aerial systems. As drones become increasingly common in both military and security environments, demand for this type of technology is growing quickly.

Recent geopolitical tensions have also increased global defence spending, which could create additional opportunities for companies operating in this space.

DroneShield has secured a number of contracts in recent years and continues to develop new products for defence and security agencies around the world.

However, the company is still relatively small compared to large defence contractors, which means earnings can be volatile. That makes it a higher-risk investment, but one with potentially large upside if demand continues to grow.

Megaport Ltd (ASX: MP1)

Megaport is a network-as-a-service provider that allows businesses to connect to cloud services and data centres through a flexible, software-defined network.

The company’s platform enables organisations to quickly establish and manage connections between their infrastructure and major cloud providers such as Amazon Web Services and Microsoft Azure.

As more companies shift their operations to the cloud and leverage artificial intelligence tools, the need for flexible and scalable connectivity solutions continues to increase.

Megaport has been expanding its global network footprint and recently moved into the compute-as-a-service market following its acquisition of Latitude.sh.

That move could significantly expand its addressable market and create new growth opportunities.

However, Megaport has also experienced periods of volatility as it balances growth investment with the push toward profitability, which is why it remains a higher-risk stock.

Foolish takeaway

Higher-risk shares can experience significant volatility, and they are not always suitable for conservative investors.

However, companies such as Zip, DroneShield, and Megaport operate in industries with meaningful growth potential. If their strategies continue to gain traction, the long-term rewards could outweigh the risks for investors who are comfortable with a bit more uncertainty.

The post 3 high risk, high reward ASX shares to buy ASAP appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Megaport and is short shares of DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Pepper Money Ltd (ASX: PPM) fell sharply on Tuesday after Challenger Ltd (ASX: CGF) lowered its takeover offer for the non-bank lender.

Pepper shares have dropped about 10% to $1.90 (at the time of writing) following the announcement, while Challenger shares have risen around 3%, reflecting investors’ view of the changing economics of the deal.

The revised proposal comes just over a month after the original takeover approach sparked a strong rally in Pepper’s share price.

What was the original takeover offer?

On 9 February, Challenger announced a non-binding proposal to acquire Pepper Money for $2.60 per share.

At the time, Pepper shares had closed the previous Friday at $1.76, meaning the proposal represented a significant premium for shareholders.

The market reacted immediately. Pepper’s share price surged 28% to $2.26 as investors priced in the possibility of a deal at a much higher valuation.

However, Challenger has now revised its proposal.

The company announced it has submitted a new offer of $2.25 per share, inclusive of Pepper Money’s final 2025 dividend of 7.8 cents per share and any potential special dividend.

The updated proposal represents roughly a 13% reduction from the original offer price and has been described as Challenger’s best and final offer, unless a competing bidder emerges.

Why did Challenger lower its offer?

Challenger announced that the lower offer reflects “the deterioration in both market conditions and the operating environment”.

The move comes as concerns about the state of private credit markets continue to rise. Pepper Money is a non-bank lender, and its industry can be particularly sensitive to changes in funding costs, credit markets, and the broader economic outlook.

If funding costs rise or credit conditions tighten, the profitability outlook for lenders can shift quickly. For an acquirer like Challenger, even modest changes in these factors can materially affect the price it is willing to pay.

What happens next?

Importantly, the proposal remains non-binding, meaning there is still no certainty that a transaction will proceed.

Pepper Money’s Independent Board Committee will now consider the revised proposal and determine its next steps.

For now, the share price movements tell the story. Challenger shares rose on the news, while Pepper shares slid as investors reassessed the likelihood and value of the potential takeover.

The post Pepper Money shares plunge 10% after Challenger slashes takeover offer appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Kevin Gandiya has no positions 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 Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors have so many options on the ASX boards.

From infrastructure operators to financial services companies and real estate investment trusts, there are many businesses that generate reliable cash flows and return a large portion of those earnings to shareholders through dividends.

For investors looking to build a portfolio that produces steady income, here are three ASX income stocks that I think are worth considering right now.

Transurban Group (ASX: TCL)

Transurban is one of the most well-known infrastructure companies on the ASX and a favourite among income investors.

The company owns and operates major toll roads across Australia and North America. These assets are essential pieces of infrastructure that generate steady revenue from millions of drivers each year.

What I like about Transurban’s business model is its predictability. Its toll roads operate under long-term concession agreements that allow toll prices to increase regularly.

Combined with higher traffic volumes from population growth and urbanisation, this has historically supported consistent earnings and distribution increases.

Because of this, Transurban has been able to deliver dependable income to investors over long periods and I expect this trend to continue in the future.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a diversified investment management company that partners with a range of specialist fund managers.

Rather than running a single asset management business, Pinnacle provides distribution, operational, and strategic support to its affiliated investment boutiques. In return, it earns a share of the fees generated by those managers.

This model gives Pinnacle exposure to multiple investment strategies and markets, which can help diversify its earnings.

As funds under management grow across its affiliates, the company’s earnings can increase as well. That growth has allowed Pinnacle to steadily increase its dividends over time.

For income investors who want exposure to the asset management sector, Pinnacle offers a combination of dividend income and long-term growth potential.

Dicker Data Ltd (ASX: DDR)

Dicker Data is one of Australia’s leading technology distributors.

The ASX income stock acts as a key link between major global technology vendors and thousands of resellers across Australia and New Zealand. Its partners include some of the biggest names in the technology industry.

Despite operating in the technology sector, Dicker Data’s business model is surprisingly stable. The company earns relatively small margins on a very large volume of product sales, which can produce steady cash flows.

That strong cash generation has allowed Dicker Data to build a reputation as a reliable dividend payer.

For investors seeking income, the company’s consistent payouts and established market position make it an appealing option to consider.

Foolish takeaway

Reliable dividend income often starts with owning businesses that generate consistent cash flow.

Transurban’s infrastructure assets, Pinnacle’s growing funds management platform, and Dicker Data’s established distribution network each support strong earnings and shareholder payouts.

Because of that, these three companies are among the ASX income stocks that I think are well worth a closer look right now.

The post 3 of the best ASX income stocks to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Dicker Data, Pinnacle Investment Management Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have endured their worst fortnight of trading since June 2022, when rising inflation was stoking fears of a global recession.

Analysts at Commonwealth Bank of Australia (ASX: CBA) said the Iran war “continues to crush investor sentiment”, commenting:

More than six per cent has been wiped from the combined value of Australia’s 500 biggest listed companies since the Middle East erupted, wiping more than $200 billion from its combined $3 trillion market cap.

It was the local stock market’s worst two-week performance since an inflation surge prompted global recession fears in June 2022.

Since the war began, the S&P/ASX 200 Index (ASX: XJO) has fallen 6.5%, and the S&P/ASX All Ords Index (ASX: XAO) has dropped 6.65%.

Today, the ASX 200 is up 0.21%, and the All Ords is 0.15% higher amid anticipation of an interest rate rise in Australia today.

Markets put the chances of an official cash rate rise from 3.85% to 4.1% at 58%, down from 71% last Friday.

The war is already having far-reaching economic effects in Australia.

Regional service stations are running out of diesel, which is essential to transport food and other goods to the cities.

NSW Energy Minister Penny Sharpe said the problem was fuel distribution, not supply, at a fuel security roundtable in Sydney last week.

The Federal Government has previously said Australia has about 36 days’ worth of petrol and gas in storage.

However, many consumers and businesses have panic-bought fuel, which is creating shortages in some pockets of the nation.

The Federal Government released about six days’ worth of petrol and diesel into the market last week to address the shortages.

The larger economic impact is that an ongoing fuel crunch will bump up inflation, which the Reserve Bank will mitigate with higher rates.

This is impacting both consumer and investment sentiment, resulting in a ‘risk-off’ mood and a consistent fall in the value of ASX shares.

How the war is impacting ASX shares

If we break down price movements on a sector-by-sector basis, we see a large disparity in the war’s impact.

ASX energy shares are higher due to stronger oil and gas prices, which means oil & gas companies can make more for their materials.

The industries less impacted by the fuel crunch have experienced minor falls, while those reliant on fuel have taken a bigger hit.

Some ASX sectors, such as real estate, have fallen due to expectations of higher interest rates.

ASX shares are divided into 11 market sectors.

Here’s what has happened since the war began on 1 March (Australian time).

S&P/ASX 200 market sector	Change since 1 March
Energy (ASX: XEJ)	8.85%
Communication (ASX: XTJ)	(1.7%)
Consumer Staples (ASX: XSJ)	(1.8%)
Financials (ASX: XFJ)	(3.05%)
Utilities (ASX: XUJ)	(3.3%)
Information Technology (ASX: XIJ)	(6.1%)
Consumer Discretionary (ASX: XDJ)	(6.5%)
Healthcare (ASX: XHJ)	(6.85%)
Industrials (ASX: XNJ)	(7.3%)
A-REIT (ASX: XPJ)	(8.95%)
Materials (ASX: XMJ)	(14.15%)

The post Worst fortnight in 4 years: How the Iran war is affecting ASX shares 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 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 All Ordinaries Index (ASX: XAO) is just about flat in late morning trade today, with one ASX gold share leaving that performance in the dust.

The fast-rising stock in question is Solstice Minerals Ltd (ASX: SLS).

Solstice Minerals shares closed yesterday trading for 89 cents. At the time of writing on Tuesday, shares are changing hands for $1.10 each, up 23.6%.

Today’s outperformance is nothing new for Solstice Minerals. The miner has been benefiting from both the surging gold price and its own exploration successes.

Indeed, just 12 months ago, you could have picked up the ASX gold share for just 18 cents a share. At the current price, you’d now be sitting on an eye-watering gain of 511.1%. Or enough to turn an $8,000 investment into $48,889.

In one year!

Now, here’s what’s grabbing investor interest again today.

ASX gold share leaps on strong drilling results

The Solstice Minerals share price is off to the races after the miner reported on the final assay results from its recent 23-hole (6,030 metre) reverse circulation (RC) drilling program at its 100%-owned Nanadie Copper-Gold Project, located in Western Australia.

According to the release, the exploration program was “a resounding success”. The ASX gold share said the results have delivered strong growth outcomes in terms of both tonnage and grade at Nanadie.

Among the top results, the ASX gold share reported 44 metres at 0.52% copper and 0.23 grams of gold per tonne from 146 metres, including: 14m at 1.02% Cu, 0.58g/t Au from 163 metres.

The miner said that these strong results support “immediate follow-up” RC and diamond drilling, with a Phase 2 RC program now in preparation.

What did management say?

Commenting on the drilling results sending the ASX gold share surging today, Solstice Minerals CEO Nick Castleden said, “Our first-ever drilling campaign at Nanadie has exceeded expectations and provided the exploration team with a compelling opportunity to significantly grow this exciting asset.”

Castleden added:

An unexpected bonus has been the emergence of outstanding high-grade high-volume targets below holes NANRC001, 004 and 018, together with strong open-ended grade indications elsewhere.

The opportunity to define higher-grade positions for incorporation into future MRE’s [mineral resource estimates] is tantalising and will be a key early focus of Phase 2 follow-up drilling, including extending selected holes that ended in strong copper-gold mineralisation with diamond ‘tails’ capable of drilling beyond the operating limit of RC drilling at depth.

The post Guess which ASX gold share is rocketing 24% on an ‘unexpected bonus’ 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.

Rox Resources Ltd (ASX: RXL) has made a final investment decision to proceed with its $383 million Youanmi gold project in Western Australia, following the recent locking in of funding for the new mine.

Approvals in place

The company said in a statement to the ASX on Tuesday that it had received a key approval from the Department of Mines, Petroleum and Exploration, which would allow it to break ground on key elements of the project.

The company said:

This key approval allows construction to commence for the new Processing Plant, Tailings Storage Facility, and Power Station/Solar Array, as well as the redesign of the existing West Main Waste Rock Dump (to become the new Run-of-Mine (ROM)). The MDCP approval, supported by $350 million credit commitments from the previously announced syndicate of banks and the $200 million placement plus $18 million share purchase plan, allowed the Board to approve the final investment decision for Youanmi. Rox and the Syndicate Banks are now working towards execution of finance documents and satisfaction of typical conditions precedent. Financial close and first debt draw down is expected in the September 2026 quarter.

Rox said it would now start bulk earthworks and issue contracts for the power station and oxygen plant, while most early works streams had already started, and the construction of the accommodation facilities was ongoing.

Rox Managing Director Phill Wilding said it was a major milestone for the company.

Following the commitment of debt funding and receipt of the MDCP, the Board of Rox has now made its Final Investment Decision, paving the way for construction of the Youanmi Gold Project to begin. The project is now fully funded through to production, and over coming months we will work towards financial close while ramping up on-site construction activity. This is a pivotal milestone for Rox Resources, allowing us to remain on schedule with our pathway towards production as we prepare for our first gold pour by mid-2027.

Shares looking cheap

The analyst team at Canaccord Genuity recently ran the ruler over the Youanmi project and its implications for the Rox share price, and they believe there is significant upside to be had.

Canaccord said it had updated its model based on the recent new debt announcement and had kept its price target for the ASX gold stock at $1.15, compared with 50 cents currently.

The Youanmi project is expected to produce an average of 117,000 ounces of gold per year over a seven-year mine life, with a payback period of 1.9 years.

The post This ASX gold company has pulled the trigger on a new mining project in Western Australia 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.