Tag: Stock pick

Every so often, an ASX dividend stock falls far enough that it starts to look less like a short-term disappointment and more like a long-term opportunity. 

That’s how I’m starting to think about Treasury Wine Estates Ltd (ASX: TWE).

Its share price is around $5.16, roughly 50% lower than this time last year. That kind of decline usually scares investors away. But when I take a step back and look at the business, the brands it owns, and the income it is expected to generate over time, I think this ASX dividend stock is worth serious consideration in the current environment.

Why this ASX dividend stock has fallen so hard

The sell-off in Treasury Wine Estates has not come out of nowhere.

Over the past year, the company has been dealing with softer conditions in two key markets, the US and China. Demand for premium and luxury wine has weakened, customer inventory levels have been too high, and parallel imports in China have disrupted pricing for Penfolds. On top of that, changes to distribution in California created short-term earnings pressure in the US business.

More recently, management has also reset expectations, flagged elevated leverage for a period, and cancelled a planned share buyback to focus on balance sheet strength and long-term brand health. None of this has been easy for investors to digest, and sentiment has taken a hit.

That said, much of this pain is now well known and, in my view, largely reflected in the share price.

Why I think the long-term income case still stacks up

Despite near-term challenges, Treasury Wine Estates still owns some of the world’s strongest wine brands, led by Penfolds. These brands have pricing power, global recognition, and long lives. Wine demand may fluctuate year to year, but premium brands tend to endure over decades.

What stands out to me for an income investor is that this ASX dividend stock is still expected to pay meaningful dividends as the business works through its reset. According to consensus estimates from CommSec, dividends per share are expected to be 21.5 cents in FY26, rising to 24.5 cents in FY27 and 25 cents in FY28.

At the current share price of $5.16, that implies dividend yields of roughly 4.2% in FY26, 4.7% in FY27, and just under 4.9% in FY28. For a globally recognised consumer brand business, those are respectable yields, particularly if conditions improve over time.

A business in transition

What gives me some confidence here is that Treasury Wine Estates is not standing still.

The company has begun a broad transformation program aimed at simplifying operations, optimising costs, and protecting brand strength. Management is targeting meaningful cost improvements over the next few years, while also taking deliberate action to rebalance inventory and stabilise key markets.

This is unlikely to be a straight-line recovery. There will probably be more noise along the way. But if the business can stabilise earnings and gradually rebuild momentum, the combination of income and potential share price recovery could be attractive for long-term investors.

For me, that’s the hallmark of a lifetime ASX dividend stock. One that can pay you to wait while the cycle turns.

Foolish Takeaway

Treasury Wine Estates is not without risk, and it is clearly dealing with a difficult period. But at around $5.16, a lot of bad news already appears to be priced in.

With globally recognised brands, a renewed focus on long-term sustainability, and dividend yields that look increasingly attractive over the next few years, this ASX dividend stock stands out to me as one worth considering for buy-and-hold investors.

The post 1 ideal ASX dividend stock, down 50%, to buy and hold for a lifetime appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Down 49%, is there a once-in-a-decade opportunity in this ASX 200 stock?
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• ASX income stocks: A once-in-a-decade chance to get rich

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 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.

ASX All Ords gold stock Antipa Minerals Ltd (ASX: AZY) is sliding today.

Antipa Minerals shares closed yesterday trading for 72 cents. In morning trade on Thursday, shares are changing hands for 70 cents apiece, down 2.8%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.3% at this same time.

With today’s dip factored in, shares in the ASX All Ords gold stock remain up an impressive 94.4% over 12 months.

The Aussie gold miner has been an obvious beneficiary of the surging gold price. While down from its recent record highs, gold is currently trading for US$4,965 per ounce. That sees the yellow metal up 74% in a year.

And Antipa Minerals has hardly been sitting idle.

Here’s what the miner just reported.

ASX All Ords gold stock hits new copper and gold zones

Antipa Minerals shares have yet to lift after the miner announced the final batch of assay results from the 2025 drilling campaign at its Minyari Gold-Copper Project, located in Western Australia.

The ASX All Ords gold stock said the results included high-grade intersections, newly identified zones of mineralisation, several thick gold-copper-silver intersections, and a new copper discovery.

Among those high-grade results, Antipa reported intercepting 24.7 metres at 1.4 grams of gold per tonne and 0.07% copper from 39.3 metres, including 2.3 metres at 6.8 g/t gold and 0.18% copper from 39.3 metres. And the lode remains open in all directions.

Drilling at the new copper discovery, at the Yolanda prospect, intersected 44 metres at 0.07% copper from 40 metres to end-of-hole, which the miner said confirmed a 1.2-kilometre-long anomalous copper trend.

Antipa Minerals aims to incorporate the 2025 drilling results into an updated Mineral Resource Estimate (MRE) this month.

What did management say?

Commenting on the results reported by the ASX All Ords gold stock today, Antipa managing director Roger Mason said, “The final batch of CY2025 results are a tremendous way to wrap up last year’s drilling program, delivering multiple new gold discoveries in close proximity to our planned Minyari development.”

Mason added:

The identification of a new high-grade lode at Fiama and confirmation of a large-scale northern repeat structure strongly indicate the potential for additional Minyari style deposits to emerge close to the immediate development footprint. This reinforces the opportunity we have to materially grow the Mineral Resource base around future planned infrastructure.

On the copper front, Mason noted:

At the same time, intersecting thick copper mineralisation across a potential 1.2-kilometre open trend at Yolanda is a major breakthrough, highlighting the presence of a previously unrecognised, potentially very large scale, copper system beneath shallow cover.

Mason said that Antipa Minerals’ 2026 drill program is “well advanced”, with field activities set to commence this quarter.

The post Up 94% in a year, ASX All Ords gold stock strikes ‘thick gold-copper-silver intersections’ appeared first on The Motley Fool Australia.

More reading

• 1 ideal ASX dividend stock, down 50%, to buy and hold for a lifetime
• This ASX 300 stock is jumping 13% on earnings guidance upgrade
• Which ASX energy stock to own: Origin or APA Group?
• ASX 200 healthcare stock sinks 9% on FDA update
• Guess which ASX 200 stock is falling on CEO news

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.

SKS Technologies Group Ltd (ASX: SKS) shares are having a strong session on Thursday.

In morning trade, the ASX 300 stock is up 13% to $4.00.

Why is this ASX 300 stock jumping?

Firstly, if you are not familiar with SKS Technologies, it is a specialist in electrical technologies and digital infrastructure. It offers a diverse range of services across audio visual, communications, and electrical solutions throughout Australia.

It highlights that it supports a broad spectrum of industry sectors, including data centres, defence, mining, healthcare, retail, and commercial buildings.

This morning, the ASX 300 stock revealed that it has been awarded a range of contracts totalling $60 million across data centre and corporate clients. In light of this, it has upgraded its earnings guidance for FY 2026.

The recent contract awards include a package for the NextDC Ltd (ASX: NXT) M3 (Stage 4) data centre project and the full suite of SKS Technologies services for the new Melbourne office of Ernst and Young.

The company points out that the NextDC M3 project has been awarded by Kapitol Group, which is a Melbourne-based construction group that specialises in high-tech sectors.

The 150MW Tier IV facility will support rapidly growing artificial intelligence (AI) and cloud computing demand through high-density, fault-tolerant infrastructure.

Management believes this contract award endorses the reputation that SKS Technologies has built as a dominant provider of critical electrical solutions for the data centre sector over a short period of time. In addition, it supports the company’s consistently high level of repeat business, which sat at 94% for FY 2025.

The commercial office project for Ernst and Young is in the landmark, 20 level tower at 111 Bourke Street, Melbourne. It was awarded by Shape Australia, which is a large modular construction and fitout company.

The contract requires a fully integrated solution across audio visual, communications, and electrical solutions. Management feels that this demonstrates SKS Technologies’ continued and unwavering pursuit of work across all of its traditional sectors.

Guidance upgrade

In light of the above, the ASX 300 stock has upgraded its revenue and earnings guidance for FY 2026.

Revenue is expected to increase to $340 million (from $320 million previously), while its net profit before tax margin is expected to lift from 9% to 10%. These increases are expected to produce a profit before tax of $34 million (from $28.8 million previously).

The company’s CEO, Matthew Jinks, said:

The revised outlook is based on a combination of new contract awards, a further record level of $325 million of work on hand, and a realistic confidence in future conversions from pipeline to contract award.

The post This ASX 300 stock is jumping 13% on earnings guidance upgrade appeared first on The Motley Fool Australia.

More reading

• 2 under-the-radar ASX small caps engineering Australia’s electrification push

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

These 2 ASX energy stocks have quietly regained favour in the past year as investors hunt for income with resilience.

After lagging high-growth sectors, Origin Energy Ltd (ASX: ORG) and APA Group (ASX: APA) both benefited from easing inflation fears, firmer energy demand and a renewed focus on dependable cash flows. Origin’s share price ascended 7.5% over 12 months, while APA Group gained 32% in value.

So which ASX energy stock looks better placed from here.

Origin Energy Ltd (ASX: ORG)

This $20 billion ASX utility stock offers investors a blend of income and growth. The company has benefited from strong performance across its energy markets and gas operations.

Origin’s stake in Octopus Energy adds a long-term growth lever beyond Australia. Management has also leaned into batteries and renewables, positioning the ASX energy stock to remain relevant as the energy transition accelerates.

That momentum has translated into improved earnings and a reinstated fully franked dividend of around 5%, which currently delivers a competitive yield for a utility stock. The upside is clear: if operating conditions remain supportive, the ASX energy stock can continue to grow profits while rewarding shareholders.

The risk, however, is that much of the good news may already be priced in. After a sharp rally, the valuation looks fuller, leaving less room for disappointment. Origin is also more exposed to energy price volatility and regulatory intervention, particularly in retail markets where margins can tighten quickly.

Most brokers see the ASX energy stock as a hold. The average 12-month price target is set at $12.16, a potential gain of 9% at the current share price.  

APA Group (ASX: APA)

APA Group sits at the other end of the spectrum. It owns and operates critical gas and energy infrastructure, with long-dated contracts that generate stable and predictable cash flows. This makes APA one of the most defensive ASX energy stocks, appealing to investors prioritising income and capital preservation.

Its dividend yield remains one of the highest in the sector – 6.8% at the time of writing – and distributions are supported by infrastructure assets that are difficult to replicate. Gas may be politically contentious, but it continues to play a vital role in Australia’s energy system, giving the $12 billion ASX energy share a strategic edge during the transition to renewables.

The trade-off is growth. APA’s earnings profile is steady rather than exciting, and that has been reflected in its share price.

Analysts don’t see much upside for the ASX energy stock in the next 12 months. The average price target of $8.65 is below the current share price of $8.87.

Foolish Takeaway

In the end, the better energy stock depends on what an investor values most. APA looks better suited to those seeking reliable income and lower volatility. Origin, while riskier, offers stronger growth potential and a more dynamic earnings outlook.

For income purists, APA may win. For investors chasing total returns, Origin could still have the edge.

The post Which ASX energy stock to own: Origin or APA Group? appeared first on The Motley Fool Australia.

More reading

• The best Australian dividend stocks to buy and hold forever
• 3 safe ASX dividend shares for low-risk investors
• Why analysts say Hub24, New Hope, and Xero shares are buys
• Got $5,000? 5 ASX income shares to buy and hold forever
• How to build income on the ASX without losing sleep at night

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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.

More reading

• Why I think this ASX tech share sell-off is a great time to invest
• 3 Aussie stocks to buy and hold forever
• Where to invest $5,000 in ASX ETFs this month
• 3 ASX growth shares to buy before they rebound
• 5 exciting ASX ETFs to buy this month

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
• 2 ASX shares these experts rate as a buy right now

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.

More reading

• Elders appoints René Dedoncker as next CEO in planned succession
• 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.