Tag: Stock pick

Perseus Mining Ltd (ASX: PRU) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $5.59. In early morning trade on Tuesday, shares are changing hands for $5.55 apiece, down 1.6%.

For some context, the ASX 200 is down 0.6% at this same time, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down a steeper 2.1%.

Here’s what’s happening.

Perseus Mining shares slip despite ‘key milestone’

In a release labelled non-price sensitive to Perseus Mining shares, the company announced that it has successfully completed the first underground production blast at its CMA Underground project, located in Cote D’Ivoire.

Excavation of the first production ore commenced immediately after the blast.

The ASX 200 gold stock said that this “key milestone” for the project marks an important part of the mine’s ongoing ramp-up toward steady-state production. That’s targeted for the third quarter of FY 2027.

Perseus’ CMA Underground mine is the first mechanised underground mine in Cote D’Ivoire.

What did management say?

Commenting on the progress that should help support Perseus Mining shares longer term, managing director and CEO Craig Jones said:

The first production blast is a defining moment for Perseus and Cote d’Ivoire, representing the culmination of many months of intensive underground development, drilling and infrastructure installation.

This is a testament to the hard work and dedication of our site team and contractors, and we look forward to scaling up operations over the coming months with the higher-grade underground ore providing mill feed.

What else has been happening with Perseus Mining shares?

Perseus Mining released its March quarter (Q3 FY 2026) update last Thursday, 23 April.

Highlights for the three months included a 21% quarter-on-quarter increase in gold production to 107,144 ounces.

And, pleasingly, costs came down. The ASX 200 miner reported all-in site costs (AISC) of US$1,748 per ounce in Q3, down from US$1,800 the prior quarter.

Perseus achieved an average sales price for its gold of US$4,143 per ounce.

The miner reported third-quarter operating cash flow of US$252 million.

Turning to the balance sheet, as at 31 March, Perseus Mining held cash and bullion of US$817 million.

Looking at what could impact Perseus Mining shares in the months ahead, the miner reaffirmed its FY 2026 production guidance of 400,000 ounces to 440,000 ounces of gold. Management forecasts an AISC of US$1,600 to US$1,760 per ounce.

Atop aiming for commercial production from the CMA Underground mine in Q3 FY 2027, as mentioned above, Perseus is also targeting first gold from its Nyanzaga project, located in Tanzania, in January 2027.

Perseus Mining shares remain up 71.8% over 12 months, not including dividends.

The post Buying Perseus Mining shares? Here’s the latest big news out of Africa appeared first on The Motley Fool Australia.

More reading

• What did ASX gold shares Regis Resources, Perseus, and West African report today?
• Perseus Mining lifts gold production and maintains strong balance sheet in March 2026 quarter
• ASX gold shares tumble as bull run faces its first big test in 1Q CY26

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.

There are some ASX value stocks that could be too cheap to miss amid the current market conditions. As Warren Buffett likes to say, be greedy when others are fearful.

The business HMC Capital Ltd (ASX: HMC) has seen its share price drop 57% since May 2025, at the time of writing, as the below chart shows.

When a solid business goes through a big slump like that, it could be a great idea to jump on the opportunity while it’s still there, assuming the business is capable of growing its underlying earnings and value.

For readers who haven’t heard of this business before, it’s a diversified alternative asset manager focused on real estate, private equity, the energy transition, digital infrastructure, and private credit. It manages close to $20 billion on behalf of institutional, high-net-worth, and retail investors.

Why the ASX value stock looks like a great buy

For starters, when I’m considering a beaten-up stock, I want to see that core earnings drivers have a good longer-term outlook.

As a fund manager, a key driver is the assets under management (AUM) because that means more management fees.

In the FY26 half-year period, the business reported that its recurring earnings “stepped up meaningfully”, with management fees growing to $84.5 million – this represented a year-over-year increase of 34%.

The business also reported that between June 2025 and December 2025, its AUM increased by 4% year over year.

In my view, one of the biggest recent positive moves by HMC Capital was establishing a strategic partnership with KKR for an investment of $603 million to “realise value” in the HMC Energy Transition Platform.

It noted progress across a 5.7GW development pipeline, positioning the business to unlock substantial embedded value as key projects approach the final investment decision (FID) over the next 12 to 18 months.

HMC Capital estimates that its funds management operating profit (EBITDA) will be $85 million in FY26, with forecast 15% year-over-year growth in real estate EBITDA and 20% growth in private credit EBITDA.

Great valuation

The ASX value stock is expecting to generate pre-tax operating earnings per security (EPS) of at least 40 cents, which puts it at 6x this metric.

The projection on CMC Markets currently suggests that the business could generate actual EPS of 33.1 cents. That means the business is valued at just 7.4x FY26’s estimated earnings.

As a bonus, the dividend yield looks attractive too. It has provided guidance that it will pay a dividend of 12 cents per share, which equates to a dividend yield of close to 5%.

The post After crashing 57%, this ASX value stock looks filthy cheap with a P/E of just 7 appeared first on The Motley Fool Australia.

More reading

• 3 of the best performing thematic ASX ETFs over the last 3 years
• This ASX lithium company’s shares have jumped more than 50% on major merger news
• Why are Beach Energy shares sinking today?
• Why Whitehaven Coal shares are rising today despite a rough month
• Buying Perseus Mining shares? Here’s the latest big news out of Africa

Motley Fool contributor Tristan Harrison 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 HMC Capital and KKR. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Deep Yellow Ltd (ASX: DYL) shares are pushing higher on Tuesday after the uranium developer released its March quarter update.

At the time of writing, the Deep Yellow share price is up 1.29% to $1.96.

While the quarter was predominantly centred on progressing its flagship project in Namibia, work also continued across its other assets.

Here’s what came through.

Tumas project moves another step forward

For the 3 months to 31 March, Deep Yellow continued advancing its Tumas Project as it moves through development.

Detailed engineering reached 68%, while bulk earthworks hit 91% by the end of March.

The company said tendering is now complete for 79% of major process plant equipment packages. This is expected to support planning ahead of a final investment decision (FID).

Work on site has included excavation, backfilling, and early preparation around the processing plant and supporting infrastructure.

Deep Yellow also noted that civil construction is expected to begin in the next quarter.

Overall, the project is getting closer to construction, with the remaining steps centred on approvals and funding.

More drilling and studies across the portfolio

Outside of Tumas, exploration activity continued across its Namibian assets.

Drilling at the Tinkas prospect was completed in March, covering 133 holes for 1,363 metres.

Results confirmed uranium mineralisation and also pointed to further potential across the broader Tumas district.

The company expects that more drilling will be needed to define a resource in that area.

Elsewhere, trade-off studies at the Mulga Rock Project in Western Australia are ongoing, feeding into an updated feasibility study.

Early pilot work has backed up earlier recovery expectations, with the company also looking at ways to bring costs down.

At the Alligator River Project in the Northern Territory, seismic surveys have helped pinpoint the best areas to target for future drilling.

Balance sheet remains well funded

Deep Yellow ended the quarter with a cash balance of $171.6 million.

That leaves it in a solid position as it continues advancing Tumas and its wider portfolio of assets.

The company said uranium market conditions remained supportive during the period.

Long-term contract activity is starting to pick up, with utilities moving to secure supply amid growing demand expectations.

Uranium prices have also held up, despite some volatility in spot markets.

What investors will be watching next

Deep Yellow’s latest update shows its flagship project continuing to move forward across a few key areas.

Engineering, procurement, and site works are all advancing and are tracking to plan.

The key things to watch will be timing and costs at Tumas as the project moves into its next stage.

The post This ASX uranium stock is powering up today. Here’s what just dropped appeared first on The Motley Fool Australia.

More reading

• Deep Yellow provies March quarter update
• Here are the top 10 ASX 200 shares today
• Why Deep Yellow, Develop Global, Resolute Mining, and Santos shares are pushing higher today
• Deep Yellow provides March 2026 exploration update
• Why is everyone buying Deep Yellow shares today?

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

The Greatland Resources Ltd (ASX: GGP) share price is in focus today after the company posted a record $260 million cash build for the March quarter, with strong gold output and a solid operational performance adding to a bumper closing cash balance of $1.2 billion.

What did Greatland Resources report?

• Quarterly production of 82,723 ounces of gold and 4,128 tonnes of copper at an AISC of $2,056/oz
• Sales of 97,800oz gold and 4,620t copper generated net revenue of $742 million
• Cash flow from operations was $453 million, lifting closing cash to $1,208 million (up from $948 million)
• No lost time injuries, with a 12-month moving LTIFR of 0.2
• Significant Telfer Mineral Resource Estimate (MRE) upgrade: total group resources now 14.9Moz gold & 645kt copper
• Investment of $42 million in Telfer growth capex and continuation of a record drilling program

What else do investors need to know?

Greatland remains debt-free and holds a total liquidity position of $1.28 billion, including an undrawn $75 million working capital facility. The company maintains full upside exposure to the gold price, with partial downside protection from gold put options for coming quarters.

Operationally, the company is progressing its Havieron gold-copper development, with permitting moving forward and early decline tunnel works underway, expected to de-risk long-term production. The latest resource upgrades at Telfer and O’Callaghans also increase the size and quality of Greatland’s mineral inventory, supporting ambitions for long-life mining in the Paterson region.

What’s next for Greatland Resources?

Looking ahead, Greatland expects full-year gold production to be near or above the top end of its guidance, while costs should be toward the low end of its forecast range. The business aims to advance development at Havieron and maintain a focus on extending mine life at Telfer.

Drilling remains a key priority, with the large-scale program on track for 240,000 metres this financial year. Management is also monitoring industry cost pressures, especially around diesel, but notes that Telfer’s exposure is modest and well managed via long-term supply agreements.

Greatland Resources share price snapshot

For the year to date, Greatland Resources shares have increased 46%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Greatland Resources posts record March quarter cash build and gold-copper resource growth appeared first on The Motley Fool Australia.

More reading

• Beach Energy lifts production in Q3 FY26, updates outlook
• Reliance Worldwide resets FY26 outlook, updates on tariffs and Middle East
• Capricorn Metals reports Mt Gibson gold results
• Whitehaven Coal shares: Q3 FY26 shows steady sales, improved pricing
• Don’t sit out this ASX share market chaos, it could cost you

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.

Predictive Discovery Ltd (ASX: PDI) shares are pushing higher on Tuesday after the gold miner delivered a standout quarterly update.

The ASX 200 gold share is up 3% to 98.5 cents at the time of writing.

ASX 200 gold share push higher on strong update

According to the release, Predictive Discovery is scaling up quickly following the ramp-up of its production assets.

The gold miner revealed that revenue surged to US$200.8 million for the three months, representing a massive 321% increase compared to the prior quarter.

This was driven by a sharp lift in gold sales volumes and stronger realised gold prices (US$4,806 per ounce) during the period.

Gold sales climbed 271% quarter on quarter to 41,799 ounces, while production jumped 308% to 48,178 ounces as operations at the Kiniero mine accelerated.

Production ramp-up driving momentum

A key contributor to this growth has been the rapid ramp-up at the Kiniero Gold Mine in Guinea.

Production from Kiniero surged as the operation moved through commissioning and into commercial output, delivering a major uplift in group performance.

At the same time, the Nampala mine in Mali continued to provide steady production, supporting overall output.

Encouragingly, costs are also moving in the right direction. The ASX 200 gold share reported a 37% reduction in all-in sustaining costs (AISC) to US$1,192 per ounce. This reflects improved operating leverage and the contribution of lower-cost production from Kiniero.

Strong cash generation

Beyond production growth, the quarter also highlighted the company’s increasing ability to generate cash.

Predictive Discovery delivered a cash margin from operations of US$139 million, underpinned by higher production and favourable gold prices.

Its balance sheet also remains solid, with significant cash holdings following the completion of its merger with Robex Resources.

Outlook

Management has provided production guidance of 198,000 to 220,000 ounces for 2026, comprising 157,000 to 174,000 ounces from Kiniero and 41,000 to 46,000 ounces from Nampala.

Cost production guidance will be released in the June quarter, following two full quarters of production at Kiniero.

In addition, the ASX 200 gold share reaffirmed that it is progressing development work at its large-scale Bankan Gold Project. This is expected to become a cornerstone asset over the longer term.

Furthermore, the merger between Predictive Discovery and Robex Resources completed on 15 April 2026. It notes that this has created a leading West African gold production and development company targeting 400,000 ounces of gold production per annum by 2029.

The post This ASX 200 gold share just recorded 321% revenue growth appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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.

Capricorn Metals Ltd (ASX: CMM) shares are falling on Tuesday morning.

At the time of writing, the ASX 200 gold stock is down 2.5% to $11.15.

What’s going on with this ASX 200 gold stock?

A pullback in the gold price overnight appears to be overshadowing the release of a strong exploration update from the company’s Mt Gibson Gold Project, which highlighted exceptional drilling results from the Lexington underground prospect.

According to the release, the first seven holes from the drilling program have delivered significant high-grade gold intercepts.

These results include standout intersections such as 13.1 metres at 13.93 grams per tonne gold and 28.6 metres at 5.35 grams per tonne gold, pointing to a potentially high-quality underground resource.

Expanding underground potential

Importantly, all the drilling results reported to date sit outside the current resource envelope.

This suggests that the Lexington zone could materially expand the scale of the Mt Gibson project beyond its existing open pit and underground resources.

Management highlights that the mineralisation extends between 85 metres and 365 metres below current resources, confirming the depth potential of the system.

The drilling program has also extended high-grade mineralisation to over 900 metres of strike and more than 500 metres below current reserve pit designs, with the system remaining open in all directions.

Building on Orion South success

The Lexington prospect sits approximately 600 metres north of the Orion South underground deposit, which already hosts a substantial resource.

Together, the two areas now represent a combined 2.1-kilometre strike length of drilled mineralisation.

Encouragingly, the ASX 200 gold stock believes this is only a small portion of a much larger 8-kilometre mineralised trend across the broader Mt Gibson project.

This raises the possibility of a large-scale, long-life underground mining operation developing over time.

The ASX 200 gold stock’s executive chair, Mark Clark, described the results as some of the strongest underground intercepts seen at Mt Gibson to date. He said:

The drilling at Lexington has delivered some of the strongest underground intercepts we have seen at Mt Gibson to date. These outstanding results highlight the scale, continuity and high-grade tenor of the system defined between Orion South and Lexington, which is now clearly emerging as a major underground discovery with genuine potential to add a significant long-life, high-margin underground mining operation to the Mt Gibson project.

The post Which ASX 200 stock is falling despite big news appeared first on The Motley Fool Australia.

More reading

• Capricorn Metals reports Mt Gibson gold results
• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 gold stocks jumping higher on major updates today
• Capricorn Metals delivers solid Q3 FY26 gold production and growth update

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.

The Beach Energy Ltd (ASX: BPT) share price is in focus today after the company posted a 7% lift in production to 4.8 million barrels of oil equivalent (MMboe) and quarterly sales revenue of $419 million for the third quarter of FY26.

What did Beach Energy report?

• Production increased 7% quarter-on-quarter to 4.8 MMboe, led by the Perth Basin ramp-up (up 174%)
• Sales revenue was $419 million, down 6% from the previous quarter
• Sales volumes totalled 5.3 MMboe (down 10% vs Q2), including one LNG cargo ($54 million revenue)
• Average realised oil price climbed 19% to A$125/bbl; gas price averaged $11.2/GJ (down 6%)
• Available liquidity strengthened to $974 million with net gearing reduced to 11%
• FY26 production guidance revised to 19.4–20.3 MMboe (from 19.7–22.0 MMboe)

What else do investors need to know?

Beach Energy’s quarter saw strong output from the Waitsia Gas Plant, now operating close to full capacity after the final two compressors were brought online. The company lifted one LNG cargo in February, contributing $54 million in sales.

Severe rains in the Cooper Basin and Western Flank led to some production setbacks and delayed drilling, but these operations have since resumed. Beach also secured new exploration acreage, including ATP 2081 in the Taroom Trough and three Queensland gas blocks, bolstering its East Coast gas portfolio.

On the development front, a final investment decision was made to advance the Moomba Central Optimisation project, aiming to streamline and extend infrastructure life, with completion targeted in the first half of FY29.

What did Beach Energy management say?

Managing Director and Chief Executive Officer Brett Woods said:

This was a pivotal quarter for Beach, with the Waitsia Gas Plant reaching 94% of nameplate capacity, the Equinox rig returning to commence Phase 2 of the Otway offshore campaign and a final investment decision was taken on the Moomba Central Optimisation (MCO) project. Combined with strong cash generation and three new tenement awards, the third quarter marks the continued progress on our strategy.

What’s next for Beach Energy?

Looking ahead, Beach Energy will continue the ramp-up of the Waitsia Gas Plant and progress its new acreage across the Taroom Trough and Cooper Basin. Management is targeting completion of the Moomba project in H1 FY29, which should help unlock value and support longer-term output.

Production outlook for FY26 has been revised due to weather impacts but remains strong. The company’s improved liquidity and disciplined approach to capital will support ongoing drilling and development across its expanded portfolio.

Beach Energy share price snapshot

Over the past 12 months, Beach Energy shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Beach Energy lifts production in Q3 FY26, updates outlook appeared first on The Motley Fool Australia.

More reading

• Why are Beach Energy shares sinking today?
• Greatland Resources posts record March quarter cash build and gold-copper resource growth
• Reliance Worldwide resets FY26 outlook, updates on tariffs and Middle East
• Capricorn Metals reports Mt Gibson gold results
• Whitehaven Coal shares: Q3 FY26 shows steady sales, improved pricing

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.

The Reliance Worldwide Corporation (ASX: RWC) share price is in focus after the company reaffirmed its full year FY26 trading outlook and provided updates on US tariffs and Middle East impacts.

What did Reliance Worldwide report?

• FY26 full-year guidance has been reaffirmed after nine months of trading to 31 March 2026
• The company expects the FY26 net cost impact of US tariffs to be at the lower end of the previously indicated US$25 million–US$30 million range
• FY27 net cost impact of US tariffs is forecast to remain at US$5 million to US$7 million
• No material change in assumptions regarding regional and group outlook, net tariff impact, cash flow conversion, or cost savings

What else do investors need to know?

Two notable US tariff changes were flagged: the IEEPA-based tariffs were struck down by the US Supreme Court, replaced by a Section 122 tariff set to expire in July 2026. Reliance Worldwide lodged a claim for a refund of previously paid IEEPA tariffs, but the amounts are yet to be verified.

There’s also an update to Section 232 tariffs on metals like steel, aluminium, and copper. Despite these changes, Reliance Worldwide does not anticipate a major shift in their operating earnings or cash flows for FY26 based on current estimates.

What’s next for Reliance Worldwide?

Reliance Worldwide expects its FY26 earnings to remain on track, despite higher costs driven by oil price impacts on resin, logistics, and energy. The company is offsetting increased input costs through price rises, and does not foresee material impacts from the war in Iran for FY26.

However, Reliance Worldwide cautions that a sustained conflict in the Middle East may influence operating conditions heading into FY27. The company remains focused on managing external pressures and maintaining its guidance.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Reliance Worldwide resets FY26 outlook, updates on tariffs and Middle East appeared first on The Motley Fool Australia.

More reading

• Capricorn Metals reports Mt Gibson gold results
• Whitehaven Coal shares: Q3 FY26 shows steady sales, improved pricing
• Don’t sit out this ASX share market chaos, it could cost you
• Deep Yellow provies March quarter update
• 5 things to watch on the ASX 200 on Tuesday

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.

It’s been hard to ignore PLS Group Ltd (ASX: PLS) shares. The lithium miner has been one of the hottest names on the ASX, rocketing an eye-watering 299% over the past 12 months at the time of writing, making it one of the best performers in the S&P/ASX 50 Index (ASX: XFL).

That kind of run tends to raise a big question: Have PLS shares already peaked, or could there be more upside ahead? Let’s see what the experts think.

What’s driving momentum

A lot of the recent strength comes down to strong operational performance, and the company’s latest update only added fuel to the fire. PLS reported record production in its most recent results, coming in around 8% ahead of consensus expectations.

At the same time, costs impressed even more, landing roughly 13% better than what analysts had forecast. That’s a powerful combination. Higher production means more volume to sell, while lower-than-expected costs boost margins — particularly important in a commodity business where pricing can swing.

It also reinforces PLS’ position as a key player in the global lithium market, benefiting from long-term demand tied to electric vehicles and battery storage.

In short, the fundamentals haven’t just kept up with the share price, they’ve helped drive PLS shares higher.

But here’s the catch

Even great companies can become risky investments when expectations get too high. After a near 300% rally, a lot of good news may already be baked into the PLS share price. That leaves less room for upside surprises and more room for disappointment if anything goes wrong.

And in lithium, things can change quickly. Prices for lithium have been volatile, and any sustained drop could weigh on earnings. On top of that, global supply is increasing as new projects come online, which could pressure prices over time.

There’s also the broader market backdrop to consider. If sentiment toward growth stocks or commodities weakens, high-flyers like PLS shares are often the first to feel it.

What are analysts saying?

Broker views are starting to reflect this more cautious stance. Bell Potter recently retained its hold rating on PLS shares, while lifting its price target to $5.50. With the shares currently trading at $5.93, that suggests a potential downside of close to 7.5% over the next year.

Morgans is even more conservative. It has downgraded PLS from a hold to a trim rating, with a $5.40 price target, signalling that, in its view, the upside is already fully priced in.

Foolish Takeaway

PLS has delivered exceptional returns, backed by strong operational performance and favourable industry tailwinds. But after such a massive run, the risk-reward balance is shifting.

For new investors, the question isn’t whether PLS is a quality company. It’s whether today’s price still offers enough upside to justify the risk. Sometimes the hardest move is the right one: not chasing a stock that’s already had its moment in the spotlight.

The post Red-hot PLS shares: Smart buy or risky move? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• What is Morgans’ updated view on Bank of Queensland and PLS shares?
• Up 300%: Should you buy PLS shares after its strong update?
• 5 things to watch on the ASX 200 on Monday
• Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday

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 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 Capricorn Metals Ltd (ASX: CMM) share price is in focus today after the company released its drilling results at its Mt Gibson Gold Project, including intercepts of 13.1 metres at 13.93 grams per tonne (g/t) gold and 28.6 metres at 5.35g/t gold from the Lexington underground prospect.

What did Capricorn Metals report?

• The first 7 holes (3,333m) of an 18-hole programme at Lexington returned strong gold mineralisation.
• All results are outside the current resource envelope, extending high-grade gold to over 900m of strike and more than 500m below reserve pits.
• Notable intercepts: 13.1m @ 13.93g/t Au from 714.9m, 28.6m @ 5.35g/t Au from 431.8m, and 23.9m @ 3.32g/t Au from 724.1m.
• The drilled zone at Lexington is 600 metres north of the Orion South underground deposit, which boasts an underground mineral resource estimate (MRE) of 895,000 ounces of gold as of November 2025.
• A further 10,000 metres of drilling is planned to support a maiden inferred resource for Lexington.
• An updated Orion South resource and prefeasibility study are expected this quarter.

What else do investors need to know?

The latest results confirm significant underground system scale and continuity between Orion South and Lexington, both open at depth and along strike. The combined 2.1-kilometre drill-tested zone between these prospects remains a small portion of the broader 8-kilometre Mt Gibson resource extent, suggesting substantial resource expansion opportunities.

Drilling at Lexington has identified a distinct intrusion-related orogenic gold system, offering thicker and higher-grade intercepts compared to other areas. Further drilling along this trend is in early stages, with upcoming results likely to inform future resource estimates.

What did Capricorn Metals management say?

Executive Chairman Mark Clark said:

The drilling at Lexington has delivered some of the strongest underground intercepts we have seen at Mt Gibson to date. These outstanding results highlight the scale, continuity and high-grade tenor of the system defined between Orion South and Lexington, which is now clearly emerging as a major underground discovery with genuine potential to add a significant long-life, high-margin underground mining operation to the Mt Gibson project.

What’s next for Capricorn Metals?

Capricorn Metals plans to continue aggressive extensional and infill drilling at Lexington to define a maiden underground resource. At the same time, the Orion South resource and prefeasibility study are due for update this quarter, reflecting the potential for increased resource confidence and future ore reserves.

The company emphasises that the 2.1-kilometre zone between Orion and Lexington could underpin a large-scale, long-life underground gold operation. With much of the 8km strike under-explored, ongoing drilling may open up further extensions for future resource growth.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

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The post Capricorn Metals reports Mt Gibson gold results appeared first on The Motley Fool Australia.

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