Tag: Stock pick

Viva Energy Group Ltd (ASX: VEA), NextDC Ltd (ASX: NXT), and National Australia Bank Ltd (ASX: NAB) shares are grabbing financial headlines today.

In morning trade on Monday, two of the blue-chip stocks are trailing the 0.5% losses posted by the S&P/ASX 200 Index (ASX: XJO), while shares in the third are temporarily halted.

Here’s what’s catching ASX investor interest.

NAB shares slide on increased risks

NAB shares are taking a hit today.

Shares in the ASX 200 bank stock are down 3.2% at the time of writing, changing hands for $41.17 apiece.

This underperformance follows an operational update from NAB this morning ahead of its half-year (H1 FY 2026) results release, scheduled for 4 May.

NAB shares are under pressure after the bank noted that increased market volatility, fuelled by the conflict in the Middle East, has seen the bank review its credit provisioning and capital settings as at 31 March.

Management said these now better “reflect the risks inherent in our business”.

NAB said that sectors including agriculture, transport, and manufacturing are being particularly impacted.

In light of these issues, NAB revealed a $706 million credit impairment charge for H1 2026. The big four Aussie bank also confirmed an accelerated $1.35 billion amortisation charge on its software assets.

Management reaffirmed NAB’s full-year FY 2026 cash operating expense growth guidance to be less than 4.6%.

Which brings us to…

NextDC shares halted

NextDC shares aren’t moving this morning after the company requested a trading halt prior to the release of the results of an institutional equity raising.

But shares in the ASX 200 data centre operator and developer could get a boost once trading resumes, with the company releasing a strong operational update today.

Among the highlights, the company reported that in the three months to 31 March, its contracted utilisation increased by 60% to 667 megawatts (MW).

And NextDC’s forward order book increased by 83% to 544MW.

Management also reaffirmed the company’s full-year FY 2026 revenue and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance.

And finally…

Viva Energy shares sink on refinery fire woes

Atop NextDC and NAB shares, investors are also tuning into Viva Energy shares on Monday.

Shares in the ASX 200 energy stock are down 5.9% in morning trade, changing hands for $2.38 each.

This comes after Viva Energy shares emerged from Thursday’s trading halt following the release of an update on last week’s fire at its Geelong Refinery. The Geelong Refinery is one of just two refineries remaining in Australia.

Importantly, the company said there were no injuries as a result of the fire.

Viva Energy also revealed that its diesel production will be able to continue to operate at around 80% of capacity, while jet fuel production will operate at around 60% capacity over the short term.

The ASX 200 energy stock said it had enough fuel stocks to ensure a normal supply for its customers. The company aims to return to 90% production capacity levels for both diesel and jet fuel over the coming weeks.

The post Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday appeared first on The Motley Fool Australia.

More reading

• Viva shares drop out of halt as refinery disruption raises new questions
• Why are NAB shares sinking 4% on Monday?
• 3 under-the-radar ASX AI shares that could be the next WiseTech
• Viva Energy Group issues update on Geelong Refinery after fire
• NextDC rally comes to a halt. Here’s what just dropped

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.

The S&P/ASX 200 Index (ASX: XJO) has opened higher on Monday morning, however one broker has adjusted its view on Collins Foods Ltd (ASX: CKF) and Pro Medicus Ltd (ASX: PME) shares. 

Both ASX 200 companies have fallen significantly in 2026. 

In a note out of Morgans, the broker lowered its price target for both companies. 

Despite the target price reduction, the broker still sees more than 40% upside for both stocks.

Collins Foods Ltd (ASX: CKF)

Collins Foods is engaged in the operation, management, and administration of chain restaurants in Australia and Europe.

The company’s recognisable brand names are KFC and Taco Bell. The majority of the company’s revenue comes from KFC restaurants in Australia.

Year to date, its share price is down more than 17%.

In a note out of Morgans, the broker revised its forecasts ahead of the FY26 result in June. 

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum.

The broker has retained its buy recommendation. 

However it has now reduced its price target to $12.50 (from $12.70).

From today’s opening price of roughly $8.58, this price target still indicates an upside potential of 45%. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides of medical imaging technology. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.

Pro Medicus shares have been amongst many healthcare stocks that have struggled in 2026. 

Its share price is down 33% year to date. 

In a note out of Morgans, the broker said it has deployed a new model and deliberately set a lower bar. 

Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile. On the business operations front, the story remains untarnished.

Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds.

The broker has retained its buy recommendation on PME shares and reduced its price target to $210. 

From today’s opening price of around $148.74, this new price target indicates an upside potential of 41%. 

The post Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares? appeared first on The Motley Fool Australia.

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• Down 38% this year, is it finally time to buy low on CSL, ResMed and Pro Medicus shares?

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

Gold miner St Barbara Ltd (ASX: SBM) says it will boost its gold production to 200,000 ounces per year by 2030, representing a compound annual growth rate of 59%.

The company expects to produce 48,000 ounces of gold in 2027, with production growing strongly from then on.

Company is cashed up

St Barbara added that it is fully-funded to meet the upcoming capital requirements of its growth projects, using cash on hand and expected cash flow from the Touqouy project restart and then the New Simberi Gold Project.

The Touquoy restart is expected to cost the company US$6 million in the first half of FY27 the company said, while New Simberi in Papua New Guinea would cost US$108 million over FY27-28.

The company’s 15 Mile processing hub was then expected to cost US$201 million in FY29.

The company said in its statement to the ASX:

The production outlook combines the most recently approved Initial Life of Mine Plan for the New Simberi Gold Project which was completed concurrently with the Final Investment Decision (FID) (announced on 2 April 2026), the Pre-Feasibility Study on 15-Mile Processing Hub Project released on 21 January 2026 and the Touquoy Restart released on 13 April 2026. St Barbara anticipates attributable production rising at a compound annual growth rate (CAGR) of 59% from 48 koz in FY27 to 191 koz in FY30.

Hitting milestones

St Barbara Managing Director Andrew Strelein said regarding the forecast:

St Barbara’s recent breakthroughs with the Mining Lease Extension and now FID on the New Simberi Gold Project, the permitting of the Touquoy Restart and the impressive results of the 15-Mile Processing Hub Project Pre-Feasibility Study set up the Company for an attractive gold production CAGR of 59% lifting attributable production to over 190koz in FY30 and more than 200koz in FY31. The Lingbao transaction ensures the Company is fully funded for development of these projects based on existing cash of more than A$500 million and cashflow from remnant Simberi oxides and the Touquoy Restart. This has been an incredible effort by the entire team with support from our partners and the relationships established with regulators in each jurisdiction through perseverance and ongoing engagement.

The Lingbao transaction refers to the deal finalised on April 2 under which Lingbao Gold Group paid St Barbara $389 million for a 40% stake in the New Simberi project.

St Barbara shares were 0.7% lower at 68 cents on Monday morning.

The company is valued at $829 million.

The post This ASX gold company has revealed a major boost to production over the next 4 years appeared first on The Motley Fool Australia.

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• Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today
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• This beaten-down ASX gold stock just cleared a major hurdle. So why are investors selling?
• Guess which newly minted ASX 300 gold stock is lifting off today on $500 million news
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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.

BHP Group Ltd (ASX: BHP) and Coles Group Ltd (ASX: COL) shares are among the most popular investments on the local market.

But are they buys, holds, or sells right now? Let’s see what analysts are saying about them this week, courtesy of The Bull.

Here’s what they are recommending:

BHP shares

The team at Red Leaf Securities has named mining giant BHP as a hold this week.

Although it is positive on its long-term outlook, it believes that BHP shares are fair valued at current levels and are likely to remain in a holding pattern until clearer commodity drivers emerge.

Commenting on the Big Australian, Red Leaf said:

BHP is one of the world’s largest diversified miners, with high quality assets in iron ore, copper and energy minerals. The company generates strong cash flows and dividends, benefiting from its scale and operational efficiency.

However, BHP’s performance is closely tied to volatile commodity cycles, particularly iron ore prices and global demand, which can cap near term valuation expansion. While long-term fundamentals in key metals remain robust, with electrification and decarbonisation trends supporting copper demand, the stock is fairly priced and may trade sideways until clearer commodity drivers emerge.

Coles shares

The team at Catapult Wealth is feeling positive on supermarket giant Coles and has named its shares as a buy this week.

It was pleased with the company’s performance in the first half of FY 2026. And while its liquor business is underperforming, it isn’t a major part of Coles’ earnings, so the overall impact is somewhat limited.

In light of this and its defensive qualities, Catapult Wealth thinks that now could be a good time to buy Coles shares. It explains:

The supermarket giant posted a solid first half result in fiscal year 2026, maintaining margins and delivering earnings before interest and tax growth of 10.2 per cent. The liquor business struggled, but it only makes up a small percentage of group revenue, so its overall impact is limited. Coles has continued to grow its share of own-brand sales, leverage its quality locations into home delivery and online sales growth and expand locations to capture population growth.

The Middle East conflict and its inflationary impacts may be a short term disruption, but an inflationary environment is somewhat cushioned for supermarkets, particularly compared to more discretionary sectors.

The post BHP vs Coles shares: Which is the better buy this week? appeared first on The Motley Fool Australia.

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• Is the Coles share price an opportunity too good to pass up?
• This ASX shares and ETF mix could be the key to early retirement
• Are BHP shares a strong buy this month?
• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• This ASX copper stock could be cheap compared to BHP and Rio Tinto shares

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

Owning Wesfarmers Ltd (ASX: WES) shares could be a smart buy for passive income because of their resilience and regular dividend growth.

Its businesses include Bunnings, Kmart, Officeworks and Priceline, which are all trying to provide good value products for customers and gain market share. Its chemicals, energy and fertiliser (WesCEF) business gives it pleasing avenues for earnings diversification.

One of Wesfarmers’ goals is to increase its dividend alongside the level of profit growth that it achieves, so its regular profit growth is helpful for pushing the payouts higher.

Let’s take a look at what the passive income potential of the business is and what it would take to create $1,000 of annual passive income.

Projected dividend payout

We can’t know for sure what the upcoming dividend payment from the business will be. Even Wesfarmers’ board of directors may not know what they’re going to do because there’s a lot of uncertainty surrounding inflation and interest rates, due to the uncertainty in the Middle East and fuel costs/availability.

According to the projection on Commsec, Wesfarmers is forecast to pay an annual dividend per share of $2.16 in FY26.

At the time of writing, that translates into a dividend yield of 3% excluding franking credits and 4.2% including franking credits.

While that’s not the biggest yield or fastest dividend growth, I think both aspects of the expected dividend payment are pleasing for investors seeking passive income.

Generating $1,000 of annual passive income

Share prices are rapidly changing amid the Middle East volatility, which is changing what dividend yield investors may get.

But, at the time of writing, an investor would need to buy 462 Wesfarmers shares to receive that level of income (if we’re not including the franking credits as part of the annual passive income goal). This would require an investment of approximately $33,650.

Is this a good time to buy Wesfarmers shares?

I think Wesfarmers shares are one of the best options for blue-chip investing on the ASX with the incredible strength of Kmart and Bunnings and its efforts to expand the business portfolio into new areas (like healthcare and lithium mining).

According to CMC Invest, of eight recent ratings on the business, only one was a buy, with four holds and three sells. The average price target is $78.51, which suggests a possible rise of around 8% over the next 12 months.

So, it doesn’t seem cheap, but it could still produce good returns. However, there may be better value investments elsewhere.

The post How many Wesfarmers shares do I need to buy for $1,000 of annual passive income? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares raising dividends like clockwork
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• Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today

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

Viva Energy Group Ltd (ASX: VEA) shares are back on the boards on Monday after a short trading pause last week.

The stock was placed on ice before market open on Thursday, with trading resuming today following a fresh update.

Investors have not reacted well. In early morning trade, the Viva share price is down 5.93% to $2.38.

The move follows a strong run into April, with the stock having pushed higher in recent weeks before the halt was called.

Refinery incident forces production reset

The update centres on an incident at the Geelong refinery, where a fire broke out within part of the gasoline production system last week.

Emergency services were called, and all personnel were accounted for. The fire was contained and later extinguished.

The issue occurred in the Alkylation Unit, which sits within the gasoline complex. While other major processing units were not affected, one key unit remains offline as operations stabilise.

That has led to a temporary drop in output.

In the near-term, the refinery is expected to run diesel and jet fuel production at around 80% capacity, while petrol output is closer to 60%.

Management expects production to recover over the coming weeks, with a return to above 90% capacity flagged, subject to inspections and repair timelines.

Supply holding steady despite disruption

Despite the reduction in output, the company has indicated that fuel supply to customers is expected to remain stable.

Existing inventory levels are being used to cover the shortfall, and there has been no change to broader supply flows into the refinery.

Crude sourcing also remains unchanged. The refinery does not rely heavily on Middle Eastern supply, instead drawing from regions including North and South America, South-East Asia, and Australia.

The company said it has firm crude supply in place through to July, with confidence that deliveries will continue without interruption.

Strong margins meet short-term disruption

The timing of the incident comes after a period of strong operating conditions.

In its quarterly update, Viva reported that the Geelong refinery processed around 10.2 million barrels of crude during the March quarter.

Refining margins were also elevated, with the Geelong Refining Margin sitting at US$22 per barrel for the period.

That reflects a supportive regional environment for refined fuel products, which has been a key driver of earnings across the sector.

But momentum now faces a short-term hit, with output expected to stay below normal levels.

Foolish takeaway

While this looks like a near-term operational setback, it does not point to any broader change in the business.

Refinery issues can take longer to resolve than first expected, and the share price is reflecting that quickly.

Personally, I would watch from the sidelines here.

There is still some uncertainty around timing, and the share price has already had a solid run leading into this.

The post Viva shares drop out of halt as refinery disruption raises new questions appeared first on The Motley Fool Australia.

More reading

• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
• Viva Energy Group issues update on Geelong Refinery after fire
• Why Ampol shares just hit a multi-year high as Australia’s fuel squeeze deepens
• Why is everyone talking about New Hope, PLS and Viva Energy shares on Thursday?
• Viva Energy shares frozen as overnight refinery fire puts fuel markets on edge

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 S&P/ASX 300 Index (ASX: XKO) energy stock Amplitude Energy Ltd (ASX: AEL) is slipping today.

Amplitude Energy shares closed on Friday trading for $1.745. In early morning trade on Monday, shares are changing hands for $1.73 apiece, down 0.9%.

For some context, the ASX 300 is down 0.5% at this same time.

This follows the release of Amplitude Energy’s third-quarter update (Q3 FY 2026).

Here’s what we know.

ASX 300 energy stock dips despite record revenue

Over the three months to 31 March, Amplitude Energy reported quarterly production of 6.86 petajoules equivalent (PJe), up 12% year on year. And FY 2026 year-to-date production of 20.75 PJe is up 6% from the first three quarters of FY 2025.

The ASX 300 energy stock achieved record quarterly revenue of $74.1 million, up 17% year on year. That was spurred by a record quarterly average realised gas price of $10.74 per gigajoule (GJ), up 4% from the prior quarter.

Q3 also saw Amplitude engage in successful production trials at its Orbost Gas Processing Plant, located in Victoria. The company noted that Orbost produced above prior nameplate capacity and set new records. Those included a seven-day average production rate of 71.0 terajoules per day, and a 30-day average rate of 70.2 TJ/d.

In other major project news, the ASX 300 energy stock said that Front-End Engineering Design (FEED) for the East Coast Supply Project (ECSP) subsea development phase is complete. The company highlighted that the project remains on budget and is scheduled to achieve first gas by calendar year 2028.

Amplitude Energy ended the quarter with cash and cash equivalents of $96 million, up 70% from Q3 FY 2025.

What did Amplitude Energy management say?

Commenting on the results that have yet to lift the ASX 300 energy stock today, Amplitude CEO Jane Norman said, “Amplitude Energy continued its strong operational and financial momentum in Q3 FY26.”

Norman added:

Orbost has demonstrated the ability to run at levels above 70 TJ/day and set new production records during the quarter. Pleasingly, group production is already tracking towards the upper end of our recently-upgraded guidance of 73-77 TJe/day with strong potential for further improvement into the end of FY26.

As for the recent exploration setbacks at the company’s Otway Basin project, Norman noted:

In the Otway Basin, whilst the exploration results were disappointing at our first ECSP well, we remain excited about the remainder of the program. With Annie as a discovered resource, existing infrastructure already in place and high-probability exploration targets still to drill, the ECSP remains a very attractive project.

The post ASX 300 energy stock slips despite record quarterly revenue and gas prices appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 300 energy stock is surging today on big AGL news
• Down 40% last week, are Amplitude Energy shares now a buy?
• Why this sold-off ASX energy stock could rise 60%+

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.

Artificial intelligence (AI) is moving from theory to real-world impact at great speed.

It is no longer just about research labs and future potential. AI is being deployed across cloud platforms, consumer apps, logistics, and even transportation. For investors, that creates a wide range of opportunities, but also a challenge in knowing where to look.

The good news is that ASX exchange traded funds (ETFs) can simplify that decision.

Here are three exciting ETFs that offer different ways to gain exposure to the AI boom.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The first ETF to consider is the BetaShares Global Robotics and Artificial Intelligence ETF.

This fund focuses on companies applying AI in practical, measurable ways. It includes businesses involved in automation, robotics, and advanced systems that are already transforming industries.

Key holdings include NVIDIA (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and Keyence Corporation.

The appeal here is tangible impact. These companies are using AI to improve productivity, streamline operations, and reshape sectors like healthcare and manufacturing. This fund was recently recommended by analysts at BetaShares.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that offers investors powerful AI exposure is the BetaShares Nasdaq 100 ETF.

This very popular fund captures many of the global leaders that are driving AI development. These companies are investing heavily in infrastructure, data centres, and software platforms that underpin the AI ecosystem.

Its holdings include Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Alphabet (NASDAQ: GOOGL).

What makes this ETF stand out is its scale. These are the businesses building and monetising AI at a global level, from cloud computing to enterprise software.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

A third ASX ETF that adds a different AI dimension is the BetaShares Asia Technology Tigers ETF.

This fund provides investors with exposure to major Asian technology companies, many of which are advancing AI in their own ecosystems.

This includes Alibaba Group (NYSE: BABA), which is developing its Qwen large language models and expanding its AI Cloud capabilities. It also includes Baidu (NASDAQ: BIDU), which is a leader in China’s AI landscape with its Ernie large language models.

Baidu is also pushing AI into real-world applications through services like Apollo Go, its autonomous robotaxi platform, which is already operating in multiple cities.

These companies are approaching AI from a different angle, integrating it into platforms used by hundreds of millions of people. This arguably creates a distinct growth pathway compared to Western markets. This fund was also recently recommended by the team at BetaShares.

The post Buy these exciting ASX ETFs for AI exposure appeared first on The Motley Fool Australia.

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• Looking for ASX ETFs to buy and hold? Here are 3 top picks
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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Baidu, BetaShares Nasdaq 100 ETF, Intuitive Surgical, Microsoft, Nvidia, and Tesla and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lindian Resources Ltd (ASX: LIN) shares are easing back to start the week.

The stock is down 2.63% to 92.5 cents in early trade on Monday, after hitting an all-time high of 96.5 cents on Friday.

Despite the dip, the shares are still up around 125% in 2026.

Momentum has been building steadily over recent months, but today’s move follows a new update released before the market opened.

Here’s what investors are reacting to.

Fuel deal locks in cost certainty

Lindian announced it has secured a 12-month fixed-price diesel supply agreement for its Kangankunde rare earths project in Malawi.

The deal covers 500,000 litres of diesel at a fixed price of US$2.83 per litre, with supply arranged through local distributor Petroda.

The structure is split into staged deliveries across construction and commissioning, helping manage on-site storage while ensuring continuity of supply.

This removes exposure to fuel price swings during a critical phase of development. With diesel a key input for mining and construction activity, locking in pricing gives better visibility on near-term costs.

Management framed the agreement as a step toward reducing uncertainty as the project moves closer to first production.

Construction timeline remains on track

The update also pointed to steady progress at Kangankunde, with construction continuing in line with schedule.

Fuel supply and power infrastructure are now in place to support the remaining build phase and commissioning process. The project is expected to transition through to initial production without disruption from energy inputs.

Lindian noted that grid power is available via Malawi’s existing infrastructure, supported by a modest 3MW requirement. This reduces reliance on dedicated on-site generation and limits ongoing fuel demand once operations ramp up.

A straightforward setup should make costs easier to manage as production begins.

Funding position supports next phase

The company recently completed a $100 million institutional placement, which has shifted focus toward execution.

Those funds are expected to carry the project through stage one development and into early production. It also allows Lindian to progress planning around downstream processing options tied to its rare earths strategy.

With funding secured and key inputs like fuel now locked in, the path to production is becoming clearer.

And that is starting to show up in the share price as investors look ahead to first production.

Foolish Takeaway

The project is still early in its life, but steps like locking in fuel and confirming infrastructure take some of the guesswork out of the build phase.

After a run like this, the stock will likely stay sensitive to updates.

Personally, I’d be cautious chasing it at these levels. The project is progressing, but a lot of that progress is now reflected in the price.

The post This ASX stock just pulled back after a record high. Here’s why appeared first on The Motley Fool Australia.

More reading

• 3 ASX small-cap shares this fund manager expects to outperform
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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.

National Australia Bank Ltd (ASX: NAB) shares are on the slide on Monday morning.

At the time of writing, the big four bank’s shares are down 4% to $40.73.

This compares to the S&P/ASX 200 Index (ASX: XJO), which is down 0.4% in early trade.

Why are NAB shares sinking?

This morning, NAB revealed that it has reviewed its credit provisioning and capital settings to better reflect the risks in the market caused by the conflict in the Middle East.

According to the release, this has seen NAB increase its forward-looking collective provisions and announce plans to apply a discount and partial underwrite its dividend reinvestment plan (DRP).

NAB has also made changes to its software capitalisation policy to more closely align to an environment of rapid technological change.

Credit impairment charges

NAB expects first-half credit impairment charges to be $706 million.

This includes $300 million related to the following movements in forward looking collective provisions:

• $152 million increase in the Economic Adjustment reflecting updates to the Base economic forecast and a 2.5% increase in the weighting to the Australian Downside economic scenario to 45%.
• $201 million increase in Forward Looking Adjustments (FLAs) for potential stress which may emerge in sectors more likely to be impacted by fuel supply and cost issues related to the Middle East conflict.
• $53 million release in FLAs where the expected risk has either not eventuated or is now reflected in underlying provisioning.

The ratio of collective provisions to credit risk weighted assets is expected to be 1.35% at March 2026. This is up from 1.31% at December 2025.

Underlying provision charges are expected to be $406 million, which is reflective of Individual Assessed provision charges of $541 million, partially offset by portfolio movements, which NAB advised have driven a $135 million write-back of the underlying collective provision.

DRP update

Interest rate volatility and the weakening of the New Zealand Dollar in the second quarter, together with the $300 million net increase in forward looking collective provisions, has reduced NAB’s Common Equity Tier 1 (CET1) ratio by approximately 20 basis points.

Furthermore, NAB’s credit risk-weighted assets at 31 March 2026 were impacted by a $4.2 billion overlay which applied to NAB’s internally rated credit models to reflect updates to certain probability of default models.

In light of this and ongoing uncertainty, NAB revealed that it is taking action to strengthen its capital position and balance sheet resilience. This will see the bank apply a 1.5% discount to the half-year DRP and partially underwrite it.

The combination of these actions is expected to raise up to $1.8 billion and contribute up to approximately 40 basis points to its CET1 ratio in the second half.

The post Why are NAB shares sinking 4% on Monday? appeared first on The Motley Fool Australia.

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