Tag: Stock pick

CSL Ltd (ASX: CSL) shares are enjoying a welcome day of outperformance today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant closed yesterday trading for $112.88. In morning trade on Tuesday, shares are changing hands for $113.38, up 0.4%.

For some context, the ASX 200 is down 0.1% at this same time.

I mention today’s outperformance as ‘welcome’ because, longer term, the ASX healthcare share has been having a tough time of it.

How tough?

Well, despite today’s uptick, shares remain down a steep 52.9% over the past 12 months. A capital loss that will have only been very modestly eased by the two unfranked dividends the company paid out to eligible stockholders over the last year.

CSL shares trade on a 3.8% unfranked trailing dividend yield.

And if Peak Asset Management’s Niv Dagan has it right, the Aussie biotech company isn’t out of the woods just yet (courtesy of The Bull).

Here’s why.

Time to sell CSL shares?

“A sell rating is justified as this biotechnology giant has materially downgraded its fiscal year 2026 outlook while announcing about $5 billion of additional non-cash pre-tax impairments across fiscal years 2026 and 2027,” Dagan noted.

“Revenue expectations have been reduced due to US immunoglobulin channel normalisation and weaker albumin prices in China,” he added.

Summarising his other potential headwinds facing CSL shares, Dagan concluded:

The CSL Vifor acquisition has under-performed. Also, government healthcare cost pressures and a higher interest rate environment present ongoing challenges for the biotechnology sector, further weighing on sentiment.

What did the ASX 200 healthcare share report?

CSL shares closed down a precipitous 16% on 11 May, the day the company reported on the downgraded FY 2026 outlook Dagan mentioned above.

Investors were overheating their sell buttons after the company cut its FY 2026 revenue guidance to around $15.2 billion, in constant currency. That would represent a 2.5% decline from FY 2025 revenue.

CSL also reduced its full-year net profit after tax and amortisation (NPATA) forecast to approximately $3.1 billion. That’s down 6% from the prior year.

Commenting on the revised forecasts on the day, CSL managing director and CEO Gordon Naylor said, “Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise.”

Naylor added:

As a result, we have now revised down our 2026 financial year guidance.

CSL’s culture and people continue to be first class, the industry is stable and growing, and the company has evident strengths in plasma collections and influenza vaccines. I am confident that the company can be returned to profitable growth and my work is to position the business and the next CEO for success.

The post Down 53%, is it time to throw in the towel on CSL shares? appeared first on The Motley Fool Australia.

More reading

• Should I buy CSL and ResMed shares right now?
• 3 reasons why experts think CSL shares are a sell
• 3 ASX healthcare shares to sell despite signs of sector rebound
• Buy, hold, sell: Life360, Woodside, CSL shares
• Why CSL, Westpac, and this big-name ASX 200 share could be sells

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

WiseTech Global Ltd (ASX: WTC) shares have rebounded strongly in early morning trade on Tuesday.

At the time of writing, WiseTech shares are up over 5% and changing hands for $31.60 a piece.

It’s good news for investors after the stock crashed around 18% to a five-year low on Monday.

It’s been a steep and sustained share price crash for WiseTech shares, driven mostly by a tech-sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

Even after today’s increase, WiseTech shares are still down around 54% for the year to date. They’re also over 70% lower than this time last year.

What happened to WiseTech shares this week?

WiseTech shares fell sharply on Monday after media reports that the Australian Federal Police is investigating founder Richard White over alleged trafficking matters. The matters relate to a former cleaner at WiseTech.

It has been claimed that White exploited a former cleaner’s immigration status and financial position and provided false information on a visa application. 

Investors reacted quickly and rushed to the exits.

Why is the share price climbing higher again today?

In a note to the ASX ahead of the market open this morning, WiseTech has responded to the media reports.

WiseTech said that it notes there was media commentary yesterday alleging an investigation into Richard White, reportedly relating to a visa application. The company said:

The media reports that the alleged investigation relates to Richard White in a personal capacity. There is no suggestion in this media commentary of an investigation into WiseTech.

The Company is not aware of any investigation as outlined in the article. The Executive Chair has provided assurance to the Board that he is not aware of any such investigation and also confirmed that he emphatically and unequivocally denies any involvement in or with human trafficking.

The Company will keep the market updated in accordance with its continuous disclosure obligations.

It looks like the update has helped put investors at ease, and many are buying back into the technology company’s shares this morning.

Should investors buy in the dip or stay clear of WiseTech shares?

The outlook for WiseTech shares is largely unchanged at the time of writing. Brokers and analysts are still very bullish on where we’ll see the share price travel from here.

Market Index shows that the majority of brokers (six out of seven) are very bullish on the ASX tech stock and hold a strong buy rating. The average $72.39 target price implies a potential 130% upside over the next 12 months, at the time of writing.

TradingView data shows something similar. Out of 14 analysts, 11 have a buy or strong buy rating on WiseTech shares. Another three have a hold rating. 

Their average target price is a little lower, at $67.17, but that still implies a potential 113% upside, at the time of writing. The more bullish analysts are tipping an enormous 280% upside to a maximum target price of $119.62.

It looks like it’s time for investors to snap up the shares while they’re at a rock-bottom price.

The post WiseTech shares rebound 5%, responds to media reports: Is it time for investors to buy back in? appeared first on The Motley Fool Australia.

More reading

• WiseTech shares just crashed. Can investors look past the company’s governance issues?
• Why Humm, Metcash, PLS, and WiseTech shares are sinking today
• WiseTech shares crash 12% as founder scandal deepens
• Down but not out: 3 ASX tech shares ripe for a rebound
• Is the only way up for WiseTech shares after a 65% fall?

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

The Ioneer Ltd (ASX: INR) share price is having a strong day on Tuesday.

In morning trade, the ASX lithium share is up 25% to 17.5 cents.

Why is this ASX lithium share jumping?

Investors have been scrambling to buy the company’s shares today after it released a big update on its Rhyolite Ridge Lithium-Boron Project.

According to the release, the company has entered into strategic non-binding letters of intent (LOI) with the Korea Overseas Infrastructure & Urban Development Corporation and Hyundai Engineering Co.

The former is the Republic of Korea’s specialised public institution mandated by the Ministry of Land, Infrastructure and Transport (MOLIT) to facilitate and invest in overseas infrastructure and public-private partnership projects.

The latter is a leading Korean and international engineering, procurement, and construction company.

The LOI will see the parties work together to advance the development of the Rhyolite Ridge Lithium-Boron Project.

The ASX lithium share believes the project holds significant strategic value for both the Republic of Korea and the United States.

It notes that Rhyolite Ridge hosts the only known lithium-boron reserve in North America, one of two globally, and the only project of its kind in active development.

The parties intend to formalise their cooperation through the execution of Memorandums of Understanding, which are expected in July 2026.

Rhyolite Ridge Project

Ioneer reiterated that it is targeting a final investment decision for the second half of 2026, with first commercial production expected in 2029.

Once operational, Rhyolite Ridge will process ore into final products entirely on-site with annual lithium hydroxide and annual boric acid production of 27,800 tonnes per annum (tpa) and 135,500 tpa, respectively.

Commenting on the news, Ioneer’s managing director, Bernard Rowe, said:

Rhyolite Ridge has been a decade in the making — through ongoing partnerships, permitting, and financing. Working with trusted Korean partners with a track record of on-time and on-budget delivery brings us closer to breaking ground and delivering urgently needed lithium and boron.

We’re delighted to work with KIND and Hyundai Engineering and look forward to what we’ll accomplish together.

KIND’s director of plant business division, Chris Soeung Kim, spoke positively about the agreement, adding:

KIND, as a specialized PPP investment institution under the MOLIT, has been actively advancing investments in U.S. energy, infrastructure, and critical minerals projects. We view this project as a major milestone that will further strengthen bilateral cooperation and deepen the strategic partnership between the Republic of Korea and the United States.

The post Guess which ASX lithium share is jumping 15% on big news appeared first on The Motley Fool Australia.

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• Down 53%, is it time to throw in the towel on CSL 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 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.

Broker Shaw and Partners has recently initiated coverage of ASX resources company BCI Minerals Ltd (ASX: BCI) and believes the company could more than double in value.

Major resources project nearing completion

BCI, the Shaw team says, is on the cusp of becoming Australia’s largest solar salt operation and the third largest globally via its 100%-owned Mardie Salt and Potash Project on the Pilbara coast.

In its most recent update for the March quarter, BCI said that overall construction of the Mardie project was 81% complete.

The company is expecting its first salt harvest in the coming months, with the first harvest washed and stockpiled towards the end of the year.

As of March 31, the company had invested $1.37 billion in the project, compared to its then market capitalisation of $1.1 billion, and it had liquidity of $522 million, which was about 1.6 times its further anticipated construction costs.

The company was forecasting positive operating cash flow from FY28.

Shaw and Partners said the project was progressing well.

The Mardie Project uses seawater pumped into nine sequential evaporation ponds across 115sq km of Pilbara mudflats, 80km south of Karratha. Solar and wind evaporation concentrate brine to produce 5.35mtpa of high-purity industrial salt. Residual bitterns feed a secondary potash process targeting 140ktpa of Sulphate of Potash, a premium, chloride-free fertiliser used on high-value crops.  A significant milestone was reached in March 2026 when Pond 9 hit operational brine density, marking the transition from construction project to operating asset. Two tropical cyclones temporarily diluted pond densities earlier this year, but BCI reported no material infrastructure damage. We model first salt sales from early CY27.

The Shaw and Partners analysts said the most difficult elements of the project were now complete, which were approvals, pond construction, jetty commissioning, and project finance.

Shares looking cheap

They said the company was undervalued at the current share price.

They said:

With a market cap below the replacement cost of already-built infrastructure, BCI shares are too cheap for a project with a 60yr mine life, binding customer agreements covering 62% of initial output, and infrastructure-scale cash flows approaching.

The Shaw and Partners team said BCI’s high purity product was exactly what customers were after, and the primary risk from here on in was execution.

They said:

Further delays to First Salt on Ship or a disappointing production ramp-up in FY27 would erode confidence in the Project. A sustained period of weak industrial salt prices, or underperformance at the SOP pilot, could also reduce long-term earnings upside.

Shaw and Partners has a price target of 75 cents on BCI shares compared to 37 cents currently.

BCI is valued at $1.07 billion.

The post This billion-dollar ASX resources company is tipped to jump more than 100% appeared first on The Motley Fool Australia.

More reading

• 3 companies to own for a dividend yield above 5%
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• Buy, hold, sell: Charter Hall, Northern Star, Cochlear shares
• Down 53%, is it time to throw in the towel on CSL shares?

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.

A big restructuring plan has not been enough to stop one S&P/ASX 200 Index (ASX: XJO) stock from falling on Tuesday.

Reliance Worldwide Corporation Ltd (ASX: RWC) is in focus after the company announced another round of operational changes.

At the time of writing, the Reliance share price is down 4.36% to $3.51.

The plumbing products company has still gained around 12% over the past month, but it remains about 15% lower than this time last year.

Here’s what was in the update.

Reliance closing brass sites

In a statement to the ASX, Reliance said it plans to close its brass casting, forging, and machining operations in Moorabbin and Braeside, Melbourne.

It will also shut several smaller sites as part of a wider move to make its manufacturing operations more efficient.

Reliance said the closures follow a sustained fall in brass production volumes at its Melbourne facilities in recent years. As such, the company no longer sees enough value in keeping those sites running.

Management said the changes are expected to start supporting earnings from FY27.

However, the move will affect around 85 employees in Australia. The company has started consulting with those workers and expects that process to finish in July 2026.

Why is brass demand falling?

Reliance pointed to a few reasons why its brass volumes have been falling.

In the US, the company has invested in its Alabama facility to automate the assembly of its SharkBite Max brass push-to-connect fittings.

SharkBite Max has also been redesigned so it uses less brass. According to the company, that has reduced the amount of brass needed per fitting by about 20%.

Reliance is also moving some of its APAC SharkBite production out of Melbourne and to third-party suppliers in Asia.

On top of this, the company expects brass demand to fall further as it keeps replacing brass with stainless steel across some of its key product ranges.

What will it cost?

The changes will come with a fairly large hit in the short term.

Reliance expects to record a one-off net charge of between US$100 million and US$110 million in FY26. This will be left out of operating earnings.

The charge includes about US$5 million for redundancy and property exit costs, around US$25 million in net asset write-downs, and a US$70 million to US$80 million impairment of intangible assets.

However, most of that isn’t a cash cost. Reliance said only about US$5 million is expected to be cash, with the rest being non-cash.

From FY27, the company expects more production to shift away from the APAC region. That is expected to reduce APAC revenue by about US$38 million compared with FY25, but improve APAC operating earnings by about US$9 million.

Across the group, Reliance expects the changes to lift annual EBITDA by about US$9 million by the end of FY27. Once all the benefits are flowing through, the total annual uplift could reach around US$15 million.

The post This ASX 200 stock just dropped 4% after revealing a big business reset appeared first on The Motley Fool Australia.

More reading

• Reliance Worldwide closes Australian brass sites
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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.

REA Group Ltd (ASX: REA) shares have fallen further into the red in Tuesday morning trade.

At the time of writing, the shares are down around another 2% and are changing hands for $133.12 a piece.

Today’s drop is the latest of a long string of share price declines. 

In fact, REA shares have suffered a gradual but relentless downturn since the company announced the appointment of a new CEO in August last year. 

REA shares dropped from above $260 in August 2025 to around the $150-range by March 2026. And now they tumbled even further.

The shares are now down around 28% year to date and roughly 43% lower than this time last year.

What has happened to REA shares?

REA was previously one of the more expensive stocks on the ASX. It was supported by strong profits, its dominant position in online property listings, and a robust property market.

Investors were expecting years of strong growth. But indications that the Reserve Bank would begin another interest rate hike cycle in late 2025 saw many investors shy away from the high-growth property share. 

Rising rates, softer lending demand, and concerns about tax changes affecting property investors have led the market to forecast weaker house prices and transaction volumes. 

Given REA earns a significant portion of its revenue from property advertising, analysts and investors are concerned that a weaker housing market will translate to fewer homes for sale and therefore a lower advertising spend. This directly affects REA’s bottom line.

The company’s latest financial results haven’t helped either.

REA reported robust second-quarter FY26 results in early February. But the figures came in short of market expectations, and investors were spooked. 

The company’s third-quarter results update in early May was a little more optimistic. But the small share price uptick was short-lived and quickly followed by huge losses.

Is there any chance of a rebound ahead?

Analysts are divided on their outlook for REA shares, but it looks like they mostly agree we’ll see some upside ahead.

Market Index data shows that the majority have a hold rating on REA shares. But after the latest share price slump, the average $181.20 target price now implies an upside of around 36%, at the time of writing.

Over on TradingView data, analysts are a little more positive. The majority (nine out of 16) have a buy or strong buy rating. Another six rate the stock as a hold. 

The average $198.12 target price implies a potential 48% upside over the next 12 months, at the time of writing. However, some are tipping the share price to rocket another 86% to $249 a piece. 

The post REA shares fall 43% to a three-year low. Is it time to buy? appeared first on The Motley Fool Australia.

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

Woolworths Group Ltd (ASX: WOW) shares have climbed around another 0.2% to a three-year high of $38.60 on Tuesday morning.

At the time of writing, the shares are up a huge 31% year to date. They’re also around 23% higher than 12 months ago.

It’s been a bumpy ride for the ASX supermarket giant’s shares over the past 12 months, with its share price jumping anywhere between $25.51 and $38.55 a piece. 

While the volatility has continued throughout the first six months of 2026, the shares have been generally trending higher.

The latest dip came about after Woolworths posted its third-quarter sales update in late April. For the 13 weeks to the 5th of April, the supermarket major reported total sales of $18.1 billion, up 4.5% from Q3 in FY25. Its Australian Food sales were up 5.9% year on year to $13.8 billion. 

The company said that underlying trading momentum remained solid, but management noted they have seen “some signs of increased customer caution”.

Investors were spooked and quickly offloaded their shares.

But the stock was quickly considered oversold and undervalued, and investors started buying back in. Over the past five weeks alone, Woolworths shares have rebounded nearly 19%.

Why is everyone snapping up Woolworths shares again?

There hasn’t been any price-sensitive news out of Woolworths since its third-quarter sales result in late April, but the retail giant has hit headlines recently.

Two weeks ago, the AFR reported that Woolworths has outlined plans to offshore hundreds of corporate roles as part of a $400 million office cost reduction push. 

The corporate jobs include staff in financial, human resources, and IT. It comes as part of the company’s plan to simplify operations and reduce costs to maintain its competitive advantage.

A Woolworths spokesperson confirmed the outsourcing but declined to say how many workers would be affected. The corporate office employs almost 10,000 staff.

It looks like investors were pleased with the news. The Woolworths share price ended the day in the green and has climbed higher since.

The update comes on the back of the company’s better-than-expected first-half profit result, an upgraded outlook, and progress on its cost-savings plans.

The question now is, can confidence keep building further?

Are Woolworths shares a buy, sell, or hold now?

Analysts are divided about the outlook for Woolworths shares over the next 12 months.

Market Index data shows that the majority of brokers have a hold rating, but the $35.46 average target price implies a potential 8% downside at the time of writing.

TradingView data shows something very similar. The majority of analysts have a hold rating on the supermarket stock. The average $35.02 target price also implies a 9% downside at the time of writing. Even the maximum $39 target price only implies a minor 1% upside after the latest price rally.

The post Woolworths shares soar to new multi-year high: Buy, sell or hold? appeared first on The Motley Fool Australia.

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• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?
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• Buy, hold, sell: Coles, Telstra, Wesfarmers, and Woolworths shares

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

S&P/ASX 200 Index (ASX: XJO) gold stock Catalyst Metals Ltd (ASX: CYL) is marching higher today.

Catalyst Metals shares closed yesterday trading for $6.10. In early morning trade on Tuesday, shares are changing hands for $6.32 apiece, up 3.6%.

For some context, the ASX 200 is up 0.1% at this same time.

Among the tailwinds helping lift the miner today is the overnight uptick in the gold price. Currently trading for US$4,191 per ounce, the gold price is up 1.2% since this time yesterday (according to data from Bloomberg).

Here’s what else is grabbing investor interest.

ASX 200 gold stock gains on resource boost

Catalyst Metals shares are marching higher after the miner released an updated mineral resource estimate (MRE) for its Trident underground gold deposit, located in Western Australia.

The ASX 200 gold stock is currently developing the Trident mine, where it recently completed an open pit to enable development of an underground portal.

Catalyst’s Trident underground will be the fourth mine to be developed on the Plutonic Belt. The other three are Plutonic East, Trident open pit, and K2.

When Catalyst acquired Trident in 2023 to complete a consolidation of the Plutonic Gold Belt, the project had a resource of 524,000 ounces at 3.6 grams of gold per tonne.

The miner noted that the resource now stands at 1.1 million ounces at 5.4g/t Au.

Promisingly, Catalyst said that the more tightly drilled indicated resources have increased by 20% from prior estimates to 633,000 ounces at 6.3g/t Au. The company expects this will underpin a roughly 10-year mine plan at an average run-rate of some 60,000 ounces per year.

The ASX 200 gold stock highlighted that Trident remains the second-largest deposit on the Plutonic Belt. The project is expected to form a second, higher grade base load ore source for the central Plutonic processing plant.

That’s all part of Catalyst’s plan to increase its annual gold production from 100,000 ounces to 200,000 ounces.

What did Catalyst Metals management say?

Commenting on the updated MRE that is helping lift the ASX 200 gold stock in early trade today, Catalyst Metals managing director & CEO James Champion de Crespigny said, “Our exploration team continues to have success across the belt, meaningfully growing Trident, Plutonic Main, Cinnamon, K2 and Old Highway. “

Champion de Crespigny added:

This 145% increase in Trident’s indicated resources, and achievement of this 1-million-ounce milestone, is a testament to their persistence.

A key focus now is on developing the Trident orebody. With the open pit completed, the successful development of the underground, and path to around 200,000 ounces, is becoming ever more likely.

Catalyst expects the first stoping ore from the underground mine in the first half of calendar year 2027.

The post Guess which ASX 200 gold stock is jumping today on a 20% resource boost appeared first on The Motley Fool Australia.

More reading

• 7 ASX gold stocks to buy now
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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

Iluka Resources Ltd (ASX: ILU) shares were trading higher after the company announced a major funding development as well as a new deal to supply rare earths to a global automotive company.

Project funding secured

The company said in a statement to the ASX that Export Finance Australia (EFA) had confirmed that Iluka would have full access to a $1.65 billion non-recourse loan to build its Eneabba rare earths refinery in Western Australia.

Iluka also said that Civmec Ltd (ASX: CVL) had been awarded the contract for the structural, mechanical, piping, electrical, and instrumentation works to complete the refinery’s construction.

The company said regarding the financing:

Iluka anticipates Tranche 1 of this funding, comprising $1.25 billion, will be fully drawn at the end of 2026, at which point the refinery is expected to be 75% complete. EFA has confirmed availability of the remaining $400m to complete Eneabba’s construction. Commissioning of the refinery is scheduled for mid 2027.

Regarding the offtake agreement, Iluka said it had struck a multi-year agreement to supply magnet rare earth oxides (neodymium, praseodymium, dysprosium, and terbium) to the global automotive company.

Iluka said further:

The offtake agreement is take-or-pay; commences in 2028 for an initial term of four years; and represents approximately 10% of Iluka’s planned production over that period, being 1,200t of magnet rare earth oxides (Nd, Pr, Dy and Tb). Offtake volumes are in line with the commissioning (2027) and ramp up timeline for the Eneabba refinery. The agreement sets pricing at the higher of minimum and market-linked prices for each product to balance the dual risks of downside price volatility and security of supply. Iluka’s minimum revenue over the contract period is US$155 million.3 Assuming industry forecast pricing, Iluka’s revenue over the contract period would be US$172 million.

Iluka said the identity of the automotive company was commercial in confidence.

Managing Director Tom O’Leary said the offtake agreement was a particularly important milestone for the company’s rare earths business.

He added:

Our first rare earths customer is a globally recognised automotive company and I am delighted that Iluka has been entrusted to deliver refined critical minerals as part of its supply chain. We look forward to a collaborative and successful partnership. Beyond being Iluka’s first, the agreement is significant in that it encompasses the full suite of light and heavy magnet rare earth oxides and contains minimum prices agreed between commercial parties that are independent of those backed by governments.

Mr O’Leary said the deal “demonstrates increasing recognition of Iluka’s position as a credible, vertically integrated supplier, with diverse feedstock sources spanning internal operations and third-parties. Discussions with other prospective customers are ongoing”.

Shares trading higher

Iluka shares were 2.2% higher at $8.31 in early trade. Civmec shares were steady at $1.98.

The post Which rare earths miner has locked in a $1.65 billion funding deal? appeared first on The Motley Fool Australia.

More reading

• Iluka Resources signs multi-year rare earths supply deal
• Here are the top 10 ASX 200 shares today

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 Rio Tinto Ltd (ASX: RIO) shares have been on fire over the past 12 months.

Thanks largely to their exposure to the booming copper price, the mining giants have hit record highs in recent weeks.

One ASX copper share that is nowhere near its high is Aeris Resources Ltd (ASX: AIS).

But it might not stay that way for long if Bell Potter is on the money with its recommendation.

What is the broker saying about this ASX copper share?

Bell Potter notes that Aeris Resources is close to completing its acquisition of Peel Mining Ltd (ASX: PEX). This will give it ownership of the Mallee Bull and Wirlong copper projects. It said:

The Scheme of Arrangement by which AIS has acquired 100% of Peel Mining (PEX, not rated) has become effective. The transaction gives AIS ownership of the Mallee Bull and Wirlong copper projects which contain a combined Resource of 10.6Mt @ 1.85% Cu for 197kt contained Cu. They sit within a ~150-200km trucking radius of Tritton. Combined with the current Resource at Tritton this is a total Resource of 29.5 Mt @ 1.73% Cu for 511kt contained Cu. Consideration is all scrip, comprising the issue of 300.0m shares to PEX shareholders and is expected to complete on 1 July 2026.

It sees a lot of positives from the deal, highlighting that it adds development optionality and derisks production. The broker explains:

The strategic rationale is to significantly increase AIS’ Cobar region resource base, materially extending the mine life at Tritton, adding development optionality and derisking production. The high-grade Mallee Bull deposit is the subject of a maiden Ore Reserve Estimate (ORE) to be released in 1QFY27 and contribute to an updated life-of-mine (LOM) plan for Tritton.

Additionally, we expect an updated ORE for the Constellation deposit, as well as Resource extensions at Avoca Tank and Budgerygar deposits where recent drilling has intersected ore-grade mineralisation significantly below the current Resource at Avoca Tank and thicker than expected mineralisation within in the Budgerygar Inferred Resource. These acquisitions and exploration successes are providing more visibility on mine life at Tritton than at any time since its initial development.

Major upside potential

According to the note, Bell Potter has retained its buy rating and 90 cents price target on the ASX copper share.

Based on its current share price of 40.2 cents, this implies potential upside of 120% for investors over the next 12 months.

Speaking about its investment thesis, the broker said:

We make no material changes to our valuation with this update. We continue to look to AIS’ quarterly production performance and updates on the development of the Constellation deposit at Tritton for key near-term catalysts. AIS is a copper-dominant producer, with its near-term outlook highly leveraged to the copper price and increasing production at Tritton.

Tritton is a strategic regional asset with corporate appeal and capacity to leverage value from stranded assets, in our view. With upside to our Target Price supported by growing free cash flow and low valuation multiples it remains a key pick for CY26. Our Target Price of $0.90/sh is unchanged and we maintain our Buy recommendation.

The post Forget BHP and Rio Tinto, this ASX copper share could rise 100%+ 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.