Tag: Stock pick

The Santos Ltd (ASX: STO) share price has tumbled in early morning trade on Thursday. At the time of writing the share price is down 1.3% to $7.63. 

But the decline has barely dented gains made this year. For the year-to-date Santos shares have stormed 24% higher and they’re up 39% from 12 months ago.

Rising oil prices have acted as a strong tailwind for Santos shares so far in 2026. Conflict in the Middle East has severely restricted global oil supply causing oil prices to become incredibly volatile. 

Trading Economics data shows that earlier this month the price of WTI crude oil surpassed the US$115 mark. While it has dropped back to just over US$91 per barrel at the time of writing, it is still nearly double its value earlier in the year.

Ongoing conflict in the Middle East, tighter oil supply and higher prices could continue to act as a tailwind for Santos going forward. But the situation is incredibly unstable and it’s not clear how it will progress from here.

In the near term, I think geopolitical uncertainty will push Santos shares from strength to strength, but there are also three other reasons why I think the ASX energy shares are a screaming buy right now.

1. Santos production is ramping up

In January, Santos announced that its FY25 fourth quarter production was up 15% on the prior quarter which brought full year production to the upper end of guidance at 87.7 million barrels of oil equivalent (mmboe).

Santos is guiding production of 101-111 mmboe for FY26, which represents a significant 25% (or higher) potential uplift year-on-year.

2. Cash flow is improving

As production ramps up, Santos projects are producing steady cash volumes. In January, the Adelaide-based oil and gas company revealed that its quarterly cash flow was around $380 million, up 30% on the prior quarter. This also brought cash flow for the full year to about $1.8 billion.

At the time, the company said it had a cash flow breakeven target of $45-$50 per barrel of oil (far below current values) for the current year, which “will position Santos over the next few years to deliver sustainable results and provide strong returns for our shareholders”.

3. Analysts are tipping attractive upside

TradingView data shows analysts are mostly very bullish on Santos shares over the next 12 months.

Out of 14 analysts, 11 have a buy or strong buy rating on the energy shares. The average target price is $8.47, which implies a potential 10.7% upside at the time of writing. But some think the shares could jump another 34% to $10.17 a piece.

The post 3 reasons why Santos shares are a screaming buy right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• How ASX 200 energy stocks like Woodside and Santos are surging in Monday’s sinking market
• 5 things to watch on the ASX 200 on Monday

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.

PLS Group Ltd (ASX: PLS), New Hope Corp Ltd (ASX: NHC), and Viva Energy Group Ltd (ASX: VEA) shares a catching plenty of investor interest today.

Two of the large-cap S&P/ASX 200 Index (ASX: XJO) stocks are outpacing the 0.2% losses posted by the benchmark index in late morning trade on Thursday, while one of the ASX 200 stocks shares have been temporarily frozen.

Here’s what’s happening.

Viva Energy shares halted following refinery fire

Viva Energy shares are making headlines today following the outbreak of a fire last night at its Geelong refinery in Victoria. The refinery is one of two remaining operational refineries in Australia, and officials expect the incident could push fuel prices even higher across the nation.

Viva Energy shares entered a trading halt before market open today.

The ASX 200 energy stock requested the trading pause pending an announcement regarding the impact of the “significant” fire at its refinery.

CEO Scott Wyatt said that while fuel refining at Geelong would continue, it will initially be “very low relative to what we were doing before”.

According to Wyatt (quoted by The Australian Financial Review):

In the days ahead, we will look at how we can continue to operate the refinery without the need to use these two units that have been affected. We have operated in this way before, so we have a high degree of confidence that we can do that.

Paused at Wednesday’s closing price of $2.53, Viva Energy shares are up 65% over 12 months, not including dividends.

Which brings us to…

PLS shares eyeing $847 in new funding

PLS – formerly known as Pilbara Minerals – is catching investor interest after announcing a new US$600 million (AU$847 million) debt funding issuance.

Shares in the ASX 200 lithium stock are up 3.7% at time of writing, trading for $5.59 each.

Management said that the initial offer size of the senior unsecured notes was increased by US$100 million from US$500 million. They come due in 2031 at an annual interest rate of 6.88%. PLS expects settlement next week, on 22 April.

The lithium miner intends to use to proceeds to refinance its AU$375 million drawn on revolving credit facility and for general purposes.

The PLS share price is up a blistering 308% in 12 months.

New Hope shares lift on refinancing deal

Atop PLS and Viva Energy shares, New Hope is also making financial headlines today.

Shares in the ASX 200 coal stock ae up 1.9% at $5.49 each after the company announced its own new funding arrangement.

The coal miner reported the launch of $300 million in senior unsecured convertible notes due 2032. New Hope said it will also repurchase of up to 100% of the existing $300 million convertible notes, which are due 2029.

The coupon rate for the new notes is set in the range of 2.38% to 2.88% per year.

“Through this transaction, we are proactively refinancing our 2029 notes at improved terms, extending our debt maturity profile and reducing our financing costs,” New Hope chief financial officer Rebecca Rinaldi said.

New Hope shares are up 54% in a year.

The post Why is everyone talking about New Hope, PLS and Viva Energy shares on Thursday? appeared first on The Motley Fool Australia.

More reading

• Why the PLS share price just hit an all-time high
• Viva Energy shares frozen as overnight refinery fire puts fuel markets on edge
• Viva Energy share price halted pending update on Geelong Refinery fire
• PLS Group prices US$600m in senior notes for growth and refinancing
• New Hope launches $300m convertible notes offer and buyback

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.

Viva Energy Group Ltd (ASX: VEA) shares are off the board on Thursday after one of the ASX’s best-performing energy stocks was forced into a trading halt.

The stock last traded at $2.53, having fallen 4.53% on Wednesday before trading was paused ahead of market open.

Even with that decline, the Viva Energy share price remains up 23% in 2026. Roughly 18% of that gain has come over the past month alone as investors rotated back into energy and fuel-exposed names.

That recent momentum makes today’s freeze stand out as investors wait for more detail on the operational impact.

Here’s what has happened.

Trading halt follows major Geelong refinery incident

In a statement to the ASX, Viva Energy requested an immediate trading halt pending an announcement on the impact of a significant fire at its Geelong refinery.

The halt will remain in place until the earlier of Monday’s market open or when the company releases a fuller update.

The overnight blaze broke out in the motor gasoline production unit at the Geelong site, which is one of only two remaining oil refineries in Australia.

News coverage indicates the incident was linked to equipment failure in the petrol production area, with multiple reports of explosions before the fire was contained.

Management said most other refinery units are still operating at minimum rates to maintain site safety, while the affected fuel production systems remain offline pending further assessment.

Why investors will be focused on earnings risk

The Geelong refinery supplies more than 50% of Victoria’s fuel needs and around 10% of Australia’s total fuel supply. That tells us the incident has both financial and broader market significance.

Early analyst estimates suggest even a short disruption could strip roughly $20 million from earnings. A prolonged outage stretching into months could push the hit closer to $70 million.

The market will also be watching whether petrol production downtime forces higher-cost imports. That could compress refining margins at a time when global fuel supply is already under pressure from Middle East disruptions.

Lost production, higher import costs, and uncertainty around repairs likely explain why the shares were frozen before investors could quickly reprice the stock.

The bigger issue goes beyond the share price

Fuel security now becomes the major sticking point.

Only two domestic refineries are still operating nationally. That means any extended outage at Geelong immediately raises concerns around supply reliability, pricing pressure, and whether the government needs to lean harder on imports.

Viva Energy has already said unaffected units can continue limited operations and management appears confident imported product can help bridge any shortfall.

The next announcement will likely decide whether this remains a short-term sentiment shock or develops into a larger earnings hit.

The post Viva Energy shares frozen as overnight refinery fire puts fuel markets on edge appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about New Hope, PLS and Viva Energy shares on Thursday?
• Viva Energy share price halted pending update on Geelong Refinery fire
• Oil is surging and this ASX fuel stock is one of Monday’s winners
• ASX 200 energy shares whipsaw amid fragile ceasefire
• ASX shares to watch as oil price crashes

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.

Gold project developer Ausgold Ltd (ASX: AUC) recently released new drilling results from its Katanning gold project in Western Australia, which have caught the eye of the analyst team at Canaccord Genuity.

Firming up a larger project

Ausgold is looking to develop the Katanning project, where it has already completed a definitive feasibility study (DFS) envisaging a mine operating for 10 years, producing 140,200 ounces of gold per year for the first four years.

The mine is expected to cost $355 million to build and pay itself back in just 13 months.

The company is continuing to drill at the project, however, and this week announced some of its recent results.

The company said “significant intercepts” were returned from a further 77 reverse circulation and diamond drill holes targeting grade increases within the central zone of the gold deposit.

Results returned included 11m at 7.88 grams per tonne of gold and 21m at 3.27 grams per tonne.

There were also “wide zones of mineralisation encountered in areas of Inferred Resources beneath the current DFS Update pit design and outside the current Ore Reserve, highlighting strong potential for reserve growth and mine life extension”.

The company said further:

Broad, high-grade intercepts (were) returned from in-fill drilling at the Jinkas and White Dam lodes within the first two years of planned mine life, increasing confidence in grade continuity in the initial phases of the DFS Update mine plan.

Ausgold Executive Chair John Dorward said regarding the results:

The ongoing drilling campaign continues to deliver exceptional results across multiple fronts at the Katanning Gold Project. The consistency of high-grade results from both in-fill and extensional drilling continues to strengthen the Katanning growth story. With extensions of the mineralisation confirmed beneath the DFS Update pits and outside current reserves, we see a clear opportunity to grow the production base and extend mine life, while simultaneously optimising the early years of production. With regional drilling at Nanicup Bridge now complete, we are looking forward to reporting results from this exciting satellite project along with the balance of results from the Katanning Gold Project.

The team at Canaccord Genuity analysed the most recent results and has maintained their speculative buy recommendation on Ausgold shares, and a price target of $3.45.

If this were achieved, it would represent a 238% return, with Ausgold shares currently trading at $1.02. The shares are up 85.5% over a 12-month period.

Ausgold is currently valued at $567 million.

The post This ASX gold project developer could more than triple in value: Broker appeared first on The Motley Fool Australia.

More reading

• Why investors are buying this ASX All Ords gold share 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.

The S&P/ASX 200 Index (ASX: XJO) is having a modestly weaker session on Thursday. In late morning trade, the benchmark index is down 0.1% to 8,969 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are charging higher:

AMP Ltd (ASX: AMP)

The AMP share price is up 4% to $1.45. Investors have been buying the financial services company’s shares following the release of a first-quarter update. AMP reported a 45% growth in Platforms net cashflows to $1.1 billion and improved Superannuation & Investments (S&I) net cash outflows down to $80 million. The latter is a 26% year-on-year improvement. Another positive is news that AMP will be undertaking a $150 million on-market share buyback.

Life360 Inc (ASX: 360)

The Life360 share price is up almost 9% to $1.44. This is despite there being no news out of the location technology company on Thursday. However, it is worth noting that a number of ASX tech shares are rebounding today following a positive night on the tech-focused Nasdaq index. The gains have been so strong that the S&P ASX All Technology index is up a sizeable 3.7% at the time of writing.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 4.5% to $24.93. This follows the release of the investment platform provider’s third-quarter update this morning. Netwealth revealed a 20.9% increase in funds under administration (FUA) to $125.8 billion. This was underpinned by FUA net inflows of $7.6 billion for the quarter. Looking ahead, it expects FUA net flows to be largely in line with what was recorded in FY 2025, along with an EBITDA margin of 49%.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up a sizeable 11% to $1.46. The catalyst for this has been the release of a production update from the gold miner this morning. The company reported record quarterly production of 38,766 ounces of gold, which is up 21% quarter on quarter. Ora Banda Mining’s managing director, Luke Creagh, said: “The team has done an outstanding job with the ramp-up of operations during FY26 with this quarter showing a 21% increase in ounces produced over the December period which has delivered $76.3 million in free cash flow after substantial investments into future growth projects.”

The post Why AMP, Life360, Netwealth, and Ora Banda shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 300 shares that could be much bigger in 5 years
• Up 115% since August, Ora Banda shares leaping higher today on record gold production
• AMP posts Q1 2026 results, launches $150m buyback
• Netwealth Group lifts FUA to $125.8B with strong quarterly flows
• 2 ASX 200 shares down 30%+ that I’d buy with $4,000

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Life360 and Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Flight Centre Travel Group Ltd (ASX: FLT) shares are back in positive territory on Thursday, with buyers stepping in despite the stock’s weak run through 2026.

At the time of writing, the Flight Centre share price is up 2.77% to $11.86, trimming its year-to-date decline to about 21%.

The stock has spent most of the year drifting lower, even as international travel conditions remained broadly supportive.

Today’s gain suggests investors are willing to look past the recent weakness and focus on improving financial positioning instead.

Here’s what was announced.

Flight Centre completes $200 million buyback

According to the release, Flight Centre has completed its $200 million on-market share buyback, retiring more than 16 million shares.

Management said that represents about 7% of the company’s issued capital before the program began.

The buyback was first announced in April 2025 and has now been fully executed, marking one of the group’s larger recent shareholder return initiatives.

The company also said it will redeem its 2028 convertible notes next month, extinguishing the roughly $100 million still outstanding from debt raised during the COVID-19 period.

Together, the update leaves the balance sheet looking cleaner ahead of the second half of FY26, with fewer financing overhangs still in place.

A broader portfolio reshuffle is still underway

This latest announcement also reflects a broader reshaping of the business.

Recent deals across the UK events and cruise markets, including Fresh and Iglu, show where management is directing fresh capital.

At the same time, the proposed sale of Flight Centre’s 47% stake in the Pedal Group cycling joint venture to the Turner Collective for $61.7 million shows a willingness to exit smaller non-core holdings. In addition, it frees up more capital for areas where returns may be stronger.

That leaves the portfolio tilting further toward higher-return areas such as premium travel experiences, events, and specialist international operations.

Investors have been looking for clearer signs that management is becoming more disciplined with capital. That focus has only grown after the dilution and debt build-up that followed the pandemic in 2020.

Foolish bottom line

Even with today’s rise, Flight Centre shares remain well below their February highs and are still down about 21% this calendar year.

The market is still weighing the pace of margin recovery across corporate and leisure travel against softer consumer conditions in some regions.

The announcement does not change earnings guidance directly, but it removes financing overhangs and reduces the share count. That should support earnings per share over time.

The post This ASX travel stock is rising after a major capital management milestone appeared first on The Motley Fool Australia.

More reading

• Is it time to buy low on these ASX travel stocks?
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price soaring 9% on Wednesday?
• Flight Centre Travel Group sells Pedal Group stake for $61.7 million
• These are the 10 most shorted ASX shares

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

ASX All Ords silver share Silver Mines Ltd (ASX: SVL) has delivered some outsized returns to faithful stockholders over the past year.

In morning trade on Thursday, shares are up 1.1%, trading for 18.2 cents apiece, outpacing the 0.1% gains posted by the All Ordinaries Index (ASX: XAO) at this same time.

Just one year ago, you could have picked up Silver Mines shares for just 10 cents each, delivering a gain of 82.0% at current prices. That’s well ahead of the 15.5% 12-month gains posted by the benchmark index.

Part of that outperformance has been driven by the surging silver price. At US$80 per ounce, the silver price is up 142% since this time last year. But the ASX All Ords silver share has hardly been sitting idle.

Here’s what the miner reported this morning.

ASX All Ords silver share uncovers high-grade samples

Silver Mines shares are pushing higher today following the release of an exploration update at the miner’s Calico North and Kramer Hills Projects, located in the US state of California.

At Calico North, the ASX All Ords silver share has completed a spectral survey and a field mapping program. 219 rock samples were collected as part of the field mapping. The company reported that around 20% of those samples returned assays greater than 50 grams of silver per tonne (g/t AG), with 10% of the rock samples returning more than 100 g/t Ag.

The miner said phase one drill planning at Calico North is underway.

Phase one drill planning is also underway for Kramer Hills.

The ASX All Ords silver share said that its field mapping program at Kramer Hills has been completed, which confirmed the location of the target structure in proximity to the historic Shaherald Pit.

An ecological survey of the Kramer Hills project area has been completed by Stringer Biological Consulting.

What did Silver Mines management say?

Commenting on the exploration results helping to boost the ASX All Ords silver share today, Silver Mines managing director Jo Battershill said, “We are very encouraged by the speed at which reconnaissance exploration activities have occurred at the Calico North and Kramer Hills Projects in San Bernardino.”

Battershill added:

Our technical team is now focused on interpreting the results, planning the inaugural drill programs and completing the required permitting steps. We are on track to be drilling at Kramer around mid-year…

The Calico North Project ticks a lot of boxes for us with extensive zones of silver-barite mineralisation trending across almost 40 kilometres of prospective strike and close to historical mines that produced over 20 million ounces of high-grade silver.

The post Up 82% in 12 months, ASX All Ords silver share jumping today on big US news appeared first on The Motley Fool Australia.

More reading

• Why Brazilian Rare Earths, L1 Group, Silver Mines, and Xero shares are dropping today
• Why are these ASX silver stocks racing higher 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.

One of the themes that has been emerging as the war with Iran drags on, is the increasing needs for energy security in Australia.

This has led to both the federal and some state governments promising support for more oil and gas exploration on and offshore, including in Queensland, where Omega Oil and Gas Ltd (ASX: OMA) is active.

Major drilling program to start

Omega’s upcoming drilling program is well timed, with the company recently announcing that it had secured a drilling rig for a drilling program of at least three and up to six more wells at its tenements in the Taroom Trough.

As the company said:

Subject to permitting, Omega plans to, and is fully funded to, drill at least four wells in our expanded 2026/27 program – a minimum of two wells on our existing PCA areas, and two wells on the recently awarded ATP 2081 (formerly PLR2025-1-9), realising the cost and efficiency benefits of a continuous campaign. Omega also maintains options to drill further horizontal and vertical wells. Omega’s program is scheduled to commence in May 2026 following completion of preceding wells by other operators. The program aims to delineate reservoir and resource distribution over a broad area, identify “sweet spots”, and mature Omega’s resource and reserve base.

Omega said it had a “commanding” acreage position in the Taroom Trough both through its own tenements and via its 19.43% ownership stake in Elixir Energy Ltd (ASX: EXR).

Taken together, this gave Omega an interest in 5041 sq km.

Omega Managing Director Trevor Brown said:

With basin-wide drilling in the Taroom Trough during 2026, and our multi-well campaign fast approaching, Omega is entering an exciting growth phase. We believe that our upcoming program, scheduled to commence in May 2026, will further de-risk this exciting play and demonstrate the vast scale of the Taroom Trough’s oil and gas resources.

Shares looking cheap

The analyst team at Canaccord Genuity said a recent visit to the Taroom Trough by Queensland Premier David Crisafulli “and subsequent press releases calling for the acceleration of permitting represents, in our view, a key turning point in the political narrative regarding oil and gas development”.

They added:

We upgrade our price target to $1.30 (from $0.85) and retain our speculative buy after increasing our risking. In our view regulatory tail risk is fast evaporating and that could lead to higher corporate activity in a play which is proximal to existing infrastructure and underutilised LNG facilities.

Omega shares were changing hands for 84.5 cents early on Thursday. The company was valued at $390.9 million.

The post Up 238% in a year, one broker thinks there’s still way more upside for this ASX energy company appeared first on The Motley Fool Australia.

More reading

• This ASX gold project developer could more than triple in value: Broker
• Why AMP, Life360, Netwealth, and Ora Banda shares are racing higher today
• This ASX travel stock is rising after a major capital management milestone
• Up 82% in 12 months, ASX All Ords silver share jumping today on big US news
• This ASX critical minerals company says its mining project could be the world’s largest

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.

Sovereign Metals Ltd (ASX: SVM) says its Kasiya mining project in Malawi could turn out to be the world’s largest producer of two critical minerals following the completion of a positive definitive feasibility study (DFS).

The company said in a statement to the ASX on Thursday that the Kasiya project, once in production, would be the world’s largest producer of both natural rutile and flake graphite.

The DFS indicates the project could run for at least 25 years, producing 222,000 tonnes of rutile per year and 275,000 tonnes of graphite.

Strong cash flow

This would generate US$476 million in EBITDA per year and total revenue over the life of the mine of US$16.5 billion, the company said.

The project would cost US$727 million to bring into production, the company said, and would be the lowest-cost graphite producer globally, even when compared to Chinese producers.

Sovereign said it had already signed non-binding memoranda of understanding for offtake agreements covering more than 50% of the rutile produced during stage one of the mine and more than 35% of the graphite.

The potential for heavy rare earths extraction as part of the rutile production was not included in the DFS, but was being evaluated, the company said.

This could provide a third income stream, producing dysprosium, terbium, and yttrium, which were all subject to Chinese export controls, at minimal incremental cost.

Sovereign Managing Director Frank Eager said regarding the DFS:

The completion of this DFS marks a defining milestone for Kasiya and for the global titanium and graphite supply chains. To deliver a DFS of this quality, depth and confidence, rarely achieved by a pre-production company, reflects the calibre of partnerships that Sovereign has assembled around this project: Rio Tinto’s technical expertise, alignment with IFC Performance Standards under our Collaboration Agreement, and offtake interest driven by U.S. and Japanese supply chain security priorities. The successful completion of large-scale field trials, combined with the expertise of our experienced owner’s team and the technical support provided by Rio Tinto, reinforces Kasiya’s potential to be a long-life, low-cost, and reliable source of two critical and globally strategic minerals. Kasiya is not simply a mining project – it is a globally strategic asset.

Titanium in short supply

Sovereign said that rutile is the purest and highest-grade form of naturally-occurring titanium feedstock, and was the preferred feedstock “for titanium sponge production and high-specification titanium alloy applications in aerospace, defence and medical industries”.

The US is currently 100% reliant on imports for its titanium sponge needs, the company said, and added that primary global rutile supply was in structural decline.

The company added that “Kasiya’s natural rutile has demonstrated premium chemical characteristics and suitability across all major end-use applications, with high titanium dioxide content, low impurity levels, and favourable particle size distribution – positioning it as a preferred high-purity feedstock within a structurally undersupplied market”.

Sovereign Metals shares were 0.7% higher in early trade at 72 cents. The company was valued at $463 million.

The post This ASX critical minerals company says its mining project could be the world’s largest appeared first on The Motley Fool Australia.

More reading

• 3 ASX 300 shares that could be much bigger in 5 years
• Up 115% since August, Ora Banda shares leaping higher today on record gold production
• 2 ASX shares downgraded by Morgans this week
• Average superannuation balance at age 67, versus what you actually need
• Whitehaven shares are up 80% in a year. Here’s why investors still see upside

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.

It is easy to focus on what a company is today. But in investing, what really matters is what a business could become.

Some companies are already large and well established. Others are still in earlier stages, quietly building the foundations for something much bigger. Finding these businesses early can make a big difference to long-term returns.

With that in mind, here are three ASX 300 shares that I think could be much bigger in five years.

Megaport Ltd (ASX: MP1)

The first ASX 300 share that could have a much larger footprint in the future is Megaport.

It is evolving from a network connectivity provider into a broader infrastructure platform. With its move into compute through the Latitude acquisition, the company is positioning itself at the centre of how businesses deploy and manage cloud and AI workloads.

This shift could significantly expand its addressable market. Instead of just connecting infrastructure, Megaport is now moving toward enabling it.

If execution is strong, the company could become a much more important player in the global digital infrastructure space.

Morgans thinks Megaport’s shares are seriously undervalued. It recently put a buy rating and $16.00 price target on them, which implies potential upside greater than 100%.

Netwealth Group Ltd (ASX: NWL)

Another ASX 300 share that could be significantly larger in the future is Netwealth.

Netwealth operates an investment platform used by financial advisers to manage client portfolios. It might not grab headlines, but the business model is incredibly powerful.

As funds under administration grow, revenue tends to rise alongside it. And because the platform is highly scalable, a large portion of that growth flows through to profit.

The company has been steadily gaining market share, supported by strong technology and service. If it continues on this path, the business could look very different in five years’ time.

Morgan Stanley is a fan of the company and has an overweight rating and $35.00 price target on its shares. This suggests that upside of almost 40% is possible between now and this time next year.

Temple & Webster Group Ltd (ASX: TPW)

A third ASX 300 share that could grow meaningfully is Temple & Webster.

Temple & Webster operates in online furniture and homewares, a category that is still transitioning from physical stores to digital platforms.

While the company has faced periods of volatility, it has continued to build brand awareness and expand its customer base.

What is particularly interesting is its improving profitability. As scale increases, the business has the potential to generate stronger margins.

If the shift to online continues and the company executes well, it could be significantly larger in five years than it is today.

Bell Potter is bullish on the company’s outlook. It recently put a buy rating and $13.00 price target on its shares, which implies potential upside of almost 100% for investors.

The post 3 ASX 300 shares that could be much bigger in 5 years appeared first on The Motley Fool Australia.

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• These ASX shares look too good to ignore after the recent pullback
• This could be the best ASX 300 stock buy today!
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Motley Fool contributor James Mickleboro has positions in Megaport and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, Netwealth Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.