Australasian Equities

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Australasian Equities

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Core

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Westpac Has More Business and the Same Bottom Line Westpac’s (ASX: WBC) growing loan and deposit franchise supports its dividend, but weaker lending profitability means the shares remain an income holding rather than a strong earnings-growth opportunity at approximately 18 times adjusted historical earnings. The bank earns most of its revenue from the interest received on loans less the cost of deposits and other funding. Lending increased 5% and customer deposits grew 6% during FY2026, yet net interest income excluding notable items

Paladin Energy

Speculative

high

Contracts Hold Firm While Sentiment Falls Paladin Energy (ASX: PDN) offers exposure to firm uranium contracting conditions through a mine already producing, with higher output and lower unit costs providing a route to better earnings even without another sharp rise in uranium prices. The company sells uranium under a mixture of contract-pricing arrangements. Its 75%-owned Langer Heinrich mine in Namibia supplies current production, while Patterson Lake South in Canada offers longer-term growth. We think the opportunity lies in improving the economics of

Genesis Minerals

Speculative

high

Genesis Banks on Vault to Stretch Its Investment Dollar Genesis Minerals’ (ASX: GMD) steady gold production is financing its next mines, while the proposed Vault merger offers a practical way to expand sales with less spending on new processing infrastructure. Genesis earns its margin by mining Western Australian gold and processing ore through its Leonora and Laverton mills. September output of 72,107 ounces kept annual guidance intact, with Laverton offsetting softer Leonora production. We think the investment case lies beyond this one

Newmont

Speculative

high

Turns Gold into Growth and Buy-Backs Newmont’s (ASX: NEM, NYSE: NEM) gold and copper sales are generating enough cash to fund development and substantial buy-backs, supporting the investment even as higher costs and increased spending temper the outlook for 2027. The miner earns the margin between metal sales and the cost of extracting, processing and delivering them. September-quarter adjusted earnings reached US$2.20 per share, above market expectations, while attributable gold production was broadly steady against June. We think the attraction is the

Whitehaven Coal

Speculative

high

Cash Outlook Improves as Final Payments Near Whitehaven Coal’s (ASX: WHC) stronger mine performance and controlled costs support higher earnings, with delayed export sales offering a near-term cash recovery and the approaching end of acquisition payments improving the longer-term scope for shareholder returns. The company sells steelmaking coal from Queensland and predominantly power-generation coal from New South Wales. September production improved, but loading outages delayed some exports and receipts. We think the mines’ performance is more encouraging than the small increase in

Fortescue

Speculative

high

Fortescue Needs Sales to Catch Up Fortescue’s (ASX: FMG) China negotiations are delaying sales and absorbing cash, but its established mining business and income valuation support retaining the shares while the eventual agreement’s terms remain uncertain. Fortescue earns its margin by selling iron ore for more than the cost of mining, processing and delivering it. September-quarter shipments were 46.8 million tonnes, but sales reached only 42.9 million tonnes as negotiations with China Mineral Resources Group continued. The difference is important: ore can

Rio Tinto

Core

medium

Copper Starting to Pull Its Weight Rio Tinto’s (ASX: RIO) growing copper sales opportunity and established iron ore business offer a reasonable combination of income and earnings growth, with September’s Oyu Tolgoi result showing that years of investment are producing more metal. Rio earns the margin between mineral sales and the cost of mining, processing and delivery. Higher output can improve earnings without a price increase, particularly when existing infrastructure handles the additional tonnes. We think Oyu Tolgoi provides that opportunity, while

South32

Speculative

high

Funding Tomorrow from Today’s Copper South32’s (ASX: S32) September quarter supports its shift towards copper and zinc: existing mines are contributing cash while new projects advance, and the approved aluminium sale offers a way to finance growth without relying entirely on future commodity-price gains. South32 earns the margin between mineral sales and mining, processing and transport costs. It also receives distributions from jointly owned operations, including Sierra Gorda in Chile. What makes South32 attractive for shareholders is a combination of current earnings

About these archived stock reports

These are archived Fat Prophets equity research stock reports and share analysis. They do not constitute current investment advice, financial product advice, or a recommendation to buy, sell or hold any financial product. They are provided for historical reference only, and reflect the market conditions, company information, forecasts and opinions available at its original publication date. The information may no longer be current or applicable. Past performance is not a reliable indicator of future performance.

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