Australasian Equities

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Australasian Equities

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Core

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Plugging the Gap Before It Opens Pipeline infrastructure operator APA Group (ASX: APA) but received approval to spend $213 million expanding a gas pipeline in Victoria, aimed at avoiding potential winter gas shortages expected from 2029 onwards. Two new pumping stations will push more gas through the existing pipeline at higher pressure, a solution the company says is far cheaper than laying a second parallel pipe alongside it. The project is being funded from the company’s existing finances, with an extra $31 million kept

South32

Speculative

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Digging In While Shedding Weight South32 (ASX: S32) had a strong year, digging up more copper, zinc and manganese than expected across its mines. The company has agreed to sell off its aluminium business to Alcoa for up to US$5.6 billion, a deal still awaiting approval that would leave South32 focused mainly on metals used in electronics and batteries. Meanwhile, a major zinc and silver project in the US cleared a key approval hurdle, though construction won’t begin until next year

Rio Tinto

Core

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Striking It Rich Across the Board Rio Tinto (ASX: RIO) had its strongest first half for iron ore output in years, digging up 169.9 million tonnes, up 5%, with strong sales momentum in the most recent quarter. The company also cut its cost outlook for copper, thanks to a growing mine in Mongolia and better productivity across its operations. A major new iron ore project in Guinea is ramping up towards full capacity after achieving its first shipments, while a land

BHP

Core

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The cut that makes the case BHP shares fell last Thursday: the market took one look at FY27 copper guidance and sold. We’d do the opposite. This is a company with one of the world’s largest copper portfolios, built around Escondida – the largest producing copper mine on the planet – and copper is precisely where our conviction sits. BHP closed FY26 with copper production of 1,952.8kt (-3% YoY) and a record 264.7Mt (+1%) of iron ore, realising US$5.74/lb on copper,

Evolution Mining

Speculative

high

Strong Year, Muted Reaction Evolution Mining (ASX: EVN) delivered a strong FY26, digging up 715,000 ounces of gold and 66,000 tonnes of copper while generating record cash flow and finishing the year with plenty of cash in the bank and low debt. Looking ahead, the company plans to ramp up CAPEX on developing its mine footprint and exploring for new deposits, which will raise costs over the coming year. Investors seem to have become wary of higher capex, but the real

St Barbara

Speculative

high

Digging In on Two Fronts St Barbara (ASX: SBM) has two gold projects moving forward at the same time in Nova Scotia, Canada. The company has approval to restart its Touquoy mine, expecting to produce about 38,000 ozs of gold pa, which will generate solid cash flow to help fund the next project. Approvals are also in place for SBM to expand to a much larger processing hub, which would combine three separate mine sites into one operation producing over 100,000 ounces

Genesis Minerals

Speculative

high

The Offer didn’t move Genesis Minerals (ASX: GMD) has won Vault Minerals without paying another cent for it. Regis Resources declined to lob another, announcing the decision on 13 July, saying the terms required to do so did not meet its value and return thresholds, and it will collect a break fee of approximately A$50.7 million for its trouble – real money, but still a relative rounding error in this monster deal, which will form Australia’s third-largest gold producer. The

Elders

Core

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Bracing for a Dry Spell Forecasters are warning that a strong El Niño could bring one of the driest periods in decades to Australian farming regions, and this poses a challenge for Elders (ASX: ELD) whose business relies heavily on farmer spending and rainfall. Elders have already sold off a large cattle feedlot to cut debt, reducing one area of risk before drier conditions set in. However, the core businesses around selling farm supplies, livestock trading and rural property sales, all still rise

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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