Australasian Equities

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Australasian Equities

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Speculative

high

Mozal Mothballed on Power Impasse South32 (ASX: S32, LSEG: S32) shares stabilised after a -5% fall on Monday, when the diversified major confirmed the Mozal aluminium smelter in Mozambique was placed on care and maintenance on Sunday following failed power price negotiations. The closure triggers $60 million in one-off costs and $5 million in annual maintenance expenses. Six years of talks with electricity providers failed to secure affordable power beyond March as drought affected hydropower and regional costs climbed. The company already

New Hope Corp

Speculative

high

Coal Price Drop and Cost Inflation Squeeze Margins New Hope’s (ASX: NHC) net profit slumped 84% to $54.3 million for the 1H26 as average coal prices dropped 20.4% to $137.8/tonne and production costs rose 12.7%. Revenue subsequently fell to $814m from $1.02 billion. The company maintained a 10c fully franked interim dividend and extended the $100 million buyback through March ‘27 despite the drop in earnings. Production edged up to 5.6 million tonnes with higher output at New Acland offsetting weather

iShares China Large-Cap ETF (IZZ)

Core

medium

From Relief Rally to Slow Bull, at a Better Entry Point The escalation of the Middle East conflict and the associated disruption to Strait of Hormuz shipping routes triggered a broad risk-off move across Asia-Pacific equities in early March. The iShares China Large-Cap ETF (ASX: IZZ) has retraced sharply from its highs. We view this pullback as a buying opportunity. The structural case for Chinese large-caps is materially stronger today due to the more attractive valuation. China’s equity market and its

Orica

Core

medium

5M Update Shows Earnings Ahead Orica (ASX: ORI) shares were under pressure despite a trading update that revealed the first five months of FY26 showed earnings slightly higher than last year despite currency headwinds, but flagged $45-$60 million in one-off charges for litigation, supplier outages and restructuring that will hit 1H26 statutory profit. The company launched a cost-cutting programme targeting $100 million in annual savings over three years. Digital solutions earnings are tracking 20% higher, and specialty chemicals are up 15% on

Stockland Corporation

Core

medium

Residential Surges while Development Margins Expand Stockland (ASX: SGP) reported on 16 February that 1H26 operating profit rose 29.5% to $325 million as residential lot settlements jumped 60% to 3,168 and development margins expanded to 18.1% as a result, shares rose 2.3% on the result. More recently, on 3rd March, the company announced a 50/50 data centre partnership with US operator EdgeConneX, targeting 5-10% capital allocation or up to $1.5 billion over five years, securing 350MW of power at Victorian and NSW sites. In our last tech update on the 5th

Elders

Core

medium

Feedlot Sale Cuts Debt, Minimal Earnings Hit Elders (ASX: ELD) announced on 26 February the sale of their Killara Feedlot to Australian Meat Group for $195.8 million, comprising $122 million cash plus $73.8 million working capital – this was well received with shares jumping 2.8% on that day. The feedlot processes 62,000 cattle annually on 1,402 hectares near Quirindi, NSW, contributing $12.1 million to last year’s profit. Proceeds will reduce net debt below 2x earnings with minimal earnings impact of less than

Whitehaven Coal

Speculative

high

Investment-Grade Ratings Secured; Door Open to Cheaper Funding Whitehaven Coal (ASX: WHC) shares jumped 6.7% yesterday after securing better BB+ credit ratings from S&P and Fitch, and Ba1 from Moody’s, all with stable outlooks, opening access to cheaper debt markets. The company also received investment-grade BBB- ratings on proposed senior secured facilities, enabling refinancing of the $1.1 billion acquisition loan at potentially $30-40 million lower annual interest costs. The ratings reflect improved scale and diversification after acquiring Daunia and Blackwater mines, shifting

Santos

Speculative

high

Cooper Basin Project Targets $600M Lifetime Savings Santos (ASX: STO) announced this Monday their final investment decision on the $357 million Moomba Central Optimisation project, consolidating seven gas compressor stations into one electric hub to unlock $600 million in lifetime cost savings and cut production costs by up to $3 per barrel. The project targets a 15% return and a six-year payback while reducing emissions by 40,000 tonnes annually. In our last tech update on the 18th of February, we noted that “There has

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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