Gold, rare earths and energy shares led a busy week, while major company results brought large gains and steep sell-offs. Corporate deals, new project studies and rising dividends drew buyers, but some stocks fell despite stronger earnings.
- OceanaGold’s proposed A$776 million acquisition of Ausgold sent the target up 38.97%.
- CSL rose 23.30% despite a US$2.6 billion statutory loss caused by impairments and restructuring costs.
- LGI gained 22.11% after lifting profit and raising funds to expand renewable power generation.
- Gold and exploration stocks remained strong, led by Astral Resources, Aurum Resources and Broken Hill Mines.
- Several profitable companies fell after results, including JB Hi-Fi, Megaport, Temple & Webster and Redox.
OceanaGold (ASX:AUC) was the week’s biggest mover, rising 38.97% after agreeing to buy Ausgold and its Katanning Gold Project for about A$776 million. Investors focused on the planned 2029 start and expected annual production above 100,000 ounces. Buying continued after the stock reopened, rather than fading.
CSL (ASX:CSL) gained 23.30% even though it reported a US$2.6 billion statutory loss. The loss came mainly from US$7.1 billion in asset write-downs and restructuring costs. Investors instead looked at the company’s US$15.8 billion revenue, maintained dividend and plan to simplify the business.
LGI Limited (ASX:LGI) rose 22.11% after profit increased 35.5% and biogas flows grew by one-third. A A$56 million capital raising will help fund new renewable generation capacity. The share price also kept rising after reopening, showing that buyers accepted the company’s expansion plan.
Gold and minerals lead the strongest trades
Resources companies supplied many of the week’s largest gains. Astral Resources (ASX:AAR) climbed 26.67% after drilling found a wide high-grade gold zone below its existing resource estimate. One hole returned 52.75 metres at 4.67 grams of gold per tonne. The result matters because deeper mineralisation could add mineable material, although more drilling is still needed.
Aurum Resources (ASX:AUE) advanced 19.00% on high-grade drilling at its Boundiali project in Côte d’Ivoire. The company plans 130,000 metres of drilling and a resource update by the end of the third quarter. Broken Hill Mines (ASX:BHM) rose 19.31% after drilling extended its silver, lead and zinc zone to 1,600 metres. Both companies still face the usual exploration risk: drill results may not become a profitable mine.
Gold producers also reported strong numbers. Regis Resources (ASX:RRL) jumped 15.65% after profit reached A$715 million and the company declared a fully franked 35-cent dividend. Evolution Mining (ASX:EVN) rose 16.20% after record profit and cash flow, while Westgold Resources (ASX:WGX) added 11.33% after lifting Ore Reserves to 4.1 million ounces.
Rare earths also attracted attention. Viridis Mining and Minerals (ASX:VMM) rose 3.33% after its study gave the Colossus project a pre-tax value of US$1.87 billion and a 36.4% after-tax return. Victory Metals (ASX:VTM), however, fell 7.53% despite a strong project study. The result suggests some investors sold after the announcement, possibly to lock in earlier gains or question the assumptions behind the study.
Deals and infrastructure reshape company plans
Corporate transactions produced some of the clearest price reactions. Reliance Worldwide Corporation (ASX:RWC) rose 20.16% after agreeing to discuss Brookfield’s A$4.75 per share cash proposal. The offer values the company at about A$4.1 billion, but it is not yet a completed sale. A competing bidder could still emerge during the 30-day period for alternative offers.
Maas Group Holdings (ASX:MGH) gained 3.74% after agreeing to sell Construction Materials to Heidelberg Materials for up to A$1.7 billion. The sale could give Maas more money for electrical manufacturing, debt reduction or share buy-backs. James Hardie Industries (ASX:JHX) fell 2.28% after announcing the sale of Fermacell and plans to close its European fibre cement operations. Investors must weigh the cash sale against the loss of part of the business.
Energy and transport companies reported large investment plans. APA Group (ASX:APA) lifted profit 81.4% and raised its distribution for the 22nd straight year. Amplitude Energy (ASX:AEL) cut net debt by 85% and is targeting first gas from its East Coast Supply Project in 2028. Aurizon (ASX:AZJ) secured a coal haulage contract lasting up to 12 years, but its shares fell 12.26%. The fall continued after reopening, showing that investors were more concerned about the outlook than the new contract.
Strong results did not always bring higher prices
Several companies delivered better earnings but still lost ground. JB Hi-Fi (ASX:JBH) fell 15.31% after reporting record sales and a 22.5% dividend increase. The share price continued lower after reopening, so investors may have judged the result too modest for its valuation or worried about future consumer spending.
Megaport (ASX:MP1) dropped 14.43% despite 37% revenue growth. The company raised more than A$1 billion for artificial intelligence infrastructure and announced A$506 million of contracts. Investors may have focused on the cost of that expansion and the risk that large contracts take time to produce profit. Temple & Webster (ASX:TPW) fell 17.15% despite targeting 50% to 80% earnings growth next year, suggesting the market wanted more certainty about the forecast.
Other falls reflected concern about business quality or one-off benefits. Redox (ASX:RDX) declined 14.10% despite higher profit and a 13-cent total dividend. SKS Technologies (ASX:SKS) dropped 13.58% after strong growth in data-centre work. Bega Cheese (ASX:BGA), by contrast, rose 7.10% after returning to profit and lifting its dividend.
Financial and health companies find selective support
Financial businesses generally reported stronger growth. Cuscal (ASX:CCL) gained 8.82% after profit rose 49% following its Indue and Paymark acquisitions. Australian Finance Group (ASX:AFG) increased profit 39%, while Judo Bank (ASX:JDO) grew profit before tax 34% as loans and deposits expanded.
Healthcare results were mixed. Medibank (ASX:MPL) rose 27.5% in profit and lifted its dividend, yet its shares fell 2.75%. Telix Pharmaceuticals (ASX:TLX) returned to profit and increased research spending, but declined 6.63%. Dimerix (ASX:DXB) gained 5.08% after securing a US$10 million upfront payment for its kidney disease treatment. The deal gives the company cash, but future payments depend on clinical and sales milestones.
Bottom Line?
The next stage of the results season will test whether higher profits, dividends and project studies can support prices after the first reaction. Investors will also watch the Katanning transaction, the Brookfield proposal for Reliance Worldwide, planned resource updates and the 2028 East Coast gas target.
Questions in the middle?
- Will OceanaGold complete the Katanning acquisition on its proposed timetable, and can the project begin production in 2029?
- Can companies such as Megaport and Temple & Webster turn ambitious growth forecasts into higher cash earnings?
- Will upcoming drilling and resource updates confirm that the new gold, silver and rare earth zones can support profitable mines?