Azzet reports on three ASX stocks with price-moving updates today.
Avita Medical rallies after receiving EU regulatory milestone
Shares in Avita Medical (ASX: AVH) were up around 7.8% by 1:25 pm AEST (3:25 am GMT) after the therapeutic acute wound care small-cap announced that its RECELL GO therapy, used in healing skin burns and wounds, has been given regulatory thumbs-up, paving the way for the commercialisation of the product in Europe.
Receiving the CE mark under the EU Medical Device Regulation means the product can now be commercialised in Europe [and other markets that use the CE mark], like Switzerland and Turkey.
RECELL GO allows clinicians to prepare a suspension of a patient’s own skin cells (Spray-On Skin™) for treating burns and traumatic wounds, reducing the need for grafting.
According to clinical data, a 36% reduction in hospital stays for burn patients treated with RECELL compared to grafting.
With the CE Mark, Avita is expected to begin launching RECELL GO in major European markets, including Germany, Italy, and the UK.
This milestone expands AVITA’s global presence beyond its FDA-approved U.S. operations, where it also markets PermeaDerm and Cohealyx wound products.
“CE Mark for RECELL GO is an important milestone for AVITA Medical and for patients,” said Jim Corbett, CEO of Avita Medical.
“It enables us to bring this option to burn centres and clinicians in Europe to support their treatment of patients with acute wound injuries.”
With the ongoing reimbursement slowing expected sales in the first half, Avita has adjusted its FY25 revenue guidance to a range of $76 million to $81 million compared to previous guidance of $100 million to $106 million.
As a result, cash flow break-even is now expected in the second quarter of 2026 and [GAAP profitability] in the third quarter of 2026, instead of the previously anticipated second half of 2025 and fourth quarter of 2025, respectively.
Commercial revenue was $18.4 million in the three months ended June 30, 2025, an increase of $3.2 million, or 21%, compared to $15.2 million in the previous period.
As of June 30, 2025, the Company had approximately $15.7 million in cash, cash equivalents, and marketable securities.
Avita Medical has a market cap of $107 million; the share price is down 47% in one year and up 9% in the last week.
The stock’s shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Consensus is Moderate Buy.
Ausgold slips after announcing its largest drilling program
Shares in Ausgold Ltd (ASX: AUC) were down 2.7% after the small-cap gold explorer told the market it had launched one of its largest drilling programs to date, 44,000m of reverse circulation and diamond drilling, across the 2.44Moz Katanning Gold Project and its wider 3,500km² tenement package in WA’s Great Southern.
About 32,000m will focus on resource expansion and infill at Katanning, targeting extensions in the Central and Northern Zones, including high-grade Jinkas lodes.
The remaining 12,000m will advance regional prospects like Nanicup Bridge-Zinger, Kraken, and Moulyinning, aiming for maiden resources.
Set to begin in October 2025, this new drilling initiative aims to expand the current gold resource, de-risk the mine plan, and unlock new discoveries in the region, potentially enhancing the company’s market position and stakeholder value as it progresses towards a final investment decision in mid-2026.
Ausgold executive chair John Dorward described today’s update as one of the most significant drill programs undertaken by Ausgold to date.
“Following the recently settled land access arrangement, we are combining low-risk, high-reward Resource growth at the KGP with an aggressive regional campaign that aims to unlock the significant discovery upside of our project,” he said.
“Importantly, the in-fill drilling will add further resilience to the Katanning Gold Project as we advance rapidly towards an FID this financial year.”
Today’s market update follows Ausgold’s purchase of 860 hectares from four farming families for its Katanning Gold Project, 290 kilometres south-east of Perth, in late August for $35 million.
Following the acquisition, Ausgold executive chairman John Dorward said:
"Over the course of the last 12 months, we've gone from a land holding of less than 50 hectares to around 2,000 hectares, and this was really the last major piece of the puzzle for us."
He confirmed Ausgold was interested in increasing its landholding further.
"There are some additional parcels of land we would be interested in, but that is later in our 10-year mine life," he said.
Given that the development of Katanning will potentially allow Ausgold to unlock the broader potential of its district-scale 3,500km2 land-holding in the Katanning Greenstone Belt - which hosts some of Australia’s largest gold deposits – it’s unclear why the share price was sold off this morning.
Following the end of the June quarter, the company announced that it had received binding commitments to issue up to approximately 61.4 million fully paid ordinary shares at an issue price of $0.57 per share to raise $35 million (before costs) under a placement to sophisticated and professional investors.
Ausgold has a market cap of $373 million; the share price is up 114% in one year and up 45% in the last month.
The stock appears to be in a strong bullish trend, confirmed by multiple indicators.
Consensus is Strong Buy.
Emeco Holding jumps on revelations it’s in play
Shares in Emeco Holdings (ASX: EHL) were up 7.4% to a four-year high after the small-cap mining services provider finally confirmed market suspicions that it is currently in play to potentially be taken over.
While Emeco confirmed engagement with a number of parties, it hastened to add that “no party has put forward a proposal which warrants being progressed to a binding proposal”.
The company noted that it will keep shareholders updated on any material developments in accordance with its continuous disclosure obligations.
What has clearly attracted suitors to the stock are strong signals by management in mid-June that the company is well placed to continue to deliver earnings growth in FY26.
A key player in Australia's mining equipment rental sector, Emeco showcases solid financial health with a net debt to equity ratio of 27.3%, while earnings growth of 42.7% last year outpaced the industry average of 9.2% - reflecting high-quality earnings and strong operational performance.
Today’s comments followed the release of financial results showing a lower cost base, reduced debt levels, and continued positive production activity in the mining sector.
Emeco reported FY25 revenue of $785.4 million, up 7% excluding the underground contract mining portfolio, which was sold during FY24.
Operating earnings increased by $20.6 million or 7% to $301.1 million in FY25 following a stronger second-half result.
No dividend was declared in line with the current capital management framework, focussed on net debt reduction to optimise future balance sheet flexibility and financing costs.
In FY26, Emeco expects:
- Moderate earnings growth, significant free cash flow and substantial further deleveraging.
- SIB capex, net of asset disposals to be around $155 – 160 million.
- Depreciation to be around $160 – 165 million.
- Growth capex to be nil.
- ERP upgrade spend to be approximately $6 million.
Early June, Emeco entered into a five-year agreement with Chinese manufacturer XCMG Mining Equipment Australia, designating Emeco’s subsidiary, Force Equipment, as its preferred service provider in Australia.
This partnership will focus on delivering comprehensive after-sales services for XCMG-supplied mining equipment, including support for Fortescue (ASX: FMG).
Emeco Holdings has a market cap of around $600 million; the share price is up 55% in one year and up 23% in the last month.
The stock is in a long-term bullish pattern confirmed by multiple indicators.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
