Azzet reports on three ASX stocks with notable trading updates today.
Karoon rises on two market updates
In addition to receiving some updraft from the rise in oil prices – up 13% over the past week to US$73 per barrel, Shares in Karoon Energy (ASX: KAR) were up around 3% at the open following the oil and gas explorer and producer’s market updates today.
Firstly, the company announced that it had successfully bid for a 100% interest in six blocks in the Santos Basin off the shores of Brazil.
Bidding for blocks in the Santos Basin occurs through a continuous bidding process, managed by ANP, Brazil's national agency for petroleum, natural gas and biofuels.
Companies can express interest in specific blocks at any time, with winning bids determined by signature bonuses and work program commitments.
Formal granting of the blocks is expected to occur in the fourth quarter of 2025, subject to meeting certain qualification conditions including:
Payment of a bid bonus of around US$14.8 million.
Providing a financial guarantee for approximately US$6.1 million.
Equivalent to 30% of the minimum work program.
Karoon’s CEO Julian Fowles told investors that the newly acquired blocks further strengthened Karoon’s presence in the offshore Santos Basin.
“Two of the blocks, S-M-974 and S-M-1038, contain the Piracucá discovery,” he said.
“Initial technical studies suggest the Piracucá discovery could be an attractive tie-back candidate into a potential Neon FPSO, subject to the proposed Neon development achieving a Final Investment Decision as well as necessary regulatory approvals.”
Meanwhile, the company also told the market that its capex guidance has increased from US $120 million to US $140 million to incorporate the signature bonus payments and work program guarantees associated with successful participation in the bid round.
While the ASX 200 energy share’s 84% unhedged oil exposure leaves it vulnerable to potential oil price falls it is well placed to benefit from any future oil price falling from here.
Macquarie estimates Karoon's all-in cash flow breakeven (before dividend payouts) to be around US$50 to US$60 per barrel.
Having fallen to lows of $1.25, Karoon’s share price is up 64% this month.
As a result, the stock’s market cap has risen to around $1.5 billion.
The stock appears to be in a medium-term rally and is confirmed by multiple indicators.
Consensus is Moderate Buy.
Boss Energy rises on guidance updates
Shares in Boss Energy (ASX: BOE) were trading over 2% higher heading into lunch after the uranium miner told the market that its Honeymoon Uranium Operation in South Australia had met FY25 production guidance, with 850,000 lbs of U3O8 drummed during its first year of operating.
While production for the June quarter rose 11% on the March quarter, remaining output this month will be limited by planned maintenance as the company prepares for an ongoing ramp-up in FY26.
FY26 guidance will be published as part of Boss’ June quarterly report on 28 July.
The company’s CEO and Managing Director Duncan Craib reminded the market today that production and cost targets have never been revised since the 2021 Enhanced Feasibility Study - positioning Boss to benefit from a tightening uranium supply-demand outlook.
The virtual doubling of the stock’s share price since early April reflects a recent spike in [uranium] prices following signs of booming demand for the nuclear fuel.
Uranium prices started to move higher last month after U.S. President Donald Trump signed executive orders to fast-track the construction of nuclear energy reactors. The US is aiming to expand its nuclear power from 100 gigawatts today to 400 gigawatts by 2050.
Meanwhile, Boss Energy remains the ASX’s most shorted stock, with 18.5% of trades hoping to profit as the stock falls.
Boss Energy has a market cap of $1.9 billion; the stock is up 11% in one year and up 88% year to date.
The stock appears to be in a strong bullish trend, as confirmed by multiple indicators.
Consensus is Moderate Buy.
Lynas rises on Malaysia milestone
Shares in Lynas Rare Earths (ASX: LYC) were up around 2% at the open after the company chalked up another milestone in its attempt to meet global ex-China demand for heavy rare earths.
Within today's update management told the market the company had achieved the first production of separated terbium oxide from its advanced materials facility in Malaysia.
As a result, Lynas’s new production line at its Malaysia plant is now the world’s only commercial producer of separated heavy rare earth products outside of China.
Production of dysprosium and terbium at Lynas Malaysia is expected to strengthen supply chain resilience for manufacturers, with the company actively engaging customers in commercial supply opportunities.
Today’s update follows the company’s successful production of dysprosium oxide in May, with both being produced on Lynas’ new heavy rare earths processing line.
‘Lynas can now supply customers with the two heavy rare earths required for rare earth permanent magnets used in electric motors,” said CEO Amanda Lacaze.
“The feedstock for both of these products is sourced from Lynas’ world class Mt Weld rare earths deposit in Western Australia, which is recognised as a source of both light and heavy rare earth minerals.”
Early June saw Malaysia’s Menteri Besar (MB) Inc, the investment arm of the Kelantan State Government, partner with Lynas to drive the advancement of rare earth resources in the region.
The recent signing of a non-binding memorandum of understanding (MoU) is expected to pave the way for a future supply agreement that would see mixed rare earth carbonate (MREC) delivered to Lynas Malaysia’s advanced materials plant in Kuantan.
Lynas has a market cap of $9 billion; the share price is up 60% in one year and up 50% year to date.
The stock appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
