Azzet reports on three ASX stocks with market-moving updates today.
Medallion Metals soars after acquiring IGO’s Forrestania Nickel
Shares in Medallion Metals (ASX: MM8) were up 6.6% at the open after the gold and copper-focused small cap signed a binding asset sale agreement to acquire IGO’s (ASX: IGO) Forrestania Nickel Operation (FNO), including the Cosmic Boy processing plant, in exchange for a royalty on future gold output.
The deal will see Medallion gain full legal and beneficial ownership of the tenements, plant, infrastructure, inventories and associated approvals.
No upfront or deferred cash consideration is payable; instead, Medallion will grant IGO a net smelter return royalty of up to 1.5% on future gold production from the tenements.
In the meantime, IGO will retain rights to explore for, develop and mine nickel and lithium across the assets and will maintain access to key infrastructure under a future access agreement.
However, the deal is by no means in the bag.
It will only proceed after various conditions have been satisfied, none the least of which is Medallion reaching a final investment decision (FID) on its Ravensthorpe gold project, where it plans to truck ore to Forrestania for processing.
At this stage, Medallion is targeting late 2025, pending feasibility results, funding arrangements, and permitting.
With around $29 million in cash reserves, Medallion management told the market it is well funded, progressing multiple work streams underway to support FID.
Commenting on today’s update, managing director, Paul Bennett, reiterated the company’s refocus on the development of a new gold and copper production in Western Australia.
“Bringing the established high-grade gold-copper resources at Ravensthorpe together with the Forrestania plant and infrastructure can unlock significant value in the short term, with a substantial option on future growth from the new discovery potential of the tenure at both Ravensthorpe and Forrestania,” he said.
“Study work is at an advanced stage, permitting is being progressed as a priority, and discussions continue to advance positively with offtake and finance parties.”
The miner expects to provide positive updates on all these key work streams in the near term as the business advances toward a decision to proceed with this exciting development opportunity.
Study Highlights:
- Initial production inventory of 2.7Mt @ 3.9 g/t Au & 0.6 % Cu for 342 koz Au & 16 kt Cu contained.
- Total initial metal production of 336 koz Au & 13 kt Cu.
- Mine life 5.5 years generating pre-tax cash flows averaging $90 million per annum under base case assumptions.
- Pre-tax free cash flow of $498 million, assuming $3,615/oz Au, $5.54/lb Cu (base case).
- Pre-tax free cash flow of $637 million, assuming $4,000/oz Au, $6.15/lb Cu (spot).
Meanwhile, IGO, which saw its share price open fractionally low this morning, has also secured break-fee protections if the transaction fails to close, with Medallion liable for project-related holding costs.
The agreement positions Medallion to become a new West Australian gold and copper producer, leveraging existing infrastructure, while giving IGO a retained exposure to future gold upside.
By bringing together the company’s Ravensthorpe Gold Project (RGP) Mineral Resources of 1.5 Moz AuEq @ 2.5 g/t AuEq4, together with the established infrastructure at FNO, Medallion expects to create a new gold and copper producer located in the southern Goldfields of WA.
Medallion Metals' market cap is $146 million; the share price is up 306% in one year and has doubled year to date.
While the stock’s 200-day moving average is trending upwards and highlights long-term investor interest in the stock, the 20-day moving average is falling as upwards momentum wanes.
Consensus does not cover this stock.
Endeavour Group jumps after alluding to strategy refresh
Shares in Endeavour Group (ASX: EDV) were up around 4% heading lunch after the owner of a string of pubs (and Dan Murphy’s liquor chain) interim chair, lead independent director Duncan Makeig – whose leading the search process for a new independent chair – told the market that board and management are going to stop the internal rot that’s plagued the business over the last year.
Underscoring today’s update was the announced step down of executive chairman Ari Mervis, while CFO Kate Beattie was appointed as interim CEO until Jayne Hrdlicka’s commencement on 1 January 2026.
What clearly excited the market the most are plans by incoming Hrdlicka to consult with the board and senior management to put its internal troubles behind it and make a well-needed strategic overhaul.
“We are confident in Kate's ability to continue leading the business as interim CEO through to Jayne’s commencement in January,” Makeig told investors today.
“The Board and management are undertaking a strategy refresh which will include a portfolio-wide examination of the Group’s performance, key business drivers and execution across Retail, Hotels and the Pinnacle business, with the clear aim of maximising long term shareholder value.”
However, while Makeig expects new appointments to put paid to previous internal turmoil within the group, RBC Capital Markets suspects the leadership churn and a strategic reset will create a unique set of challenges for the liquor retailer.
The stock appears to have been struggling to re-stabilise after the shock departure of former CEO Steve Donahue, who left in September after six years in the top job.
It’s no secret that executive chairman Ari Mervis quit due to boardroom disagreements, just months before Jayne Hrdlicka officially takes the reins as CEO.
“Endeavour is currently in the midst of a strategic reset with ongoing redundancies, continued board turnover, and incoming CEO Jayne Hrdlicka already consulting to Endeavour five months ahead of her official start date to ease the transition,” he said.
“In that context, we anticipate a period of ongoing disruption and turnover within the company over the coming 12 months.”
While the group has guided to FY25 sales of $12.06 billion and group FY25 statutory net profit after tax of between $420 million and $425 million – below consensus - the group will release its FY25 full year financial results on 25 August 2025.
Meanwhile, RBC Capital Markets flagged a “slight” earnings and revenue miss, with one-off restructuring costs muddying the underlying result.
Endeavour Group’s market cap is $7.5 billion; the share price is down 225 in one year and up 2.44% in the last month.
The stock’s shares appear to be in a near-term rally within a longer-term bearish trend.
The 200-day moving average is downward sloping and implies that there has been limited demand for this stock.
While the stock has been rallying recently, it’s too early to tell whether this rally is the beginning of a new trend or simply a bounce.
Consensus is Hold.
Argo Investments dips after flagging trading risks
Shares in Argo Investments (ASX: ARG) struggled to move higher this morning (down 0.54%) after Australia’s biggest and oldest listed investment company (LIC) posted net profit for the year to June 30 of $259.8 million, up from $253 million a year earlier.
Boosted by better-than-expected dividends from numerous companies within its investment portfolio, revenue was $285.8 million, up on the $271.9 million result in FY24.
Despite increasing its annual dividend to a record 37¢ per share, the market appears to have been spooked by LIC’s warning of a softening dividend outlook due to geopolitical and macroeconomic risks remain elevated.
While the LIC remains focused on providing reliable income, it was quick to remind the market that geopolitical and macroeconomic risks were likely to weigh on markets over the year ahead.
“In our view, geopolitical and macroeconomic risks remain elevated and should not be overlooked,” the LIC said.
“In this environment, we highlight the defensive and diversified nature of Argo’s portfolio. These attributes help ensure our portfolio is less susceptible to sharp market swings.”
Highlights from today’s update
- 13.3% rise in NTA, slightly behind the S&P/ASX 200 Accumulation Index (up 13.8%).
- Technology One (ASX: TNE) was the single biggest positive contributor to performance.
- Biggest drag on performance was Commonwealth Bank (ASX: CBA), with stake on reduced.
- Earnings per share rose to 34.1¢, compared with 33.3¢ a year earlier.
- $335 million in investment purchases.
- $370.5 million of holdings sold.
- New positions in Xero and Dexus taken.
- Final dividend per share (fully franked) 20.0 cents.
While geopolitical and macroeconomic risks remain elevated, Argo highlighted the defensive and diversified nature of its 85-strong portfolio.
Argo Investments has a market cap of $7 billion; the share price is up 3% over one year and up 1.65% in the last month.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is not covered.
The stock was changing hands at $9.25 in early afternoon trading.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
