Azzet reports on three stocks with price moving updates today.
Mineral Resources jumps after announcing a major lithium deal ~
Shares in Mineral Resources (ASX: MIN) were up 9.6% by 2:30 pm AEDT (3:30 am GMT) after the iron ore and lithium producer – recently attracting headlines for all the wrong reasons – announced a major deal with Korea-based giant POSCO, a joint venture partner at the company's Onslow Iron project, to sell down interests in its lithium mines.
MinRes plans to sell a 30% interest in a new joint venture company, which would be formed to hold its interests in the Wodgina and Mt Marion lithium mines in WA.
The $1.2 billion POSCO plans to pay for its share in the new joint venture company values Mineral Resources’ existing stake in the mines at about $3.9 billion.
MinRes is expected to retain a 70% interest in the new entity and remain the operator of both mines, under existing agreements with the other joint venture partners, which include Albemarle Corporation at Wodgina - one of the world's largest hard-rock lithium deposits - and Jiangxi Ganfeng Lithium at Mt Marion.
POSCO will also receive spodumene concentrate proportional to its 30% stake to support new downstream processing projects.
The deal, which is expected to be completed during 1H26, subject to regulatory approvals, will allow MinRes to use the proceeds to repay debt and strengthen its balance sheet.
Commenting on today’s MinRes managing director, Chris Ellison, told the market that the transaction with POSCO Holdings highlights the miner's track record of recycling capital through strategic partnerships with major global infrastructure and commodity companies to realise value and help fund future growth.
“POSCO Holdings' investment is a testament to the long-term value of Wodgina and Mt Marion, and MinRes' reputation as a mining operator,” he said.
“This transaction will materially strengthen MinRes' balance sheet, giving us the financial flexibility to pursue strategic growth opportunities across our portfolio that leverage our unique development and operational capability, and further enhance shareholder value.”
MinRes is reported to have started a sale process for its Bald Hill lithium mine, which has been on care and maintenance since late last year.
While the MinRes share price is up over threefold since dropping to a low of $17 mid-April – due to revelations of internal shenanigans – today’s share price of $51.67 is still well under its most recent high of $79.27 back in May 2024.
In August, MinRes posted an annual net loss after tax of $896 million ($582.22 million) and reported debt of $5.3 billion, a 21% rise from the previous financial year.
Meantime, while prices of hard rock spodumene, the lithium-bearing mineral, have rebounded to around $880 a tonne from a fall to four-year lows near $610 a tonne in mid-June, they remain well short of 2022 peaks above $6,000.
Mineral Resources has a market cap of $10.1 billion; the share price is up 35% in one year and up around 16% in the last month.
The stock is in a strong bullish trend, confirmed by multiple indicators.
Consensus is Hold.
ARN Media tumbles after flagging a major profit fall
Shares in ARN Media (ASX: A1N), formerly known as APN News & Media and Here, There & Everywhere, were trading 8.7% lower after the broadcaster warned the market to expect FY26 earnings to be 25–27% below last year.
The company, which operates KIIS FM and Gold Network radio stations, has attributed its lower guidance to the sorry state of the Australian advertising market, which started to deteriorate sharply in the 2H FY25 amid economic uncertainty and cautious client sentiment.
While the broadcaster says its transformation program is delivering operational improvements and positioning the business for long-term growth, this is yet to flow through to the results.
Year-to-date revenue is down about 10%, while second-half revenue is expected to fall by low double digits.
To the uninitiated, ARN owns a total of 58 radio stations across Australia, including the KIIS Network, the home of the popular Kyle and Jackie O breakfast radio show, as well as the streaming platform IHeartRadio Australia.
In the six months to June 30, ARN posted $142.3 million in revenue, down 7% from a year ago and had $77.5 million in net debt, down 10.9% from the start of the year.
The share price has been bouncing progressively lower since its most recent peak of $1.48 back in April 2022.
Since embarking on a $40 million three-year cost-cutting program at the beginning of the year, the share price has fallen from $0.70 to $0.49.
Other strategic developments include simplifying the broadcaster’s structure, upgrading iHeart products, and pursuing divestments of non-core assets.
Management told the market today that its cost-cutting program is offsetting the rising cost of business, with the cost profile for H2 FY25 expected to improve ~8% compared to the previous year.
As a provider of radio and digital content across audio, video, and social platforms, ARN reaches over 16 million people monthly in Australia.
The company also enables partners to connect with target audiences through diverse media experiences.
ARN Media has a market cap of $150 million; the share price is down 33% in one year and down 13% in the last month.
The stock’s shares appear to be in a near-term uptrend, confirmed by its 20-day moving average.
Specifically, the 20-day moving average is rising and implies that investors see an opportunity for profit.
Consensus is Moderate Sell.
Aristocrat Leisure falls following trading update
Despite posting a strong FY 2025 performance, shares in Aristocrat Leisure (ASX: ALL) were trading 7% lower this afternoon, after the gaming technology company spooked investors with lacklustre guidance for the upcoming year, which created doubts over forecasted growth being met.
In FY25, the company posted 9% increase in net profit due largely to the benefits of its NeoGames acquisition and growth in market share across North America and Australia, while the company’s earnings grew 15.6% to $2.6 billion.
Revenue increased 11% to $6.297 billion in FY25, while annualised net profit after tax grew to $1.4 billion.
Aristocrat’s CEO Trevor Croker told the market today that the performance of its gaming division and the integration of iLottery provider NeoGames had offset higher legal expenses, tax rates and lower interest income.
With the poker machine giant’s recent $1.5 billion acquisition of iLottery provider NeoGames boosting revenue and profits, Croker also told investors that the company was continuing to pursue merger and acquisition opportunities.
“This result once again highlights our market leadership and scale as fundamental strengths of the business, supported by a focus on efficiency and extracting operating leverage as we grow,” Croker said.
“Looking ahead, we continue to see strong momentum in our business as we align our portfolio to capture the significant strategic opportunities in front of us.“
As well as being the first full-year result to include iLottery provider NeoGames, this is also the first financial year result since Aristocrat sold its mobile gaming business for $1.2 billion to Swedish mobile gaming company Modern Times Group.
The interactive division that includes NeoGames grew revenue by 54% on a normalised basis to $536.7 million, while Aristocrat’s traditional gaming division – accounting for most its revenue – only managed to increase 5.9% on a constant currency basis.
The number of gaming machines installed grew by 4,100 over the year to 75,225 units, bringing Aristocrat’s market share to 43%.
Meanwhile, the daily fees on the poker machines Aristocrat leases to venues in the U.S. also improved slightly from the first half to US$53.23 ($81.58).
Overall, while the performance of the gaming division was in line with consensus, the interactive division missed expectations.
Corporate costs include a $28 million gain on property sale and $21 million in legal costs related to an ongoing squabble with Light & Wonder over intellectual property.
The company will pay a final unfranked dividend of 49¢ per share for the half, bringing total dividends for the year to 93¢ per share.
Aristocrat Leisure has a market cap of $37.6 billion; the share price is down 6% in one year and down 10% in one month.
The stock’s shares appear to be in a long-term bearish trend, 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.
