Azzet reports on three stocks with price moving updates today.
New Hope sinks on dismal 1H result ~
Shares in New Hope Corp (ASX: NHC) were trading 6% lower by 1:30 pm AEDT (2:30 am GMT) after the coal miner reported a sharp fall in half-year earnings and profit, with weaker coal prices offsetting otherwise reasonable production across its operations.
With the realised price of coal down 23% to $139.40 per tonne, net profit fell 84% to $54.3 million in the six months to 31 January, while underlying earnings dropped 58.5% to $214.8 million.
As a result, the board took a scalpel to the interim dividend, which at 10 cents per share (cps) was virtually halved from the previous period’s 19 cps.
Due to a ramp-up of the New Acland mine, the coal miner produced 5.5 million tonnes of saleable coal during the period, while Bengalla continued recovery works after heavy weather late last financial year.
Commenting on today’s update, CEO Officer Rob Bishop told the market that within a lower coal price environment, the miner’s assets remained resilient and continue to generate solid margins.
Bishop remains focused on remaining a resilient, low-cost coal producer and continuing to execute our organic growth plans.
“Looking ahead, Bengalla Mine is expected to return to the 13.4Mtpa ROM coal production rate (100 per cent basis) during the second half of the 2026 financial year,” he said.
“In addition, New Acland Mine will continue to ramp up production and is scheduled to begin mining activities in the Manning Vale West pit during the final quarter of the 2026 calendar year.”
Other key 1H numbers announced today:
- 20.1% decline in revenue to $814.4 million.
- 0.4% increase in group saleable coal production to 5.5Mt
- Net cash flow from operating activities of $185 million, down from $316.9 million.
During the half, the miner increased its equity interest in Malabar Resources Limited by 3.0% to 25.97% - increasing exposure to high-quality metallurgical coal – and announced the extension of its on-market share buy-back.
Morgans Maintains a Hold rating with a $5.00 target, believing the company is on track to hit the top end of its New Acland 3 guidance.
Macquarie is more cautious with an Underperform rating and $3.80 target, following a 1Q FY26 earnings miss and citing weaker price expectations.
New Hope Corp has a market cap of $4.2 billion; the share price is up 34% in one year and down 4% in one week.
The stock appears to be in a strong bullish trend, confirmed by multiple indicators.
Specifically, a 5-day moving average of the stock price is above the 20 and 50-day moving averages.
Consensus is Moderate Sell.
Catalyst Metals jumps on broker Buy rating
Shares in Catalyst Metals (ASX: CYL) were trading 5.5% higher after UBS initiated coverage in the gold miner with a Buy rating.
With the share price having tumbled from near $10 a share ($9.64) late January, the broker views the stock as attractively valued relative to its peer group, especially considering the significant cash flow generated (of $134 million) at current record gold prices (realised at ~$5,855/oz in H1 FY26).
At $6.455, the stock is currently trading at a 42% discount to the broker’s price target of $11.25.
There’s lots for UBS to like within the miner’s strong 1H FY26 result, which came out on 27 February.
Firstly, Catalyst is executing a plan to double annual gold production from roughly 100,000 ounces to 200,000 ounces over the next 24 months.
Catalyst’s record half-year result was driven by a strong operating performance at Plutonic, with December quarterly production being the highest recorded under Catalyst ownership.
Catalyst maintains a robust balance sheet with $338 million in liquidity and no debt, providing the capital needed to fund its $90 million-plus FY26 exploration and development program without further dilution.
The share price took off in late January following a substantial high-grade gold discovery beneath the existing Cinnamon Resource, located on the Plutonic Gold Belt in WA, around 25 kilometres from Catalyst’s Plutonic processing plant.
The newly identified mineralised zone extends over a 400-metre strike length and remains open in multiple directions, suggesting potential for further expansion and the possibility of establishing a sixth underground ore source.
Drilling results have delivered impressive intercepts, including 33 metres at 7.4 grams per tonne gold, 22 metres at 14.3 grams per tonne, and 37 metres at 4.2 grams per tonne.
These high-grade intersections significantly enhance the existing Cinnamon Resource, which currently holds an undeveloped open-pit resource of 145,000 ounces.
Catalyst Metals has a market cap of $1.6 billion; the share price is up 38% in one year and down 14% in the last month.
The stock’s shares are in a downtrend confirmed within multiple periods.
Consensus is Strong Buy.
Pepper Money sinks on revised offer
When Pepper Money (ASX: PPM) resumed trading today, the share price was sold off by around 10.2% on revelations that Challenger Limited (ASX: CGL) had slashed its "best and final" non-binding takeover offer from $2.60 per share to $2.25 per share.
Due to the deterioration in both market conditions and the operating environment, Challenger – up 2.5% this morning – told the market it is not prepared to proceed with the original proposal.
The revised proposal is inclusive of the CY25 Final dividend of 7.8 cents (fully franked) per Pepper Money share and any special dividend.
Pepper Money shares rocketed up over 25% to $2.23 on the takeover news announced on 9 February.
Under the proposed deal, investment manager Challenger planned to team up with Pepper Group ANZ HoldCo Limited to jointly acquire Pepper Money.
Meantime, while discussions are ongoing, the market is now awaiting further updates, and there is no certainty that a revised offer will result in a transaction.
What triggered Challenger's decision to trim its original offer was growing concerns about the state of private credit markets, especially with geopolitical pressures adding to prevailing headwinds.
As a non-bank lender, Pepper can be particularly sensitive to changes in funding costs, credit markets, and the broader economic outlook.
If funding costs rise or credit conditions tighten, the profitability outlook for lenders can shift quickly.
For an acquirer like Challenger, even modest changes in these factors can materially affect the price it is willing to pay.
For the year ending 31 December 2025, Pepper posted a net profit after tax (NPAT) of $104.8 million, up 7%, with statutory NPAT up 7% over CY24, closing at $104.6 million.
Commenting on the FY25 result, Pepper’s CEO, Mario Rehayem, told the market that volume growth did not come at the expense of margin.
Benefitting from a strong performance in its Asset Finance business, the total net interest margin (NIM) of 2.05% was up from 1.97% in CY24.
Pepper Money has a market cap of $851 million; the share price is up 35% in one year and down 14% in the last week.
The stock is in a strong bullish trend, 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.
