Azzet reports on three ASX resource stocks with price moving updates today.
Paladin Energy rises on production gains ~
Shares in Paladin Energy (ASX: PDN) were up 7.5% by 2:10 pm AEDT (3:10 am GMT) to an 11-month high after the uranium-producing large cap’s quarterly production report found favour with investors.
While the company’s sales volume fell to 533,789 pounds in Q1 FY26 from 710,051 pounds in Q1 FY25 due to shipping delays, the company posted a record high uranium production - producing 1.07 million pounds of uranium ore - up 67% year-on-year, supported by a 63% increase in total material mined.
The miner also reported a 21.2% boost in its average realised uranium price to US$67.4 per pound.
Commenting on today’s results, newly appointed CEO Paul Hemburrow told the market that the "solid" first quarter of the new financial year “demonstrates Paladin's increasing operational strength and capability to support the future development of the ASX 200 uranium miner's multi-decade production pipeline”.
"Importantly for our future growth, the engineering review of PLS confirmed the project's technical and economic foundations, with work now advancing towards a final investment decision," Hemburrow noted.
While the miner remains focused on progressing the company's Patterson Lake South project, Hemburrow also flagged the "significant increase" in Paladin's mining activities over the three months at the Langer Heinrich Mine in Namibia.
At current uranium prices, it’s understood that the Langer Heinrich Mine alone could be worth around US$2.5 billion based on its current mine plan.
The operation holds 77.6 million pounds in reserves, supporting over 13 years of production.
Today’s update follows the successful $300 million equity raising in September, which Hemburrow believes is a strong vote of confidence in Paladin; he also expects to see strong interest in the Share Purchase Plan.
"The substantial raising gives us considerable balance sheet flexibility and provides further confidence for us to proceed at pace with our development plans and work closely with our global stakeholders," he said.
The miner has cash and investments of US$269.4 million and an undrawn US$50 million Revolving Credit Facility, which positions it well to reach its FY26 production targets ahead of schedule.
Current uranium prices – which could translate to roughly US$200 million in annual earnings – suggest to the market that Paladin’s post-restart strategy is starting to pay off.
With most sales tied to spot prices, Paladin is also well positioned to benefit from strengthening nuclear power demand, which the International Atomic Energy Agency (IAEA) expects to grow by 50 gigawatts by 2030.
Paladin Energy has a market cap of $4.1 billion; the share price is down 20% in one year and up 21% in the last month.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
Rio Tinto lifts after posting mixed results
Shares in Rio Tinto (ASX: RIO) were up 1.6% after posting a patchy September quarter update, with the market responding favourably to revelations the bigger miner had recorded its second-highest September quarter of iron ore shipments since 2019.
The company shipped 84.3 million tonnes of iron ore in the September quarter, up 6% from the June quarter, which coincided with a rebound in iron ore prices to a seven-month high of US$108 dry metric tonnes.
However, due to production losses from cyclones earlier in the year, the company expects its 2025 iron ore shipments to come in at the lower end of its guidance of 323 to 338 million tonnes.
Commenting on today’s update, Rio’s newly appointed CEO Simon Trott told the market the company is focused on delivering a strong finish to the year from the Pilbara, with growth projects also progressing at pace.
Trott also noted that the $6.2 billion Simandou project marked the start of commissioning for the mine-to-rail-to-port system following the loading of its first ore; initial shipments are expected in November, with the ramp-up to full 60-million-tonne-per-year capacity over the next 30 months.
“At Simandou, we started loading first ore at the mine for movement down the rail and to the port in October,” Trott said.
“We continue to strengthen performance from our assets, setting back-to-back quarterly production records in our bauxite business and at Oyu Tolgoi, where the underground ramp-up remains on track to boost copper output by more than 50 per cent this year.”
The company recorded bauxite production of 16.4 million tonnes in the third quarter, up 9% on last year and upgraded its bauxite output guidance from 57 to 59 million tonnes to between 59 and 61 million tonnes.
Equally encouraging, copper equivalent production increased 9% in the third quarter, with total copper output on track to hit the higher end of its full-year guidance.
At the same time, aluminium production rose 6% year-on-year to 857,000 tonnes.
However, on a more sobering note, the company flagged continuing losses at its copper smelters due to China’s major investment in processing capacity, which is blamed for driving down prices.
Rio Tinto has a market cap of $47.5 billion; the share price is up 5% in one year and up around 11% in the last month.
The stock is in a strong bullish trend, confirmed by multiple indicators. Specifically, a 5-day moving average of the stock price is above the 50-day moving average. Additionally, both the 200 and 20-day moving averages are trending higher.
Consensus is Moderate Buy.
OD6 Metals soars on Phase 2 drilling at Gulf Creek copper project
Shares in OD6 Metals (ASX: OD6) were trading 9.7% higher after the small cap explorer announced the start of Phase 2 drilling at its Gulf Creek Copper Project in New South Wales.
The program targets large geophysical anomalies at Big Bend, North West, and West Limb, which the miner hopes will represent repeats of the historic high-grade Gulf Creek Mine (which averaged up to 6.5% Cu before closing in 1912).
Seven priority diamond drill holes are planned, with approvals in place for up to 25 holes totalling 7,500m.
What has clearly added to the market’s excitement today was Phase 1 drilling earlier this year, which has already confirmed high-grade copper mineralisation beneath the old mine, with assays up to 4.6% Cu.
Downhole EM surveys will follow to refine targets.
The project provides OD6 with copper exposure alongside its flagship Splinter Rock rare earths project.
Commenting on today’s market update, managing director Brett Hazelden told the market that with phase 1 drilling confirming mineralisation directly beneath the historic Gulf Creek Mine, the miner is now turning its attention to the greenfield repeat targets at Big Bend, North West, and West Limb.
“These untested magnetic structures extend over approximately 3 km, with modelled depths exceeding 500m, and were a key driver behind OD6’s acquisition of the project. They are compelling targets with the potential to deliver a large-scale copper system,” he said.
“Gulf Creek complements our flagship Splinter Rock Rare Earth Project by providing OD6 with exposure to a high-grade copper asset in a proven mining district.”
With strong global copper demand and the ongoing electrification trend, Hazelden believes this project offers a highly attractive near-term growth opportunity for shareholders.
The miner’s cash balance at the end of the June quarter remains strong at $1.09 million.
OD6 Metals has a market cap of $17 million; the share price is up 138% in the last year and is up 30% in the last week.
The stock appears to be in a strong bullish trend, confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
