Azzet reports on three stocks with price moving updates today.
Rio dumped after reigniting merger talks with Glencore
The market made no secret of what it thought of merger talks between Swiss-based, London-listed diversified natural resource giant Glencore (LON: GLEN) and Australia’s second-largest mining company, Rio Tinto (ASX: RIO) with the big Aussie miner’s share price down 5% at the open.
While the two companies held merger discussions more than a year ago, the revelation told the market talks are back on the table.
At face value, a $212 billion-plus merger entity appears pretty impressive and would create one of the world’s biggest copper businesses.
While Glencore produces around one million tonnes of copper annually, Rio supplies 800,000 tonnes; and together they’d produce around 7% of total global production at a time when demand for the metal is increasing.
Due to a slew of mine outages and moves to stockpile the metal in the United States ahead of possible Trump administration tariffs, the metal soared to record highs above $13,000 a ton earlier this week.
After Glencore on Thursday confirmed a Financial Times article that it is in preliminary talks, Rio had little no choice but to confirm today that it has been engaging in preliminary discussions which could include an all-share merger between the two entities.
However the market appears to have reacted negatively to the significant strategic and cultural clashes, and concerns over the convoluted nature and regulatory scrutiny associated with a merger of this magnitude.
While Rio’s recently-appointed CEO Simon Trott wants to sell assets and cut jobs to increase cash proceeds by $10 billion, Glencore told the market last month it plans to save $1 billion annually by the end of 2026 through a number of measures, including 1,000 job cuts.
“The parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a Court-sanctioned scheme of arrangement,” Rio said in a statement today.
While there’s clearly no guarantee anything will come of these talks, it is important to note both companies are different beasts compared with when talks stalled a year ago.
Under London Stock Exchange regulations, Rio has until 5 February to either announce whether or not it intends to make an offer for Glencore.
“Agreement on terms and structuring won’t be straightforward. Rio wants Glencore’s copper assets but not its coal portfolio, we believe, though such assets could be carved out,” Bloomberg Intelligence analysts Alon Olsha and Grant Sporre said.
Interestingly, Glencore investors had a different perspective on a proposed merger than their Rio counterparts with Glencore’s American depositary receipts rising 8.8% in New York.
Codan soars on profit surge
Shares in Codan (ASX: CDA) were trading over 18% higher at noon after the technology and defence stock flagged a sharp (52%) year on year lift in underlying net profit after tax of at least $70 million on the back of surging demand for metal detection equipment and steady growth in communications.
Preliminary unaudited results for the six months to December point to group revenue of about $394 million, up 29% on the previous period.
The market liked the update that metal detection revenue jumped 46% to around $168 million.
While gold detector sales in Africa was a key driver, recreational markets across the rest of the world also saw double-digit growth.
Communications posted revenue of approximately $222 million, up 19%, which Codan told the market was consistent with growth at the upper end of its 15 to 20% target range.
While the company develops and manufactures a range of electronic solutions for government, military, corporate, and consumer markets globally, a significant and growing portion of its revenue is coming from the defence sector.
Codan is positively exposed to the defence spending thematic and is expected to benefit from increasing military spend, growth in use of unmanned systems.
In September 2024, Codan acquired 100% of Kagwerks, a global leader in tactical operator-worn networking solutions which provides soldiers with a lightweight, compact network hub, integrating disparate equipment into a single portable compact communications solution, which is highly complementary to Codan’s existing product suite.
The business allows Codan access to a significant new customer, the U.S. Department of Defence – also known as the Department of War.
Looking ahead, consensus expectations are for full year revenue of around $788 million.
Based on available forecasts, seven analysts currently rate the stock a Buy, with an average target price near $30 per share.
Codan is set to release its full audited first-half 2026 financial year results on 19 February 2026, which will give investors greater insight into segment performance and outlook.
Codan has a market capitalisation of $6.8 billion; the share price is up 136% in one year and up 31% in the last week.
While the stock’s 200-day moving average is trending higher, there is significant evidence that the bullish trend is near an end.
Recent price action has shown a lack of strength as the five-day moving average has fallen below the 50-day moving average and the 20-day moving average is trending lower.
The consensus recommendation is Hold.
WA1 Resources lifts on high-grade niobium drilling extension
The market’s response to WA1 Resources (ASX: WA1) update was relatively muted, with the niobium developer’s share price struggling to trade 1% higher at noon following its latest drill results.
The critical minerals darling reported further high-grade niobium drill results from its 100%-owned Luni Niobium Project in the remote West Arunta region of Western Australia including multiple thick, high-grade infill intersections and extensions beyond the current mineral resource estimate envelope.
Drilling in 2025 totalled 35,000 metres with results supporting continuity of high-grade niobium zones which enhances confidence in the existing Mineral Resource and better define the geometry and continuity of key high-grade domains.
Additional air core drilling to the east of Luni has extended niobium mineralisation more than 400 metres beyond the current resource envelope.
The company said the data would feed into an updated mineral resource estimate planned for 2026, and underpinned ongoing project development studies, permitting and approvals, marking a significant step in advancing the project toward potential development.
In the last four years, WA1 Resources, which has gone from a $9 million minnow to a $1.4 billion stock that sits just outside the ASX300 index.
Given the nature of its operation the miner has had no difficulty finding institutions willing to lend it money.
The company released an initial resource estimate for Luni in July 2024, describing it as “the most significant niobium discovery in more than 70 years."
At the time, its inferred resource was 200 million tonnes at 1% niobium pentoxide.
Since the initial resource estimate came out, WA1 has upgraded 46% of WA based Luni's contained niobium to the indicated category from within two key high-grade zones.
Since then the miner’s flagship Luni niobium project has received major project status, which provides case management and coordinated access to the Federal Government through the Department of Industry, Science and Resources’ Major Projects Facilitation Agency.
As at 30 September 2025, the miner had cash of around $155 million.
The miner’s share price is up 40% in one year and up 10% in the last month.
The stock appears to be in a long-term uptrend because its 200-day moving average is sloping upwards and shows investor demand for the stock.
However, the stochastic oscillator is falling and indicates that there is some selling pressure.
The consensus recommendation is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.