Azzet reports on three ASX stocks with price moving updates today.
Ventia up after winning City of Sydney contract extension
Shares in Ventia (ASX: VNT) were trading around 4.6% higher by 1:25 pm AEST (3:25 am GMT) after the large-cap essential infrastructure services provider told the market its contract to maintain facilities with the City of Sydney has been extended for $100 million over two years.
Ventia, which has maintained services across 251 city-owned assets - including heritage-listed buildings such as Sydney Town Hall and Customs House – since 2018, will commence its contract extension on 22 January through to January 21, 2028.
Today’s contract extension follows revelations yesterday that Ventia has been awarded two Base Services Transformation (BST) packages by the Department of Defence valued at approximately $2.7 billion over an initial 6-year term.
On the back of this announcement, the stock’s share price rallied from around $5 on 10 September to as high as $5.14 yesterday before ending the day at around $5.03.
There are also two extension options of between one and three years, up to a maximum package term of 10 years.
Ventia will deliver Living and Working Services (LWS) in the Northern Territory, Victoria and Tasmania and Property and Asset Services (PAS) in Western Australia, Victoria and Tasmania.
It’s understood that defence and social infrastructure contribute a bigger proportion of earnings than any other sector for Ventia, outstripping telecommunications, infrastructure services and transport.
“This partnership is a testament to how innovation and collaboration in facilities management can create value and maximise our customers’ return on investment”, said CEO Dean Banks.
“Ventia has supported Defence capability for over 36 years. This outcome highlights our role as a trusted sovereign partner and leading employer, enabling subcontractors and suppliers across remote, regional and suburban communities.”
Meanwhile, news of new contracts for Ventia follows recent revelations that the company, along with industry peer Downer EDI, are being sued by the competition watchdog (ACCC) for alleged price-fixing.
The watchdog alleges some Downer and Ventia executives tried or succeeded in fixing the prices on services supplied to the Department of Defence between April 2019 and August 2022, however, the market appears to be unperturbed by the allegations.
While Ventia (along with Downer EDI) was sold down strongly after these revelations, the stock’s recovery was swift, with today’s share price up around 10% on its previous 12-month high.
Meantime, while the ACCC filed documents in court supporting its allegations in early September, Ventia, which is defending these claims, is due to file evidence by early December.
At the half-year, Ventia reported an 11.9% increase in net profit to $119.4 million and upgraded FY25 guidance to underlying net profit growth of 10-12% on FY24.
Ventia has a market cap of $4.2 billion; the share price is up 19% in one year and down 1.32% in the last month.
While the stock’s 200-day moving average is trending higher, there is significant evidence that the long-term bullish trend is near an end.
Specifically, recent price action has been weak, and the 5-day moving average is below both the 20 and 50-day moving averages.
Consensus is Moderate Buy.
APA rises in wake of regulator’s Basslink revenue decision
Shares in APA Group (ASX: APA) were trading 0.5% higher after the power infrastructure group told the market today that it will continue to positively engage with the Australian Energy Regulator (AER) after its draft decision that significantly lowers revenues and valuation of its recently acquired Basslink power cable.
It’s understood that the value of the cable between Victoria and Tasmania for regulation purposes would be $720.5 million, around $32 million less than the $752.8 million proposed by APA.
As a result, AER now provides for a total revenue cap of $428.8 million, significantly lower than the $442.9 million the business proposed for 2026-2030.
The draft ruling “seeks to ensure consumers pay no more than necessary for prudent and efficient investment in the network that supports reliable and secure energy,” the Australian Energy Regulator said.
The determination, which follows extensive stakeholder consultation, aims to ensure the reliable and efficient operation of Basslink, a critical energy link between Victoria and Tasmania.
If the final determination is acceptable, Basslink will transition to a regulated Transmission Network Services Provider by July 2026, and this has implications for APA’s operations and stakeholder engagements.
Commenting on today’s update, APA Group CEO Adam Watson reminded the market that Basslink plays a critical role in supporting energy consumers in both Victoria and Tasmania.
“APA will review this determination and continue to engage positively with the AER to ensure the final determination supports the ongoing reliable operation of this asset.”
The AER determination is understood to be preliminary with further consultation and submissions to be received from APA and other stakeholders.
The AER will then consider those submissions before issuing a final revenue determination on 27 February 2026.
Should the AER’s final revenue determination be acceptable to APA, Basslink would cease trading as a Market Services Network Provider on 30 June 2026 and operate as a regulated Transmission Network Services Provider on 1 July 2026.
APA expects to update the market further as required in line with its continuous disclosure obligations.
For the uninitiated, APA manages a diverse portfolio of gas, electricity, solar, and wind assets valued at around $27 billion.
Today’s market update follows plans disclosed mid-August for APA to divest its networks business to Australia Gas Infrastructure Group (GDI) for an expected $47 million.
As part of the transaction, APA will divest its Allgas energy distribution business, which provides asset management and operating services to its parent company GDI; however, APA will retain a 20% ownership in GDI.
At the FY25 APA delivered underlying earnings towards the top end of guidance, up 6.4% to $2.015 billion and guided to underlying earnings for FY26 of $2,120 million - $2,200 million, representing growth at the mid-point of 7.2% on FY25.
APA has a market cap of $11.7 billion; the share price is up 19% in one year and up 28% year to date.
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.
Consensus is Hold.
Marquee Resources tanks after announcing maiden MRE at Mt Clement
Shares in Marquee Resources (ASX: MQR) were trading 23.1% lower after the Perth-based micro-cap critical metals explorer announced its maiden Inferred Mineral Resource Estimate (MRE) for the Eastern Hills (Mt Clement) Project in the Pilbara region of WA.
The MRE totals 1.14 million tonnes at 0.6% SbEq, containing 6,800 tonnes of antimony equivalent metal.
Marquee Resources has several prospects identified, in addition to Eastern Hills, where potential antimony and gold mineralisation will be further targeted.
The resource estimate, reported at cut-off grades of 0.15% SbEq for open pit and 0.35% SbEq for underground components, includes 6,000 tonnes of contained antimony metal, with approximately 83% located within the open pit component.
The company also declared an Exploration Target of approximately 3 million to 6 million tonnes with antimony grades of approximately 0.4% to 0.8% at Eastern Hills, noting that this target is conceptual in nature.
While executive chair Charles Thomas hailed the maiden resource estimate as a transformational milestone for Marquee, the market clearly didn’t see it that way.
Today’s share price fall may reflect insider thinking on the quality of today’s result, especially in light of the recent capital raise, which saw a total of 228,497,985 new shares issued as part of what was an oversubscribed share placement.
Thomas noted that the defined 6,800 tonnes of contained metal validates the team’s work and underscores the project’s value potential.
Thomas further highlighted the Exploration Target, which indicates a further 3 to 6 million tonnes at grades of approximately 0.4% to 0.8% Sb, emphasising the scale of opportunity and positioning Marquee as a significant emerging antimony player in Australia.
However, Thomas went on to conclude that the potential quantity and grade of the Exploration Target are conceptual in nature.
At face value, the following quote by Thomas is encouraging:
“These numbers highlight the scale of opportunity before us and place Marquee firmly on the radar as a significant emerging antimony player in Australia.”
However, the company also notes there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
As a result, it would appear that a lot is riding on the Phase Two drilling program, which is set to commence shortly.
“… we are only just beginning to unlock the full potential of this district. The combination of a defined Resource, a highly prospective Exploration Target, and the backdrop of record antimony prices provides us with an exceptional growth platform. I could not be more confident in the future we are building for Marquee and our shareholders.”
Time will tell.
Marquee Resources has a market cap of $7.3 million; the share price is down 37% in one year and down 9% in the last week.
The stock’s shares appear to be in a near-term uptrend, confirmed by the relationship between the 5 and 20-day moving averages.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
