OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Bell Potter rates NHC as Sell

New Hope will acquire the 74% it does not own of Malabar Resources, which owns the Maxwell underground mine, via a scheme of arrangement, with Malabar shareholders to receive 0.50 new New Hope shares per share held. The implementation is targeted by March 2027.

Bell Potter updates its outlook for coal prices in the near term and now factors in a thermal price of US$141/t in FY27 and US$110/t in FY28. Hard coking coal is estimated at US$235/t in FY27 and unchanged thereafter with a long-term price of US$180/t.

Sell rating maintained. While the acquisition will materially strengthen the company's long-term production outlook, the Maxwell longwall ramp-up to 5mtpa brings operating complexity over the medium term. Target is raised to $5.30 from $5.00.

Ord Minnett rates NXG as Initiation of coverage with Buy

Ord Minnett initiates coverage of NexGen Energy with a Buy rating and $14.80 target, highlighting the high-grade Rook uranium project in Canada.

The project is expected to produce 230mlbs of uranium over an initial 11-year mine life, with first production forecast in 2030.

The broker estimates development capex of -CA$2.75bn and a funding requirement of around -CA$2.5bn. Further exploration is seen as offering potential to extend mine life or increase production capacity.

Ord Minnett highlights a supportive uranium market, underpinned by growing nuclear energy demand and constrained supply, with long-term uranium pricing assumed at US$100/lb.

This is a summary of research released by Ord Minnett yesterday.

Citi rates S32 as Buy

South32 announced 1Q27 production which was in line to slightly better than Citi's expectations and consensus. Cannington is noted as the only miss with manganese a beat. Gemco at 902kwmt was 24% above the analyst's forecast and 23% above consensus.

Wessels was also a strong beat, while alumina and aluminium were in line with expectations. Net cash rose to US$297m after -US$197m of capex for Hermosa.

The issues for Cannington around the reduced paste backfill availability are expected to be fixed over FY27, the analyst explains.

Buy rating and $6.10 target price retained.