In a market where dividend reliability often feels uncertain, APA Group (ASX: APA) stands out as a beacon of consistency. As one of Australia’s most critical energy infrastructure operators, APA transports nearly half of the nation’s natural gas through its vast pipeline network and manages a $27 billion portfolio of diversified energy assets. This dominant position has helped the company maintain steady, predictable cash flows—fueling its impressive 21-year streak of uninterrupted dividend increases.

Australia’s Backbone for Energy

APA Group’s operations are central to the country’s energy security. Its pipelines connect key gas fields with power generators, industrial users, and distribution networks across thousands of kilometers. Beyond gas, APA has expanded into renewable energy assets, including solar farms, wind assets, and battery storage, aligning its long-term strategy with Australia’s gradual energy transition.

This diversification has made APA one of the most stable income-generating companies on the ASX. Even during periods of economic volatility, APA’s revenues remain largely shielded from demand swings—thanks to long-term, inflation-linked contracts with utilities and industrial clients. These contracts form the backbone of its financial resilience and dividend-paying capacity.

Latest Financial Performance Underscores Resilience

The company’s FY25 performance was another testament to its strength and adaptability. Despite rising operational challenges and inflationary pressures, APA delivered robust earnings growth:

1. Total revenue (excluding pass-through) climbed 4% to $3.14 billion.
2. EBITDA jumped 8.5% to just over $2 billion, hitting the top end of its guidance range.

Several factors contributed to this solid performance. APA’s expansion of the Pilbara Energy System—a crucial network supporting Western Australia’s mining sector—added new revenue streams. The integration of recent asset acquisitions and returns from investments in solar and battery projects also strengthened the company’s earnings profile. Furthermore, disciplined cost management ensured profitability despite ongoing industry cost pressures.

Such results highlight APA’s ability to deliver steady growth without overextending its balance sheet—something income investors deeply appreciate.

A Standout Dividend Track Record

If consistency were a competition, APA would be a top contender. For FY25, the group declared a final distribution of 30 cents per security, bringing the annual total to 57 cents—a 1.8% increase from FY24. At current market prices, this translates to a dividend yield of roughly 6.5%, comfortably above the ASX average of around 4%.

More importantly, APA’s board has already provided forward guidance for another increase in FY26, targeting 58 cents per security. This early commitment reinforces the management’s confidence in the company’s cash flow strength and earnings visibility.

Over 90% of APA’s revenue is classified as defensive and inflation-linked, supported by long-term contracts with reliable counterparties. This structure provides a natural hedge against inflation and economic slowdowns, ensuring that dividend payments remain stable—even when broader markets are volatile.

Balancing Growth, Cash Flow, and Sustainability

While APA’s dividend appeal is undeniable, the company is not resting on its legacy. It continues to invest heavily in future growth opportunities while maintaining a disciplined approach to balance sheet management.

For FY26, APA expects underlying EBITDA growth of around 7.2% at the mid-point of guidance, driven by continued expansion of its pipeline network, grid interconnections, and renewable projects. The company has earmarked approximately $2 billion in organic growth capital expenditure for the FY26–FY28 period.

APA’s payout ratio remains high, consistent with infrastructure trusts, but this is comfortably backed by strong operating cash flows and inflation-adjusted revenue growth. The focus remains on measured dividend growth, ensuring that payouts are sustainable without jeopardizing investment in future projects or the company’s investment-grade credit rating.

Strategic Shifts Toward the Energy Transition

APA is also taking gradual but meaningful steps toward aligning its portfolio with Australia’s decarbonization goals. While natural gas remains its core business, the company recognizes the long-term shift toward cleaner energy systems.

Through targeted investments in solar generation, wind energy, and battery storage, APA is positioning itself to play a major role in supporting the renewable energy grid of the future. These assets not only enhance sustainability credentials but also diversify cash flow sources, reducing long-term risks from the global energy transition.

Moreover, APA’s infrastructure expertise places it in an advantageous position to potentially facilitate hydrogen transport and storage projects—a segment expected to grow significantly in the coming decades.

Risks Worth Monitoring

Despite its strong fundamentals, investors should stay mindful of a few potential headwinds. Rising interest rates and higher debt servicing costs could marginally impact future distributions, given APA’s capital-intensive nature. Additionally, regulatory changes in the energy sector or unexpected declines in industrial demand could pose short-term challenges.

However, APA’s defensive contract base, inflation pass-through mechanisms, and careful capital management make it well-equipped to navigate these risks.

Conclusion: Reliable Dividends Set to Continue

APA Group’s two-decade-long dividend streak isn’t a coincidence—it’s a reflection of disciplined execution, defensive business fundamentals, and a clear long-term strategy. The company’s ability to generate stable, inflation-linked cash flows from essential infrastructure ensures that income investors can rely on it even in uncertain markets.

With strong FY25 results, a guided dividend increase for FY26, and a $2 billion growth pipeline in the works, APA appears firmly on track to extend its dividend streak into a 22nd year and beyond.

For investors seeking a combination of yield, stability, and gradual growth, APA Group remains one of the most dependable income plays on the ASX—a rare blend of security and steady returns in an ever-changing energy landscape.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

In an era where global trade is increasingly dependent on digital efficiency, WiseTech Global Ltd (ASX: WTC) has emerged as a standout name on the Australian Securities Exchange. As supply chains grow more complex and technology reshapes logistics, WiseTech’s software solutions have become indispensable for freight forwarders, logistics providers, and global trade operators.

With its innovative platform, strong financial performance, and strategic acquisitions, WiseTech Global is gaining momentum — and investors are taking notice. Let’s explore why this Australian tech giant is making headlines in 2025 and why it could remain one of the most compelling ASX growth stories in 2026 and beyond.

WiseTech Global: Powering the Global Supply Chain

Founded in Sydney in 1994, WiseTech Global has built a global reputation as a leading provider of cloud-based logistics and supply chain execution software. Its flagship product, CargoWise One, enables logistics companies to manage operations, documentation, compliance, and customer communications seamlessly across multiple countries and languages.

The scale of CargoWise’s influence is staggering — 24 of the world’s top 25 freight forwarders rely on WiseTech’s technology to manage their global operations. This deep integration gives WiseTech a strong competitive moat and a highly sticky customer base.

As international trade continues to rebound post-pandemic, and businesses push for digital transformation, WiseTech’s solutions are becoming more critical than ever.

Impressive Financial Growth and Robust Margins

WiseTech Global’s financial performance has consistently exceeded expectations, reinforcing investor confidence in its growth trajectory.

For the fiscal year ending June 30, 2025, WiseTech reported:

1. Total revenue: $1.2 billion, up 15% year-over-year.
2. CargoWise revenue: Up 18%, driven by increased adoption and global expansion.
3. EBITDA: Approximately $643.27 million, a 27% increase year-on-year.

These figures highlight not only strong topline growth but also significant margin expansion, a testament to the scalability of WiseTech’s software-as-a-service (SaaS) model. With recurring revenue forming a large part of its income, WiseTech enjoys stable cash flows and visibility into future earnings — a key trait investors value in tech-driven businesses.

The company’s disciplined cost management, combined with continued innovation and recurring licensing revenues, has positioned it as one of the most profitable software firms in Australia.

Strategic Acquisitions Fueling Global Expansion

One of WiseTech’s major growth levers is its strategic acquisition strategy. Rather than focusing solely on organic expansion, the company actively acquires businesses that complement its technology stack or expand its market reach.

A landmark move was its acquisition of e2open, a US-based cloud trade and supply chain SaaS provider. This acquisition was transformative — expanding WiseTech’s total addressable market to over USD 11 trillion globally. It also enhances WiseTech’s exposure to major US and European trade networks, reinforcing its status as a global logistics technology powerhouse.

Additionally, WiseTech has pursued tuck-in acquisitions in regions such as Europe and Latin America, focusing on customs and compliance technologies. These additions help strengthen the CargoWise ecosystem by improving automation, compliance efficiency, and end-to-end logistics visibility.

By integrating these new capabilities, WiseTech is building an increasingly unified and powerful software suite that supports freight forwarding, customs, and supply chain management under one platform — a unique advantage in a fragmented logistics software market.

Innovation and AI Integration: The Next Growth Frontier

WiseTech Global’s commitment to innovation is one of the strongest reasons investors are bullish on its long-term potential. The company is embedding artificial intelligence (AI) into its software architecture to further enhance automation and customer value.

One of the biggest upcoming changes is WiseTech’s shift from a seat-based licensing model to a transaction-based model. This means customers will pay based on usage volume, aligning WiseTech’s revenue directly with the success and scale of its clients’ operations. Analysts expect this shift to accelerate adoption, increase scalability, and provide more predictable recurring income.

WiseTech’s AI-powered workflow engine aims to reduce manual processing in freight forwarding by automating data entry, quality control, and compliance checks. The result is faster turnaround times, fewer errors, and improved profitability for logistics companies — all while strengthening customer loyalty.

Importantly, WiseTech continues to reinvest heavily in research and development (R&D). In FY25, it allocated around 34% of total revenue to R&D, producing more than 1,200 new product enhancements within the year. This relentless pace of innovation ensures WiseTech stays ahead of competitors and continues to evolve with the needs of the global logistics industry.

Why Investors Are Paying Attention

There are several key reasons why WiseTech Global is firmly on investors’ radar:

1. Market Leadership and Customer Loyalty
   WiseTech’s dominance in logistics software, especially with CargoWise’s near-universal adoption among major freight forwarders, provides a competitive moat that is hard to replicate.
2. High-Quality Financials
   Strong revenue growth, expanding margins, and recurring revenue streams make WiseTech an attractive long-term growth stock with consistent profitability.
3. Global Expansion Strategy
   Strategic acquisitions, especially e2open, have expanded WiseTech’s market presence globally, giving it exposure to key trade markets in the US, Europe, and Asia.
4. AI and Product Innovation
   With substantial R&D investment and the integration of AI, WiseTech is positioning itself for the next wave of logistics automation.
5. Resilience in Volatile Markets
   Unlike many cyclical sectors, logistics software has a steady demand base, as companies continue to digitize operations even during economic slowdowns.
6. Long-Term Growth Story
   As global trade rebounds and supply chains modernize, WiseTech stands to benefit from both macroeconomic tailwinds and its own innovation pipeline.

Conclusion: A Logistics Tech Giant Riding Global Trade Growth

WiseTech Global Ltd (ASX: WTC) represents a compelling story of innovation, global reach, and consistent execution. The company has transformed itself from a local logistics software provider into a global leader in supply chain technology, empowering some of the largest logistics companies in the world.

Its robust financial performance, aggressive expansion strategy, and continued focus on AI-driven innovation make it one of the most exciting technology stocks on the ASX. With demand for digital supply chain solutions expected to soar, WiseTech is ideally positioned to ride the next wave of logistics modernization.

For investors seeking exposure to a high-growth, globally diversified Australian tech company with strong fundamentals and long-term potential, WiseTech Global Ltd certainly deserves a prominent place on the radar.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

In today’s uncertain market, investors are constantly on the lookout for opportunities that offer not just steady income but also value. With interest rates fluctuating and market volatility remaining high, dividend-paying stocks have become a safe haven for investors seeking stability and consistent returns.

Among the many options available on the ASX, New Hope Corporation (ASX: NHC) and Helia Group Ltd (ASX: HLI) stand out as two high-yield dividend plays that continue to trade at attractive valuations. Both companies have demonstrated strong profitability, disciplined financial management, and the ability to sustain healthy dividends—making them excellent picks for income-focused investors.

New Hope Corporation: Coal’s Reliable Dividend Play

New Hope Corporation is one of Australia’s most consistent dividend payers, operating across coal mining, oil and gas exploration, and logistics. Despite growing global attention toward renewable energy, New Hope has managed to thrive by maintaining efficient operations and delivering impressive cash flows.

Financial Highlights

1. FY25 Revenue: Approximately $1.75 billion, stable compared to the previous year.
2. Net Income: $439.4 million, only slightly lower than FY24’s $475.9 million.
3. EBITDA Margin: 48.6%, highlighting the company’s strong operational efficiency.
4. Fully Franked Dividend Yield: Around 8.5%, including a final dividend of 15 cents per share payable on October 8, 2025.
5. Price-to-Earnings (P/E) Ratio: Roughly 7.9x, indicating the stock remains attractively valued.

New Hope’s ability to maintain strong margins even in a challenging coal market is impressive. The company benefits from efficient cost structures, long-term supply contracts, and disciplined reinvestment in its core assets.

While coal may not be the most fashionable sector in a decarbonizing world, the reality is that global energy demand—especially in developing regions—still supports coal’s role in the energy mix. New Hope has been careful to balance this with strategic investments in logistics and energy-related ventures, which diversify its income streams.

For investors seeking high yield with stability, New Hope offers exactly that. Its fully franked dividends not only provide consistent income but also enhance after-tax returns for Australian investors. The stock’s relatively low valuation further adds to its attractiveness, offering both yield and potential capital upside if coal prices remain firm.

Helia Group Ltd: Leadership in Mortgage Insurance with Growth Upside

Helia Group Ltd (ASX: HLI), formerly known as Genworth Mortgage Insurance Australia, is Australia’s leading lender’s mortgage insurer (LMI). The company plays a critical role in the housing finance ecosystem by protecting banks against borrower defaults on high loan-to-value ratio (LVR) mortgages—typically above 80%.

Helia’s business model benefits from both strong premium income and conservative capital management. Despite headwinds in the property market, Helia has consistently delivered solid results and continues to reward shareholders with generous dividends.

Financial Highlights

1. H1 FY25 Revenue: $249.8 million, supported by strong premium growth.
2. Statutory Net Profit After Tax: $133.7 million for the first half of FY25, marking a 38% increase from the prior half.
3. Fully Franked Interim Dividend: 16 cents per share, up 7% year-on-year, plus an unfranked special dividend, demonstrating strong cash generation.
4. Price-to-Earnings (P/E) Ratio: Around 5.9x, well below the sector average—signaling significant undervaluation.
5. Dividend Yield: Approximately 7%, supported by a robust payout ratio.

Helia’s earnings have been boosted by favorable credit conditions, disciplined underwriting standards, and low claims experience. Moreover, the company maintains a solid capital base and has ample regulatory buffers, ensuring its ability to sustain dividends even in more volatile market cycles.

Another strength is its pricing power. As the largest player in Australia’s mortgage insurance space, Helia benefits from strong relationships with major banks and a near-monopoly in certain market segments. This gives it a unique advantage in maintaining margins while still expanding its book of business.

For investors, Helia offers a blend of yield, safety, and upside potential. Its low valuation, rising profits, and consistent dividends make it a hidden gem in the financial sector.

Why These Stocks Look Cheap Yet Rewarding

Both New Hope Corporation and Helia Group offer compelling reasons for income-focused investors to take notice in 2025. Here’s why these two stocks stand out in the current market:

1. Attractive Dividend Yields

Both companies provide dividend yields well above the ASX average, which currently hovers around 4%.

1. New Hope’s yield of ~8.5% makes it one of the top-paying stocks on the exchange.
2. Helia’s ~7% yield, combined with a special dividend, highlights management’s confidence in the company’s cash flow sustainability.

2. Reasonable Valuations

At a time when many quality income stocks are priced at premium valuations, both of these names trade at low single-digit P/E ratios—6.8x for New Hope and 4.5x for Helia. This provides a margin of safety and scope for capital appreciation if earnings momentum continues.

3. Strong Earnings Quality

These companies are not just high yielders—they’re profitable, well-managed, and cash flow rich.
New Hope’s high EBITDA margin reflects strong cost control, while Helia’s 38% earnings growth in H1 FY25 demonstrates its operational strength in a defensive industry.

4. Sector Differentiation

Diversification across sectors is key for income investors.

1. New Hope is positioned in the energy and resources sector, benefiting from ongoing global energy demand.
2. Helia, on the other hand, operates in the financial services space, offering counter-cyclical stability and consistent premium income.

Together, they provide a balanced mix of cyclical and defensive exposure—ideal for investors looking to build a resilient dividend portfolio.

Conclusion: Income Investors Should Take Notice

For investors seeking high yield with solid fundamentals, New Hope Corporation and Helia Group Ltd represent two of the most attractive opportunities on the ASX in 2025.

Both companies deliver strong, sustainable dividends, supported by healthy balance sheets, disciplined capital management, and undervalued share prices. Whether you’re an income-focused investor or someone looking to add value-oriented names to your portfolio, these stocks tick all the right boxes.

In a market where finding reliable income sources can be challenging, New Hope and Helia Group stand out as rare value-income combinations—stocks that not only pay you today but also have the potential to grow tomorrow.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The tech-focused Australian data center leader, NextDC Ltd (ASX: NXT), has recently seen its share price dip, sparking the question: Is this a buying opportunity or a sign to stay cautious? As digital transformation continues to accelerate across industries, NextDC sits right at the heart of Australia’s booming digital infrastructure landscape. Let’s take a closer look at its recent financial performance, strategic growth moves, and potential risks to see whether this tech giant deserves a place in your investment portfolio.

Resilient Growth Amid Heavy Investment

Despite market volatility, NextDC has continued its streak of solid operational growth. For the financial year 2025, the company reported revenue of $427.2 million, marking a 5.66% year-on-year increase. Meanwhile, underlying EBITDA rose 6% to $216.7 million, showing the company’s ability to deliver steady profitability even during periods of heavy expansion.

However, the bottom line reflected a net loss of $60.5 million, primarily driven by aggressive capital expenditure (capex) of $1.7 billion as NextDC expanded its data center footprint across major Australian cities. While this level of spending may raise eyebrows, it’s essential to note that it’s part of a long-term growth strategy aimed at capturing future demand from cloud computing, artificial intelligence (AI), and digital services.

NextDC continues to set new records in its operational metrics. The company’s contracted sales hit 72.2MW, and its forward order book now stands at 134MW, exceeding its current billing capacity. This highlights a strong pipeline of business and underlines the sustained demand for secure and scalable data infrastructure.

Strategic Investments Powering Future Growth

Under the leadership of CEO Craig Scroggie, NextDC has maintained a forward-looking strategy focused on growth and innovation. Scroggie emphasizes that the company’s substantial investments are designed to capture opportunities arising from the AI revolution, cloud expansion, and the digital transformation wave sweeping across industries.

For FY26, NextDC is forecasting underlying EBITDA between $230 million and $240 million and capital expenditure of $1.8–$2.0 billion. These figures reinforce management’s commitment to scaling up capacity and infrastructure to meet surging demand.

To support this expansion, the company recently secured a new senior debt facility of $2.2 billion, bringing its total debt to $6.4 billion. Despite this, NextDC maintains strong pro-forma liquidity of approximately $5.5 billion, giving it ample flexibility to fund ongoing and upcoming projects.

Analysts from major institutions like Macquarie remain optimistic, pointing out the potential for an 8% increase in full-year earnings driven by long-term contracted revenues and strategic joint ventures that could reduce the capital intensity of future developments.

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Why NextDC Could Be a Good Buy

1. Market Leadership – NextDC is Australia’s largest data center operator, known for its high-quality, secure, and energy-efficient facilities. Its strong reputation has made it the go-to provider for hyperscale cloud companies and large enterprises.
2. Favorable Industry Tailwinds – The global shift toward cloud computing, artificial intelligence, and government digital initiatives continues to create unprecedented demand for data storage and processing capacity. NextDC, being a domestic leader, is ideally positioned to capture this growing demand.
3. Strong Contract Base – With a forward order book exceeding its existing billing capacity, NextDC enjoys excellent revenue visibility over the medium term.
4. Sustainable Growth Outlook – Market analysts forecast double-digit revenue growth over the next few years, supported by NextDC’s strategic data center expansions in key Australian and Asia-Pacific regions.
5. Robust Balance Sheet – Despite its heavy capex, NextDC’s high liquidity levels and access to capital markets ensure it has the financial strength to pursue large-scale projects and strategic acquisitions.

Risks to Consider

While NextDC presents a compelling growth story, investors should also weigh the potential risks:

1. High Capital Intensity: The company’s heavy spending on infrastructure projects demands efficient capital management. Rising interest rates could increase financing costs, affecting profitability in the short term.
2. Execution Risk: NextDC’s success depends on the timely completion and ramp-up of new facilities. Any delays in construction or client onboarding could temporarily impact earnings.
3. Competitive Landscape: The Australian data center market is attracting global players like Equinix and Digital Realty, increasing competition. Maintaining pricing power and service differentiation will be key to sustaining margins.

Macro Trends Working in Its Favour

Australia’s digital economy is expanding rapidly. The growth of cloud computing, AI applications, and edge computing is fueling long-term demand for reliable data infrastructure. Government-backed initiatives around cybersecurity and digital transformation are further boosting investment in data centers.

Moreover, the rise of AI-driven workloads requires massive computational power, which in turn demands more energy-efficient and scalable facilities—something NextDC is already well-known for. Its focus on sustainability, including renewable energy integration and carbon-neutral operations, gives it a competitive edge in an era of growing ESG awareness.

Valuation and Market Perspective

After the recent market dip, NextDC’s stock is trading below its previous highs, making it an attractive entry point for long-term investors. Although near-term volatility may persist due to high capital spending and interest rate pressures, the underlying fundamentals remain strong.

The company’s long-term contracted revenue model provides predictable cash flows, while its aggressive capacity expansion positions it to benefit as digital transformation deepens across the Asia-Pacific region. Many analysts consider the current pullback as a healthy correction rather than a sign of weakness.

Conclusion: Timing for Patient Investors

NextDC’s recent share price dip may well represent a buying opportunity for investors with a long-term horizon. The company’s resilient financial performance, strong demand pipeline, and strategic investments place it in a commanding position to benefit from the ongoing data-driven revolution.

While short-term headwinds like high capital expenditure and competition cannot be ignored, the growth outlook remains highly attractive. For investors seeking exposure to Australia’s rapidly expanding digital infrastructure sector, NextDC Ltd (ASX: NXT) stands out as a solid long-term play poised to deliver value as the world becomes ever more connected and data-dependent.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Australia’s mining sector remains a cornerstone of its economy, providing critical resources to the world while supporting local jobs and innovation. Behind the scenes, mining services companies play a pivotal role, ensuring that operations run efficiently, safely, and profitably. For investors keen to capitalize on a potential resource sector upswing, two ASX-listed stocks stand out: Perenti Limited (ASX: PRN) and Mineral Resources Limited (ASX: MIN). Both companies combine operational expertise with strategic growth initiatives, positioning themselves strongly for the next phase of the mining cycle.

Perenti Limited: Powerhouse in Mining Services and Technology

Perenti Limited is a diversified mining services provider with a global footprint. Its operations span underground and surface mining, drilling services, technology solutions, and consulting, supporting some of the world’s largest mining projects across Africa, Australia, and the Americas.

Financial Highlights
For the fiscal year ending June 30, 2025, Perenti reported revenues of $3.49 billion, representing a 4.4% year-on-year growth. Impressively, the company’s net profit after tax exceeded $120.6 million, reflecting efficiency gains and successful contract wins. This growth underscores Perenti’s ability to deliver value even amid cyclical market conditions.

Growth Drivers

• Global Contract Mining & Drilling: Expanding engagements with top-tier mining operators worldwide.
• Technology Integration: Investments in digital and automation solutions enhance efficiency and reduce operational costs.
• Equipment & Supply Chain Expansion: Broader service offerings allow Perenti to capture additional value from its clients.
• Operational Excellence: Focused cost management and productivity improvements boost margins.

Investors have taken note, with Perenti’s stock climbing nearly 68% over the past three months, highlighting confidence in the company’s operational and financial strategies. With a strong pipeline of global contracts and ongoing technological innovation, Perenti is well-placed to capitalize on a cyclical rebound in commodity demand.

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Mineral Resources Limited: Integrated Mining & Services Strength

Mineral Resources Limited (MinRes) operates a hybrid business model, combining its own mining operations with a robust mining services division. This integrated structure allows the company to capitalize fully on commodity upswings while maintaining diversified revenue streams.

Financial Highlights
In FY25, Mineral Resources recorded revenue of $4.47 billion, underpinned by strong output at its Onslow Iron Joint Venture and record mining services production of 280 million wet metric tonnes. EBITDA reached $857 million, driven by operational efficiencies and new contract wins. The company’s iron ore shipments rose 11%, and lithium operations were optimized despite challenging market conditions. Strategic energy-related investments also broadened the company’s growth avenues.

Growth Catalysts

1. Onslow Iron Ramp-Up: Achieving commercial production by June 30, 2025, strengthened earnings potential.
2. Mining Services Expansion: Record production volumes demonstrate operational capability and market demand.
3. Lithium Cost Optimizations: Improved efficiency safeguards profitability amid market fluctuations.
4. Diversification Through Energy & JVs: New ventures support long-term growth and mitigate commodity-specific risks.

Mineral Resources has built a resilient balance sheet and a diversified earnings profile, making it well-positioned to capture value across the mining sector’s ups and downs.

Why These Stocks Deserve Your Attention

Both Perenti and Mineral Resources offer compelling reasons for investors to consider adding them to their portfolios:

1. Sector Leadership – Each company is a top-tier mining services provider, known for operational reliability and delivery excellence.
2. Strong Financial Performance – Record revenues and net profits underscore their ability to grow profitably even in cyclical industries.
3. Diversified Business Models – Wide-ranging service offerings, coupled with integrated mining operations (for MinRes), help cushion market volatility.
4. Positive Market Sentiment – Recent stock price gains reflect growing investor confidence in both companies’ growth trajectories.
5. Growth Potential – With global commodity demand recovering and new contracts in place, both stocks have strong upside potential for medium- to long-term investors.

Investors seeking exposure to Australia’s mining sector recovery can benefit from the blend of stability, operational excellence, and growth potential offered by Perenti and Mineral Resources. While cyclical risks remain, these companies’ proven track records and strategic positioning make them standout opportunities in the mining services space.

Conclusion

As the global economy leans on critical resources, mining services companies like Perenti (PRN) and Mineral Resources (MIN) are becoming increasingly essential. Both companies combine operational strength, financial resilience, and strategic growth initiatives to capitalize on mining sector recovery.

For investors looking to tap into the next upswing in resource demand, these two ASX stocks are more than just service providers—they are growth engines in their own right. With strong revenues, record operational performance, and a focus on innovation, Perenti and Mineral Resources offer both security and upside potential in a sector poised for a rebound.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

In today’s increasingly digital world, businesses depend on seamless cloud connectivity, flexible infrastructure, and rapid data exchange to operate efficiently. As this global digital transformation accelerates, Megaport Ltd (ASX: MP1) — a Brisbane-based technology company — is quietly becoming a powerhouse in the cloud networking industry.

Operating a Network as a Service (NaaS) platform, Megaport enables companies to connect to multiple cloud service providers and data centers easily, without the complexity or cost of traditional networking. With impressive financial results, global partnerships, and a rapidly expanding customer base, Megaport could be poised to become the next big winner on the ASX.

Riding the Cloud Connectivity Wave

Megaport’s strength lies in its software-defined networking (SDN) platform, which lets enterprises directly connect to leading cloud providers like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Oracle Cloud. The shift toward multi-cloud and hybrid cloud architectures has supercharged demand for flexible interconnection services — and that’s exactly where Megaport shines.

In FY25, Megaport reported standout results that underscore its growth momentum:

1. Annual Recurring Revenue (ARR): $243.8 million, up 20% year-on-year.
2. Total Revenue: $227.1 million, an increase of 16% from FY24.
3. Net Revenue Retention (NRR): 107%, showing strong customer loyalty and expansion within existing accounts.
4. EBITDA: $62.3 million, up 9% from the previous year.

These figures highlight Megaport’s ability to not only attract new customers but also deepen engagement with existing ones. In a world where data flows are the lifeblood of business operations, the company’s platform acts as a crucial connector — fast, secure, and scalable.

Strategic Partnerships and Global Footprint Expansion

Megaport’s competitive edge extends beyond technology — it’s about reach. The company’s global network now spans over 1,000 enabled data centers, serving more than 2,800 customers and powering a total of 30,000 active services.

A key development in 2025 was its strategic partnership with DartPoints, announced in July, which expanded its footprint across North America. This collaboration strengthens Megaport’s presence in one of the largest cloud markets in the world and allows the company to reach more enterprise clients seeking flexible cloud access solutions.

Megaport is also expanding aggressively across Asia-Pacific and Europe, regions where digital adoption is accelerating. Its growth strategy focuses not just on adding new locations but also on introducing cutting-edge services like:

1. Megaport Virtual Edge (MVE): A solution that enables customers to deploy virtual network functions closer to end users, improving performance and security.
2. Megaport Cloud Router (MCR): A cloud-to-cloud routing service that removes the need for costly physical infrastructure.

These innovations allow enterprises to scale faster and manage complex networks more efficiently — a key advantage in today’s data-driven economy.

Financial Health and Growth Potential

Financially, Megaport is showing steady improvement and a clear path toward profitability. The company posted a net loss of just $292,000 in FY25, a dramatic turnaround from the $9.6 million loss in FY24. This marks one of the company’s most stable years yet, reflecting disciplined cost control and operational efficiency.

Analysts project that Megaport’s revenue could grow by roughly 14% annually over the next three years, supported by strong demand for its services and ongoing expansion into new regions. The company’s institutional ownership stands at around 58%, signaling robust confidence from major investors and funds.

With high-margin recurring revenue, a sticky customer base, and a scalable business model, Megaport has the fundamentals to deliver sustainable long-term growth.

Challenges and Considerations

Despite its strengths, Megaport isn’t without challenges — and investors should keep these in mind before diving in:

1. Rising Network Costs: As Megaport expands globally, network and partner costs are increasing, which could pressure margins in the short term.
2. Retention Slowdown: While the Net Revenue Retention rate of 107% is healthy, any slowdown could indicate saturation among existing clients.
3. Competitive Market: The cloud connectivity industry is becoming more crowded, with major global players expanding their presence. Megaport must continue to innovate to stay ahead.
4. Currency Fluctuations: Operating in multiple countries exposes the company to foreign exchange risks that can affect reported earnings.

That said, these challenges are typical for a high-growth tech company and are offset by Megaport’s strong market position, innovative product offerings, and ongoing cost discipline.

Megaport’s Place in the Cloud Future

The world is in the midst of a digital infrastructure revolution. Businesses are increasingly moving workloads to the cloud, adopting AI-driven analytics, and relying on real-time data connectivity — all of which require the kind of agile networking Megaport provides.

Megaport’s software-defined interconnection model fits perfectly into this landscape. By removing the need for traditional hardware-based networking, it helps businesses connect faster, scale instantly, and reduce costs. This positions Megaport not only as a connectivity provider but as a key enabler of digital transformation.

Moreover, as technologies like AI, Internet of Things (IoT), and edge computing become mainstream, demand for fast and reliable interconnectivity will surge. Megaport’s virtualized network infrastructure is already designed to support these high-performance workloads.

Conclusion: A Thriving Cloud Connectivity Leader

Megaport’s journey from a local Brisbane startup to a global cloud connectivity leader is nothing short of remarkable. The company’s impressive FY25 financial performance, expanding global network, and consistent innovation reflect strong execution and strategic clarity.

While short-term headwinds such as network costs and competition exist, Megaport’s long-term growth potential remains compelling. Its scalable business model, improving profitability, and leadership in software-defined networking make it a standout player in Australia’s tech landscape.

For investors seeking exposure to the digital infrastructure boom — and a company riding the wave of global cloud connectivity — Megaport Ltd (ASX: MP1) could indeed be the next big winner on the ASX.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

In the dynamic world of ASX small- and mid-cap stocks, investors are always hunting for the elusive “multibagger”—a company that multiplies in value several times over. In 2025, Develop Global Ltd (ASX: DVP) is beginning to catch that attention. With a strong earnings turnaround, large-scale project momentum, and active insider support, DVP is quickly positioning itself as a serious contender for growth-focused investors. But what exactly is fueling this optimism, and could DVP realistically become the next multibagger on the ASX?

Earnings Turnaround: From Losses to Profit

The most immediate reason investors are taking note of DVP is its remarkable turnaround in profitability. After years of operating losses, the company posted strong net profits in FY2025, signaling that strategic changes and operational improvements are paying off.

1. Revenue growth: Sales jumped to $231.5 million, a significant improvement from prior years.
2. Profit surge: Net income reached $72.4 million, swinging dramatically from a previous-year loss.
3. Improved margins: Return on equity and profit margins have both increased, thanks to scale efficiencies and smarter project execution.

These results are underpinned by strong cash flows, providing the company with financial flexibility to reinvest in growth projects without over-relying on external funding.

Investor confidence is further reinforced by insider activity. Director William Beament, a respected mining and project management veteran, recently increased his shareholding, signaling high internal confidence in DVP’s trajectory. Insider buying is often a strong indicator that those closest to the business genuinely believe in its potential.

Project Momentum: Mining and Services Growth

Develop Global’s growth story is also tied closely to its project pipeline, particularly its mining and mining services divisions.

Sulphur Springs Copper-Zinc Project

One of DVP’s crown jewels is the Sulphur Springs project in Western Australia, a significant copper-zinc resource at an advanced stage of permitting. Analysts highlight that if commodity prices remain supportive, the project could generate substantial forward sales and EBITDA growth. This makes DVP more than just a services company; it has the potential to become a miner with tangible resource leverage, amplifying its growth prospects.

Mining Services Division

In addition to its resource projects, DVP’s mining services division continues to secure major contracts, adding recurring revenue streams that smooth earnings volatility. This combination of project development upside and stable services income creates a balanced growth profile for investors.

Pipeline Expansion

Management is not resting on its laurels. Strategic investments and high-profile hires aim to double both sales and net profit by 2027, according to current plans. This aggressive yet structured expansion provides a blueprint for the kind of exponential growth that often characterizes multibagger candidates.

Insider Support and Market Confidence

Investor sentiment around DVP is strengthened by high levels of insider ownership—more than 12% of shares are held by management and directors. Active insider buying demonstrates belief in the business and often precedes major operational achievements or share price re-rating.

Brokers are also bullish. Bell Potter and other notable analysts have placed DVP firmly in the “buy zone” as of October 2025, emphasizing both its strong operational rebound and long-term growth strategy.

Technically, DVP’s share price has climbed over 12% in the past two months and remains above its 200-day moving average, a milestone that often indicates institutional strength and potential for sustained upward momentum.

Risks and Considerations

Of course, no investment is without risks, and potential DVP investors should be mindful of a few key points:

1. Shareholder dilution: Past equity raisings have helped fund growth, but if additional capital is required for large-scale project development, further dilution could impact returns.
2. Commodity price volatility: DVP’s Sulphur Springs project and mining services revenues are influenced by copper, zinc, and broader commodity markets. Downturns could temporarily affect earnings.
3. Non-cash earnings: Recent profitability includes some non-cash accounting items. Investors should focus on operating cash flows to assess the company’s underlying financial health.

Understanding these risks is crucial for patient, growth-minded investors looking to ride a potential multibagger wave.

Could DVP Become a Multibagger?

So, does Develop Global have what it takes to deliver multibagger returns? Several elements suggest the potential is real:

1. Turnaround profits: Moving from loss to significant net income in FY2025 demonstrates operational capability and financial discipline.
2. Project leverage: Sulphur Springs provides optionality for exponential growth if copper-zinc markets remain strong.
3. Recurring revenue from services: Stabilizes cash flows while larger projects mature.
4. Strong insider confidence: Directors buying into the company signals belief in long-term value creation.
5. Analyst support and technical momentum: Brokers highlight its upside potential, and key technical indicators suggest institutional accumulation.

If DVP continues to hit operational milestones, manage costs effectively, and maintain commodity exposure to favorable market conditions, it could emerge as one of the ASX’s standout performers in 2025 and beyond.

Conclusion: A Stock Worth Watching

Develop Global Ltd (ASX: DVP) is showing many hallmarks of a classic ASX multibagger: a strong earnings turnaround, credible leadership, insider support, and tangible project momentum in Western Australia’s mining sector.

While risks exist — particularly around commodity volatility and potential equity dilution — the company’s growth blueprint, combined with a mix of stable recurring revenue and high-upside development projects, makes it compelling for patient investors seeking early-stage growth potential.

Key indicators to watch include:

1. Ongoing project development updates, particularly from Sulphur Springs.
2. Operational results and cash flow trends in mining services.
3. Insider buying activity, often a precursor to major share price moves.

For investors with a long-term horizon and appetite for growth, DVP could well be on its way to becoming a multibagger, making 2025 an exciting year for this rising ASX stock.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The electric vehicle (EV) revolution is gaining unstoppable momentum, reshaping the global energy and mining landscape. As governments, automakers, and consumers rally behind cleaner transportation, lithium—the “white gold” powering EV batteries—has become one of the most sought-after commodities.

According to recent projections, global EV sales are set to surpass 20 million units in 2025, marking an impressive 35% year-over-year growth. This surge is not only accelerating demand for lithium but also creating lucrative opportunities for investors looking to tap into the next phase of the green energy boom.

Among the most intriguing opportunities on the Australian Securities Exchange (ASX) are Pursuit Minerals (ASX: PUR) and First Lithium (ASX: FL1)—two emerging lithium penny stocks that could benefit immensely from the rapid expansion of EV adoption and tightening global lithium supply chains.

Pursuit Minerals (ASX: PUR): A Rising Contender in Argentina’s Lithium Triangle

Pursuit Minerals has captured the attention of investors with its Rio Grande Sur Project in Argentina, strategically located in the world-famous Lithium Triangle—a region responsible for over half of the world’s lithium production. This area, spanning parts of Argentina, Bolivia, and Chile, is renowned for its rich lithium brine deposits and favorable mining environment.

The company recently announced a JORC-compliant resource of 1.104 million tonnes of lithium carbonate equivalent (LCE), featuring lithium brine grades as high as 620 mg/L. These impressive grades place Pursuit’s project among the higher-quality brine assets globally, supporting the potential for low-cost, long-life production.

A significant breakthrough came when Pursuit successfully produced 99.5% high-purity lithium carbonate, demonstrating its technical capability and commercial readiness. The company has already dispatched samples to potential offtake and strategic partners, paving the way for future supply agreements that could strengthen its financial position.

Argentina’s improving mining policies and pro-market reforms have further enhanced the attractiveness of Pursuit’s operations. The government’s renewed focus on foreign investment and sustainable resource development adds a tailwind to companies like Pursuit operating in the region.

Despite being a penny stock, Pursuit Minerals offers leveraged exposure to a Tier-1 lithium jurisdiction. Its high-grade resource, advancing project timeline, and growing industry partnerships make it a compelling speculative play for investors betting on the next wave of the EV boom.

Market sentiment has also turned more optimistic as lithium prices stabilize following a correction in early 2025. With demand expected to triple by 2030, Pursuit’s strong fundamentals and promising project economics position it well for long-term growth.

First Lithium (ASX: FL1): Unlocking West Africa’s Lithium Potential

While many lithium developers are concentrated in South America or Australia, First Lithium (ASX: FL1) is charting its own path in West Africa, specifically in Mali—a country fast emerging as a key player in the global lithium race.

First Lithium holds two highly prospective exploration permits: Faraba and Gouna. Both tenements sit within Mali’s established lithium belt, which has already attracted global attention thanks to several major discoveries in recent years. The company’s focus is on advancing exploration activities to define new resources and potentially attract joint venture or development partners.

Although still in the early exploration stage, First Lithium provides investors with exposure to one of the most underexplored yet promising lithium regions in the world. With lithium demand rising and investors seeking diversification beyond the traditional South American and Australian hubs, Mali’s lithium story is quickly gaining traction.

The company’s small market capitalization makes it a true penny stock, offering substantial upside potential as exploration results unfold. Any significant discovery or progress toward a defined resource could act as a major catalyst for the stock’s performance.

In addition, the geopolitical landscape in West Africa is becoming increasingly supportive of mining investments, with regional governments recognizing the economic potential of lithium and other critical minerals. This favorable shift enhances First Lithium’s long-term prospects as it builds its exploration footprint.

EV Sales Surge: The Backbone of Lithium’s Future

The rapid rise of electric vehicles continues to reshape the global commodity market. Industry analysts forecast global EV sales to reach over 20 million units in 2025, driven by:

1. Government incentives promoting zero-emission vehicles
2. Declining battery costs, improving EV affordability
3. Expanding EV model ranges from major automakers such as Tesla, BYD, and Volkswagen
4. Stricter emission regulations across Europe, the U.S., and China

Notably, EV batteries now account for nearly 90% of global lithium demand, up from 64% in 2020. This demand surge underscores the central role lithium plays in the clean energy transition.

Although lithium prices experienced volatility in early 2025 due to temporary oversupply, the market is gradually stabilizing. Analysts expect lithium carbonate prices to hover between USD 9,000 and USD 12,000 per tonne, a sustainable range for producers with high-quality assets.

For speculative investors, this correction phase may present a strategic entry point—especially for penny stocks like Pursuit Minerals and First Lithium, which are still in the early stages of their growth cycles but are positioned to benefit from any sustained lithium price recovery.

Why These Penny Stocks Deserve Attention

Both Pursuit Minerals and First Lithium stand out for unique reasons:

Pursuit Minerals (PUR):

1. Holds a high-grade, large-scale lithium resource in one of the most lithium-rich regions globally.
2. Successfully produced battery-grade lithium carbonate.
3. Operates in a supportive jurisdiction benefiting from Argentina’s pro-mining policies.

First Lithium (FL1):

1. Provides exposure to West Africa’s emerging lithium basin, an underexplored yet promising region.
2. Maintains low market capitalization, offering high-risk, high-reward potential for early investors.
3. Actively expanding exploration programs to uncover new lithium resources.

Final Thoughts: Positioned for the EV-Driven Future

As the world races toward a zero-emission future, the demand for lithium is set to grow exponentially. While large-cap lithium producers dominate headlines, penny stocks often offer the highest potential returns for investors willing to embrace risk and patience.

Pursuit Minerals (ASX: PUR) and First Lithium (ASX: FL1) may still be in the early innings of their journeys, but both possess strategic assets that could deliver outsized gains as the EV revolution gathers pace.

For growth-oriented investors, these two lithium penny stocks are worth keeping on the radar—because as EV adoption accelerates, today’s small-cap explorers could become tomorrow’s major battery material suppliers.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

In the world of investing, small caps often get overlooked. Many investors chase the big names, but history has shown time and again that the real multibaggers often start small. When a small-cap company gets its operations right at the same time that commodity markets move in its favor, the cash flow snowball can be powerful.

Right now, gold is holding strong and copper/zinc markets are tightening. That’s a recipe for well-positioned miners to deliver outsized growth. Two such names are Ora Banda Mining (ASX: OBM) and Develop Global (ASX: DVP). Both companies are hitting key milestones, yet their valuations still don’t fully reflect the progress underway. Let’s dive into the details.

Ora Banda Mining (ASX: OBM): Two Underground Engines Driving Growth

Ora Banda has quietly gone from a “one-asset story” to a dual-engine producer, with both Riverina and Sand King underground mines delivering. FY25 was the turning point year that showed just how much leverage the company has to a strong gold environment.

FY25 Highlights

Record production: 92,399 ounces of gold, up 32% YoY.

Revenue: $404.3 million.

EBITDA: $184.6 million.

NPAT: $186.1 million, a 575% YoY surge.

The real kicker was Riverina Underground, which produced 74.8 koz at 4.6 g/t, paying back its capital in just 18 months—an impressive feat. Meanwhile, Sand King reached steady state by June 2025 at around 60 koz p.a., delivering exactly as planned.

Balance Sheet Strengthening
OBM secured a new $50 million revolving credit facility from ANZ and CBA, ensuring liquidity while preserving unhedged exposure to gold prices. This means the company captures full upside from strong gold prices instead of giving away gains to hedging contracts.

Looking Ahead: FY26 Guidance
Management expects 140–155 koz production at an AISC of $2,800–2,900/oz. With two operating underground mines feeding into Davyhurst and ongoing plant optimisations, OBM is on a clear trajectory to scale up.

Why OBM Still Looks Cheap
Despite the operational shift, OBM is still often valued by the market as if it were a single-mine operator. The re-rating potential lies in consistent execution. If FY26 guidance is delivered, investors may start to recognise that OBM is no longer a speculative play, but a multi-engine cash generator.

Develop Global (ASX: DVP): Multi-Asset Catalysts with a Services Edge

Develop Global has a different model from most junior miners. It isn’t just a developer—it blends mine ownership with mining services, creating a steady cash bridge while ramping its own projects. This hybrid approach lowers financing risk and makes execution smoother.

Woodlawn Momentum
The flagship Woodlawn zinc-copper-lead mine in NSW has been steadily building momentum. A recent update lifted project economics, pushing the pre-tax NPV7 up by ~11% to ~$728 million. As execution improves, production and cash flow are moving into the near-term horizon.

Mining Services Cash Flow
Unlike most small caps that burn cash while waiting for projects to ramp, DVP generates revenue from its mining services division. Ongoing work at Bellevue and other sites supports the P&L, provides workforce continuity, and reduces the need for heavy equity raises.

Strategic Flexibility
DVP’s management has a proven track record of opportunistic M&A—such as the Essential Metals scheme in 2023. This shows a willingness to add exposure across the battery and base metals chain when it makes sense. Investors benefit from both a solid base in Woodlawn and the option value of future acquisitions.

Why DVP Still Looks Cheap
Many small-cap developers are priced purely on project execution risk. But DVP’s services business provides diversification and cash to support Woodlawn’s ramp. As the mine stabilises with steady throughput and recoveries, valuation should start converging toward its ~$728 million NPV.

What Investors Should Watch Next

For OBM

1. Quarterly grades and ounces from Riverina and Sand King versus FY26 guidance.
2. Progress on reducing AISC below FY25 levels.
3. Updates on resource growth and plant debottlenecking at Davyhurst.

For DVP

1. Woodlawn’s production and cash cost trajectory—confirmation that restart momentum is translating into steady state economics.
2. New mining services contracts that help sustain positive operating cash.
3. Potential bolt-on acquisitions in the battery or base metals space.

Key Risks to Keep in Mind

Of course, no small-cap story comes without risks.

OBM: Underground mining is inherently variable. Dilution, stoping delays, or cost blowouts could affect AISC. Balancing exploration spend with capital allocation will be key.

DVP: Woodlawn’s restart execution is not risk-free. Metallurgy, dewatering, or grade control issues could impact results. Zinc and copper price volatility is another swing factor.

Final Takeaway

Both Ora Banda Mining and Develop Global have demonstrated that they’re past the “story stock” phase. OBM now has two producing underground mines feeding growing cash flow, while DVP’s unique services-plus-development model helps smooth the ride as Woodlawn ramps.

The beauty of small caps is that valuation gaps can close quickly once consistent performance is delivered. For investors willing to accept the inherent risks, OBM and DVP look like two cheap small caps with the potential to deliver big returns—especially if gold, copper, and zinc markets remain supportive.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.