Top 2 ASX Stocks for Passive Monthly Income

Most income portfolios pay quarterly or twice a year, making cash‑flow planning harder than it needs to be. Two ASX vehicles break that mould with genuinely monthly distributions and transparent policies: Metrics Master Income Trust (ASX: MXT) for floating‑rate private credit, and Plato Income Maximiser (ASX: PL8) for fully franked Australian equity income. Paired together, they can create a simple, diversified stream that lands every month.

Why monthly income

Monthly payers smooth cash flow, reduce timing risk around ex‑dates, and make it easier to automate savings, bills, or dividend reinvestment without juggling dozens of holdings. A credit‑plus‑equities blend also spreads risk across different economic drivers rather than leaning on one asset class.

Metrics Master Income Trust (MXT)

MXT invests in a diversified pool of senior, secured Australian corporate loans with the goal of low volatility and low correlation to shares, while paying monthly distributions linked to the interest‑rate cycle. The trust targets a return of the RBA cash rate plus 3.25% per annum, net of fees, paid as monthly income; at recent cash settings, that equates to roughly 7.1% through the cycle. Recent monthly net returns from January to July 2025 ranged between 0.60% and 0.70%, producing a year‑to‑date total return of 4.54% to July, after an 8.25% total return in 2024 and 8.99% in 2023. The FY24 annual net return was reported at 9.36%, reflecting higher cash rates and stable credit performance. Distribution flow on platforms shows around 1.0 cent per unit with an end‑of‑month cadence and ex‑dates typically clustered near month‑end.

What to like:

  1. Floating‑rate exposure: distributions tend to move with the RBA, preserving real income power when rates rise.
  2. Diversification: senior secured loans across industries reduce reliance on listed equities and property.

What to watch:

Credit cycle risk: a sharp downturn can raise defaults and impairments even in senior secured portfolios; diversification and strong underwriting help, but cannot eliminate cycle risk.

Plato Income Maximiser (PL8)

PL8 is a listed investment company focused on harvesting dividends, franking credits, and tax‑effective equity income from a diversified portfolio of Australian shares, paid monthly. The trailing dividend yield is about 4.71% on recent prices, before franking benefits. The Board has maintained fully franked monthly dividends at 0.55 cents per share for multiple quarters and reaffirmed the same for the September 2025 quarter. Declared dividends are 0.55c per share for July, August, and September 2025, fully franked. PL8 has paid 0.55c monthly consistently since early 2021 (with a brief 1.1c in May 2022 due to tax timing), creating a predictable cash stream. The manager highlights the benefits of a closed‑end LIC structure to manage capital and smooth dividends across cycles while retaining a highly liquid, diversified equity portfolio. Independent LMI/LIT roundups have noted PL8’s solid share price and NTA performance among income‑focused listed vehicles over FY25.

What to like:

Consistent, fully franked monthly cash flow and a long track record at the same per‑share rate.

Explicit mandate to maximise after‑tax income from a diversified equity basket.

What to watch:

Equity‑market dependency: dividends hinge on underlying company payouts; franking levels and market earnings can vary through cycles, affecting future distributions and NTA.

How to blend MXT and PL8

  1. Income sources: combine MXT’s floating‑rate loan income with PL8’s franked equity dividends to diversify both the economic drivers and tax profile of monthly cash flows.
  2. Smoother cash: both pay monthly, simplifying budgeting and enabling DRP for automatic compounding or predictable cash receipts for spending.
  3. Visibility: MXT’s target of RBA cash rate +3.25% provides a clear reference for expected run‑rate, while PL8’s Board‑declared quarterly schedule offers foresight on the next three months of cheques.
  4. Risk balance: credit risk (MXT) and equity risk (PL8) tend to respond differently across the cycle; blending can reduce reliance on any single risk factor.

Illustrative run‑rates (not advice):

  1. MXT has delivered 0.60–0.70% net per month in 2025 to date, with FY24 net at 9.36%—a reflection of higher base rates flowing through floating loans.
  2. PL8’s 0.55c fully franked per month equates to roughly 4.7% cash yield at recent prices, with franking credits increasing after‑tax income for eligible investors.

Risks, fees, and fit

  1. Both vehicles charge management fees; review PDS/LIC disclosures for costs, risks, and mandates.
  2. MXT: sensitive to borrower credit events and liquidity conditions in private debt; distributions may vary with rates and loan performance.
  3. PL8: sensitive to dividend cycles, market drawdowns, and changes in franking policy; premiums/discounts to NTA can affect investor returns.
  4. Suitability: monthly income is attractive for budgeting, but portfolios should consider broader diversification (cash, term deposits, bonds, global equities) and personal tax circumstances.

A simple monthly income plan

For investors seeking “set‑and‑collect” cash flow:

  1. Allocate a core sleeve to MXT for floating‑rate, senior secured credit distributions that adjust with the RBA.
  2. Pair with PL8 for fully franked equity income and the potential for dividend growth over time.
  3. Align DRP settings with goals: reinvest during surplus months; switch to cash during higher expense periods.
  4. Revisit allocations periodically to reflect changes in rates, market valuations, and personal cash needs.

Bottom line

If the goal is straightforward, repeatable monthly income on the ASX, combining Metrics Master Income Trust and Plato Income Maximiser offers two complementary engines: floating‑rate private credit and franked Australian equity dividends. With consistent distribution histories and current Board guidance supporting monthly payments, this duo can anchor a simple, diversified income plan while balancing rate and equity market exposure.

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.

Top ASX defence stocks

2 Top ASX defence stocks to buy now

Australia’s defence sector is gaining significant attention as geopolitical tensions and government spending on national security continue to rise. ASX defence stocks present a compelling opportunity to investors that are committed to ride the waves. Within the ASX200, several companies specialize in military technology, equipment, and manufacturing. Investing in ASX military stocks allows exposure to firms that supply advanced weaponry, surveillance systems, and defence solutions. Notably, Australian weapons manufacturers ASX listings have seen increased demand, driven by defence contracts and export opportunities. Additionally, those seeking diversified exposure may consider a defence ETF ASX, which provides a basket of Australian defence stocks to mitigate risk while benefiting from sector growth.

Over the past five years, Australia’s defence industry has experienced significant expansion, largely fueled by federal government funding. As a key public sector domain, it plays a crucial role in national security and serves the interests of Australian citizens. The Australian Defence Force, ADF’sdivisions are responsible for safeguarding the nation through humanitarian missions, peacekeeping efforts, and combat operations. The industry itself is categorized into multiple segments, including anti-air missiles, frigates, high-altitude long-endurance (HALE) systems, and multirole aircraft. Among these, multirole aircraft hold the largest market share, followed closely by frigates.

According to industry research, Australia’s defence sector ranks as the country’s 32nd largest industry and stands third in market size within the public administration and safety sector. Between 2017 and 2022, it recorded an average annual growth rate of 2.0%, with projections indicating a compound annual growth rate (CAGR) of over 5% from 2022 to 2026.

Defence remains a central focus under the Modern Manufacturing Strategy (MMS), with the Australian government prioritizing investments in sovereign defence capabilities. The 2022-23 budget outlines plans to increase defence spending to over 2% of GDP, supporting both national security initiatives and the well-being of defence personnel, veterans, and their families.

With growing government support and rising global demand for defence technology, certain ASX defence stocks stand out as strong investment opportunities. Below, we take a closer look at two top ASX-listed defence companies that could be well-positioned for growth in 2025.


Droneshield Limited (ASX: DRO)

  • Market Cap: $238.47 million
  • Current Market Price (CMP): $0.39

Droneshield Limited has secured multiple orders worth $10.4 million as part of Australia’s $20 million military aid package to Ukraine. In the December 2023 quarter, the company reported a combined total of $48 million in customer cash receipts and grants. As a global leader in the Counter-Unmanned Aerial Systems (C-UAS) sector, DroneShield continues to enhance its cutting-edge solutions to address emerging security threats. Because of C-UAS technology, the company is now strategically positioned for potential growth. The United States remains its largest and most promising market, with an expanding customer base that includes both military and non-military federal agencies.

Electro Optic Systems Holdings Limited (ASX: EOS)

  • Market Cap: $178.09 million
  • Current Market Price (CMP): $1.04

Electro Optic Systems (EOS) Defence Systems recently secured a $28 million contract to supply spare parts for its R600 Remote Weapon System (RWS) units to a Southeast Asian client. Under the agreement, deliveries are set to begin in late 2024 and extend through 2025 and 2026. The R600 has gained significant recognition due to ongoing advancements in its design and performance. Originally developed for a Southeast Asian customer, the system stands out in the market by offering superior firepower with minimal weight, enhanced accuracy, and increased reliability compared to competing products.

Disclaimer: Pristine Gaze Pty Ltd trading as Pristine Gaze (ABN 66 680 815 678) and (ACN 680 815 678) is a Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757). The information provided is general information only. Any advice is general advice only. No consideration has been given or will be given to individual objectives, financial situation, or specific needs of any particular person or organisation. The decision to engage our services and the method selected is a personal decision and involves inherent risks, and you must undertake your own investigations and obtain independent advice regarding suitability for your circumstances. Past performance, examples, or projections are not indicative of future results. While we strive to provide accurate information, we make no guarantees regarding the accuracy or completeness of our materials. The website may also contain links to third-party websites or resources, for which Pristine Gaze is not responsible. All content and intellectual property on the Pristine Gaze website, including but not limited to text, graphics, logos, and images, are the property of Pristine Gaze and are protected by applicable copyright and trademark laws. By accessing or using the Pristine Gaze website, you acknowledge and agree to the terms of this disclaimer. Please read our Terms and Conditions ,Privacy Policy and Financial Service Guide for further information. Please read our Terms and Conditions, Privacy Policy and Financial Service Guide for further information.

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Two ASX Dividend

Two ASX Dividend Stocks That Could Lift Payouts Soon

When companies stack up stronger earnings, cleaner balance sheets, and conservative payout ratios, dividend upgrades often follow. Two names fit that bill right now: South32 (ASX: S32) and QBE Insurance (ASX: QBE). South32 has swung back to profit, moved into net cash, and kept its dividend at the bottom of policy—creating obvious headroom if earnings hold. QBE delivered double‑digit profit growth, tighter underwriting, and set its interim below the midpoint of its policy range—leaving room to lift the final. Here’s why both look positioned for a higher distribution in the coming periods.

South32: net cash, rising profits, policy headroom

South32’s FY25 reset was clean and credible. Revenue rose, operating profit returned to positive, and portfolio simplification (including the sale of Illawarra Metallurgical Coal) helped sharpen capital allocation. The board declared a fully franked final dividend of US 2.6 cents per share, equal to the minimum 40% of underlying earnings under its stated policy—deliberately conservative and signaling room to move if momentum continues. The final translates to roughly $0.040–0.055 per share depending on FX, with a record date in mid‑September and payment in mid‑October for ASX holders. The dividend framework remains simple: pay 40% of underlying earnings through the cycle, then layer capital returns when the balance sheet allows.

  • Why a lift looks plausible: A return to net cash materially improves flexibility. With earnings improving and the payout set at the floor (40%), any further profit growth in H1 FY26 can translate directly into a higher interim ratio without straining the balance sheet.
  • Capital returns live: Management extended the US$2.5 billion capital management program by 12 months, signaling continued buybacks alongside ordinary dividends—often a precursor to payout upgrades once balance‑sheet settings are comfortable.
  • Portfolio quality: A higher‑return base‑metals tilt (including advancement at Hermosa Taylor zinc‑lead‑silver) improves through‑cycle earnings power, making a modest step‑up in payout more sustainable if commodity prices cooperate.

What to watch next

  • Earnings cadence into FY26 as aluminium, manganese, and base‑metals prices evolve.
  • Cost discipline and operating stability across key assets to protect margins.
  • Project milestones at Hermosa (Taylor) and copper options that can lift medium‑term cash flow.

Risks

  • Commodity volatility can quickly alter cash generation, testing payout flexibility.
  • Execution risk on growth projects (schedule, cost, permitting) could defer cash‑flow uplift.

Bottom line on S32: With net cash restored, a simplified portfolio, and the dividend currently set at the minimum policy level, South32 has clear scope to nudge payouts higher if earnings hold up—especially with a live buyback reducing share count and supporting per‑share metrics.

QBE Insurance: profits up, interim below policy midpoint

QBE’s first half FY25 showed the hallmarks of a disciplined insurance cycle. Adjusted return on equity hit the high teens, the combined operating ratio improved to the low‑90s, and catastrophe experience was benign relative to prior years. Despite that, the board set the interim dividend at 31 cents per share—about a 30% payout of adjusted profit—below the company’s 40–60% full‑year payout policy range. The message is conservative but clear: the door is open to a larger final if momentum continues. The interim is payable in late September (partly franked), aligning with QBE’s usual cadence.

  • Why a lift looks plausible: A 30% first‑half payout leaves ample room to land within the 40–60% full‑year policy range, assuming underwriting and investment income hold in 2H. If catastrophe losses remain manageable and pricing stays firm in priority lines, a higher final is the cleanest lever.
  • Balance sheet strength: A prudently managed capital position (PCA multiple sitting inside the 1.6–1.8x target band) supports both growth and distributions, giving the board flexibility to lift the final while keeping buffers.
  • Operating quality: Better underwriting discipline (COR improvement) and resilient investment income create a sturdier base for dividends, making a step‑up more sustainable than a one‑off.

What to watch next

  • 2H catastrophe experience and large‑loss volatility versus allowances.
  • Rate momentum and retention in North America, International, and Australia across property, specialty, and casualty.
  • Capital management signals at the full‑year result (e.g., DRP settings, buyback commentary).

Risks

  • Elevated cat events or claims inflation could compress underwriting margins.
  • Market volatility can affect investment income and capital headroom, tempering payout uplift.

Bottom line on QBE: With a strong first half and an interim below policy midpoint, QBE has visible capacity to lift the final dividend and still end the year within its 40–60% payout framework—especially if underwriting discipline and benign cat trends persist.

The income investor’s takeaway

  • Embedded headroom: South32 is paying at the policy floor with net cash and a live buyback; QBE set a below‑midpoint interim after a strong half. Both have obvious levers to raise distributions without stretching balance sheets.
  • Quality of cash flow: South32’s through‑cycle base‑metals exposure plus buybacks support per‑share dividend growth; QBE’s underwriting improvements and capital buffers support a higher final while staying prudent.
  • Risk‑aware positioning: Commodity beta (S32) and catastrophe risk (QBE) never vanish, but current settings are conservative—payouts can rise if operating conditions remain supportive.

Final word: For investors hunting near‑term dividend upgrades with sensible downside protection, South32 and QBE stand out. One has reset the balance sheet and kept payouts at the floor; the other is earning well above its interim distribution. If current trends continue, both have clear paths to lift cash returns in the next leg.

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.

CBA Had

If CBA Had Been Bought A Year Ago: What Today Looks Like

Twelve months can feel like a lifetime in markets—but for Commonwealth Bank of Australia (CBA), it’s been a year of rising profits, higher fully franked dividends, and a share price that outperformed the broader index. Here’s a clear, numbers‑first look at what a one‑year holding would have delivered as of mid‑September 2025, and what’s been driving the result.

The one‑year scorecard

  • Share price move: CBA traded near $153 in early September 2024 and around $168–169 in early September 2025, a capital gain of roughly 10% over twelve months on headline prices. Intra‑period highs reached $192 in FY25 before consolidating.
  • Dividends received: Over the last year, CBA paid $2.50 (final FY24, Sept 2024), $2.25 (interim FY25, Mar 2025), and $2.60 (final FY25, Sept 2025), all fully franked—total cash dividends of $7.35 per share. Timing depends on purchase/ex‑div dates, but a holder spanning the full year captured the trio.
  • Total return (simplified): Combining ~$15 capital gain per share and ~$7.35 dividends implies about $22.35 per share in one year before franking credits—equating to an indicative total return in the mid‑teens to high‑teens percentage range depending on exact entry/exit dates and dividend eligibility.

Note: Precise personal outcomes hinge on the exact purchase date, whether the initial Sept 2024 dividend was captured, DRP participation, and brokerage. The figures above illustrate direction and scale.

Why CBA delivered

  • Earnings rose: FY25 net profit came in at $10.12 billion (+8% YoY), with net operating income up 5% and cash EPS up 4% year on year; ROE remained in the mid‑teens. The bank balanced volume growth with disciplined costs, supporting profit expansion.
  • Dividend growth: The Board lifted the final dividend to A$2.60 per share, taking FY25 dividends to $4.85 per share, fully franked—up from $4.65 in FY24—reflecting resilient earnings and capital strength.
  • Share performance: Even after a pullback post‑results on valuation concerns, the one‑year price trend remained positive, materially ahead of many peers due to perceived franchise quality and consistent capital returns.

What a hypothetical $10,000 looked like

  • Starting point: At ~$153 per share a year ago, $10,000 would have bought roughly 65 shares (ignoring brokerage).
  • Dividends: Cash dividends over the year of $7.35 per share would total about $478 for 65 shares, before franking credits.
  • Valuation today: At ~A$168 per share, those 65 shares would be worth ~$10,920, plus the ~A$478 cash dividends received—roughly $11,398 in total value before franking, implying a high‑teens percentage return depending on precise dates.

Again, eligibility for the September 2024 dividend hinges on owning shares before the August 2024 ex‑date. Adjust accordingly for exact transactions.

The drivers under the hood

  • Operating momentum: Net operating income $28.29 billion (+5% YoY), underpinned by volume growth in home and business lending and stable deposit franchise economics; NIM held around 2.08% with slight expansion through the year.
  • Capital returns: Fully franked semiannual dividends remained the core mechanism, with consistent scheduling (ex‑dates typically in August and February, payments in September and March).
  • Risk profile: Credit quality stayed benign, supporting low impairment charges and solid earnings conversion into dividends.

What could shape the next year

  • Margin glide path: Future rate moves and deposit competition will influence NIM. Watch FY26 updates for guidance on funding mix and asset pricing.
  • Capital and payout: The $4.85 FY25 dividend establishes a high base; payout sustainability depends on earnings resilience and capital needs. Calendar reminders for ex‑dates help capture distributions.
  • Valuation context: CBA trades at a premium to peers due to franchise quality and returns; share performance can be sensitive to result‑day expectations even when fundamentals are sound.

Bottom line

Over the last year, a CBA holding delivered a double benefit: share price appreciation and rising, fully franked dividends that together produced a robust total return. Strong FY25 profits and a higher final dividend did the heavy lifting, while the franchise’s scale and balance sheet helped sustain confidence even as the stock consolidated from record highs. For income‑tilted investors, the last twelve months validated the case for quality banks in a changing rate cycle.

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.

2 ASX Stocks With Explosive Q3 Growth Potential

2 ASX Stocks With Explosive Q3 Growth Potential

When market cycles shift, it often happens quickly—triggered by milestones that de-risk projects and accelerate cash flow potential. Investors keeping an eye on emerging energy opportunities know how powerful these moments can be. Two companies on the ASX—Deep Yellow (ASX: DYL) and Arizona Lithium (ASX: AZL)—are stepping into Q3 with tangible catalysts that could unlock significant upside.

Deep Yellow is advancing a fully permitted, late-stage uranium development in Namibia with strong cash reserves, while Arizona Lithium has secured a first-of-its-kind production approval in Canada and is progressing a commercial direct lithium extraction (DLE) unit. Both stocks have credible, near-term triggers that can reset investor expectations in a matter of weeks.

Deep Yellow: Cash-Rich Uranium Developer, De-Risking Fast

Deep Yellow is no newcomer in the uranium space. With demand for nuclear energy gaining fresh momentum worldwide, the company’s flagship Tumas Project in Namibia is moving steadily toward construction. The project is not only fully permitted but also progressing across multiple fronts, reducing execution risk as Q3 unfolds.

Key Progress Points

  1. Pre-FID progress: Engineering and procurement activities are advancing, with 92% of direct capital packages well progressed. Long-lead items have already been ordered, and negotiations with mining contractors are close to completion. Importantly, grade control data is being integrated into the mine plan—ensuring the project design aligns closely with actual orebody conditions.
  2. Project economics: The recently updated DFS outlines a 30-year mine life with competitive operating costs, positioning Tumas as one of the lowest-cost uranium producers globally. The selection of Ausenco as the preferred EPCM contractor and the appointment of a lead arranger for project financing further strengthen delivery confidence.
  3. Strong balance sheet: As of the June quarter, Deep Yellow reported strong cash position, giving it financing flexibility that many peers lack. This war chest allows the company to push forward even as financing and offtake discussions continue.

Why Q3 Could Be Explosive

The uranium sector is tightly tied to catalysts, and Deep Yellow is well-positioned to deliver several. Investors will be watching for:

  1. Utility offtake agreements that validate demand and provide revenue visibility.
  2. Formal financing steps, including term sheets with lenders.
  3. Contractor awards and EPCM lock-ins, which further de-risk the construction phase.

If any of these land in Q3, they could spark a significant re-rate—particularly given uranium prices are already trending higher amid global supply concerns. Deep Yellow has already rallied to multi-year highs, but the setup suggests more upside if milestones fall into place.

Arizona Lithium: Pioneering Commercial DLE in North America

While Deep Yellow is playing in uranium, Arizona Lithium is carving its path in the lithium brine sector—one of the hottest themes in energy transition. The company recently achieved a landmark regulatory approval for its Prairie Project in Saskatchewan, Canada, making it the first lithium brine project in the province to receive production approval.

Key Progress Points

  1. Regulatory milestone: Approval from Saskatchewan’s Ministry of Energy and Resources gives Arizona Lithium the green light to move forward with Phase I production at Pad #1. This milestone puts Prairie on track to become one of the first commercial lithium brine operations in North America.
  2. DLE unit fabrication: At the heart of Phase I is a commercial-scale DLE unit, currently under fabrication, designed for ~150 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). Delivery is expected in 2025, providing a clear timeline for first output.
  3. Modular expansion strategy: Prairie’s development plan is modular—start small, prove the model at Pad #1, and then scale rapidly with additional pads. This approach reduces technical and financial risk compared to large, upfront developments. Phase I capex is relatively modest at around $35 million, making financing more achievable in current markets.
  4. Portfolio reshaping: Arizona Lithium has sharpened its focus on Prairie, while also exploring monetisation of non-core assets like Big Sandy in the U.S., helping streamline its capital allocation.

Why Q3 Could Be Explosive

The lithium market has been under pressure, with spot prices weakening in 2024. Yet, credible progress stories can cut through the noise. For Arizona Lithium, investors will be watching for:

  1. Updates on fabrication progress for the DLE unit.
  2. Clarity on Phase I funding and financing mix.
  3. Potential offtake agreements or sample validation results.

If Arizona Lithium delivers on any of these, it could stand out in a sector where sentiment is low but structural demand remains high. A clear path to commercial DLE production in North America is rare—and investors are paying attention.

What to Watch Next

For Deep Yellow (DYL):

  1. Formal updates on financing and offtake agreements.
  2. Confirmation of contractor awards and EPCM finalisation.
  3. Integration of grade control results into the mine schedule.

For Arizona Lithium (AZL):

  1. Progress on fabrication and shipment of the DLE unit.
  2. Funding mix for Phase I capex (~$35 million).
  3. Updates on commissioning windows and pad expansion potential.

Risks to Keep in Mind

No investment comes without risks, and both names carry execution challenges:

  1. Deep Yellow: Uranium price volatility could affect financing timing, while cost overruns or delays in construction remain possible. Multi-asset execution (Tumas and Mulga Rock) adds complexity.
  2. Arizona Lithium: Commercial DLE is still an emerging technology—execution risk is real. Financing and offtake timing may also pose challenges, while lithium price weakness could weigh on valuation despite project progress.

Bottom Line

Deep Yellow and Arizona Lithium are entering Q3 with very different stories but a similar setup: clear, near-term catalysts backed by strong strategic positioning.

Deep Yellow offers late-stage uranium exposure, a robust cash position, and steady de-risking of its flagship Tumas Project.

Arizona Lithium provides a rare regulatory-approved pathway to commercial DLE production in North America, supported by a modular development plan and manageable capex.

For investors looking for energy transition plays with explosive Q3 growth potential, these two ASX stocks deserve close attention.

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.

Best Fully Franked Dividend ASX Stocks Beating the Market

Woodside Energy Group (ASX: WDS) and Bisalloy Steel Group (ASX: BIS)

Dividend investors had plenty to smile about in 2025. Both Woodside Energy and Bisalloy Steel rewarded shareholders with fully franked payouts that stood out against the broader market. While Woodside continued to deliver high-end dividends backed by strong operations and disciplined capital allocation, Bisalloy surprised with profit growth on flat revenue—funding a bigger final dividend.

Let’s look at why these two companies are turning heads for income today.

Woodside Energy: Big Cash Engine, Big Dividend

Woodside’s first half of FY25 highlighted just how powerful its cash generation machine remains. The company delivered resilient production volumes, lower unit costs, and steady progress on major projects. That enabled the board to declare an interim dividend at the very top of its payout range—without compromising future growth.

HY1 FY25 snapshot:

Revenue: $10.4 billion

NPAT: $2.07 billion

Dividend: Fully franked interim of 53 US cents per share (~$0.85–0.86 at period FX)

Payout ratio: ~80% of underlying NPAT

Yield: ~6.9% annualised on recent pricing

Growth pipeline:

  1. Scarborough LNG project: 86% complete
  2. Trion project: 35% complete
  3. Louisiana LNG: De-risked via 40% infrastructure sell-down

Why it’s beating the market for income:
Woodside’s mix of high operating leverage, falling unit costs, and disciplined spending supports strong, fully franked dividends. Investors are getting a high cash yield today while management still advances multi-year LNG growth.

Bisalloy Steel: Earnings Up, Dividend Up, Balance Sheet Tight

Bisalloy Steel proved in FY25 that disciplined execution can deliver real income even in a flat revenue year. Despite top-line stagnation, efficiency gains, favourable product mix (defence, gold), and offshore contributions lifted profits significantly—fueling a bigger final dividend.

FY25 results:

Revenue: $152.8 million (flat YoY)

EBITDA: $27 million (+15% YoY)

NPAT attributable: $19.6 million (+24.4% YoY)

Profit margins expanded on efficiency and mix improvements

Dividend details:

  1. Final dividend: 16.5 cents per share fully franked (record date 23 Sep 2025)
  2. FY25 total dividend: 24.5 cps (8.0c interim + 16.5c final)
  3. DRP suspended—distributions entirely cash

Business mix:

  1. Strength in defence armour and protection plate
  2. Solid growth from ASEAN distribution and China JV
  3. Weakness from patchy WA industrial demand partially offset

Why it’s beating the market for income:
Double-digit NPAT growth on a modest market cap has translated into a higher, fully franked dividend. Investors benefit from attractive cash yields, underpinned by a mix of defence exposure and international earnings.

What to Watch Next

  1. Woodside: Watch how cash generation balances against capex needs as Scarborough and Trion move closer to first production. Commodity prices, FX, and potential tweaks to the payout framework will also be key.
  2. Bisalloy: Defence and gold demand should stay supportive, but WA industrial recovery timing and ongoing profitability from ASEAN subsidiaries and the China JV will drive future dividend capacity.

Key Risks

Woodside: Exposure to commodity price swings, FX volatility, project execution delays, and regulatory/ESG pressures.

Bisalloy: Cyclicality in mining and construction demand, FX competitiveness, and sustainability of mix benefits if resource markets remain weak.

Bottom Line

A high, fully franked interim from Woodside and a bigger, fully franked final from Bisalloy made FY25 a rewarding year for income-focused investors. Both companies are pairing disciplined operations with shareholder-friendly capital returns—delivering yields that stand out well above the broader market.

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.

Can These Two ASX Penny Stocks Survive a Bear Market?

When markets turn sour, penny stocks are usually the first casualties. Thin liquidity, dependence on single projects, and limited balance-sheet strength can make them highly vulnerable. But not all penny stocks are created equal. Some are little more than speculative vehicles, while others are small but operationally robust businesses.

In this piece, I’ll explore two very different ASX-listed penny names — Alligator Energy (AGE), a uranium explorer, and Southern Cross Electrical Engineering (SXE), a specialist engineering group — and ask the tough question: could they survive a prolonged bear market?

Snapshot: Two Penny Stocks, Two Worlds

Alligator Energy (AGE): A uranium exploration and development company with assets across Australia’s uranium-rich regions. Its progress depends on exploration results, permitting, and ultimately, financing to move projects forward.

Southern Cross Electrical Engineering (SXE): A full-fledged engineering, construction and services contractor serving clients in data centres, commercial, resources, and water sectors. Unlike AGE, it generates significant revenue and profit, with FY25 results showing $801.5 million in revenue and strong cash generation.

Key Survival Factors in a Bear Market

For small-caps, survival boils down to a handful of factors:

  1. Cash runway & funding access – Explorers rely on capital markets, while contractors can rely on operational cash flow.
  2. Revenue visibility & backlog – Signed contracts provide resilience in downturns.
  3. Balance sheet strength – Low debt and positive cash flow give breathing room.
  4. Cyclicality of end-markets – Uranium sentiment vs. infrastructure spending can make a big difference.
  5. Management discipline – Cost control, opportunistic deals, and smart capital allocation matter most when cash is tight.

Alligator Energy (AGE): A Fragile Survivor With Big Optionality

Alligator fits the mould of a high-risk, high-reward explorer. Its value lies in uranium exploration results and the long-term uranium market outlook.

Why AGE’s survival is fragile:

  1. No cash flow: Reliance on equity raises or JV funding makes it vulnerable if capital dries up.
  2. Commodity sentiment-driven: If uranium prices weaken, investors will retreat and fundraising becomes difficult.
  3. Binary catalysts: One poor drill result or regulatory setback could erase years of progress.

Why it could survive:

  1. Strategic assets: Projects in known uranium provinces can still attract partners, even in tough times.
  2. Cash preservation levers: Management can slow exploration to conserve cash if markets turn.
  3. Optionality on uranium bull case: If uranium sentiment remains firm, capital raising is easier.

Bottom line for AGE: In a bear market, survival is possible but highly uncertain. Investors should expect dilution and high volatility. AGE is speculative, suitable only for those comfortable with binary outcomes.

Southern Cross Electrical Engineering (SXE): Cash Flow Is Its Lifeline

SXE is a very different story. It is no longer a “tiny contractor” but a small-cap industrial with scale and momentum.

Why SXE looks more resilient:

Strong FY25 performance: $801.5m in revenue, profits, and solid operating cash flow.

Contract wins across sectors: Diversification across data centres, resources, and infrastructure spreads risk.

Balance sheet discipline: Manageable debt levels with positive cash generation reduce reliance on equity markets.

Key risks to monitor:

Margin pressure: Economic downturns can lead to squeezed margins and delayed projects.

Client concentration: Over-dependence on a few contracts or clients could impact results if projects stall.

📌 Bottom line for SXE: The company is well-positioned to ride through a downturn compared to many penny peers. While not immune, its ability to generate cash and diversify contracts gives it a significant survival advantage.

Investor Takeaways

  1. Know your risk tolerance: AGE is speculative and binary; SXE offers relative stability among penny stocks.
  2. Follow the cash: For AGE, watch quarterly cash burn and funding announcements. For SXE, monitor contract wins and profit margins.
  3. Time horizon matters: Traders may ride uranium headlines with AGE, while long-term investors may find SXE’s steady contracts more appealing.
  4. Diversify exposure: Holding both creates exposure to two very different drivers — one commodity-linked, the other operationally grounded.

Final Verdict

If a genuine bear market sets in, Southern Cross Electrical Engineering (SXE) has a much higher chance of survival, supported by revenue scale, contract diversity, and strong FY25 results.

Alligator Energy (AGE), on the other hand, could make it through — but only if uranium prices remain supportive or it secures partner funding. Otherwise, dilution and delayed development are real risks.

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.

AI Meets Mining: 2 ASX Stocks at the Crossroads — Barton Gold & Imdex

Mining today looks very different from the gritty images of men with pickaxes and dust-covered faces. Instead, it’s becoming a field where cloud platforms, machine learning, and AI-driven analytics play as big a role as drill rigs and geological maps. The intersection of technology and resources is reshaping the way companies explore, develop, and monetize orebodies.

On the ASX, two companies sit at very different points on this spectrum — Barton Gold (ASX: BGD), a junior gold developer with a growing resource base, and Imdex (ASX: IMD), a mining-tech powerhouse using AI to redefine orebody knowledge. Both are at critical crossroads: Barton deciding how fast it can move from exploration story to production, and Imdex deciding how aggressively to turn its data assets into recurring revenue streams.

Let’s take a closer look at why both matter, what the numbers say, and the practical catalysts investors should keep on their radar.

Barton Gold — Turning Ounces into Opportunity

For juniors like Barton Gold, the story begins with resources in the ground. And Barton has quietly built a meaningful base. According to company data, Barton’s JORC Mineral Resource sits at around 2.143 million ounces of gold, spread across assets like Tunkillia, Tarcoola, Challenger, and Wudinna in South Australia.

What makes Barton interesting is not just the ounces, but the potential production profile. In FY2024, the company advanced Tunkillia into development studies and published scoping work pointing to a possible 130,000 ounces per year operation. That’s the sort of throughput that, if realized, can re-rate a junior from speculative explorer to near-term producer.

Financially, Barton is still at the stage where costs outweigh revenues. Its FY2024 accounts show a loss after tax, largely due to exploration and development spending. However, the company did shore up its cash and working capital through equity raises and asset monetisation. This buys time, but the real challenge ahead is securing the capital needed to fund development while avoiding too much shareholder dilution.

Why it matters: Juniors with both a central processing mill and multiple deposits tend to de-risk faster than peers. Barton checks those boxes, but now execution is everything — feasibility studies, financing strategies, and gold price tailwinds will decide whether those 2.14 million ounces become sustainable cash flow.

Imdex — Where Drilling Meets Data

If Barton represents the traditional resource play, Imdex is the new-age tech engine. Unlike a miner, Imdex sells tools that others use to find and define deposits. Its portfolio spans down-hole sensors, software platforms, connected hubs (HUB-IQ), and analytics services that make exploration more efficient.

The financials show how strong this model has become. In FY2025, Imdex reported:

  • Revenue of $431.4 million
  • EBITDA of $123.7 million
  • Net profit after tax of $55.2 million, up 70% year-on-year
  • Dividends declared and paid, reinforcing its cash-generative profile

These figures make it clear that Imdex isn’t just surviving cycles — it’s thriving through them.

The real pivot, however, comes from its latest acquisition. In July 2025, Imdex acquired Earth Science Analytics (ESA), a Norway-based firm behind the EarthNET platform. This is a mature, cloud-native AI tool that applies machine learning to seismic, drillhole, core imaging, and lab data. In other words, it takes Imdex’s already strong data collection ecosystem and gives it the ability to generate AI-powered insights much faster.

The strategy is easy to read: Imdex wants to stitch together sensors + connectivity + AI analytics into a full-service orebody knowledge solution. By doing so, it moves away from one-off equipment sales toward high-margin, recurring software and services revenue.

Why it matters: The combination of HUB-IQ, Datarock, aiSIRIS, and EarthNET puts Imdex in a position to lead mining’s digital shift. It already has the balance sheet to fund R&D and acquisitions, and the dividend policy signals financial discipline. The next test is execution — integrating EarthNET and proving miners will pay for AI insights at scale.

Tailwinds, Headwinds, and the AI Factor

For Barton Gold, the upside is straightforward. If feasibility studies validate the economics and financing comes through, the company could quickly graduate from explorer to producer. With a processing mill nearby and multiple deposits, the pathway is visible. But juniors burn cash quickly, and Barton’s FY24 loss shows the strain. Any delays in permitting, technical issues, or weak gold prices could hurt momentum.

For Imdex, AI is the growth engine. Its financial strength allows it to invest aggressively in acquisitions and innovation. The risk isn’t whether it can fund growth — it’s whether it can integrate platforms like EarthNET, convert them into profitable services, and deliver recurring software margins that justify the pivot. Execution and customer adoption will be key.

Catalysts to Watch

For investors tracking both names, here’s a simple checklist:

  • Barton Gold (BGD):
    • Progress on Tunkillia feasibility and scoping studies
    • Financing announcements or strategic JVs for capex
    • Updates on mill utilization or offtake deals
    • Resource expansion beyond the current ~2.14Moz
  • Imdex (IMD):
    • Integration milestones for EarthNET/ESA
    • Early commercial contracts using AI-driven orebody solutions
    • Growth in digital/software revenue quarter by quarter
    • Stability of margins and continuation of dividend payouts

Investor Takeaways

  1. Speculative growth vs. proven scale: Barton is a higher-risk, higher-reward story — if it moves into production successfully, re-rating potential is significant. Imdex, by contrast, is already profitable and scaling, offering more predictable exposure to mining’s digitisation.
  2. Portfolio fit: Risk-tolerant investors might see Barton as optionality on gold prices and development execution. Conservative investors who prefer recurring revenues and dividends may lean toward Imdex.
  3. Risk watch: Barton faces dilution and project delays; Imdex faces integration risk and the challenge of proving AI platforms deliver commercial outcomes.

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.

Two Energy Penny Stocks With a Bright Outlook

Spotlight on Santos Ltd (ASX: STO) & Deep Yellow Limited (ASX: DYL)

Energy markets are at a crossroads. The push for decarbonisation is undeniable, but the reality of global energy demand still leans heavily on transitional fuels like natural gas and increasingly, on nuclear energy. Liquefied natural gas (LNG) is seen as a flexible and relatively cleaner option compared to coal, while uranium is regaining investor attention as countries double down on nuclear power for long-term, low-carbon baseload supply.

On the ASX, two relatively small-cap names stand out in this evolving story: Santos Ltd (ASX: STO) and Deep Yellow Limited (ASX: DYL). Both companies may be classified as “penny stocks” in valuation circles compared to the large global energy giants, but they are positioning themselves smartly to capture growth in LNG and uranium. For investors seeking exposure to the energy transition with strong near-term catalysts, these stocks deserve a closer look.

Santos (ASX: STO) – LNG Growth Engines Nearing Switch-On

Santos has long been a recognizable name in the Australian oil and gas landscape, but its current strategy is very much geared towards LNG expansion. The company’s HY2025 results confirmed that it is on a solid operational base while progressing towards significant growth milestones.

Key Catalysts on the Horizon

  1. Barossa Project (NT): Santos’ flagship Barossa project, which will backfill Darwin LNG, is in the final stages of commissioning. With the FPSO BW Opal hooked up, pipelines installed, and five of six wells drilled, first gas is targeted for Q3 2025. Importantly, the company has maintained that the project remains within its original cost guidance.
  2. Pikka Phase 1 (Alaska): Another growth engine, Pikka is slated for first oil in 1H26, further boosting Santos’ production profile.

Combined, these two projects are expected to lift Santos’ production by ~30% over the next 18 months compared to 2024, providing a material uplift in both cash flow and shareholder returns.

Financial Strength & Dividends

  1. HY2025 results showed strong free cash flow generation, underpinned by disciplined capex and steady LNG output.
  2. The Board declared an interim dividend, consistent with the company’s payout framework of at least 40% of free cash flow from operations (excluding major growth).
  3. At current share prices, the forward annualised dividend sits around $0.36 per share, implying a 4–5% yield, with the next ex-dividend date set for 2 September 2025.

Why Santos Looks Bright

Santos is at the cusp of a multi-year production and cash flow step-up. With Barossa and Pikka both on track, the combination of higher volumes, predictable dividends, and potential share buybacks provides investors with both income and growth. For those seeking exposure to LNG as a “bridge fuel” in Asia’s decarbonisation journey, Santos is well placed.

Deep Yellow (ASX: DYL) – Building a Multi-Mine Uranium Platform

If Santos is LNG’s growth story, Deep Yellow represents uranium’s revival. Headquartered in Australia but with assets in Namibia, the company is steadily advancing one of the sector’s most advanced uranium developments.

Tumas Project – Fully Permitted & Near Decision Stage

  1. The Tumas Project in Namibia is fully permitted and advancing through late-stage engineering, procurement, and financing preparations.
  2. Procurement for 92% of direct capital is well advanced, with vendor data for long-lead items already secured.
  3. Early site works are largely complete, and utility contracts (power and water) are in advanced discussions.

While the Final Investment Decision (FID) has been deferred into 2025–26 to align with market conditions, this is a prudent move given uranium’s cyclical pricing.

Balance Sheet Strength

  1. Deep Yellow ended H1 FY25 with $158.4 million in cash, providing ample runway to complete pre-FID work and maintain strategic flexibility.
  2. Importantly, this cash also supports exploration and study progress at Mulga Rock, where a recent resin mini pilot confirmed effective separation of uranium and critical mineral streams, informing a revised DFS.

Why Deep Yellow Looks Bright

Few uranium juniors can boast a permitted, late-stage project, strong balance sheet, and competitive cost base. As uranium prices have firmed in recent years—underpinned by nuclear’s role in decarbonisation—Deep Yellow is well placed to crystallise financing and offtake agreements once the market aligns. The upside from a project like Tumas moving into construction is substantial, given its scale and cost advantages.

Energy Transition Angle – Why These Two Fit Together

Both Santos and Deep Yellow are very different businesses, yet they represent the two sides of the energy transition coin:

Santos’ LNG provides Asia with flexible, reliable, and relatively cleaner energy while enabling the displacement of coal-fired power. Its ability to leverage existing infrastructure (Darwin LNG) ensures better returns on invested capital.

Deep Yellow’s uranium aligns with global momentum towards nuclear energy as countries seek zero-carbon baseload capacity. With its Namibian focus, it brings geopolitical diversification and potential scale into a tight uranium market.

Together, these companies show how Australia-based energy names can still create value even in a carbon-constrained world.

Key Risks to Watch

No investment comes without risks, and these two stocks are no exception.

Santos (STO): Execution risks around Barossa and Pikka, exposure to LNG pricing and FX volatility, and potential ESG/regulatory hurdles around new gas developments.

Deep Yellow (DYL): Uranium price volatility could delay financing, while project capex and schedule risks in Namibia must be monitored closely. Offtake agreement negotiations will also be key milestones.

The Bottom Line

Energy penny stocks often carry higher risk, but in the case of Santos and Deep Yellow, the upside is equally compelling. Santos offers investors near-term visibility on rising production, cash flow, and dividends, while Deep Yellow provides leveraged exposure to the nuclear revival through one of the most advanced uranium projects in the sector.

For investors willing to back transitional energy themes—LNG as a bridge fuel and uranium as long-term baseload—these two ASX-listed names present credible opportunities with catalysts firmly in sight.

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.

2 Financial Sector Penny Stocks Catching Analyst Attention

Pocket-Sized Finance, Big-Cap Ambition

The Australian financial sector has no shortage of big names dominating the headlines. But every so often, smaller players begin to quietly put the pieces together, scaling up in their niche and catching the eye of analysts who see the potential before the wider market does. Right now, two such names are on the radar: Generation Development Group (ASX: GDG) and Humm Group (ASX: HUM).

Both companies have recently reported their FY25 results, showing a combination of structural growth, disciplined execution, and a willingness to reinvest for the future. For investors who like spotting tomorrow’s leaders while they’re still trading at “penny stock” levels, GDG and HUM are worth a closer look.

Generation Development Group (GDG): Retirement Income Meets Platform Scale

Generation Development Group has carved out its niche by targeting structurally growing markets—retirement income, investment bonds, and financial advice platforms. Its strategy is simple yet powerful: own the products and control the distribution. FY25’s results proved that this playbook is starting to work at scale.

  1. FY25 snapshot: GDG’s total revenue surged to $219.52 million, almost doubling year-on-year. Underlying NPAT also rose significantly, boosted by the first full year of the Lonsec acquisition and continued momentum in managed accounts. The company declared a fully franked dividend of 1.0 cent per share, consistent with its interim payout.
  2. Distribution and FUM momentum: Lonsec’s platform is expanding rapidly, with funds under management (FUM) growing strongly by late FY25. This scale creates operating leverage across GDG’s research, ratings, and investment solutions businesses.
  3. Policy and structure updates: In June 2024, GDG formally ceased being a Pooled Development Fund, simplifying its tax and capital structure. This move clears the path for larger ambitions in investment bonds and annuities. While the forward yield remains modest (0.3%–0.4%), the group is prioritising reinvestment over immediate shareholder returns.

Why analysts care: Retirement income is a structural growth theme as Australia’s population ages, and platform businesses are highly scalable once FUM gains momentum. GDG combines both at a micro/small-cap scale, which is rare. As profits compound, the potential for dividend growth without sacrificing reinvestment is significant.

Humm Group (HUM): Profitability Back, Offshore Engines Turning

Humm Group, once best known for its consumer lending and buy-now-pay-later experiments, has shifted focus toward being a leaner, more profitable lender with offshore reach. FY25 marked a turning point, with profitability restored and dividends reinstated.

  • FY25 scorecard: Humm posted a statutory profit of $39.6 million and cash earnings per share of 10.2 cents. Its return on cash equity hit 10%, while the cost-to-income ratio improved sharply to 51.7% (down 11.2 percentage points year-on-year). A fully franked dividend of 2.0 cents per share capped the year.
  • Credit quality and operating leverage: Net loss to average net receivables held steady at a low 1.7%, showcasing disciplined credit management.
  • Offshore traction: Humm’s international operations are now real growth drivers. In Ireland, the business achieved an impressive 29.7% ROCE with net interest margins expanding by 240 basis points. In the UK, Humm reached its first breakeven month in June 2025, while its Canadian operations delivered a reset with expected $4.4 million in annual cost savings from FY26. Overall, global volumes and receivables both grew by 46%, with a healthy product yield of 20.2%.

Why analysts care: HUM has re-emerged as a disciplined, profitable lender with real offshore momentum. Its ability to grow internationally while keeping credit losses low adds credibility to its turnaround. The reinstated dividend is a positive signal for shareholders and suggests confidence in sustained profitability.

What Could Move the Shares Next?

For GDG: Further momentum in managed account FUM and progress on investment-linked lifetime annuities. A higher dividend payout could follow as NPAT compounds.

For HUM: Continued low loss rates, stronger operating leverage in Australia, and sustained profitability in Ireland and the UK. Execution of Canada’s cost savings plan will also be closely watched.

Key Risks to Watch

GDG Risks: Exposure to market-level FUM swings, regulatory changes around advice platforms and annuities, and execution risks in integrating acquired businesses.

HUM Risks: Sensitivity to credit cycles and consumer lending regulations, FX risks given offshore earnings, and challenges in executing technology upgrades and cost programs.

Bottom Line

At first glance, GDG and HUM might look like just two more small-cap financial names. But dig deeper and a clear theme emerges: execution at scale in niches that matter.

GDG is positioning itself to ride Australia’s retirement-income wave while leveraging the economics of a growing advice and investment platform. Its dividends are still modest but have room to grow as profits scale.

HUM has restored profitability, strengthened its balance sheet, and demonstrated that its offshore businesses can drive real growth. With dividends reinstated, it has regained investor confidence while showing it can manage costs and credit risk.

They may be penny stocks by market size, but their ambitions—and increasingly, their execution—are anything but small. For investors seeking hidden gems in the financial sector, GDG and HUM are two names analysts are watching closely.

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.