Key takeaways:

• CBA dominated headlines with a record full-year profit

• Building materials suppliers beat expectations thanks to efficiencies driving margins

As a promising start to the ASX reporting season gathered steam, investors also shifted their attention to new ructions in the energy market.

Which shares excelled?

It was a week to remember for James Hardie (ASX: JHX) shareholders, with the building materials supplier announcing a bumper quarterly result. The company’s profit margins across the Australasia region hit an all-time high, despite sales volumes declining. Behind this growth was an increase in prices, which rose 12% across the region.

Meanwhile, earnings across the Asia-Pacific region rose 35% to $69.5 million for the quarter. While management cautioned investors against expecting high margins in the region to continue, investors were clearly buoyed by the company’s efficiency, particularly in the wake of an overall sales decline of 5% across the Group amid a weak housing construction market.

Uranium stocks were higher this week, including the likes of Boss Energy (ASX: BOE) and Energy Resources of Australia (ASX: ERA). It follows comments from Boss Energy’s CEO at the Diggers and Dealers conference in Kalgoorlie, where Mr Craib suggested the uranium market’s fundamentals are among the strongest of recent times. He suggested that “new production is needed”, while also arguing that the “the [uranium] price is going to overshoot in response to this currently forecast supply deficit”. 

In support of this view, Mr Craib suggested “demand is growing and mobile inventories are now significantly lower than they were in the early 2000s”, a period when uranium prices topped US$140/lb. Meanwhile, a supporting role may have also come courtesy of the Coalition’s proposed energy policy, which will reportedly focus on a “coal-to-nuclear transition” in the regions.

Aged care home operator Estia Health (ASX: EHE) agreed terms to a takeover offer from private equity suitor Bain Capital. The deal, valued at $838 million, will see the company’s 70 sites across the country change hands. Bain first made an approach for Estia back in March, however, after much negotiation it seems the two parties have settled on a deal where shareholders will receive $3.20 per share for control of the company. That represents a premium of 50% versus the last trading price before an initial bid was made. Shareholders will vote on the deal in November.

Another building products group was reporting results this week, and judging from the reception it received, the market was pleasantly surprised. Boral’s (ASX: BLD) revenue climbed 17% to $3.46 billion, while its EBITDA leapt 38% to $454.4 million. Elsewhere, underlying net profit after tax (NPAT) swelled by more than 300% to $142.7 million, and operating cash flow rose 66% to $358.7 million. The catalysts for the improvement in performance were an increase in volumes across all products, pricing traction, and cost-cutting, which led to an increase in margins.

Lithium major Pilbara Minerals (ASX: PLS) rocketed higher this week after the company announced a substantial increase in the mineral resource for its Pilgangoora site. Based on its recent drilling campaign, the miner reported a 36% increase in the total measured, indicated, and inferred resource to 413.8 million tonnes, containing 4.75 million tonnes of lithium oxide, and 101.8 million pounds of tantalum oxide (Ta2O5). 

At the same time, the company also reported a 64% increase in the total measured and indicated resource to 337.3 million tonnes, containing 3.94 million tonnes of lithium oxide, and 80.9 million pounds of tantalum oxide. Pilbara’s management confirmed that 80% of the mineral resource is now classified as measured and indicated, providing greater confidence ahead of an ore resource update scheduled for release this quarter.

Also sitting on solid weekly gains entering the Friday trading session were Cettire (ASX: CTT), BSP Financial (ASX: BFL), Johns Lyng Group (ASX: JLG), and Emerald Resources (ASX: EMR).

Which shares dragged on the market?

On the outer at the start of the week was Latin Resources (ASX: LRS), with the lithium and gold explorer shedding nearly 12% of its market cap over the first two trading sessions of the week. That was followed up by an announcement detailing “positive” DMS testwork outcomes on ore sourced from its Colina Deposit. According to the company, the results, including a 93.1% recovery and lithium oxide grade of 5.5%, suggest there is scope to generate a high-grade, low-impurity spodumene concentrate.

Lithium miner Core Lithium (ASX: CXO) had another week to forget, with its shares touching a fresh 52-week low. Since reporting higher costs and lower production forecasts for FY23 and FY25 just a fortnight ago, short sellers have moved in quickly to increase their bets against the company. CXO is now the most shorted stock across the ASX, with an estimated 11.2% of all securities currently sold short. That likely played a role in this week’s slip.

Shares in coal miner Coronado Global Resources (ASX: CRN) tumbled this week after the company reported its half-year results. The sticking point for shareholders was a significant drop in revenue and earnings. Across the period, revenue fell 24.6% to US$1.49 billion, while adjusted EBITDA slumped 58.4% to US$352.3 million. Meanwhile, first-half net income suffered an even larger decline, down 64.6% to US$199.2 million. While lower sales volumes were partly to blame, a 21.8% reduction in the average realised coal price had a more telling effect.

Diversified minerals explorer Chalice Mining (ASX: CHN) was in the news this week, presenting at the Diggers and Dealers mining conference in Kalgoorlie on Monday. At that presentation, the company’s leader indicated that a premium for “greener” nickel had yet to arise in the marketplace. There was also surprise at the Albanese government’s decision to work with Indonesia on critical minerals supply given the country’s environmental oversight record and the fact that it competes with Australian nickel, which has been left off the government’s critical minerals list.

Among the other stocks on the back foot this week we have Judo Capital (ASX: JDO), Imdex (ASX: IMD), Downer (ASX: DOW), Telix Pharmaceuticals (ASX: TLX), and SG Fleet (ASX: SGF).

We’ll be back next week with another Weekly ASX Trading Wrap Up – until then, have a great week!