Daily Roundup

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HiTech Group Australia is making a strategic move into new territory with its A$7 million acquisition of Hudson Global Australia's operations and assets. The deal significantly expands HiTech's footprint across the country while diversifying its earnings beyond its core ICT recruitment and consulting business. More importantly, it strengthens the company's government capabilities by tapping into Hudson's established relationships in that sector. The acquisition will be funded through a mix of existing capital, committed debt facilities, and other sources, and is expected to be earnings accretive once integration is complete—setting up a solid platform for future growth, whether organic or through additional acquisitions.

Over at Vysarn Ltd, the numbers are telling an impressive story. The company just reported record FY26 net profit before tax of A$20.9 million, a stunning 89% jump year-over-year. Operational revenue climbed 85% to A$140.1 million, while EBITDA grew 77% to A$28.9 million. The NewGround acquisition is already contributing A$7.0 million in EBIT to the FY27 base, and management is eyeing both organic and inorganic growth opportunities. They're particularly focused on the Kariyarra Water Scheme, targeting a 5C license and offtake agreements, while remaining cautious about deploying available debt capacity for non-dilutive growth initiatives.

Yancoal Australia delivered solid operational results in the second quarter, though safety concerns are creeping in. The coal producer churned out 17.5 million tonnes of run-of-mine coal and 13.8 million tonnes of saleable coal, with attributable saleable production hitting a quarterly record of 10.8 million tonnes. The average realised coal price came in at A$160 per tonne. However, the Total Recordable Injury Frequency Rate ticked up to 6.64, signaling that safety performance needs attention. Looking ahead, Yancoal expects output to land in the upper half of its guidance range for 2026, and the company is on track to close its acquisition of an 80% stake in the Kestrel Coal Mine by late September. On a less positive note, Yancoal announced it will cease operations at Ashton from early 2028 due to technical, geotechnical, and economic challenges.

Weebit Nano is raising the bar on its revenue expectations. The advanced memory technology developer upgraded its FY 2026 revenue guidance to at least A$13.5 million, up from the previous A$12 million target. The boost comes courtesy of expanding customer projects, and the company's audited full-year results are due on 28 August.

In the resources sector, a high-profile investor is backing tungsten. Dr Andrew Forrest AO, through his investment vehicle Wonongarra Pty Ltd, has agreed to acquire a 16.8% stake in EQ Resources Ltd from Oaktree. The move signals strong confidence in EQR's position as a leading tungsten supplier to Western supply chains. Oaktree, which has been a cornerstone investor since 2023, supported EQR's acquisition of the Barruecopardo tungsten mine in Spain and the expansion of Mt Carbine in North Queensland. The transaction won't affect EQR's strategy, operations, management, or workforce, and the company remains committed to advancing growth options across both its major operations.