Basic materials markets showed mixed movements on Friday, with crude palm oil prices declining for a second session and rare earths miner Lynas appointing an interim chief executive, while analysts offered diverging assessments of mining stocks from potash to uranium to construction contracts.
The Bursa Malaysia Derivatives contract for August-delivery crude palm oil settled 47 ringgit lower at 4,554 ringgit a ton. Ng said he sees prices supported above 4,480 ringgit a ton, with resistance at 4,750 ringgit a ton. “Recent weakness in export demand is also pressuring prices in the near term,” he said.
Lynas Rare Earths announced the appointment of Chief Operating Officer Pol Le Roux as interim CEO, with incumbent Amanda Lacaze preparing to step down. Macquarie said the role requires “not only operational and strategic capability but also strong stakeholder management amid heightened geopolitical dynamics.” The bank called Le Roux a pair of “safe hands operationally,” as one of the miner’s most experienced executives, but noted that the appointment of a permanent CEO will be a near-term focus for investors alongside the ramp-up of the Kalgoorlie plant. Lacaze’s successor has “big shoes to fill,” Macquarie said. Lynas shares traded 2.4% lower at A$18.27. Macquarie has a neutral rating and a A$20.00 target on Lynas.
UBS said satellite images show significant progress at BHP’s Jansen potash project in Canada over the past year, with storage areas and the processing plant appearing largely complete. Progress on the second-stage expansion appears limited, with only foundations for the second processing plant visible, UBS said. “Whilst the delayed and more expensive build has been frustrating for shareholders, we continue to see Jansen as a tier-1 asset with first-quartile cost position and long life with attractive economics,” UBS said. The bank has a neutral rating and A$60.00 target on BHP, whose shares were down 2.2% at A$61.44.
Jefferies upgraded Deep Yellow to buy from hold, noting the stock has almost halved from its January peak. The bank said it views Deep Yellow as a “cleaner near-term exposure” to uranium prices compared to some of its producing ASX-listed rivals that face operational challenges. Jefferies kept a A$1.90 target. Shares rose 3.4% to roughly A$1.60.
On Monadelphous, Jefferies said the contractor needs continued contract awards to meet fiscal 2027 expectations and justify its premium valuation. The bank estimates about 62% of the company’s expected construction revenue for fiscal 2027 is now covered by announced contracts. Monadelphous earlier Friday announced a A$380 million contract with CS Energy. “MND still needs some significant wins to meet our FY27 forecasts,” Jefferies said, adding that the capex environment remains positive across most commodities. The contractor’s shares trade at a significant premium versus peers, the bank noted. Jefferies has an underperform rating and a A$23.00 target on the stock. Shares fell 0.7% to A$30.49.