OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Bell Potter rates FRS as Speculative Buy

Bell Potter retains its Speculative Buy rating on Forrestania Resources but lowers its target to $1.05 from $1.25 following four maiden pre-feasibility studies (PFS).

The studies establish a 530.9koz gold reserve and $903.5m of pre-tax undiscounted free cash flow (FCF) at $5,500/oz gold. Costs (AISC) of -$3,329/oz were higher than expected by the analysts.

Importantly, the studies assume processing solely through Edna May, excluding the Lake Johnston hub, which increases haulage costs and contributes to the relatively high costs, the broker explains.

Potential is seen for lower costs under a two-hub model. Less than 20% of resources have been converted to reserves, providing scope for further reserve growth and production exceeding 200kozpa, highlights Bell Potter.

Ord Minnett rates GL1 as Upgrade to Buy from Hold

Ord Minnett raises its target for Global Lithium Resources to 85c from 60c and upgrades its rating to Buy from Hold following the acquisition of IGO Ltd's ((IGO's)) Nova project for -$7m.

The broker believes using Nova's existing processing infrastructure materially improves the economics and development prospects of Global Lithium's Manna lithium project in Western Australia.

Combined with recently secured funding from Jiangsu Lopal Tech Group, the acquisition is expected to reduce Manna's funding shortfall to around -$175m from -$480m.

These capital savings are partly offset by higher operating costs associated with trucking Manna ore to Nova for processing, the analyst explains.

Commentary adds integration study envisages annual production of 257kt of spodumene concentrate and earnings (EBITDA) breakeven at an SC6 price of US$870/t, with production targeted by mid-2027.

This is a summary of research produced yesterday by Ord Minnett.

Macquarie rates NAB as Neutral

Macquarie's 2026 Mortgage Broker Survey highlights borrowing capacity as an increasingly important consideration for mortgage customers as higher rates and tax changes constrain serviceability.

The survey shows around 80% of brokers are reporting fewer investor enquiries and 75% report investors are delaying or cancelling purchases.

Pricing remains the most important factor, with ANZ Bank emerging as the most price-competitive major bank, although its systems and turnaround times continue to lag peers, commentary notes.

Westpac has materially improved its systems and processing, according to the broker, closing much of the gap with CommBank and becoming one of brokers' preferred lenders.

Competition has intensified as bank returns decline from early-2026 peaks, while the federal budget has also weakened housing investment intentions, Macquarie explains.

Unchanged Neutral rating and $39 target for National Australia Bank.