Research notes

Following the appointment of voluntary administrators and the continuation of suspension from quotation we cease Keeping Stock coverage on Bowen Coking Coal (BCB).

IMR achieves major milestone after successfully completing the first ischemic ventricular tachycardia ablation procedure performed under real time MRI guidance in an interventional cardiac MRI lab. We expect this complex procedure will gain attention from the medical (and investment) community attracting additional hospitals into both clinical trials and more importantly being part of the commercial roll out once approvals are in place. We have made no changes to our forecasts or target price. We maintain our SPECULATIVE BUY recommendation.

RMS released its 1Q result, FY26 guidance and a five-year growth outlook following the A$2.4bn acquisition of ASX:SPR, the integration of Mt Magnet and Dalgaranga is now underway. 1Q26 production of 55koz Au was solid, though lower grades at Cue resulted in higher unit costs of A$1,836/oz. Production and AISC were in line with MorgansF, however unit costs were ~10% above consensus, representing a modest miss. FY26 guidance of 195koz at AISC A$1,800/oz (midpoints) was provided. Production guidance ~14% below MorgansF but in line with consensus, while unit cost guidance represents a modest beat versus both MorgansF (-4%) and consensus (-3%). We continue to see upside to the production profile supported by potential grade displacement at Cue as sequencing advances. Unsurprisingly, the SPR integration study outlined an impressive set of production and financial metrics. RMS forecasts ~525koz Au per annum at an AISC of A$1,975/oz from FY30 onwards, supporting upwards +A$1bn of FCF p.a. We have adjusted our forecasts to become more aligned with the growth plan.

IPD posted its 1Q26 cashflow report which was below expectations impacted by hospital approval delays and FX. The installed base growth in the US of 26 units was below our expectation of 40 units. We expect subsequent quarters will step back up over 40 units. The cash outflow was higher than usual (relating to advance inventory purchases and well flagged by management). 2Q26 cash outflow is expected to be back around $3.0m. Management note it has a runway of five quarters of funding available. We have made modest downward revisions to forecasts which results in our DCF valuation moving to A$0.13 (from A$0.14). We maintain our SPECULATIVE BUY recommendation.

Alphabet Inc., known predominantly as the holding company of Google, is an American multinational technology conglomerate. The company offers a range of products and platforms, including Search, Google Maps, calendar, ads, Gmail, Google Play, Android, Google Cloud, Chrome and YouTube. Its hardware product range includes Pixel phones, smartwatches and Google Nest home products. Alphabet Inc. is also known for its online advertising services, internet services, and licensing and research & development services. The company is headquartered in California, US, but is present across the Americas, Europe and Asia-Pacific.

CYL delivered a softer than expected operating result for 1Q, driven predominantly mill maintenance, an isolated event. CYL reiterated its FY26 guidance despite 1Q unit costs being outside of stated parameters – we think guidance is still within reach and maintain our preference for CYL within the ~100kozpa producer peer group (CYL, PNR, OBM). Following the result, we have raised our FY26 capex forecast to A$336m (from A$231m) to reflect updated exploration and non-essential growth capital requirements, primarily relating to the Four Eagles exploration drive (Victoria) and continued development at Plutonic. We reiterate our BUY rating, with a price target of A$10.58ps (previously A$11.00ps).

Microsoft is an American multinational technology company that develops and markets software, services and hardware. The company is best known for its software products, including Microsoft Windows operating systems, the Microsoft Office suite and the Internet Explorer web browser. Its five main operating segments include: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division.

In the 2H25 result we appreciated the strong business lending growth, resilient asset quality, relatively stable underlying NIM, and regulatory capital strength. Cost investment is being made to deliver long-term revenue and cost gains. With the stock trading around all-time highs but with limited earnings growth over coming years we continue to recommend clients SELL overweight positions.

Wagners recently presented to the 2025 Morgans Conference, discussing the outlook for the business and construction materials demand across South East Queensland (SEQ). The outlook remains optimistic, as demand has continued unabated through 4QFY25 and into 1QFY26 - Port of Brisbane cement volume in Sep-25 was double the average. The level of underlying demand, along with the anticipated contribution from Olympics, has WGN well positioned for future Project wins. The growth potential in CFT poles could also prove an additional driver of earnings growth, as production ramps up from an estimated c.4,000 poles in FY26. Based on the additional market data and reflecting the current share price, there is cause to be optimistic as we approach the 14-Nov AGM. On this basis, we upgrade to Accumulate with a $3.10/sh price target.