Hot Stocks: AVITA Medical, Civmec, Kalgoorlie Gold Mining

Australian equities slid on Friday, with the S&P/ASX 200 down 114.5 points, or 1.3 per cent, to 8929 at 12.20pm AEDT, as renewed concerns about artificial intelligence overinvestment and disruption weighed on sentiment. Eight of the 11 sectors were lower, although the index remains 2.5 per cent higher for the week. Commodity weakness added to the pressure, with gold falling as much as 4.1 per cent, silver plunging 11 per cent and copper dropping 2.9 per cent before trimming losses. Analysts said the sharp moves reflected broader deleveraging across markets as investors repositioned portfolios amid uncertainty over returns in the AI sector.

Technology was the weakest sector, extending a month-long decline that has seen it fall more than 23 per cent. Companies including TechnologyOne, Xero and WiseTech Global were among those under pressure. Materials stocks also weakened, with Northern Star, Newmont, Genesis Minerals and South32 lower as precious metals retreated. Banking stocks gave back some of this week’s gains, with Commonwealth Bank, National Australia Bank and Westpac easing, while ANZ edged higher. Westpac reported a stronger-than-expected $1.9bn profit, though its net interest margin narrowed.

AVITA Medical steadies after reimbursement disruption, refinances with $60m facility

AVITA Medical (NASDAQ: RCEL, ASX: AVH) reported fourth quarter revenue of $17.6m, down 4% year-on-year, citing reimbursement headwinds that weighed on utilisation through 2025, while full-year revenue rose 11% to $71.6m. Gross margin for the year was 82.1%, with a net loss of $48.6m, narrower than the prior year’s $61.8m loss. Operating expenses declined 9% to $101.4m, reflecting cost reductions across sales and administration. In January 2026 the company refinanced its debt through a new five-year facility with Perceptive Advisors, securing up to $60m, with $50m drawn initially. Management expects 2026 revenue of $80m to $85m, representing projected growth of 12% to 19%. The update signals financial stabilisation after a disrupted year, with improving cash use and clearer commercial visibility.

Civmec lifts half-year EBITDA to $46m as order book grows to $1.35bn

Civmec Limited (ASX: CVL) reported 1HFY26 revenue of $380.4m and EBITDA of $46m, equating to a 12% margin, with net profit after tax of $21.4m. The engineering and construction group ended December 2025 with $87.6m in cash and an order book of $1.35bn, up from $1.25bn three months earlier. An interim fully franked dividend of 2.5 cents was declared. Operational highlights included a major BHP port contract, continued offshore patrol vessel construction, and infrastructure works for Fortescue and Inland Rail. The results reflect solid project execution and strong forward workload visibility across mining, defence and infrastructure sectors.

KalGold drilling confirms gold extends 300m below surface at Kirgella Gift

Kalgoorlie Gold Mining (ASX: KAL) reported diamond drilling at its Kirgella Gift and Providence deposits intersected thick gold mineralisation beneath its existing 76,000oz JORC inferred resource. The four-hole, 1,154.6m program returned intercepts including 28m at 2.24g/t Au from 92m and 10m at 1.03g/t Au from 231m. Mineralisation has now been confirmed to extend to nearly 300m vertically below surface, approximately 160m beneath the current resource envelope. Structural data indicates steep west-dipping shear-hosted gold, with new fault interpretations shifting deeper drill targets westward. Follow-up drilling is planned to test vertical continuity and potential resource upgrades.

Source: Finance News Network

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