Hot Stocks: Etherstack, Tamboran Resources, Arika Resources

The Australian sharemarket opened slightly higher on Monday ahead of a Reserve Bank meeting on Tuesday that is widely expected to deliver a third interest rate cut this year. Markets have fully priced in a 25 basis point reduction to 3.6 per cent, with only a slim chance of a larger move, while investors also await US inflation figures due the same day. At 10.20am AEST, the S&P/ASX 200 was up 0.45 per cent, or 39.9 points, to 8847, well above the modest rise indicated by futures.

Materials led gains, up 6.6 per cent over the past five sessions, with BHP, Rio Tinto and Fortescue all advancing on stronger iron ore prices, and Pilbara Minerals surging 17.1 per cent on reports CATL will suspend production at its Jiangxi mine for three months. Technology was the weakest sector, with Xero and TechnologyOne down 1 per cent each. JB Hi-Fi slipped 1.8 per cent as it announced CEO Terry Smart will be succeeded by COO Nick Wells despite posting a 5.4 per cent lift in profit to $462.4m. Car Group rose 2.8 per cent after a 10 per cent profit increase to $275m, while Santos added 0.8 per cent as a $36.4bn takeover bid advanced. DroneShield gained 2.5 per cent on the launch of its SentryCiv civilian counter-drone platform, and Iress fell 7.8 per cent after reporting flat half-year profit of $17.3m.

In company news,

Etherstack (ASX:ESK) has signed a 7-year Master Supply Agreement with AT&T Services Inc. to supply its Mission Critical Push-to-Talk technologies, including the LMR-IWF product, for the FirstNet public safety network. The deal guarantees a minimum US$2.5m per annum in indexed support and service fees, with additional variable revenues from FY2026 based on subscriber volumes and professional services. The agreement is expected to contribute ~US$4m to FY2025 revenue, of which US$2.37m was reported in 1H 2025, with further upside over the contract’s life.

Tamboran Resources (ASX:TBN) has reported a Beetaloo Basin record 90-day initial production (IP90) flow rate of 6.7 million cubic feet per day from its Shenandoah South 2H ST1 well in the Mid Velkerri B Shale. Flow rates rose ~2% over the final 30 days without intervention, with the well now suspended ahead of planned gas sales to the Northern Territory Government in mid-2026. The result supports future large-scale development plans as the company advances its three-well 2025 drilling program.

Arika Resources (ASX:ARI) has reported thick, high-grade gold intercepts from step-out RC drilling at the F1 Fault within the Landed at Last prospect, part of its Yundamindra Gold Project in WA. Highlights include 4m at 41.56g/t Au and 27m at 2.45g/t Au, extending mineralisation along strike to over 400m and at least 100m depth. Drilling continues across multiple targets as part of a 10,000m program, with further results pending.