Hot Stocks: Fletcher Building, Ora Banda Mining, St Barbara

US markets closed lower on Thursday, dragged down by a sharp 14% selloff in Tesla after an unprecedented public spat between Elon Musk and President Donald Trump. The S&P 500 dropped 0.53% to 5,939.30, the Dow slipped 108 points, and the Nasdaq fell 0.83%, with Tesla losing its US$1tn valuation. Trump threatened to cancel government contracts with Musk’s companies, prompting Musk to vow SpaceX would withdraw from key NASA missions—raising concerns about regulatory and political fallout.

Elsewhere, Lululemon shares collapsed over 20% in after-hours trade despite a Q1 earnings beat, as the company downgraded full-year guidance amid cautious US consumers and tariff pressures. Broadcom, meanwhile, posted strong AI-driven results and raised its Q3 forecast, but shares slipped on profit-taking after a 75% rally since April.

Markets also digested a cautious 25bp rate cut from the ECB, which lifted the euro but left investors uncertain about future policy moves. In geopolitics, a 90-minute phone call between Trump and Xi Jinping revived trade talks but failed to resolve deeper issues, especially around rare earths. Commodities were mixed, with Brent crude rising to US$65.28 and gold futures easing slightly.

Fletcher Building (ASX:FBU) confirmed it will vigorously defend itself against a newly announced legal claim from SkyCity Entertainment over the delayed New Zealand International Convention Centre (NZICC) project. Although Fletcher has already paid significant liquidated damages under a capped contract, SkyCity is now seeking additional compensation. Fletcher asserts it has not breached the contract and aims to complete final remediation and commissioning by the second half of 2025, targeting a February 2026 opening. A further provision of NZ$12–15 million will be recorded, excluding potential insurance recoveries or litigation outcomes.

Ora Banda Mining (ASX:OBM) has lowered its FY25 production guidance for the Davyhurst Project to 95koz, approximately 5% below its prior lower-end estimate of 100koz. All-in sustaining costs (AISC) are now forecast at A$2,600/oz, above the previous upper guidance. April and May output totalled 12.1koz, with June expected to reach 12.5koz as plant throughput stabilises at 4,000 tonnes per day. Despite recent operational delays due to mill upgrades, FY25 production still marks a 35% increase on FY24 output.

St Barbara (ASX:SBM) reported significant gold anomalies from its exploration campaign on southwest Tatau Island in Papua New Guinea. Soil and rock chip sampling revealed promising results, including rock chip grades up to 22.5 g/t and soil assays as high as 2.39 g/t, extending anomaly areas to 7.3 km². The presence of widespread alteration and sulphides supports a large hydrothermal system. Further trenching and RC drilling are planned, with assay results from the initial campaign expected in Q1 FY26.