Author: Fiona Craig

Hargreaves Services (LSE:HSP) expects to deliver revenue ahead of market expectations and profit before tax in line with consensus forecasts for the year ended 31 May 2026, supported by improved profitability across its Services division, Hargreaves Land business and German joint venture HRMS.

Services Division Benefits from Infrastructure and Energy Demand

The Services division continued to perform strongly during the year, benefiting from robust activity in connectivity, clean energy and environmental markets. The business also maintained its involvement in major UK infrastructure projects, including HS2 and Sizewell C, while securing its first contract linked to the Lower Thames Crossing development.

Results were further supported by a £7 million one-off profit arising from the settlement of a mining services contract, providing an additional boost to divisional earnings.

Land and German Operations Drive Further Profit Growth

Hargreaves Land is expected to report a significant increase in profitability, aided by the disposal of renewable energy land assets that generated £14 million in net cash proceeds. Additional contributions came from ongoing land sales at the group’s flagship Blindwells development in Scotland.

Meanwhile, German joint venture HRMS is forecast to deliver higher earnings as economic conditions in Germany stabilise. Performance was supported by consistent trading at its steel waste recycling facility, while development of a zinc recycling plant remains on schedule.

The group also finished the year with a strong balance sheet. Following a £20 million return to shareholders funded through asset disposals, Hargreaves reported cash balances of £21.6 million at year-end and remained free of borrowings other than lease-related liabilities.

Positive Fundamentals Support Outlook

The company’s outlook continues to be underpinned by strong financial performance, characterised by earnings growth, healthy cash generation and limited leverage. Technical indicators also remain supportive, with the share price trading above key moving averages and momentum measures remaining positive.

Valuation metrics are viewed favourably due to the company’s relatively low earnings multiple and attractive dividend yield. While management’s outlook reflects continued momentum and a commitment to shareholder returns, investors will continue to monitor execution risks associated with land disposals, renewable energy projects and the development of the zinc recycling facility.

More About Hargreaves Services

Hargreaves Services plc is a diversified industrial group operating across environmental, infrastructure and property markets in the UK and South East Asia. Through its Services division, the company provides materials handling, logistics, mechanical and electrical contracting services, as well as major earthworks solutions.

The group also develops brownfield land through Hargreaves Land and operates HRMS, its German joint venture focused on specialist commodity trading and steel waste recycling activities.

Guardian Metal Resources (LSE:GMET) has strengthened its development footprint in Nevada through the acquisition of Lincoln Estates Group LLC, securing 841 acres of mixed-use land together with 2,540 acre-feet of annual water rights located less than 10 miles from its Tempiute Tungsten Project. The US$1.3 million all-cash transaction, completed via the company’s U.S. subsidiary, provides control of key land and water assets in close proximity to a historically significant tungsten-producing district.

Acquisition Supports Tempiute Development Plans

The company views the purchase as an important step in reducing development risk at Tempiute as it moves the project forward. The newly acquired assets complement infrastructure remaining from the mine’s previous operating period during the 1980s and are expected to support an accelerated development pathway.

By securing long-term water access and strategically located land along the same transportation corridor as the project, Guardian Metal has enhanced the foundation for future operations. The move also supports the company’s broader objective of helping establish a reliable domestic tungsten supply chain within the United States, serving both industrial and national security requirements.

Financial and Market Considerations

Guardian Metal’s investment case continues to be weighed down by limited revenue generation, widening losses and negative free cash flow trends. However, these factors are partly offset by the company’s debt-free balance sheet and financial flexibility.

Technical indicators present a mixed picture, with the shares trading above key moving averages while momentum signals, including the MACD, remain less supportive. Valuation metrics are also constrained by ongoing losses and the absence of dividend income.

More About Guardian Metal Resources

Guardian Metal Resources is a strategic minerals exploration and development company focused on re-establishing domestic tungsten production in the United States and strengthening the country’s supply of critical defence metals. Its flagship assets include the Pilot Mountain and Tempiute tungsten projects in Nevada, one of the world’s leading mining jurisdictions.

The company has received support from the U.S. government, including a US$6.2 million investment under the Defense Production Act to fund a pre-feasibility study at Pilot Mountain through its American subsidiary. Guardian Metal further expanded its investor reach in March 2026 with a listing on the NYSE American, adding to its existing London and OTCQB market quotations.

Savannah Resources (LSE:SAV) is reinforcing its position as a future supplier of battery-grade lithium to Europe as development of the Barroso Lithium Project in northern Portugal continues to progress. The company is advancing what is considered Europe’s largest spodumene lithium deposit while seeking to combine environmental responsibility with meaningful economic benefits for local communities, in line with the objectives of the EU Critical Raw Materials Act.

Community Engagement and Infrastructure Progress

In its latest project update, Savannah announced the signing of ten memorandums of understanding with local community and recreational organisations. Under these agreements, participating groups will have representation on a Local Advisory and Monitoring Committee and will be eligible to access up to €500,000 annually in community development funding once mining operations commence.

The company has also expanded engagement with local businesses to explore potential supply-chain opportunities linked to the project. In addition, Savannah welcomed the start of a public consultation process for a proposed 17-kilometre bypass road. The infrastructure project is intended to reroute mine-related traffic away from Boticas, improve transport connections across the region and support the project’s permitting schedule. An environmental decision on the road proposal is anticipated in early Q4 2026.

Feasibility Study Remains Key Near-Term Catalyst

Management indicated that ongoing progress in stakeholder relations and supporting infrastructure is helping to build momentum across the project. Attention is now turning to completion of the definitive feasibility study, which remains a major objective before the end of the year.

The latest initiatives are designed to strengthen community backing, increase regional economic participation and reinforce Savannah’s long-term social licence to operate as Europe seeks to expand domestic sources of critical battery materials.

Financial and Market Considerations

Despite operational progress, the company continues to face financial challenges. Savannah currently generates no revenue and remains loss-making, with ongoing cash outflows weighing on its investment profile. However, the balance sheet benefits from low leverage and a substantial equity base.

From a market perspective, technical indicators continue to suggest an upward trend, although heavily overbought conditions may increase the likelihood of near-term volatility. Valuation metrics remain limited by negative earnings and the absence of a dividend yield.

More About Savannah Resources

Savannah Resources is an AIM-listed mineral development company and the sole owner of the Barroso Lithium Project in northern Portugal. Recognised as a Strategic Project under the EU Critical Raw Materials Act and supported by up to €110 million in Portuguese government funding, Barroso is expected to become a significant source of locally produced lithium for Europe’s battery supply chain. At full capacity, the project could provide enough lithium to support the production of approximately 500,000 electric vehicle battery packs each year while maintaining a focus on responsible and low-impact development.

Markets Pause Following Recent Surge

U.S. stock futures traded little changed on Tuesday, indicating a muted start to trading after a powerful three-day rally lifted major benchmarks to fresh highs.

Investors appear to be taking a more cautious approach after Monday’s record close for the Dow Jones Industrial Average, choosing to assess recent gains before extending positions.

Peace Agreement Developments Continue to Support Sentiment

Optimism remains tied to progress toward a formal agreement between the United States and Iran aimed at ending more than three months of conflict.

While the preliminary framework has been welcomed by financial markets, traders are looking for additional details and confirmation before increasing exposure to risk assets.

According to reports, the arrangement would prolong the current ceasefire by 60 days, providing an opportunity for negotiations on Iran’s nuclear activities and enriched uranium reserves.

President Donald Trump stated on Truth Social that the agreement is “now complete” and announced the “toll free opening” of the Strait or Hormuz together with the immediate removal of the U.S. blockade of Iranian ports.

He later clarified that the strategic waterway would reopen after the agreement is formally signed on Friday.

Focus Shifts Toward the Federal Reserve

Attention is also turning toward the Federal Reserve’s latest policy decision.

Although interest rates are expected to remain unchanged, investors are eager to hear from new Fed Chair Kevin Warsh regarding the future direction of monetary policy.

“Investors will be looking for clues about how Warsh intends to navigate an economy where inflation remains above target, growth is still resilient and AI-related investment continues to generate strong demand,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “The fall in oil prices gives policymakers more flexibility, but underlying inflation pressures have not disappeared.”

Falling Oil Prices Fuel Market Optimism

The sharp advance in equities on Monday was partly driven by a significant decline in crude oil prices following news of the U.S.-Iran agreement.

The Nasdaq climbed 3.1%, the S&P 500 gained 1.7%, and the Dow Jones rose 0.9% to reach a new closing record.

Lower energy prices have eased fears that inflation could accelerate again and force central banks to maintain restrictive monetary policies for longer.

“Prior to the deal, investors had become increasingly concerned that higher energy costs would feed into broader inflation pressures and potentially force policymakers into additional tightening,” Hathorn said.

“The sharp decline in oil prices does not eliminate inflation risks altogether, but it does reduce some of the urgency surrounding them. That is particularly relevant this week as the Federal Reserve meets for the first time under new Chair Kevin Warsh.”

Industrial Output Edges Higher

Fresh economic data showed that U.S. industrial production increased modestly in May.

The Federal Reserve reported a 0.1% rise in output following an upwardly revised 0.9% increase in April.

The figure came in slightly below economists’ expectations for a 0.2% gain.

Gold and Technology Shares Outperform

Gold-related equities were among the strongest performers as bullion prices moved higher.

The NYSE Arca Gold Bugs Index jumped 6.2%, while the Philadelphia Semiconductor Index surged 5.5%.

Technology, retail, airline and computer hardware stocks also posted notable gains, whereas energy shares lagged due to the continued decline in oil prices.

Precious Metal Gains Amid Falling Oil Prices

Gold prices traded modestly higher on Tuesday as markets continued to assess the implications of the provisional U.S.-Iran peace agreement and its potential impact on global inflation.

Spot gold rose 0.9% to $4,345.72 per ounce, while gold futures added 0.3% to $4,366.25 per ounce.

The move followed a strong rally in the previous session, when bullion climbed more than 2% after Washington and Tehran announced a preliminary deal aimed at ending hostilities and reopening the Strait of Hormuz.

Lower Crude Prices Help Ease Inflation Pressures

The prospect of renewed energy shipments through the Strait of Hormuz has pushed oil prices lower, helping to reduce concerns about a prolonged energy-driven inflation shock.

With crude retreating, investors have become less worried that central banks will be forced to maintain restrictive monetary policies for longer.

Because gold does not offer a yield, expectations for interest rates remain one of the key drivers of demand for the metal.

Dollar Softens as Risk Appetite Improves

Improved market sentiment also weighed on the U.S. dollar.

Throughout the Middle East conflict, the greenback attracted safe-haven demand, supported by the view that the United States would be less vulnerable to higher oil prices due to its position as a major energy exporter.

Although the dollar eased slightly on Tuesday, ING analysts argued that the currency’s broader fundamentals remain supportive.

“The first 36 hours of trading after the US-Iran deal point to a structurally stronger dollar than a few weeks ago. Nearly all weekend losses have already been reversed despite a sharp drop in oil, signaling that FX markets are shifting focus away from crude and back to central banks,” ING said in a research note.

Markets Await Signals From the Federal Reserve

Attention is now turning to Wednesday’s Federal Reserve policy announcement.

While economists broadly expect policymakers to leave interest rates unchanged, investors will be closely watching remarks from Fed Chair Kevin Warsh following the decision.

ING said the upcoming Fed meeting is “firmly in focus” as traders look for clues about the future path of U.S. monetary policy.

Bank of Japan and RBA Also in the Spotlight

Elsewhere, central bank developments continued to influence market sentiment.

The Bank of Japan raised its benchmark interest rate by 25 basis points to 1.0%, its highest level in more than three decades, as policymakers seek to contain inflation and continue normalizing policy settings.

Meanwhile, the Reserve Bank of Australia left its benchmark rate unchanged at 4.35%, following three consecutive increases.

Crude prices moved lower again on Tuesday as investors continued to assess the implications of the emerging U.S.-Iran peace agreement and awaited further information on plans to reopen the Strait of Hormuz.

At 09:09 GMT, August Brent crude futures were down 2.1% at $81.41 per barrel, while July WTI futures declined 2.4% to $78.83 per barrel.

Peace Agreement Triggers Sharp Price Correction

The latest decline follows a near-5% drop in both benchmarks on Monday after the United States and Iran announced a preliminary framework designed to extend the existing ceasefire by 60 days and restore access through the Strait of Hormuz.

The move has removed a substantial portion of the geopolitical premium that had supported prices during the Gulf conflict, pushing oil benchmarks to their lowest closing levels in three months.

Markets Await Confirmation of Reopening Schedule

Investors are now focused on the timeline for implementing the agreement and the speed at which energy exports can resume.

President Donald Trump has said the Strait of Hormuz should be fully reopened by Friday, when U.S. and Iranian representatives are expected to formalize the agreement during a meeting in Switzerland.

While the announcement has improved sentiment, analysts caution that operational and logistical challenges could slow the return to normal trading conditions.

Energy Industry Faces Lingering Challenges

Questions remain over shipping security, insurance coverage and the ability of delayed cargoes and vessels to re-enter the market efficiently.

Several banks and research firms have warned that restoring inventories and rebuilding normal trade flows may take considerably longer than expected, even if diplomatic progress continues.

As a result, energy markets are likely to remain highly sensitive to developments surrounding the agreement.

OPEC Lowers 2026 Demand Outlook

Separately, OPEC revised down its forecast for global oil demand growth in 2026 for the second consecutive month.

The organization now expects demand to increase by roughly 970,000 barrels per day next year, compared with its previous estimate of 1.17 million barrels per day.

The downgrade reflects expectations for softer consumption growth across key regions.

Supply Risks Have Not Completely Disappeared

Although concerns over disruption have eased, analysts note that oil inventories were significantly reduced during the closure of the Strait of Hormuz.

Any delays to the reopening process or setbacks in diplomatic negotiations could quickly reignite concerns over supply availability and lead to renewed volatility in crude markets.