The ASX mining market is an interesting one. It’s not that big when compared to the ASX stock exchange, but it’s still a very viable investment opportunity for people with money to burn or those who are looking for high-risk investments.
Mining – one of the 11 sectors of the ASX has been the preferred stock investment of many Australian investors. The materials or mining sector is the most significant sector based on the number of companies, consisting of 745 companies. It’s ASX’s second-largest sector in terms of market share. This sector also has an excellent performance in late bull markets.
Australia has some of the most stable economies in the world and makes up about 2% of global GDP. That might not seem like much, but Australia has been able to take advantage of natural resources such as coal and iron ore deposits which have made them one of the top exporters on earth.
In this blog post, we will go over the latest stock market outlook for five ASX mining companies that could be worthy of your investment in the new year!
This article is not financial advice or a financial promotion. We aren’t claiming that these are the best companies to invest in. What to invest in is a personal decision that you need to make after performing your own research and hiring a financial adviser if you feel you need a professional’s help. In this article, we use journalistic research to share some highlights from businesses operating in the ASX sector.
Adriatic Metals PLC
Adriatic Metals (ASX:ADT) is a company based in Perth, Australia that was established in 2012. The mining company focuses on the exploration of base and precious metals such as gold, silver, manganese nickel oxide (MNO) ores.
On December 6th 2021, Adriatic Metals announced that they have had successful exploration efforts in their flagship Vares Silver Project in Bosnia & Herzegovina. The ASX announcement declared they have intersected high-grade mineralisation, offering promising prospects for investor returns! Currently, Adriatic Metals PLC share price is $2.69, sitting at a market cap of $815.33 million.
Allkem Ltd
Allkem (ASX:AKE), formerly known as Orocobre Limited, was established in 1993 and has grown to be one of the largest producers of lithium products worldwide. It’s flagship mining site is located in Argentina, focussing on the prospecting of high-quality lithium carbonate. However, the company also has an impressive portfolio of other mining sites, including in Western Australia, Canada and Japan.
In the last quarter, Allkem’s Mt Cattlin project experienced record levels of production (63kt and 68kt of lithium carbonate). In return the company reported a robust revenue generation of US$69.8 million just for its Mt Cattlin project in Western Australia. The best commodity trading books suggest that traders look to minerals such as lithium which are experiencing growing demand when taking long positions.
Currently, the company is sitting at a market cap of $5.43 billion, with stock prices starting at $8.66. For up to date information of the company’s prospects, be sure to follow its investors centre.
Galileo Mining Ltd
Galileo Mining (ASX:GAL) is a resources company with base metal exploration projects set up around South-East Western Australia. The company has two main sites called the Norseman and Fraser Range Project, which is known for its world class Nova nickel/copper/cobalt prospects.
In December, Galileo Mining announced that they hit positive sulphidization at their Norseman mining site. The company is awaiting for full laboratory assays and petrography results that will determine the exact value of the metals within the sulphides. Nonetheless, the explicit discovery offers an exciting future outlook for your investment. To keep informed of these results, be sure to follow Galileo Mining ASX updates.
The company share price sits at $0.22 and has a market cap of $36.2 million.
Star Minerals Ltd
This ASX mining company is focused on building a portfolio of high-value mineral assets that will be able to create value for investors! Star Minerals (ASX:SMS) is known for its gold exploration projects located in Western Australia, boasting an impressive portfolio of multiple advanced projects.
While small, only sitting at a market cap of $9.54 million on the ASX, Star Minerals has recently finished their first phase of drilling in their tumblegum South gold-copper flagship property. The phase offered exciting prospects for investors as the company now is gearing up for its next stage of exploration at the project.
Perseus Mining Ltd
Perseus Mining (ASX:PRU) is a West-African gold producer, developer and explorer that is listed on the ASX. Since its inception in 2004, Perseus mining has made significant exploration success, now sitting at a market cap of $1.84 billion. In this financial year alone, the company’s gold production has reached over 500,000 ounces with a weighted average AISC of less than US$850/oz.
As a result, this company’s continued growth should definitely pique your interest as a high-risk investment, with stock prices currently starting at $1.49 on the ASX. It’s difficult to perform a valuation on a company like Perseus but that won’t stop investors from having a go.
Choosing the best mining companies to invest in
You’ve learned how each mining company above performs based on their precious metal production, stock prices, and more. While you may face some challenges determining the stock performance of a mining company, knowing the essential considerations can help lighten this task.
It’s crucial to look at the long-term performance of a mining company instead of relying on its current one. By doing so, you’ll determine if your prospective company to invest in the ASX stock exchange can recover from economic pitfalls or not.
Stay up-to-date with your prospective mining companies’ new projects, innovations, and plans. Are they promising? How do these projects help increase your investment return as an investor in the next two to five years? What do stock exchange analysts predict about the performance of the company? Knowing the answers can help you choose the best company to invest in on the ASX stock exchange for you.
Conclusion
The ASX mining market is a great opportunity for investors who want to get into the resource game. ASX mining companies have been able to take advantage of the stable Australian economy and are currently mining for some of the most valuable resources in the world! If you’re looking for investments with potentially significant returns, ASX mining stocks could be a great opportunity for you!