Top 5 ASX mining companies in Australia For 2024

Team Veye | 17-Feb-2024 australian mining companies

Volumes in the industry are rising significantly, primarily due to the rising demand for battery minerals and other technological developments in this area to combat climate change.

Electrification and electric cars are among the things driving the industry to seize chances for future expansion.
There has been a general increase in demand for precious metals like nickel, platinum, and palladium, as well as copper and aluminium, which are used in electric vehicles.

The main factor driving volume for the upcoming year and possibly beyond will be electrification. A number of new mines are already operational, while some are still in the planning stages, as most copper mines are nearing the end of their lives. Because older mines have higher operating costs and require innovation, there is a lot of room for technological advancement that can lower operating costs and improve the mines' overall operational efficiency.

Here we present the best ASX mining companies that are strongly involved in exploration, production, and marketing activities.

Note: The market cap and the share price of the selected ASX-stocks below are mentioned as of 16 February 2024.

Champion Iron Limited (ASX: CIA)

Market cap: $4.26 billion
CMP: $8.22

The company demonstrated its balance sheet with a strong cash position and liquidity at quarter-end, with $316.5 million in cash and cash equivalents and short-term investments, which inched higher with a remark as highly liquid current assets. The company maintains liquidity availability along with credit facilities, totaling $645.9 million at quarter-end. Phase II was produced at nameplate capacity for thirty consecutive days for the first time during the first quarter of FY2024 and the company continued to make improvements to stabilize and optimize operations. The key driver is the iron ore concentrate price. The company significantly takes advantage of its quality, which is more than 66% Fe iron ore concentrate.

Orora Limited (ASX: ORA)

Market cap: $3.86 billion
CMP: $2.87

The company maintained a strong cash generation and balance sheet, positioning it for future success. The outlook for economic growth is still unclear, but consolidated earnings for the company should increase in FY 2024. With ongoing volume softness expected to be largely offset by further margin accretion through account profitability programs and a continued focus on cost management. Orora Limited continues to offer a compelling investment opportunity to its valued shareholders and investors.

Bluescope Steel Limited (ASX: BSL)

Market cap: $10.08 billion
CMP: $22.81

BlueScope Steel Limited has received board approval for a significant project: the reline and upgrade of its No.6 blast furnace (6BF) at Port Kembla Steelworks. This move is aligned with environmentally conscious steelmaking technologies and government policies that support the industry's transition. The project, with an estimated cost of approximately $1.15 billion due to inflationary pressures, is expected to be completed by mid to late-2026. Importantly, this initiative provides flexibility for BlueScope to explore alternative ironmaking technologies while ensuring the long-term sustainability of its steel production. BlueScope Steel Limited is embarking on several significant initiatives to enhance its operations and sustainability efforts.

Orica Limited (ASX: ORI)

Market cap: $7.60billion
CMP: $16.65
Orica's strategic focus on optimizing manufacturing and supply chains, coupled with advancements in its digital solutions segment, highlights a commitment to technological leadership and operational efficiency in response to the evolving demands of the mining industry. With a target Return on Net Assets (RONA) between 12% and 14%, profitability takes center stage, supported by a growth plan that includes diversification into quarry and construction markets, particularly in high-growth economies, and an expanded presence in high-growth mining chemicals markets.
Noteworthy adjustments in capital expenditure for FY24, ranging from $410 million to $430 million, signal a strategic alignment with growth objectives, reflecting Orica's intent to invest in key areas for future expansion.

Mineral Resources Limited (ASX: MIN)

Market cap: $11.60 billion
CMP: $59.455

The company's future looks bright because of a number of noteworthy developments in its main initiatives and business units. The Onslow Iron project is headed toward profitability as it has obtained all necessary approvals and is in a good position to begin making money within the next year. The Mining Services division has shown growth potential by securing multiple contracts with Tier 1 clients. This growth is expected to be facilitated by increased operational activities and the application of innovative solutions.

Reference: *All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters

Frequently Asked Questions (F.A.Q)

What are the best ASX mining companies in Australia?

•    Champion Iron Limited (ASX: CIA)
•    Orora Limited (ASX: ORA)
•    Bluescope Steel Limited (ASX: BSL)
•    Mineral Resources Limited (ASX: MIN)
•    Orica Limited (ASX: ORI)

Why is Australia famous for mining?

Australia is the world's top producer of rutile, tantalum, alumina, bauxite, and several other important mineral commodities.

Depict the financial projections of Orica Limited.

Orica's financial picture shows encouraging trends and optimistic estimates. It is projected that the price-to-earnings (PE) ratio could be 16.02x in FY2024 to 12.11x in FY2026, suggesting a possible improvement in market confidence and valuation. It is anticipated that return on assets (ROA) will increase to 8.4% due to improved asset utilisation efficiency. In a similar vein, it is anticipated that return on equity (ROE) will increase to 12.6% by FY2026, a sign of increased shareholder value and profitability.


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