Best ASX Mining Stocks for You in 2023
Team Veye | 21-Jul-2023
Metals and minerals have always played an important role in shaping the future of world economy. Australian minerals have contributed more than 20 percent of Australia's GDP growth in the last ten years. Buying mining stocks ASX can become a good investment in the growth of the world economy. There are many good mining companies operating in Australia, which always remain on top of the buying lists of fund managers.
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Which are the Best & Top 5 Mining stocks to buy right now in Australia?
Some of the top mining companies in Australia, based on their mineral resources, share price and the potential to grow in medium to long term are
Rio Tinto Limited (ASX: RIO) is engaged in mining and metals exploration, while operating mines, mills, refineries, smelters and research facilities. Its segments include Iron Ore, Aluminium, Copper, and Minerals.
The company recently announced an investment of $1.1 billion, including up to $113 million of financial support from the Quebec government. to expand its AP60 aluminium smelter having low-carbon technology in Canada.
The positive outlook for commodity prices and the strong demand for copper and iron ore are likely to have a favorable impact on Rio Tinto (RIO). As a major producer of these commodities, RIO stands to benefit from the increased prices and demand.
The joint venture agreement for the La Granja copper project in Peru with First Quantum Minerals is expected to unlock the development of a significant copper deposit, further enhancing RIO's copper portfolio. Additionally, RIO's diverse portfolio of commodities positions the company well to capitalize on market opportunities and mitigate potential risks.
BHP Group Limited (ASX: BHP) is a diversified resources company. The Company’s principal business is producing commodities like iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. The Company through its operations in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America and South America is providing copper needed for renewable energy; nickel for electric vehicles and potash for sustainable farming besides iron ore and metallurgical coal, which are main ingredients required for the steel, needed for global infrastructure and the energy transition
BHP’s long-term success depends on factors like maintaining cost discipline, adapting to market dynamics, and managing social and environmental risks. It is likely to continue investing in technology and innovation to maintain its competitive position. BHP has strong fundamentals as global commodity demand is underpinned by population growth, rising living standards, and urbanization.
Mineral Resources Limited (ASX: MIN) is a mining services company with its main activities include integrated supply of goods and services to the resource sector. Its core portfolio of mining operations includes iron ore and lithium besides ranging across multiple commodities
The Company confirmed its agreement with Bawou, Posco, and AMCI for the final investment decision of Onslow Iron being underway. It is likely to benefit from robust demand for its commodities and mining services. It is also well-placed to capitalize on the shift to clean energy, with its exploration projects and lithium operations well-positioned to benefit from the growing demand for energy storage systems and EVs. Demand for minerals specifically iron ore and lithium continues to be healthy providing more opportunities for MIN.
MinRes in its early results of the first major exploration program at the Mt Marion lithium mine confirmed significant exploration potential at depth, along strike and in the surrounding region. The company also reported a significant natural gas discovery at the North Erregulla Deep-1 well, its second, from three drilled wells on its fully owned onshore Perth Basin holdings.
Northern Star Resources Limited (ASX: NST) is an Australian gold mining company with operations in Western Australia and Alaska. It sells refined gold from multiple sites and conducts exploration in various regions. The company is divided into segments, including KCGM and Kalgoorlie Operations, which encompass significant mining assets.
The acquisition of the Millrose Project appears to align with NST's strategic goals, particularly in the gold sector. By acquiring the Millrose Project, NST aims to expand its portfolio of mining assets, which may bolster its position in the gold production industry. With ownership and control of the Millrose Project, NST will have the opportunity to develop and operate the project, potentially increasing its gold production capacity and contributing to the company's overall growth and business objectives.
Over the next three years, the company will be diligently working on expanding and modernizing KCGM's processing capacity from 13Mtpa to an impressive 27Mtpa. This transformation is expected to be a game-changer, resulting in remarkable financial results for the company.
Pilbara Minerals Limited (ASX: PLS) is an Australian lithium company focused on exploration, mining, and development. Its flagship project is the Pilgangoora lithium operation, comprising two processing plants. Additionally, the company is pursuing a promising downstream joint venture for lithium chemical conversion in South Korea.
Pilbara Minerals is progressing according to plan for its P680 Project, with the Primary Rejection facility targeted for commissioning in the September Quarter 2023 and full capacity expected by the December Quarter 2023.
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Frequently Asked Questions (FAQ)
Is BHP a good buy now?
BHP has strong fundamentals as global commodity demand is underpinned by population growth, rising living standards, and urbanization. In addition, a decarbonizing world intensifies the need for mining.
Is Pilbara a good buy?
Pilbara is a good buy as it is witnessing rising cash balance with strong production volumes and pricing.
Will Pilbara Minerals ever pay a dividend?
Pilbara Minerals paid an inaugural dividend of 11 cents per share (fully-franked) after applying a target dividend payout ratio of 30% of free cash flow to the FY2023 half year result.
What are the best mining stocks to invest in Australia?
Based on long term growth potential, Rio Tinto Limited, BHP Group Limited, Mineral Resources Limited, Northern Star Resources Limited and Pilbara Minerals Limited are among the best mining stocks to invest in Australia.
What is the top mining company in Australia?
Presently, Pilbara Minerals is a favourite among best ASX mining stocks as it is on expansion pathway to increase production up to 1Mtpa. Its accelerated growth is ready to capture positive demand conditions and increase revenue.
Are mining shares a good investment?
Mining shares are a good investment as investors can gain exposure to the price of commodities while hedging against inflation: Many investors buy mining stocks, including gold stocks, as a hedge against inflation, and some mining stocks pay dividends.
Where is the largest lithium mine in Australia?
Western Australia hosts the world's largest hard-rock lithium mine, the Greenbushes mine. Having multiple growth projects, it is jointly operated by TLEA Joint Venture (IGO: 49% / Tianqi Lithium Corporation: 51%).
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