Best ASX Mining Stocks
to buy in January

Check out our Industry Experts’ report and
analysis on the Best Asx Mining Stocks right now in ASX

Best ASX Mining Stocks
to buy in January

Check out our Industry Experts’ report and analysis on the Best Asx Mining Stocks right now in ASX

Factors Influencing ASX Mining Stocks

The performance of ASX mining stocks is closely linked with the global economy, interest rates, and the demand for raw materials.

Economic downturns can impact these stocks, but so can positive trends like the high demand for precious metals and industrial metals due to their use in sectors like renewable energy and electric vehicles.

As the mining sector continues to play a crucial role in the global economy, the future for ASX mining companies seems promising.

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Understanding ASX Mining Stocks

The Australian Securities Exchange (ASX) is home to over 700 mining and resources stocks. It is both a hub for some of the world's largest mining companies and for junior companies (developers, explorers and producers alike) that are hoping to become the big miners of tomorrow. The mining & resources sector has been the backbone of the Australian and global economy, which has been particularly evidenced in the last decade. With growing interest in ASX mining stocks, it's critical to start investing with a well-informed perspective. This article will shed light on the top ASX mining companies that have been driving the mining industry, contributing significantly to the mining sector, and are a good investment for Australian investors.

ASX mining stocks play a significant role in Australia's economy, with many major mining companies operating in sectors such as precious metals, iron ore, industrial metals, and other minerals. Some of these companies have also made a mark on international stocks, expanding their mining operations globally. Many of today's biggest companies started out as small cap companies and created substantial wealth for their shareholders as they became large - successfully discovering Australia's largest resources projects and bringing them into production. Just look at Chalice (ASX:CHN) as one example, going from 20c to as high as $10 in roughly 18 months after it discovered the Julimar nickel/PGE deposit in Western Australia. The mining & resources industry, while lucrative, can come with high risk, which is why due diligence is essential before investing.

Our Dedicated Reports On Various Mining Stocks

Top 3 ASX Mining Stocks to buy

BHP Group (ASX: BHP)

As one of the world's largest mining companies by market capitalisation, BHP Group (ASX:BHP) is a major player in the mining industry. Its high demand and substantial contribution to the Australian economy make it a standout in the list of ASX mining stocks. BHP Group, at a market cap of AUD $170 billion as of June 2023, remains the largest mining company listed on the ASX.

Rio Tinto (ASX: RIO)

Rio Tinto (ASX:RIO), holds center stage in the ASX mining industry. With a market capitalization exceeding AUD $150 billion, Rio Tinto is a force to reckon with. Its annual report for 2022 showed a net cash increase of 15% to AUD $10.2 billion. The company also reported a substantial production of 286.2 million tonnes of iron ore and 551,000 tonnes of copper in 2022.

Fortescue Metals Group (ASX: FMG)

FMG has seen exponential growth in the last decade, especially in the iron ore sector. Fortescue Metals Group, valued at AUD $55 billion, had an impressive fiscal year 2022. Its iron ore shipments reached 182.2 million tonnes, up by 6% compared to 2021, and the company's net profit after tax stood at AUD $4.74 billion, a 2% increase from the previous year.

Top 3 Emerging ASX Mining Stocks to buy

Chalice Mining (ASX:CHN)

Chalice Mining (ASX:CHN) owns the monster Julimar PGE-nickel deposit that lies an hour out of Perth. As of July 2023, it has a resource of 560Mt @ 0.54% nickel or ~1.7g/t palladium equivalent. 55% of this is Measured and Indicated with the balance Inferred. This equates to 16Moz of 3E (Palladium, Platinum and Gold combined), 860kt nickel, 520kt copper and 83kt of cobalt. This is equivalent to 3Mt of nickel equivalent or 30Moz of palladium equivalent. Although shares have retreated from all time highs due to concerns about how it can fund capex necessary to begin production, we can't imagine financiers or M&A suitors snuffing this high quality project.

Bellevue Gold (ASX:BGL)

Bellevue Gold (ASX:BGL) is about to commence production at its namesake gold project just 6 years after beginning exploration. It estimates that it has 1.34Moz in Reserves (derived from 6.8Mt @ 6.1g/t gold) and will have a 10-year mine life. This equates to an IRR of 68% and net free cash flow of $2.1bn over the life of the mine.

Boss Energy (ASX:BOE)

Boss Energy has had the South Australian Honeymoon Uranium Project since 2015. The uranium deposit there, which has a JORC Resource of 71.6Mlb at an average grade of 620ppm, has lied dormant for a decade since the previous owners mothballed it due to low prices. After patiently waiting for uranium prices to reach the right levels, Boss is anticipating first production by the end of 2023. A study completed in June last year estimated an IRR of 47% and production of 2.45Mlb per annum. There are plenty of other top uranium stocks with high-quality projects but so few of them have as low sovereign risk as Boss Energy, which is why we favour it.

Top 3 ASX Mining Stocks to buy

BHP Group (ASX: BHP)

Rio Tinto (ASX: RIO)

Fortescue Metals Group (ASX: FMG)

Top 3 Emerging ASX Mining Stocks to buy

Bellevue Gold (ASX:BGL)

Chalice Mining (ASX:CHN)

Boss Energy (ASX:BOE)

Frequently Asked Questions

What are the best ASX mining stocks to invest in?

In our view, BHP Group, Rio Tinto and Fortescue Metals Group are the best ASX mining stocks.

How does the mining industry affect the Australian and global economy?

The mining industry plays a significant role in the Australian and global economy. It contributes to job creation, infrastructure development, and export earnings. In Australia, mining companies are a critical part of the economy, particularly in regions such as Western Australia and New South Wales. On a global scale, mined resources like iron ore, copper, and precious metals are essential for various industries, from construction and manufacturing to renewable energy and electric vehicles.

What is the market capitalisation of major mining companies?

What factors influence the performance of ASX mining stocks?

Various factors, both at broader macroeconomic and individual company levels, can influence the performance of Australian mining stocks. Global economic conditions, interest rates, and demand for raw materials can all impact on individual companies. Changes in technology, such as the growing emphasis on renewable energy and electric vehicles, can also impact the demand for certain minerals, thus influencing the performance of mining stocks. Individual company factors can influence them too, most importantly exploration or production results.

What are the risks associated with investing in mining stocks?

Investing in mining and resources stocks comes with several risks. Economic downturns, changes in commodity prices, operational risks, regulatory changes, and environmental concerns are some of the challenges that mining companies face. Individual companies have their own risks including production problems, exploration failure and sovereign risks. It is, therefore, crucial to conduct due diligence and understand these risks before investing in mining and resources stocks.

How does the mining sector contribute to a clean energy future?

The mining sector plays a crucial role in the transition to a clean energy future. Minerals such as lithium, copper, and rare earths are key components in renewable energy technologies, including solar panels and wind turbines, and in the manufacture of electric vehicles. As the demand for these technologies increases, so does the demand for these minerals. Mining companies, like Sayona Mining with its lithium projects, are positioned to contribute significantly to this clean energy transition.