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

undervalued-stactics (1)

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

Group-415

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.

undervalued-icon-1 (2)

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

Get the Latest Stock Market Insights for Free with
Stocks Down Under & Pitt Street Research

Join our newsletter and receive exclusive insights, market trends, investment tips, and updates delivered directly to your inbox. Don't miss out on Pitt St, Equities Research – subscribe today and make informed investment decisions. necessary

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

mining-gold-icon

ASX Gold
Stocks

gold-lithium-box-icon

ASX Lithium Stocks

gold-uranium-box-icon

ASX Uranium Stocks

gold-oil-gas-box-icon

ASX Oil and Gas Stocks

mining-gold-icon

ASX Gold Stocks

gold-lithium-box-icon

ASX Lithium Stocks

gold-uranium-box-icon

ASX Uranium Stocks

gold-oil-gas-box-icon

ASX Oil and Gas 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)

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

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.

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.

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.

Frequently Asked Questions

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

Our Blogs on Mining Stocks

Arcadium Lithium

Arcadium Lithium (ASX:LTM): Meet the newest and most exciting large cap lithium stock on the ASX, capped at US$5bn

May 28, 2024

Many investors have never heard of Arcadium Lithium (ASX:LTM) and we can’t really blame them. But hopefully, we can change…

BHP or Rio Tinto

BHP or RIO Tinto? Which of these 2 resources giants is the better investment and which one has upside?

May 27, 2024

BHP or Rio Tinto? Choosing between these two major miners is no easy feat. In this article, we take a…

lithium operations

Lithium operations: What is upstream and downstream, and which of the 2 is better to invest in?

May 27, 2024

When it comes to lithium operations, what is the difference between upstream and downstream? And does it really matter? Yes…

Toubani Resources

Toubani Resources (ASX:TRE) gets ready for the big time in Mali

May 21, 2024

Toubani Resources (ASX:TRE) is another aspiring gold producer. What’s not to love about an aspiring gold producer right now? Its…

Capricorn Metals

Capricorn Metals (ASX:CMM): Its sequel gold mine will be even better than the original

May 21, 2024

Capricorn Metals (ASX:CMM) is one of several gold miners on the ASX that has slid under the radar of many…

resources stocks

Resources stocks for Dummies: Here’s how to get started in the ASX’s most exciting sector in 2024

May 20, 2024

Over a third of companies listed on the ASX are resources stocks. Resources stocks offer exposure to many different commodities…