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Best ASX Mining Stocks for You in 2024
By
Will Ellis
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Last Updated on March 16, 2024
There has been no better time than now to invest in mining stocks.
The truth is that mining stocks are always a good investment for newcomers and seasoned pros alike. But right now is a premier time to put your money into Australian mining stocks.
You might think that now might not be ideal to invest in the mining industry. In fact, it feels like now might not be a good time to invest in a lot of things because the global economy seems to be struggling following the COVID-19 pandemic.
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But that actually isn’t the truth. No, the truth is that you’d be smart to put your hard-earned cash into mining stocks because, yes, the economies of the world are having a tough time but they will rebound.
As more and more people get back to work, all economies are coming back to life. And when they do, you stand to gain a lot of money due to the time and money you put into mining.
Before we can get into the smartest mining stocks for Australians to invest in, we need to discuss what they really are, what benefits they bring, why they can help your pocket book, and how you can pick the right ones.
Sure, there is a lot to be worried about right now with the economy but it is a great time to invest in mining and help your bottom line grow. But you must do it smartly and you must put effort into picking the stocks that are right for you.
Table of Contents:
- What Are Mining Stocks
- Good In Any Economy
- Don’t Worry About Inflation & War
- Why Invest In Mining Stock Now
What Are Mining Stocks? 👀️
As you might have assumed already, mining stocks are companies that are publicly traded and solely focused on finding, processing, extracting, and working with minerals and materials that are buried in the ground and are considered natural resources.
There are plenty of mining stocks throughout the world and especially in the Australian marketplace. And you know what these stocks are because they are all related to resources such as:
- Gold, silver, platinum and other precious metals
- Iron ore, aluminum, lithium, cobalt, copper, zinc, and other industrial metals
- Energy materials like oil sands, uranium, and coal
- Fertilizers like potash, phosphate, and boron
- Construction materials like limestone, crushed stone, and sand
Most of the metals and substances listed above are essential to the world economy. In order to construct and produce stuff, commit services, and build infrastructure, industries need to have these raw materials.
Good In Any Economy 💰️
Mined resources are in great demand during economic growth, which raises costs. This makes sense because as the economy grows, infrastructure builds and businesses are booming, using more of these minerals and materials.
It is important to keep in mind that the mining sector is cyclical, though. When the economy is weakening, the desire for mined resources typically declines as businesses cut costs and construction generally slows until the economy recovers.
In a recession, mining stock values often fall. Considering the predictions that soaring inflation will compel financial institutions to hike interest rates in Australia and abroad, this is a very serious worry for all types of investors in 2024.
However, buying when the economy is weak or when the prospects are bad might be the best move for you if you are an incoming investor.
If you can buy when the prices of these mining stocks are lowering because the conventional wisdom says rough economic seas are ahead then you can ride out the storm and soon be holding onto a lot of stock when the storm clouds eventually part and things get better.
When the price of these mining stocks rise in the next few months or possibly the next year or two, you will be sitting pretty with a load of great, beneficial, and blossoming stock options.
Don’t Worry About Inflation & War ❌️
The global economy is being impacted by inflation across the world but also events that are related and located in just a few general areas, like the war in Europe.
Russia’s invasion of Ukraine is one element contributing to inflation and it is also messing with the value and price of mining stocks both in Australia and practically every other country on Earth.
This is because both Russia and Ukraine are nations that are leading suppliers of fertilizer and are therefore key players in the steel and iron sectors of the world. The war might keep pushing those commodities prices higher if it goes on.
The latest reports from inside the war in Ukraine suggest that it could go in one of two directions: Russian president Vladimir Putin could decide to find an “off-ramp” and wind down the war and bring his troops home, or he could instead escalate the conflict and send in more supporting troops to try to change the tide of the war in his favour.
Either way, the war waged by Russia in Ukraine is sure to have a pretty serious impact on the price of not just mining stocks but stocks of all types from the shores of Australia and beyond.
There is a lot going on in the world and a few major factors that are impacting mining stocks. Therefore, investors should concentrate their focus on mining firms that can withstand upcoming economic struggles and problems given the cyclical nature of the mining business.
Even with the problems of inflation and the troubling war in Ukraine, mining stocks can be the most important to your portfolio.
But that is only true if you do the hard work, put in the labour, and understand and know the stocks that you should be investing in, through this troubled and complicated time for our planet.
1. Barrick Gold
Barrick Gold is the go-to company when it comes to – you guessed it – gold. This is a business that knows the complicated industry and knows how to get through good and bad economic times. Their focus on gold and really only gold is why you should definitely look to them in 2024 if you are investing in minerals and filling your portfolio with mining stock.
They are experts in the field and now have operations in multiple countries and dozens of jurisdictions all over the globe.
Barrick Gold is considered a Tier One mining business and that is an important distinction. Essentially, it means that Barrick produces more than 500,000 ounces of gold per year and also has 10 years of productive life remaining. A Tier One company created a steady stream of low-cost gold as well as copper and other minerals too. It’s the gold standard for mining companies, no pun intended.
When you look at the money that Barrick Gold makes, you see quarter after quarter of successful and growing returns on their investments.
Their quarterly performance has been strong year after year. This is all the more reason to invest in Barrick: they have proven themselves repeatedly and have been able to prosper with their mining operations even as the economies around the world have struggled to stay steady and stable.
2. Rio Tinto
Iron Ore, aluminum, and copper are three of the most consumed industrial metals in the world. What does this mean exactly? Basically, they are going to be used in all sorts of companies from things such as computer production to construction and more. In other words, those are the industrial metals that you should always rely on and always expect to be popular and in demand.
Even when the economy lags and construction speeds slow around the world, these metals will still be able to make money because they are being used for something at all times, in many different types of industries.
Rio Tinto knows this and that’s why they have become so successful. They are a mining company that is a leading producer of all three: iron ore, copper, and aluminum. But they don’t just stop there. The company has also perfected the art of mining salt, diamonds, titanium, and more.
Rio Tinto is mining the most prosperous minerals but they are also attractive for another reason: they are a well-run business from the top to the bottom. They are a low-cost producer and they save a lot of money by investing in new tech and cutting-edge equipment and computer advancements to get their job done.
They are also big proponents of renewable energy, which reduces costs and increases their productivity. It also allows them to make more contracts throughout the world with governments that are friendly to green-driven businesses.
If you want a reliable company to invest in in 2024, then you want Rio Tinto.
3. BHP Group
BHP operates a major fully integrated mining business that processes a number of vital minerals and materials all over the world, such as iron ore, zinc, potash, copper, and more. They do all of this as a low-cost producer too. They use tech like self-driving vehicles and cutting-edge green technology to keep costs down. So they are mining the most important minerals and they are doing so at a low cost.
But there is more to BHP Group than just that. Over the last few years, they have become an oil and natural gas business too. That happened when they merged with Woodside Petroleum in 2022 and became a company that not only mined minerals but also became a big part of the always-booming oil and natural gas industry too.
Because BHP operates at a cost lower than most other companies, it is able to withstand the damage done by worldwide inflation. Therefore, you should be putting your money into BHP as the economies around the world suffer and sort through the challenges of inflation. Their balance sheet is strong and they are well-positioned to push through an economic downturn such as the one we are in right now.
4. Pilbara Minerals
Pilbara Minerals is focused on lithium and that is a very smart move, especially in this economy where gold has been banned in some countries, because that material is used in a wide variety of industries and companies, no matter what the global economy is doing at the time.
There will always be some sort of demand for lithium, sometimes it’ll be bigger and sometimes it’ll be smaller but it will always be there. That is why Pilbara is really so interesting and exciting for investors. Pilbara really is going all-in on lithium and owns 100% of the world’s biggest independent hard-rock lithium operations.
Pilbara has big plans for the year ahead. It is planning to become part of the lithium supply chain and is hoping to be an integrated lithium raw material and chemical supplier as well. As we know, the supply chain can both help or hinder a industry, depending on its strength.
This will lay the groundwork to be a vital part of the entire industry. Not only will they be a supplier of lithium and lithium-related products, they will also be producing spodumene and tantalite concentrate in their mining operations.
As you can see, Pilbara is already a company to keep an eye on but it’s the fact that they have such grand plans that make them so exciting. They are a no-brainer when it comes to investing in mining in 2024.
5. Piedmont Lithium
Piedmont is another lithium-centered business that will be well worth your time and money in 2024.
It is located in the United States, which means that there are many Australians who aren’t aware of it and that is a huge benefit to you. You can invest in an under-the-radar stock that others aren’t even aware of.
The thing about Piedmont is that they are starting operations in the American state of North Carolina, which is rich in lithium and cheaper and less in demand that land almost anywhere else, especially Australia. In fact, it has been called the cradle of the lithium industry.
That means that there will be plenty of success found in the state and Piedmont could become one of the lowest-cost producers of lithium in the world because it will be so close to the mining operation, which will be located right in its backyard.
What will Piedmont do with all that lithium? They are planning to become part of the booming electric vehicle industry as a key part of the EV supply chain.
As EVS become more and more popular, Piedmont will be at the center of it all. They are also planning to expand their operations up into Canada in the Quebec area.
6. Sayona Mining
Speaking of Canada, Sayona Mining is already up and operating in Quebec, Canada, and parts of Western Australia as well.
They have actually created a partnership with Piedmont and have acquired another successful business: North American Lithium.
They aren’t done expanding and acquiring other businesses yet.
They are looking to integrate both Authier and Tansim projects, and also are intent on becoming part of the electric vehicle industry and the battery-producing market too. Those great opportunities are all the more reason to invest in Sayona Mining in 2024. They have such potential ahead and they are putting in the hard work to keep growing.
7. Core Lithium
Core Lithium has just acquired what could be a great source of income and financial wealth in the Northern Territory of Australia.
Studies have shown that the mines in this area might have a massive amount of lithium concentrate and the mine could be thriving and supplying for over ten years.
While there are many great lithium mines throughout the world, this new one bought by Core is great because of its close proximity to Asia. It is just 88 kilometers from Darwin Port, which is the closest to Asia.
That means that it will easily be able to be mined, and the output from the location will also be able to be easily shipped to Asia. This prime location makes Core on the verge of a huge financial windfall in 2023 and beyond.
8. Liontown Resources
Liontown Resources is a company fascinated by the growing electric vehicle industry and intent on being a major part of it.
This is great news for anyone investing in Liontown because the demand for EVs will only be growing in the months and years ahead.
Currently, electric vehicles are hard to come by because of a chip supply shortage that has affected the entire world. But that will soon change as the industry catches up with the demand and the cars start to fly off the lots again. Liontown stands a chance to do great business when that happens because they will be firmly implanted in the EV marketplace.
Through the use of hard rock lithium deposits at their locations and a promise of more than 500,000 tonnes of lithium oxide concentrate per year, Liontown will have what it takes to supply what the EV market needs.
You might not think that investing in a company that is tied to a struggling industry – electric car sales – isn’t a smart move but it’s actually the right move in 2024. As the economies of the globe turn around and customers are finally able to start investing in buying new cars again, Liontown will show its true worth. Even if that doesn’t happen until next year or beyond, it is smart to get into Liontown when it is most cheap.
9. Ioneer
Ioneer is located and runs out of America and, again, that works to your advantage as an Australian investor.
While many Aussie investors are looking to only support Australian companies, you can make more money by diversifying your portfolio and looking to companies that are run beyond Australian shores.
Ioneer has something that most other mining companies don’t: they are now the owners of the first new American lithium chemical producer in more than 50 years. And the recent studies of that location have shown that it could last for decades. That means that Ioneer will be providing the best in American minerals for many years.
The company is currently hard at work at putting together a loan package with the American Department of Energy. That means that they are one step closer to having their mine fully operational and producing lithium for a number of industries across the globe.
Don’t let the location fool you or scare you away: Ioneer is on the verge of doing some great things in the precious metals and minerals industry.
10. Allkem
When the mineral giants, Orocobre and Galaxy Resources, came together last year, they created Allkem, which is now one of the best mineral producing companies in the world. It is located in Buenos Aires but operates mining projects all over the world, from Japan to Argentina to right here in Australia.
The company has a partnership with one of the largest car companies in the world, Toyota. Over the next few years, Allkem is looking to bump up its product and more than double its output by the year 2026. There is a good chance that it will be a dominant and unstoppable force in just a few years. The output for Allkem might not be felt or seen for several years but it should be well-worth it.
Why Invest In Mining Stock Now? ⏰️
Mining is a somewhat volatile business and buying mining stocks isn’t always a complete breeze. In times of economic prosperity, mining corporations have more money to spend on mining projects and growth plans. Yet, mining businesses frequently experience issues as a result of the lengthy lead times necessary to finish projects. Returns are impacted when projects that were established in economic booms don’t start up until the cycle has changed and times are now tough.
Buyers must concentrate on the best mining stock possibilities in light of these considerations. They have demonstrated that they can turn a profit no matter the state of the economy.
Including some elevated mining stocks in your portfolio may be the correct choice if you don’t mind some instability and a roller coaster of emotions as your price fluctuates.
If you can strap in and commit to the long term, mining stocks could be the key to a booming portfolio. Even in time of international conflict, stagnant economies, and uncertainty, mining stocks can be healthy, strong, and always holding more potential.
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