This week is Part 1 of our 2-Part Mining Report. We look in depth at six new and highly varied mining stocks, that every investor should look closely at. In a previous issue we covered Piedmont Lithium (PLL) and the miner has recently taken an interest in Sayona Mining (SYA) which we cover in this report.
Until you look at these stocks closely, you don’t know whether there is potential. At Under the Radar Report we are doing exactly that. Peter has found a gold and a uranium producer that look to have the investment goods.
Why does mining matter?
Mining is worth looking at for any ASX share portfolio because the mining sector is so broad that there are many different dynamics at play. The themes you are accessing relate to far reaching global developments. Whether it’s the way we fuel our economies; ongoing industrialisation; or supply chain difficulties (such as ones that involve China).
Commodity extraction is an Australian competitive edge, especially in particular legacy fields such as hard rock lithium, gold and iron ore.
Mining also creates brand new industries, such as sulphate of potash and rare earths. It also reflects changes, such as the increasing importance of batteries. We are talking about massive economic disruption.
Be a part of that disruption by investing in small miners that we cover in tomorrow's Stock Report. It will help future proof your portfolio to enable you to profit from some of the truly big developments occurring in our lifetime.
Snap shot of the full mining sector review out in tomorrow’s report. By our mining analyst, Peter Chilton
Lithium projects with quality long life resources
Lithium stocks, mainly of the hard rock variety are proliferating, but you need to remember that some are marginal and will struggle to be commercial. The goal is to find lithium projects with quality long life resources with credible development strategies and management at the helm that have the skills to deliver.
Gold exploration activity is high
Continuing M&A activity, such as the recent merger between Northern Star Resources (NST) and Saracen reduces the pool of attractive gold producers. Gold exploration activity is high, but few explorers get to convert their efforts into a producing gold mine. After a number of years of exploration at the site of a former mine, one of the stocks we cover in tomorrow's Stock Report has released its feasibility study in February and is likely to enter the ranks of producers at around 150koz a year in two years’ time.
Copper fuelds the EV revolution
The base metal will be needed to drive the EV revolution but there are not many new projects. Investors are keen to get on board a copper mine developer but there are not many opportunities. We have found one explorer which is very early stage and speculative but its exploring in elephant country in the Eastern Gawler Craton in the vicinity of major discoveries at Olympic Dam and Carapateena. Well worth a look.
Uranium is regaining credibility
Everybody is looking at wind and solar for green power, but behind the scenes nuclear is regaining credibility, which was covered by The Economist this week. There are currently 441 existing reactors in 33 countries and 52 new reactors under construction and a uranium supply deficit is projected around 2023-24. There are a number of mine reopening candidates and advanced new projects worth looking at. We focus on one of them, which also has a number of undeveloped uranium projects in its portfolio.
Growing demand for Sulphate of Potash (SOP)
There is a growing demand for SOP as opposed to Chloride Potash because this is most suitable for the more intensive farming for modern living such as growing fruit and vegetables. The SOP industry in Australia is in its infancy and extracts from hitherto undeveloped brine lakes in WA. There are a number of SOP projects, one of which we already cover. This week we mention another SOP company, with production commencing in about two years’ time.
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