Resource and Mining Stocks

As Australia is one of the world’s largest commodity exporters, the ASX is full of mining stocks. These cover the full commodity spectrum, from gold to oil to zinc, iron ore, and everything in between. Mining stocks can be massive multi-commodity producers like BHP Billiton Ltd [ASX:BHP], or tiny little explorers. In the middle of the spectrum are the developers. These are the companies that have found a resource and are in the process of developing it for production.

The Best Mining Stock Companies?

Mining companies are capital intensive. That is, they need a lot of capital to first search for a resource — drilling programs are not cheap — and then develop the resource and build an operating plant adjacent to the mine. That’s why commodity prices have such a big impact on these companies. When prices are high, the cash flow from production increases, as does the share price. But when prices decline, cash flow and share prices fall too. With risk comes reward, though. Mining stocks, especially explorers, could provide explosive gains if you back the right stock at the right time.

Doray Minerals Share Price Yo-yos upon Merger Update

This morning Doray Minerals gave an update on its proposed merger with Silver Lake Resources. There was talk of a potential merger back in November between the two gold miners. At the time of writing, Doray Minerals’ share price is trading slightly higher at 50 cents, up 2.04%

Galan Lithium’s Share Price Plummets on ASX Price Query

At the time of writing, Galan Lithium’s share price is trading at 48 cents, down a further 15.15%. But while many Victorians where enjoying yesterday’s long weekend, Galan Lithium’s share price plummeted 19.51%. Most likely due to a price query, which ultimately resulted in a voluntary suspension.
Money Morning Australia