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.

Could Crypto Spark the Next Aussie Mining Boom?

And that’s where things get interesting. The word is, that by creating a digital non-US currency, these countries would want it backed by something. Backing it by fiat currency is somewhat pointless. That only creates a digital replication of the current problems they face.

You’ve Got 10 Months to Get out of Lithium Stocks

It’s fair to say the heat has come right out of the lithium market. And I’m here to let you in on a secret…it’s only going to get worse. If you’re holding bags of lithium stocks in the hope that things will only get better. Well, sorry, there’s a good chance they won’t. This means you’ve got a decision to make...
Money Morning Australia