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.

What happened to the BHP share price? (ASX:BHP)

There were two main catalysts that led to the demise of BHP’s share price. If you follow the general consensus, blue chip stocks are supposed to be more stable than other stocks in the market. Yet over the last five years...

Lynas Shares Rising on Licence Extension Headlines

Earlier this morning, Lynas issued a pause in trading pending an announcement. This announcement ended up being a comment from the company on the ‘recent media coverage’ of the Malaysia agreement, urging shareholders to ‘not rely on media speculation’. We look at the sector as a whole.

Lynas Share Price Up as PM Gives Green Light and Deadline Nears

At time of writing the share price of Lynas Corporation Limited [ASX:LYC] is up 5.14%, trading at $2.66. There was big news for Lynas today on the Malaysian regulatory front, with Prime Minister Mahathir Mohamad confirming that the company won’t have to export low-level radioactive waste from its Kuantan plant...
Money Morning Australia