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.

Disappointing Trading for Pilbara Minerals

Pilbara Minerals Ltd [ASX:PLS] has seen a difficult few months. The mining company has continued to report solid production from their projects; however, a weakening demand for their profit has forced them to cut back on their operations to salvage cash flow and working capital.

Pilbara Minerals Share Price Down 6.38% after Troublesome Results

The Pilbara Minerals Ltd [ASX:PLS] share price has fallen dramatically by nearly 7% in morning trading, after the company’s update report revealed negative projections for both production and sales. Upon this fall, Pilbara Minerals was one of the worst performers on the All Ordinaries index today.

Iron Ore Prices Rise to Five-Year Highs

Building on its multi-month highs, iron ore prices have risen 8% this month, and over 50% this calendar year, to reflect a post-market buying frenzy over supply issues.Australia’s top export reached US$110.20 on SPGlobal’s iron ore index (IODEX), the highest in five years dating back April 2014.

AVZ’s Share Price Loses 9.84% on Agreement with Huayou

Today, AVZ Minerals Ltd [ASX:AVZ] entered into a strategic relationship with Zhejiang Huayou Cobalt Co Ltd, through its group company Huayou International Mining (Hong Kong) Ltd.The strategic agreement is non-binding and non-exclusive.At time of writing, AVZ’s share price is trading lower at $0.055, down 9.84%.
Money Morning Australia