Mining Stocks, News & Tips on the ASX
Australia’s metals and mining sector is clearly the country’s largest industry sector. There are over 760 Australian companies involved in mineral exploration, development and production across more than 110 countries.
This sector includes several of the world’s largest diversified resource companies, including global giants such as BHP Billiton and Rio Tinto. There’s also plenty of potential to invest in future industry leaders. In fact, since 2009, investors in the Australian market have supported more than 400 new junior resource floats.
This sector relies heavily on equity markets to receive capital for the intensive development of mineral projects or the funding of higher risk explorations to locate new resource deposits.
Whether you’re interested investing in Rio Tinto, BHP Billiton, or any one of the multitudes of Australian mining companies out there, browse Australian Stock Report’s analyses below to find out everything you need to know about investing in the mining sector, including news, tips, and advice.
Share to buy – Whitehaven Coal (WHC)
Until recently, we've viewed a lack of market confidence as mis-pricing WHC.
Over the journey, the company has maintained an earnings margin average of $13/t but it appears the market has been factoring in the future coal price and giving management little benefit for being able to sustain its margins, despite its track record.
The risk lies with the thermal coal price outlook and whether China continues to retreat from the trade.
Today the company announced record high ROM coal production of 5.7Mt for the March quarter, up 21% compared with the previous corresponding period and 44% YTD.
The company also recorded its highest quarterly saleable coal production of 5.3 Mt for March, up 28% compared to a year earlier, and 48% YTD.
Whitehaven Coal says that it is on track to meet FY2016 guidance for saleable coal to be in the range of 19.5 Mt to 20.1 Mt.
The miner says that costs guidance for the full year FY2016 is now expected to be $57/t.
We think momentum can now build in the stock and are prepared to be buyers..
Share to buy – APN Outdoor Media (APO)
The evolution of Billboards from static to digital has presented significant growth opportunities for APO.
The company, since IPO (Nov 2014), has secured both existing Static Billboards as well as development options to develop Digital Billboards.
Given the ability to modify advertising on-demand using sophisticated yield management techniques for digital formats, the potential revenue uplift is significant.
This can be observed by recent revenue trends whereby revenues have far exceeded the company's and market's expectation.
Given the scalability of digital formats, this translates strongly for profitability.
At their most recent update, the company has also upgraded guidance due to acquisitions, increased market share and an increase in penetration of digital formats.
The company also confirmed the renewal and expansion of key Airport related contracts, in particular with Sydney Airport.
Share to buy – Rio Tinto (RIO)
Since bottoming out near $38 in December, iron ore has rallied to presently be trading above $48.
- Overnight, the bulk commodity jumped 3%.
- The bounce in iron ore, unsurprisingly, has coincided with a bounce in Rio Tinto which has completed a basing pattern and now appears poised to push higher.
- We are looking for a short-term rally in Rio and active traders can consider being buyers.
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