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Could Mining Stocks Be Profitable Trading or Investment Opportunities for 2024 and 2025

Jul 2, 2024

Investing in mining stocks short to middle term, can be a profitable opportunity, especially when they are trading at technically discounted prices. This analysis provides an in-depth look at the top mining stocks to consider for 2024 and 2025: BHP Group, Rio Tinto (RIO), Grange Resources (GRR), Fortescue Metals Group (FMG), and South32 (S32).

We explore each company’s material exposure and their outlook for the coming years in very short way.

BHP Group (ASX: BHP)

Material Exposure: BHP is a leading global resources company with a diversified portfolio including iron ore, copper, coal, and nickel.

Outlook for 2024 and 2025: The dividend yield for BHP is currently at 4.07%, based on a share price of AUD 43.00 and a dividend of AUD 1.75.

While there might be some reduction in dividends due to fluctuating commodity prices and potential operational adjustments, BHP’s diversified exposure provides a buffer against individual market volatilities.

Rio Tinto (ASX: RIO)

Material Exposure: Rio Tinto is heavily focused on iron ore, with significant operations in aluminum, copper, diamonds, and energy minerals.

Outlook for 2024 and 2025: With a yield of 5.42% and a share price of AUD 120.67, Rio Tinto’s dividends are robust.

The company is expected to maintain similar dividend levels, contingent on the stability of iron ore prices and global demand. The continuation of China’s infrastructure projects will be crucial.

Grange Resources (ASX: GRR)

Material Exposure: GRR is primarily an iron ore producer with its Savage River project in Tasmania.

Outlook for 2024 and 2025: Grange Resources has a yield of 5.41%, based on a share price of AUD 0.37 and a dividend of AUD 0.02.

The outlook for GRR is closely tied to iron ore prices, with expectations to maintain current dividend levels if demand remains stable.

Fortescue Metals Group (ASX: FMG)

Material Exposure: FMG is one of the world’s largest iron ore producers, primarily operating in Western Australia.

Outlook for 2024 and 2025: FMG offers a substantial yield of 9.59%, with a share price of AUD 22.00 and a dividend of AUD 2.11.

The company’s dividends are expected to remain high, provided iron ore prices support profitability. FMG’s cost-efficient operations give it a competitive edge.

South32 (ASX: S32)

Material Exposure: South32 is a diversified mining company with operations in alumina, aluminum, coal, manganese, nickel, silver, lead, and zinc.

Outlook for 2024 and 2025: South32 has a yield of 3.74%, with a share price of AUD 3.74 and a dividend of AUD 0.14.

The company may experience some reduction in dividends due to market conditions and operational challenges. Its diversified portfolio helps mitigate risks associated with any single commodity.

Here it is a comparative Yield (%).

General Outlook for 2024 and 2025

The performance of these top mining stocks will largely depend on global economic conditions, particularly in China, and commodity price trends. While iron ore prices have been volatile, strategic stimulus measures and infrastructure projects in key markets are expected to provide support.

 

 

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The information provided by BG Trading to you does not constitute personal financial product advice. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. BG trading recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance).