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Highlights
- Australian mining industry is gradually heading back to its pre-pandemic days.
- Russian invasion of Ukraine has created a demand supply gap for many commodities, benefitting Aussie miners.
- A few ASX-listed mining companies have also managed to resume production levels thereby benefitting their respective stocks. Some of these stocks even went up to gain 60% in a year.
It would not be an exaggeration to say that 2022 is proving to be a recovery year for the Australian mining industry so far. Majority of miners, who suffered losses during Covid-19, are now able to churn out some profit. Production levels are also on track and even have managed to touch pre-pandemic levels for many. To add to this, Russian invasion in Ukraine has opened new opportunities for Aussie miners. Australian producers of iron ore, coal, gas and base metals are benefitting from the demand supply gap.
However, the labour shortage due to new Covid-19 variants and industry’s infamous work culture is affecting business. Another factor weighing on Australian mining companies is the pressure to reduce environmental and social impacts.
While the ASX300 metals and mining index XMM has lost over 5% in a year, few ASX mining stocks have gained over 60%.
Covered here are, Grange Resources Limited (ASX:GRR), Coronado Global Resources Inc (ASX:CRN) and Capricorn Metals Limited (ASX:CMM)
Grange Resources Limited (ASX:GRR)
Iron and gold explorer, Grange Resources Limited reported a strong cash position in its latest quarterly filing on the ASX. Strengthened iron ore prices can be considered as the main driver behind this push. Grange Resources also reportedly witnessed strong demand for iron ore pellets. The average price received during the quarter was up 35.73% from December quarter. The miner also declared a 10 cents dividend on its shares.
Meanwhile on the ASX, GRR shares have gained more than 118% in a year (as of 10:12 AM AEST, 30 June 2022).
Coronado Global Resources Inc (ASX:CRN)
Metallurgical coal miner, Coronado Global Resources Inc, is another Aussie miner gaining from the supply demand gap due to the Russia-Ukraine war. CRN share price has gained over 106% in last one year.
The company’s latest quarterly report on ASX highlights an increase in its saleable production. Its group sales volume was also higher during March quarter. Coronado specifically reported a higher demand for Met coal from Europe.
Capricorn Metals Limited (ASX:CMM)
From the Gold mining space, Capricon Metals Limited has made noteworthy gains in a year. CMM share price has surged over 72% in a year. The company had reported higher gold production in its latest March 2022 quarterly report. It has recently also acquired the prospective Mumbakine Well Project located near its Karlawinda Gold Project in the Pilbara region, WA.
