Five ASX-listed hot stocks amid iron ore price rally

Summary

  • The benchmark S&P/ASX 300 Metals & Mining index has gained more than 20% in the last one year.
  • Iron ore is trading near US$220 per tonne, supported by robust demand and supply concerns.
  • Various ASX-listed iron ore stocks have delivered significant gains amid the ongoing iron ore rally.

Robust demand and supply concerns are driving iron ore prices to new highs. The price of the commodity reached US$220 per tonne at the beginning of July 2021 after hitting a record high of US$232 per tonne in mid-May.

The demand for iron ore, which is used in steelmaking, is expected to continue its trajectory of growth.

The supply disruptions from Brazilian iron ore mines due to bad weather conditions have led to a price spike. Also, lower-than-expected figures from the largest iron ore producers globally have cranked up the prices.   

Must Watch: How to pick good iron ore stocks?

On that note, let’s have a look at few ASX-listed iron ore stocks that have made substantial gains amid the current iron ore rally.

Iron Road Limited

Iron Road Limited (ASX:IRD) is an Australia-focused iron ore space player with its flagship Central Eyre Iron Project located on the Eyre Peninsula of South Australia.

During mid-July 2021, the company executed contracts to acquire 24 hectares of land at Cape Hardy on the Eyre Peninsula. This is in addition to the company’s 100%-owned 1,100 hectares of port precinct land.

Meanwhile, the company continues to advance partnership discussions for its Central Eyre Iron Project.

Grange Resources Limited

Grange Resources (ASX:GRR) is an ASX-listed iron ore pellets producer. The company is the owner and operator of one of the largest integrated pellets production and iron ore mining businesses in the country. The business is located in the northwest region of Tasmania.

As per the recently released quarterly results update, the company’s pellet sales increased to 653kt in the June 2021 quarter from 556kt in the March quarter. During the period, GRR experienced strong demand for its high-grade, low-impurity iron ore pellets.

Good Read: Why is iron ore rally hurting these two sectors?

Carpentaria Resources Limited

Carpentaria Resources Limited (ASX:CAP) is focused on developing the Hawsons Iron Project located near Broken Hill, NSW.

The company finalised the purchase of nearly 24% of the Hawsons project in the last quarter, earlier held by Pure Metals.

CAP now owns a 94% interest in Hawsons JV while the remaining 6% is with Starlight Investment.

Must Read: Why are iron ore prices volatile of late?

Champion Iron Limited

Champion Iron (ASX:CIA) is committed to high-grade iron ore mining and development. The company’s flagship asset, Bloom Lake Mining Complex, sits within the Labrador Trough in Quebec.

The miner produced 2.01 M wmt of concentrate in the fourth quarter of FY21 with a recovery percentage of 82.6% and strip ratio of 0.67.

BCI Minerals Limited

BCI Minerals (ASX:BCI) is developing a salt and potash business supported by iron ore royalty earnings. The Australia-based resource player is advancing the 100% owned Mardie Salt & Potash Project located on the West Pilbara coast.

The company has received favourable EPA recommendations from the Western Australian Environmental Protection Authority for the project, as per the company's announcement on 7 July 2021.

Must Read: How could the red-hot iron ore rally benefit investors?


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