• This article will look at two of the weekly TheBull.com.au stock picks.
• This week it’s two ASX miners.
• A gold miner that is benefiting from expansive monetary policy and a lithium ore miner riding the wave of electric vehicle production.
Pilbara Minerals ASX:PLS (PLS) and Saturn Metals ASX:STN (STN) are two Western Australian mineral extractors worth considering for your portfolio to gain exposure to central commodity markets.
For investment in commodities, one needn’t look further than our resource-rich backyard, particularly Western Australia. PLS has expanded rapidly under the global demand growth in lithium chemicals, particularly in the electric vehicle market segment. STN has more recently benefited from macroeconomic conditions that have lifted the value of its target mineral, gold.
Pilbara Minerals ASX:PLS (PLS)
PLS presents an interesting investment opportunity for several reasons.
Firstly, the company’s strong production figures in the first half of the fiscal year 2023. With more than 300,000 dry metric tonnes of spodumene concentrate produced, it has demonstrated its ability to deliver its production targets.
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The regulatory approval of the P1000 project to increase production capacity by 47 per cent highlights the company’s commitment to expanding its operations and positioning itself as a significant player in the lithium market.
Another factor contributing to the attractiveness of PLS is the recent rejection of a takeover proposal from Albemarle by lithium company Liontown Resources. This suggests that the lithium sector is poised for growth and that PLS is well-positioned to benefit from this trend.
The global shift towards renewable energy and electric vehicles is expected to continue driving demand for lithium, which should provide strong support for PLS’s growth prospects in the long term.
At the current share price, PLS represents an attractive entry point for investors seeking exposure to the lithium market.
Source: Yahoo! Finance
Saturn Metals ASX:STN (STN)
STN presents a compelling investment opportunity for several reasons. Firstly, the company’s Apollo Hill gold resource in Western Australia is a significant asset, comprising 1.47m ounces of gold at a grade of 0.6 grams per tonne.
Recent drilling results have been promising, indicating the potential for discovering higher-grade ore, which could significantly increase the resource base.
The anticipated pilot plant production from Apollo Hill in 2024 adds to the attractiveness of the investment. The company’s considerable regional exploration potential also suggests that there may be further upside beyond its existing asset base.
Another factor contributing to the appeal of STN is the current gold market. As a gold exploration company, STN is well-positioned to benefit from the relatively high gold prices, which have been fueled by global economic uncertainty and inflationary concerns.
At the current share price of $0.19 AUD, STN offers an attractive entry point for investors seeking exposure to the gold sector.
The company’s strong asset base, promising drilling results, anticipated production timeline, and potential for further exploration make STN a good investment opportunity in the current market conditions.
Source: Yahoo! Finance