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Electric future: The ups and downs of 5 key S&P/ASX 200 commodity shares

Shares prices in the resources sector are easily rattled by raw materials costs and global sentiments with many of these variables shifting on a daily basis.

Here’s how these five S&P/ASX 200 commodity stocks have fared so far this week.

Orocobre Limited (ASX: ORE)

Shares in mineral exploration company Orocobre Limited are up 3.8% to $5.14 at the time of writing – making it one of the S&P/ASX 200’s biggest gainers in morning trade.

Orocobre announced record quarterly sales revenue of US$41.3 million for its March quarter with $319 million in available funds as it enters phase 2 of its expansion of its flagship project Olaroz.

Investors with their fingers on the buy button are probably awaiting the next quarterly update out of Orocobre next month, but as lithium prices remain positive globally, there may not be a share price ditch any time soon.

Galaxy Resources Limited (ASX: GXY)

Globally-focused lithium player Galaxy Resources Limited shares were up 2.4% to $3.29 at the time of writing.

Galaxy operate hard rock and brine assets in Australia, Canada and Argentina.

There’s no doubt Galaxy’s Mt Cattlin operation has proven more profitable than expected with shareholders reacting well to a recent announcement Galaxy would sell a package of tenements at Sal De Vida for US$280 million to POSCO.

Galaxy retains 100% ownership of the tenements in the southern area of Salar del Hombre in the Catamarca Province and the sell off places the miner in a strong financial position to continue with the project’s planned development.

Investors have high hopes pinned on the Sal de Vida Project and Galaxy has certainly asserted itself as the strongest lithium miner on the ASX in recent times.

OZ Minerals Limited (ASX: OZL)

Copper miner OZ Minerals Limited has been rallying of late with shares rising to a 52-week high on June 12 at $10.67 before dropping back down 0.8% today to $10.22 at the time of writing.

OZ Minerals announced last week it was one step closer to acquiring Avanco Resources Limited (ASX: AVB) with acceptances of the OZ Minerals offer now totalling 73.9% with the offer period extended until July 6.

All of Avanco’s major shareholders, namely Appian, BlackRock, Greenstone Resources and Glencore have now accepted the offer with OZ Minerals intentions to develop Avanco’s assets “expediently” with plans to pour funding into projects.

Sandfire Resources NL (ASX: SFR)

Shares in copper-gold mining company Sandfire Resources are up 1.3% to $9.73 at the time of writing – a 52-week high for the stock that has booked nothing but gains in the last 12 months.

A project update out of Sandfire’s Doolgunna Project at Morck’s Well showed “encouraging” results to support continued exploration with Sandfire also moving to acquire Talisman Mining Limited’s (ASX: TLM) 30% interest in the Springfield Exploration and Mining Joint Venture in Western Australia for $72 million.

Sandfire will fund the acquisition from existing cash reserves of $188 million.

Lynas Corporation Ltd (ASX: LYC)

Rare earths miner Lynas Corporation Ltd shares are back on the up today at $2.47 at the time of writing after returning to the incline this month after a drop back in share price throughout May.

There has been little news out of Lynas of late, but the company booked a mixed result in March with sales of its key products neodymium and praseodymium on the up, but cash flow of just $4 million as the company reduced debt down to US$185 million by converting bonds.

If the global demand for rare earths booms as expected, Lynas could go gangbusters overnight, with many believing the uptake of electric cars will see this eventuate as a definite.

Lynas is an alternative to lithium miners hoping to cash in on this emerging market and is certainly one to keep on the watchlist.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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