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.

Resource stocks often present decent dividends for their investors, which is much of their appeal.

We have breaking news on the ASX companies set to raise dividends here!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!