ASX mining shares are off to a stellar start in 2022 amid a two-year-long commodities rally that is seeing listed miners realise record levels of revenue and free cash flow.
The S&P/ASX 300 Metals & Mining Index (ASX: XMM) has climbed over 4% into the green this year to date, having spiked 3% in the last month alone.
Thus, amid this rally – plus with earnings season in full swing – it's not surprising to see 3 names within the ASX mining basket lunge past their 52-week highs during Monday's session. Let's take a look.
South32 Ltd (ASX: S32)
Shares in South32 are cruising 4% higher today to set new single-year highs in this afternoon's session. At the time of writing, the diversified mining company's share price is fetching $4.79 apiece.
In fact, the $21.5 billion company by market cap saw its equity value surge to record highs following a string of positive catalysts in 2022, not in the least related to its half-year earnings.
In its report, the company recognised statutory after-tax profit of US$979 million and underlying earnings of more than US$1 billion.
The rotation out of speculative high-growth names back into value-type propositions has also helped ASX mining shares in 2022, and South32 is no exception.
Plus, with the commodities rally driving cash straight down to the bottom line for these names, South32 recorded an astounding US$942 million in free cash flow for H1 FY22 – a gain of US$806 million on the year.
This enabled the board to declare a 621% jump in the company's interim dividend to US8.7 cents a share, a gain that safely beats the level of inflation.
It's no wonder investors are piling into South32 lately in order to secure a spot in the future of this company, seeing as investors aren't paying the exorbitant premiums for growth into the future anymore.
Grange Resources Limited (ASX: GRR)
Shares in Grange Resources are setting new single-year highs today after the company released its financial full-year results late on Friday afternoon.
Investors have responded well to the company's earnings and have sent shares over 37% higher to set a new 52-week high of $1.025 on Monday.
In its results, the company recognised revenue from operations of $782 million compared to $526 million last year. This came through to net profit after tax (NPAT) of $322 million, a year on year gain of 59%.
Grange's earnings were helped this year by the fact it remained quite immune to the effects of COVID-19 lockdowns in 2021, suffering no material impacts to operations.
It also adopted an Environmental, Social, and Governance (ESG) framework to integrate with its governance moving forwards.
Grange reckons it has started the program using "21 core metrics and disclosures as created by the World Economic Forum (WEF)".
In the last 12 months, the Grange Resources share price has spiked over 118% and is up more than 33% this year to date.
Base Resources Limited (ASX: BSE)
Shares in Base Resources are also cruising higher today and set new 52-week highs of 35.5 cents during Monday's session.
Base Resources released its results for the six-month period ended 31 December 2021 before the open today, and investors appear to have absorbed the outcome well.
In its report, Base says it achieved a record first-half revenue result of US$104.6 million "following increased production and an 18% increase in average realised unit sales price" from this time last year.
It also recognised net profit after tax (NPAT) of US$19.2 million, a substantial jump up from a net loss of US$6.4 million in H1 FY21.
The company generated free cash flow of US$8.8 million but say's this figure "was impacted by the previously announced US$18.8 million catch-up royalty payments to the Government of Kenya during the period".
Nonetheless, the board still declared a 3 cents per share dividend, meaning that, upon payment of this particular dividend, the company will have returned a total of 13.5 cents per share to shareholders since October 2020 – equal to around $160 million.
Commenting on the results, Tim Carstens, managing director said that "ongoing strong demand for all products is resulting in significant price increases which have contributed to increases in group revenue, EBITDA and NPAT".
Investors appear to agree with the positive momentum and have piled into the company on a volume more than 280% of its 4-week average.
