ASX mining shares are off to a flying start in 2022. That's amid a two-year-long rally that commodities have staged up until today.
The furnace began burning hotter in January as macro-economic undertones found their way into the mainstream and took markets by force.
As such, the S&P/ASX 300 Metals & Mining Index (XMM) is outstripping other sectors of the market. The XMM has climbed more than 2% this year to date, despite a correction in early March.
These three ASX mining shares are even further ahead of the pack, cruising past their 52-week highs today. Let's take a look.
Image source: Getty Images
Image Resources NL (ASX: IMA)
Shares in Image Resources have surged more than 30% in the past month. They have nudged past 52-week highs in early trading today at 30 cents apiece.
Investors are rallying behind the stock after Image Resources released a significant announcement on Monday.
First, it announced that it has executed and completed a definitive and binding agreement with Sheffield Resources Ltd (ASX: SFX) for the sale of its 100% owned McCalls Project.
Sheffield has received in full the cash consideration of $12 million for the sale of the project.
Image says the site consists of four exploration licences across two project areas. The company says it contains 5.8 billion tonnes of mineral resources at 1.4% total heavy minerals (THM) for 84 million tonnes of contained THM.
It also provides a "base for potential future multi-decade production opportunities at high economy of scale and consideration for value-add production of synthetic rutile with decades of consistent feedstock sourcing."
In the past 12 months the Image Resources share price has shot up nearly 64%. It is up 44% this year to date after the recent surge.
Nufarm Ltd (ASX: NUF)
ASX share Nufarm shot higher in early trade to bypass their previous single-year high. The Nufarm share price peaked at $5.98 in the first hour of trade before settling back to current levels.
At the time of writing, shares in the crop protection and specialist seeds business are rangebound, fetching $5.86 apiece.
This gain is despite there being no market-sensitive information from the company since February. However, agricultural commodities are spiking hard in 2022 amid the conflict in Europe, sending supply-shock jitters around the world.
Exchange traded funds (ETFs) tracking agricultural commodities have surged this year as well. Individual baskets are also setting multi-year highs, show below.
As such, Nufarm might benefit from the surge in agricultural commodities due to its position in the adjacent markets, meaning brokers are now starting to pay attention.
More than 46% of brokers have Nufram as a buy right now according to Bloomberg Intelligence. That's up from 38% around a year ago.
Bell Potter is bullish, valuing the Nufarm share price at $6.40 per share. Meanwhile, Macquarie rates it a buy too with a $6.29 price target, both in notes to clients during March.
5E Advanced Materials Inc (ASX: 5EA)
Shares in 5E Advanced Materials have themselves advanced to new highs today, currently trading at $3.47 apiece.
Whilst there's been nothing price sensitive out of the company's corner today, it did announce that its equity started trading on the NASDAQ from 15 March. It will trade under the ticker symbol FEAM.
The company's CHESS Depositary Interests (CDIs) will continue trading on the ASX under the current ticker 5EA.
Under the NASDAQ uplisting, each 5E Advanced Materials share represents 10 CDIs, per the company.
The company says it has "begun extensive investor outreach and non-deal marketing efforts in the US with assistance from its capital markets advisor."
Speaking on the NASDAQ listing, 5E CEO Henri Tausch was positive and said this was an important milestone in the company's growth narrative.
"Our NASDAQ listing delivers another important milestone for the Company, and I am incredibly proud of the team who have worked diligently to deliver a successful US listing," he said.
"We also look forward to working with US and other NASDAQ investors in our pursuit to become a vertically integrated global leader in boron advanced materials."
Trading volume of 5EA's shares today is at 163% of its four-week average volume, at the time of writing.
