Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff

Lithium isn't the only resource important for the world's transition to a zero-carbon era.

| More on:
A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With everyone piling onto ASX lithium shares, it's hard to find any real bargains in that space.

However, lithium is not the only mineral critical for the zero-carbon transition.

Copper has been used for conducting electricity for centuries, and a typical electric car can contain more than 1.6km of wiring made from the element.

With the global economy about to rapidly slow down this year after steep interest rate rises, gold is also in favour as a "safe haven" investment.

Even after a cool-off this month, the gold price is up 5.4% over the past 60 days in US dollar terms.

So which ASX shares can give you exposure to these boom commodities?

There is one stock that Argonaut associate dealer Harrison Massey mentioned this week that is involved with both resources:

Supercharging the 'size and economics' of Queensland site

Massey is currently urging investors to buy shares of miner AIC Mines Ltd (ASX: A1M).

"AIC Mines owns and operates the Eloise copper mine in Queensland," Massey told The Bull.

"Eloise is a high-grade underground mine with a 26-year operating history."

The analyst likes how AIC's production potential has significantly upgraded.

"The company recently increased its mineral resource to 115,000 tonnes of contained copper and 101,100 ounces of contained gold," he said.

"AIC Mines bought an adjacent exploration company in late 2022, which should significantly enhance the size and economics of the Eloise project."

The AIC share price has dipped 18.3% over the past 12 months, perhaps suggesting a nice entry point for those wanting to dive in now.

The resources company currently has a market capitalisation of $194 million, but is yet to pay out any dividends.

Massey is not alone in his bullishness for the Queensland miner.

According to CMC Markets, all four of the analysts currently covering AIC Mines shares recommend it as a strong buy.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

Why are Core Lithium shares piling on the gains today?

Core Lithium shares have piled on the gains on positive comments about the company's Finniss project in the Northern Territory.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

Up 100% in six months, here's why Mineral Resources shares could keep rising

This stock could continue delivering strong returns.

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Resources Shares

Why mining stocks can keep rallying: Expert

Thought you missed out on the bull run? This expert says mining stocks can continue rising.

Read more »

Female miner uses mobile phone at mine site
Broker Notes

Does Macquarie prefer Rio Tinto or BHP shares?

Should you buy Rio Tinto shares or BHP shares? Here’s Macquarie’s take.

Read more »

Downward spike graph
Resources Shares

Short sellers launch attack against $1.9 billion Australian critical minerals outfit

A US investment firm says this Australian critical minerals producer is very overvalued.

Read more »

A little girls looks up longingly through a rocket she has made from cardboard, dreaming of shooting to the stars one day.
Resources Shares

Minerals Resources shares shoot 21% higher this week: Buy, hold or sell?

Here’s what Macquarie analysts think.

Read more »

Pile of copper pipes.
Resources Shares

Copper miner's shares rocket 30% on deal with Sandfire Resources

Sandfire Resources in buying into a major copper project in South Australia, with a rapid pathway to development.

Read more »

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price
Resources Shares

Up 85% or more! These 3 hidden ASX mining stocks are soaring as the copper price ignites

Riding the copper wave.

Read more »