Cheap or nasty? 3 ASX mining stocks that just hit new 52-week lows

It was not a good day on the market for some commodity stocks.

| More on:
Three rock climbers hang precariously off a steep cliff face, each connected to the other with the higher person holding on and the two below them connected by their arms and rope but not making contact with the cliff face.

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

The S&P/ASX 200 Materials Index (ASX: XMJ) dipped 1.66% today but these three ASX mining stocks hit yearly lows on Wednesday.

The 29Metals Ltd (ASX: 29M), Vulcan Energy Resources Ltd (ASX: VUL), and Grange Resources Ltd (ASX: GRR) share prices all closed on 12-month lows.

Let's take a look at what impacted these ASX mining stocks.

Grange Resources

This company's share price slid 3.67% today to a yearly low of 52.5 cents. Grange Resources is an iron ore producer. A drop in the iron ore price may have impacted the company's share price today. Iron ore peers BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG) also fell on Wednesday.

The iron ore price for a China futures contract in June (62% Fe Fines) has fallen nearly 3% on the Singapore Exchange to US$97.20.

Grange Resources sold 713,956 dry metric tonnes of iron ore product in the March quarter of 2023 at an average realised price of US$156.21 a tonne. The price was 20% higher than the December quarter.

Commenting on the future outlook for the company, CEO Honglin Zhao said:

The Company has achieved a strong start to the year with the mining team delivering record materials movement in a quarter. Iron ore price is relatively stable and the cost of energy, although down from the prior year's historic highs, continues to be at elevated levels

Grange shares have fallen 69% in the last year.

29Metals

The 29Metals share price plunged 19% today to a yearly low of 82.5 cents. 29Metals is exploring for copper and other metals including silver and zinc. The copper price is down 1% at the time of writing.

Copper fell, while zinc dropped sharply overnight amid signs of weak demand, ANZ research highlighted this morning.

On Tuesday, 29Metals provided an updated 2023 guidance. The company had previously withdrawn its 2023 guidance due to multiple factors including an extreme weather event.

The company is guiding it will mine between 514 to 584 kt of ore in 2023. This is predicted to include seven to nine kt of copper and 40 to 50 koz of silver.

In the first half of 2024, the company is guiding it will mine between 180 to 220 kt of ore including three to four kilotonnes of copper and eight to 12 koz of silver.

Looking ahead, 29 Metals advised in its strategic update, it is planning a phased restart of operations at Capricorn Copper and has a positive outlook for Golden Grove. The company had $163 million of cash as of 31 March.

29Metals shares have tumbled 70% over the past 52 weeks.

Vulcan Energy

Finally, Vulcan Energy shares slipped 1.25% today to a yearly low of $3.95 despite no news from the company. Vulcan is working on the transition to decarbonisation via its Zero Carbon Lithium project in Germany. It aims to provide lithium for electric vehicle (EV) batteries.

Today's fall could have been impacted by wider market sentiment. ASX 200 lithium share Pilbara Minerals Ltd (ASX: PLS) also slid 1.68% today, while Core Lithium Ltd (ASX: CXO) shares dropped 2.36%.

Vulcan updated the market on its Zero Carbon Lithium project last week. Crystallizer has been installed at the Vulcan Lithium Extraction Optimisation Plant (LEOP) in Landau.

Commenting on this process, the company said:

The crystallizer represents the final process step in the lithium extraction (concentration after purification) in our Optimisation Plant to produce the LiCl concentrate product from Vulcan's renewable-heated brine.

Further, Vulcan noted that once this LEOP plant is producing lithium chloride, it will "herald the birth of a new domestic lithium industry in Germany and Europe, produced sustainably with zero fossil fuels used in the production process".

Vulcan Energy shares have shed nearly 47% in the last year.

Motley Fool contributor Monica O'Shea 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 Materials Shares

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Materials Shares

Own Rio Tinto shares? Here's your quarterly update preview

What is the market expecting from this mining giant?

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Materials Shares

Why is this ASX lithium stock rocketing 32% today?

Investors are cheering on a big announcement.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Materials Shares

These ASX lithium stocks could crash 20% to 40%

Analysts are feeling bearish about these lithium stocks.

Read more »

A man looking at his laptop and thinking.
Materials Shares

What could $1,000 invested in Pilbara Minerals shares become in 1 year?

Is it worth investing in this lithium miner's shares?

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Broker Notes

Up 15% in 13 days, is it too late to buy South32 shares?

South32 shares have risen 1%-plus per day for the past 13 trading days. Have investors missed the boat?

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Own BHP shares? Here's your quarterly update preview

The Big Australian is releasing its quarterly update next week.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

Guess which small-cap ASX mining stock is rocketing 16% on 'outstanding' discovery

This lithium stock is catching the eye today. But what's going on?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Materials Shares

Why is this ASX lithium stock racing 15% higher today?

Investors have been impressed with an announcement this morning.

Read more »