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.

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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.


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 The company had previously withdrawn its 2023 guidance due to multiple factors including an extreme weather event.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.

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