It's been a difficult year for ASX mining shares. But, being a cyclical industry, a 2024 resurgence seems to be on the cards.
After all, interest rate hikes now appear to be nearing an end, and China is handing out stimulus to revive combat deflation.
So when the global economy improves and commodity demand picks up, you don't want to be missing out on that action.
If you want to pick up some resources stocks for cheap right now, here are three decent candidates:
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'Recent break-out' for this mining stock
BHP Group Ltd (ASX: BHP) shares have poked up 7.6% since the start of the month, so perhaps they're not as cheap as they used to be.
But the company is still putting up a pretty decent value proposition, especially with a handy 5.3% fully franked dividend yield.
Fairmont Equities managing director Michael Gable said last week that his team has a "bullish view on resources", with BHP's fortunes looking positive.
"The recent break-out points to a higher share price moving forward," he told The Bull.
"Copper production increased by 11% in the first quarter of fiscal year 2024 when compared to the prior corresponding period."
Gold gold gold for Australia
Gold prices have been the exception to the mining downturn in 2023, as the safe haven commodity regained its mojo amid economic anxiety.
More than one professional is expecting the boom to continue for the precious metal.
"The gold price recently exceeded US$2,000 an ounce and may keep increasing," said Novus Capital stock broker John Edwards this week.
"A higher gold price could spark merger and acquisition activity."
One gold miner looking ripe for bargain-hunting investors or acquisition-hungry rivals is De Grey Mining Limited (ASX: DEG).
At the time of writing, the share price was the same as where it started the year, which makes it an underperformer in that sector.
In a revealing sign, according to CMC Invest, all 10 analysts that cover De Grey shares reckon it's a buy at the moment.
When rich suitors come with flowers
Azure Minerals Ltd (ASX: AZS) may not be a classical bargain, having seen its share price rocket almost 1,600% this year.
Yes, you read that right.
But it's in an intriguing position right now with Mineral Resources Ltd (ASX: MIN) and Gina Rinehart's Hancock Prospecting jostling for control of the junior miner.
Both suitors are licking their lips over Azure's Andover lithium project in the Pilbara region of Western Australia.
With the global lithium market sinking in 2023, over the long run the consensus expert view is that demand will push up prices for the critical battery ingredient.
Hancock has the upper hand right now, this week joining forces with Sociedad Quimica y Minr de Chile SA (NYSE: SQM) to launch a full takeover bid.
Watch this space.
