S&P/ASX 300 Metal & Mining Index (ASX: XMM) shares are 1.3% higher on Tuesday as earnings season continues.
ASX mining stocks are a popular investment choice these days amid rising commodity prices.
The materials sector, which incorporates mining companies, had an incredibly strong year in 2025.
The sector returned a staggering 36% to investors as gold and commodities associated with the energy transition surged.
On The Bull this week, experts recommend selling the following three producers.
Let's take a look.
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Northern Star Resources Ltd (ASX: NST)
Northern Star shares are $28.07 apiece, up 1.3% on Tuesday and up 57% over the past 12 months.
Tony Locantro from Alto Capital has a sell rating on this ASX 200 gold mining share.
Locantro comments:
Northern Star's share price has performed strongly, supported by higher gold prices and improved sentiment towards large market capitalisation producers.
However, the company's most recent production report disappointed, with output and cost guidance undershooting market expectations.
While the longer term outlook for gold remains positive, recent operational softness tempers near term confidence.
With much of the upside already reflected in the share price, the risk-reward balance favours taking profits at current levels.
Northern Star Resources will release its 1H FY26 results on Thursday.
Iluka Resources Ltd (ASX: ILU)
The Iluka Resources share price is $5.22, up 0.6% on Tuesday and up 12% over the past 12 months.
Tony Paterno from Ord Minnett has a sell rating on this ASX critical minerals mining share.
Paterno explains:
ILU's mineral sands business clocked up net debt of $473 million at December 31, 2025.
We suspect a capital raising may be an option to address the debt overhang as cash flow is impacted at operations at current prices.
The shares were punished following the company update on January 29, 2026, falling from $6.96 on January 23 to trade at $5.17 on February 5.
Liontown Ltd (ASX: LTR)
The Liontown share price is $1.73, up 2.8% today and up 162% over the past 12 months.
Morgans maintained its trim rating on this ASX lithium mining share after Liontown released a 2Q FY26 update in the last week of January.
The broker increased its 12-month share price target on Liontown from 89 cents to $2.
Morgans commented:
2Q26 result beat expectations on production and costs.
Balance sheet de-risked following LG Energy Solution's election to convert its US$250m convertible notes into equity, removing debt and strengthening flexibility despite dilution.
Maintain TRIM with much of the near-term upside factored into its share price.
