The S&P/ASX Small Ords Index (ASX: XSO) is slightly in the red, down 0.056% today, and down 10.4% since the Iran war began.
By comparison, the S&P/ASX 300 Metal & Mining Index (ASX: XMM) is up 0.43% today, and down 14.4% since 1 March.
As we reported earlier, ASX mining shares have been hit harder than any other market segment since the war broke out.
However, the fundamental drivers of a new commodities supercycle powering a fresh long-term mining boom remain in place.
They include the green energy transition, a desire worldwide for more sovereign manufacturing, energy security, and supply constraints.
With ASX shares experiencing their worst fortnightly fall in almost four years as investor sentiment weakens, perhaps there is an opportunity to buy the dip on some mining stocks in the small-cap space?
Morgans recently gave these two ASX small-cap mining shares a speculative buy rating.
Here's why.
Image source: Getty Images
Astron Ltd (ASX: ATR)
The Astron share price is 70 cents, down 0.7% on Tuesday and up 12% over the past 12 months.
Astron is focused on developing its rare earths and mineral sands project, Donald, in Victoria. It also runs a processing plant in China.
A recent update from the company prompted Morgans to issue a new note retaining its speculative buy rating.
The broker said:
The Donald Project resource update confirms strategic heavy rare earth exposure, with improved definition of Dy and Tb supporting the project's importance to Western rare earth supply chains.
Strong strategic backing from Energy Fuels (UUUU.NYS), with the Donald Project to supply REEC feedstock to its White Mesa Mill in the US, where rare earth prices are currently materially higher than in China.
Morgans has a 12-month share price target of 90 cents on this ASX small-cap mining share.
Torque Metals Ltd (ASX: TOR)
The Torque Metals share price is 48 cents, up 4.8% today and up 382% over the past 12 months.
Torque Metals is developing the Paris Gold Project in Western Australia.
Paris has a Mineral Resource Estimate (MRE) of 2,518Kt at 3.1g/t gold for 250,000 ounces.
Last week, Torque announced that three former managers at Spartan Resources are joining its new management team.
They are non-executive chair, Simon Lawson, CEO and managing director, Craig Jones, and non-executive director, David Coyne.
Ramelius Resources Ltd (ASX: RMS) acquired Spartan Resources in July 2025.
In a new note, Morgans maintained its speculative buy recommendation on this ASX small-cap gold mining share.
The broker has a 12-month share price target of 90 cents.
