The ASX mining share sector has a number of compelling businesses which could be underrated by the market.
The investment team of the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have outlined two ASX stocks that look like appealing investments with their outlooks and the current valuations.
Miners may not have the strongest economic moats on the ASX, but they do have the ability to deliver big returns when resource prices increase and/or when projects are found and developed.
Let's dig into why the experts at WAM like these two ASX mining shares.
Image source: Getty Images
Solstice Minerals Ltd (ASX: SLS)
The fund manager said that Solstice Minerals is advancing the Nanadie copper-gold project near Meekatharra in Western Australia.
WAM noted that, in April, the company released visual results of deeper drilling below earlier high-grade copper hits.
The fund manager said these results suggest the mineral system extends well below the current resource, highlighting the deposit's potential scale.
In the near-term, WAM thinks that there is potential upside for the Solstice Minerals share price as "drilling helps define a larger resource, while laboratory results confirming grade and continuity build confidence in a pathway towards an approximate 250 million tonne deposit." The fund manager said this suggests the ASX mining share is undervalued relative to its peers on comparable multiples.
WAM said that it remains bullish on copper, supported by the energy transition and electrification themes.
Core Lithium Ltd (ASX: CXO)
The other ASX mining share that the experts highlighted was Core Lithium, which ones 100% of the Finniss lithium project in the Northern Territory. It also has exploration exposure across the Northern Territory and South Australia in base metals, rare earths and gold.
WAM noted that the share price rallied in April on two supportive developments.
First, a 20,000 tonne sale of fine-particle ore ready for shipment to Glencore's international trading arm at approximately $405 per tonne, together with the earlier sale from its lithium concentrate stockpile, generating approximately $18 million to support the Finniss restart.
The fund manager said that while the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.
While the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.
Broader optimism across the lithium sector also strengthened during the month as supply discipline took hold and lithium prices increased.
The experts then explained why they're excited about the business:
We remain bullish on lithium, supported by strong demand from battery energy storage systems and electric vehicles, with battery lithium intensity growing at more than 30% per annum.
Core Lithium offers strong exposure to a recovery in lithium prices as it works towards a relatively low-risk restart in the second half of 2026, and we expect the supply response to be more disciplined this cycle.
