S&P/ASX 200 Index (ASX: XJO) mining shares outperformed in FY26.
The materials sector, dominated by miners, was the best-performing of the 11 ASX 200 market sectors.
ASX 200 materials shares gained 47% in value and delivered a total return, including dividends, of 52% in FY26.
This compares to a more subdued performance across the broader market.
S&P/ASX 200 Index (ASX: XJO) shares rose by just under 3%, and delivered total returns of 7% in FY26.
The long-term outlook for mining is bright, but experts say it's time to sell these ASX shares after an impressive run in FY26.
Image source: Getty Images
Rio Tinto Ltd (ASX: RIO)
Rio Tinto was among the ASX 200 large-cap shares that generated the most share price growth in FY26.
The Rio Tinto share price rose 61% in FY26 amid strong demand and rising prices for lithium and copper.
Last week, Rio Tinto released its 2Q FY26 production report.
The miner said it increased copper production by 3% and lithium production by 20% year over year.
Global iron ore sales were also 5% higher.
Rio Tinto CEO, Simon Trott, commented:
We are delivering growth as we drive performance across the group, with copper equivalent production up 3 per cent in the first half.
Our scale, geographical diversification and sophisticated supply chains continue to underpin our resilience and strong operational performance despite ongoing geopolitical uncertainty throughout the period.
Rahul Anand from Morgan Stanley reiterated his sell rating on Rio Tinto shares after reviewing the report.
He has a 12-month price target of $149, implying about a 6% downside from here.
Evolution Mining Ltd (ASX: EVN)
The Evolution Mining share price increased 51% in FY26.
Evolution benefited from a continued increase in the gold price; however, the 18% lift was subdued compared to FY25.
Last week, the gold miner released its 2Q FY26 report.
Evolution said it produced 180,000 ounces of gold and 19,000 tonnes of copper in the June quarter.
Total FY26 production came in at 715,000 ounces of gold and 66,000 tonnes of copper.
Evolution's all-in sustaining cost (AISC) for gold production in FY26 was AU$1,717 per ounce.
That leaves plenty of profit margin for Evolution, with the gold price currently above US$4,000 per ounce, equivalent to AU$5,725 per ounce.
Evolution reported record operating mine cash flow of $3,394 million and net mine cash flow of $2,079 million.
Managing Director and CEO, Lawrie Conway, said:
FY26 continued to build on the improved consistent performance of the past couple of years, meeting Group production and cost guidance.
We are now fully unhedged and in a net cash position with a cash balance of $1,347M.
All high-return organic growth projects remain on schedule and budget.
Jarden maintained its sell rating on Evolution Mining shares, with a $8.20 target, after reviewing the report.
This suggests a potential 20% downside for FY27.
