Following are 2 Gold & Mining ASX Stocks worth looking:
Australia’s mining sector remains a powerhouse in 2025, with ASX gold stocks and iron ore companies presenting lucrative opportunities for investors. As demand for gold surges, many are eyeing gold ETFs on the ASX as a way to gain exposure without direct stock investment. Meanwhile, the gold share price on the ASX has shown resilience amid economic fluctuations, attracting both long-term and short-term investors. Leading the charge in mining, Fortescue Metals Group (FMG) continues to be a key player, with the share price of FMG closely tied to global iron ore trends. The iron ore price in Australia has seen some volatility recently, but its long-term outlook remains promising. This uncertainty has led investors to filter through top mining companies in WA, searching for stable opportunities with strong future potential. For those looking to capitalize on mining opportunities in Australia, keeping an eye on gold and iron ore trends will be essential for navigating the market in 2025.
Following are 2 Gold & Mining ASX Stocks worth looking:
1.Ora Banda Mining Limited (ASX: OBM)
Ora Banda Mining Ltd. engages in the development and exploration of gold. It holds interest in the following projects: Central Davyhurst, Mount Ida, Lady Ida, Riverina-Mulline, Callion, Walhalla, and Siberia. The company was founded on March 26, 2002 and is headquartered in West Perth, Australia.
5-Year Financial Snapshot:
The company achieved a significant financial turnaround in 2024. After enduring substantial losses over the prior three years, peaking at $88 million in 2022, the company successfully transitioned to profitability, reporting earnings of $27 million in 2024 compared to a loss of $22 million in 2021. This recovery was driven primarily by remarkable revenue growth, which surged from $25 million in 2021 to $214 million in 2024, alongside substantial improvements in net margins.
Growth Catalyst:
Ora Banda is primed for significant growth, with its promising Riverina and Sand King projects at the forefront. The Riverina Project has commenced underground drilling, supported by an Underground Resource of 4.0M tonnes at 3.7g/t for 468k ounces, comprising measured (3koz), indicated (200koz), and inferred (265koz) categories. Additionally, an Underground Probable Ore Reserve of 0.65M tonnes at 4.2g/t for 87k ounces, post-mining depletion, positions the project for active production expansion, as seen in 2024. Complementing this is the Sand King Project, featuring a Maiden Underground Probable Ore Reserve of 537k tonnes at 3.2g/t for 55k ounces. These reserves underscore the company’s robust gold resource pipeline, offering substantial growth potential. With these projects advancing steadily, Ora Banda is well-equipped to enhance production capabilities, strengthen its financial position, and drive sustainable shareholder value in the long term.
Ora Banda achieved a significant financial breakthrough in 2024, driven by substantial production increases and notable reductions in AISC, primarily due to grade improvements. With underground mining activity projected to accelerate in 2025 and the company’s optimistic guidance for both production growth and further cost reductions, the outlook for shareholder value creation remains highly promising, backed by already healthy margins as well as significant revenue growth. Furthermore, the company’s extensive resource base, coupled with ongoing exploration and development efforts, positions Ora Banda to sustain its impressive growth trajectory over the long term, making it an attractive prospect for investors.
2.Fortescue Limited (ASX: FMG)
Fortescue Ltd. engages in the development of iron ore deposits. It operates through the Metals and Energy segments. The Metals segment includes exploration, development, production, processing, sale, and transportation of iron ore, and the exploration for other minerals. The Energy segment is involved in the development of green electricity, green hydrogen, and green ammonia projects. The company was founded by John Andrew Henry Forrest in April 2003 and is headquartered in East Perth, Australia.
5-Year Financial Snapshot (2019-2023):
Over the past five years, Fortescue has experienced fluctuating financial performances. Following record-high revenues of $29.8 billion and earnings of $13.8 billion in 2021, the company saw declines, with 2022 revenues dropping to $23.9 billion and earnings to $8.55 billion. This trend continued into 2023, where earnings fell further to $7.13 billion. However, Fortescue rebounded in 2024, with revenues climbing back to $27 billion and earnings slightly improving to $8.67 billion. These shifts underscore the company’s exposure to market cycles and operational adaptability, demonstrating resilience in challenging periods and swift recovery potential.
Dividend Profile:
Fortescue has demonstrated a strong commitment to shareholder returns through its dividend policy, showing a steady upward trend despite earnings fluctuations. From a dividend of $1.14 per share in 2019, the payout rose to $1.97 in 2024, peaking impressively at $3.58 in 2021. The company’s dividend yield has remained attractive, now standing at 10.08%, which is expected to hold steady near these levels. Fortescue’s consistent distributions, even during periods of lower earnings, underscore its dedication to delivering value to shareholders and highlight its capability to support robust dividend yields over the long term.
Investment Rationale:
Fortescue presents a compelling investment thesis rooted in its strong capital management, stable margins, and effective hedging strategies, which have shielded it from major market downturns. This disciplined approach enhances the company’s resilience and positions it well for sustainable earnings and dividend growth. As global infrastructure demands and urbanization stand to drive long-term iron price improvements, Fortescue’s prospects remain robust. Additionally, the company’s strategic expansion plans signal a forward-looking growth trajectory, suggesting further value creation for shareholders.
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