MM’s five top resource picks
If you were to build a portfolio of 5 ASX resources stocks (across base metals, precious metals and energy) what would be your highest conviction picks right now and why. Can be large cap and small caps.
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Answer
Hi Scott,
An interesting question which we’ve been approaching from a different perspective of late, i.e. what stocks will we take profit on if/when we see another leg higher in the ASX miners.
We’ve discussed a few times in recent weeks that MM is targeting an advance by the A$ up towards 75c which as the chart below illustrates provides a strong read trough for BHP, the ASX’s largest miner.
However, moving on to your specific question, the 5 stocks we would opt for today although this is obviously a fluid situation:
- BHP primarily for copper, and to a lesser degree iron ore, and potash in the years ahead.
- South32 for copper and zinc/lead/silver in years ahead
- Bellevue Gold for smaller cap, leveraged gold exposure, or Newmont if sticking at the larger end.
- Pilbara for lithium
- Paladin for energy.
chart
Australian Dollar (AUDUSD) v BHP Group (BHP)
chart
Australian Dollar (AUDUSD) v BHP Group (BHP)
