Why has the Mineral Resources share price surged 40% in a month?

What a month it has been for Mineral Resources shares.

| More on:
Female miner smiling at a mine site.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Mineral Resources shares are up 40% in a month and nearing their 52-week high of $66.88 achieved in January 2022 
  • The biggest gain came from the company's strong quarterly report which led its shares to surge 9% on the day 
  • Bell Potter and Macquarie recently updated their price targets for Mineral Resources shares to $75.75 and $85, respectively 

The Mineral Resources Limited (ASX: MIN) share price has leapt 40% in the past month.

After reaching a low of $43.37 on 15 July, the miner's shares sharply continued to rebound in the following weeks.

At market close today, Mineral Resources shares finished trading up 0.08% at $60.52.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 7.90% over the same time frame.

Let's take a closer look and see what's been boosting Minerals Resources shares lately.

What's been lifting the Mineral Resources share price?

It appears that investors are buying up the Mineral Resources share price as confidence in the market is regaining momentum.

After Goldman Sachs released a report forecasting a severe drop in lithium prices in the near term, the sector tumbled.

This led to a number of popular lithium shares erasing their meteoric gains achieved in 2022.

However, since then, lithium prices have maintained posture with investors shrugging off the bearish sentiment.

Also, providing a major boost is the recent quarterly report from Mineral Resources which highlighted record production volumes for FY22.

The news sent the company's shares flying 9.04% on the day to finish at $53.21.

And if that wasn't enough, two prominent brokers revised their outlook on the miner's shares.

Analysts at Bell Potter raised its price target by 8.2% to $75.75 per share for Mineral Resources. Based on the current price, this implies an upside of around 24%.

On the other hand, Macquarie also took the liberty of adjusting its price target by 4% to a bullish $85 per share. This represents an upside of almost 40% from where it trades today.

How have Mineral Resources shares performed in 2022?

After a choppy 8 months, the Mineral Resources share price has returned an 8% gain to investors.

In comparison, the S&P/ASX 200 Resources Index (ASX: XJR) is down 4% over the same period.

On valuation grounds, Mineral Resources presides a market capitalisation of roughly $11.46 billion.

Should you invest $1,000 in Yancoal Australia Ltd right now?

Before you buy Yancoal Australia Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Yancoal Australia Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Clarity, EOS, and TechnologyOne shares are racing higher today

These shares are having a strong session on Tuesday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »

Two people jump and high five above a city skyline.
Share Gainers

Why these 5 ASX 200 stocks are racing higher this week

It’s been a stellar week for these five ASX 200 stocks. But why?

Read more »