Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff

Lithium isn't the only resource important for the world's transition to a zero-carbon era.

| More on:
A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery

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

With everyone piling onto ASX lithium shares, it's hard to find any real bargains in that space.

However, lithium is not the only mineral critical for the zero-carbon transition.

Copper has been used for conducting electricity for centuries, and a typical electric car can contain more than 1.6km of wiring made from the element.

With the global economy about to rapidly slow down this year after steep interest rate rises, gold is also in favour as a "safe haven" investment.

Even after a cool-off this month, the gold price is up 5.4% over the past 60 days in US dollar terms.

So which ASX shares can give you exposure to these boom commodities?

There is one stock that Argonaut associate dealer Harrison Massey mentioned this week that is involved with both resources:

Supercharging the 'size and economics' of Queensland site

Massey is currently urging investors to buy shares of miner AIC Mines Ltd (ASX: A1M).

"AIC Mines owns and operates the Eloise copper mine in Queensland," Massey told The Bull.

"Eloise is a high-grade underground mine with a 26-year operating history."

The analyst likes how AIC's production potential has significantly upgraded.

"The company recently increased its mineral resource to 115,000 tonnes of contained copper and 101,100 ounces of contained gold," he said.

"AIC Mines bought an adjacent exploration company in late 2022, which should significantly enhance the size and economics of the Eloise project."

The AIC share price has dipped 18.3% over the past 12 months, perhaps suggesting a nice entry point for those wanting to dive in now.

The resources company currently has a market capitalisation of $194 million, but is yet to pay out any dividends.

Massey is not alone in his bullishness for the Queensland miner.

According to CMC Markets, all four of the analysts currently covering AIC Mines shares recommend it as a strong buy.

Motley Fool contributor Tony Yoo 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 Resources Shares

A happy boy with his dad dabs like a hero while his father checks his phone.
Resources Shares

Buy 5,000 shares of this top ASX dividend stock for $100 per month in passive income

I think this little-known ASX share is worth exploring for its dividend potential.

Read more »

Two miners standing together.
Resources Shares

BHP share price stepping higher as Brazilian court rules on 2015 dam disaster

BHP responded this morning to news reports of the Brazilian court ruling.

Read more »

Miner looking at a tablet.
Resources Shares

Here's a fund manager's bull case for Mineral Resources shares

It’s a rough time for this stock. Let’s dig into whether it’s an opportunity.

Read more »

Australian notes and coins symbolising dividends.
Resources Shares

The BHP dividend doesn't attract me – Here's why

I’m steering clear of BHP as a passive income stock for a few reasons.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

The Mineral Resources share price just slumped another 7%. Here's why

Investors are bidding down Mineral Resources shares on Wednesday. But why?

Read more »

Female miner smiling in front of mining vehicle.
Resources Shares

Guess which ASX lithium share is racing 8% higher on record production

Investors are sending the ASX lithium share racing higher on Wednesday.

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Why is the Fortescue share price tanking 7% this week?

There are several factors weighing on the iron ore giant this week.

Read more »

Miner looking at a tablet.
Resources Shares

Up 7% in a month, are Pilbara Minerals shares in the buy zone?

Lithium continues to be a sore spot for many ASX stocks.

Read more »