Forget Tech’s Mag-7 — Focus on Mining’s Suicide | Australian Markets

International shares are promoting off.

However regardless of that, US tech’s Magazine-7 stays priced to perfection. Any positive factors from right here stay a speculative throw of the cube.

That’s why if you wish to seize long-term growth from this pullback, your focus shouldn’t be on these futuristic mega-caps however on the previous financial system — commodities!

That is a traditional worth traders’ market, for those who’re keen to have a look at the fitting areas.

However even amongst this ‘cheap’ sector, there are particular shares offering even better worth.

They’re what I’ve dubbed ‘Mining’s Suicide Seven!’

Shares which have brought on huge heartache for traders over the past couple of years…earnings downgrades, poorly timed acquisitions, operational challenges.

Importantly although, all through these difficulties, their underlying asset stays sound.

Now, I’m not saying it’s best to rush out and buy these shares; these are NOT at the moment suggestions for my paid readership group.

Nonetheless, each holds an aspect of ‘turn-around’ potential…seven miners with attention-grabbing contrarian flavours.

However for those who do have a look at these shares, tread fastidiously. All investing carries dangers and these are no exception. Maybe have a look at making use of a tight stop loss (a fixed exit price).

These should not shares for the faint-hearted.

So, right here goes…

All through March, I’ll be detailing seven shares that would bear a main rebound in 2025. We’ll begin with two of these right now:

#1: Fortescue Metals [ASX:FMG]

This $52 billion main shouldn’t be a speculative useful resource play, however given the company’s price motion over the past 12 months, it could as properly be!

After topping out in February 2024, this iron ore main plummeted over 45% final yr and has continued to troll multi-year lows.

Whereas FMG did have a spark of optimism earlier within the yr, these positive factors evaporated after its woeful earnings report final month.

First-half revenue plunged by 53 per cent, forcing Fortescue to slice its dividend payout by more than 50 per cent.

However regardless of the pessimism and earnings drop, Fortescue continues to be hovering simply above its main low from mid-2024:

That trough marked a period of peak pessimism in China’s financial outlook, which affords a clear line within the sand for FMG traders.

A break beneath indicators main price weak point, but when FMG consolidates round these ranges, that would offer a basis for a restoration.

So, what may spark a turnaround in 2025?

As you understand, China’s financial outlook is essential to the long run of iron ore miners.

FMG may rally if China follows by means of with its promise to take ‘whatever means necessary’ to counter the impacts of Trump’s tariffs this yr.

In different phrases, stimulus.

For the second, the market shouldn’t be keen to price any uplift from these stimulus guarantees. However that’s the chance right here.

Full disclosure: I added FMG shares to my Tremendous Fund final week. However as I detailed above, I’ll keep a tight stop on this one.

#2: Boss Power [ASX:BOE]

Subsequent on our Mining’s Suicide Seven listing comes the South Australian uranium miner Boss Power.

Like many of the shares on this listing, Boss was a former market darling who turned ugly.

Shareholders stay bitter over the MD’s notorious resolution to promote over $21 million shares in early 2024.

That was when BOE traded at a near-all-time highs:

Since then, the stock has plummeted by over 50%.

A sinking uranium spot price and operation hurdles additionally contributed to Bosses’ latest demise.

However sitting on the sidelines, watching BOE’s precipitous rise and heavy falls final yr, means you’ve probably sidestepped the miners’ risky transition part from developer to miner.

From right here on, circumstances might be far more secure.

Boss continues to ramp up its Honeymoon operation in South Australia.

The company drummed 226,600 kilos (lbs) of triuranium octoxide during the half-year ending December 31, an increase of over 190,000 lbs in comparison with the half-year ending June 30, 2024.

As of 31 December 2024, Boss has no debt and $251.6 million of liquid belongings.

In my thoughts, this has the hallmarks of a turnaround.

By the way in which, for those who’re all in favour of studying more, my colleague Nick Hubble and I recorded a video on the uranium market final week.

Hit play on the thumbnail to watch the video.

Keep tuned; subsequent time, I’ll reveal the subsequent shares on this listing!

Till then,

Regards,

James Cooper,
Editor, Mining: Section One and Diggers and Drillers

All advice is normal advice and has not taken under consideration your personal circumstances.

Please search impartial financial advice concerning your own state of affairs, or if doubtful concerning the suitability of an investment.