How (and Why) to Invest on the ASX

The ASX presents investors with opportunities to gain exposure to Australia’s strong economy and its solid domestic resources industry.

Australia has an economy that has enjoyed 27 years of economic growth without a recession, and has earned its place as one of the world’s largest and most diversified economies.

Clocking in at number 13 globally, Australia’s economy is larger than that of Spain — which has twice the population — with World Bank data estimating Australia’s economy to be worth US$1.43 trillion.

A huge part of Australia’s economy is locked up in mineral resources, which explains why the nation is home to the world’s largest mining company, BHP (ASX:BHP,LSE:BHP,NYSE:BHP), as well many of the biggest names in the sector globally.

Mining contributed 8.1 percent to Australia’s GDP in 2017 and accounted for the lion’s share of export income at 46 percent, according to Geosciences Australia.

To get there, more than 300 mines operate across the continent at 35 mineral targets. The country’s most common operations are gold mines, with 128 of its 300 mines targeting the yellow metal. Australia ranks second globally when it comes to gold production, according to the US Geological Survey.

This is good news for investors, as gold remains the most popular commodity of choice around the world, while companies with gold in their portfolios attract plenty of attention.

The ASX

Of the more than 2,200 companies on the Sydney-based Australian Securities Exchange (ASX) — which is the primary stock exchange in Australia — nearly 900 of them are listed in the basic materials and energy sectors, so investors looking to get into resources in the Australian market have plenty to choose from.

There are more than 100 foreign companies listed on the ASX as well, including 10 Canadian companies, nine of which are in the resources sector. Those include Alacer Gold (ASX:AQG,TSX:ASR,OTC Pink:ALIAF), Kirkland Lake Gold (ASX:KLA,TSX:KL,NYSE:KL) and Oceanagold (ASX:OGC,TSX:OGC,OTC Pink:OCANF).

Another 15 foreign companies on the ASX are from the United States, though only one of them is in the resources industry. The majority of the remainder are technology and healthcare companies.

How to invest on the ASX

To put money into ASX stocks, investors from outside of Australia can either go through dual-listed companies in their country of origin, or if they are interested in buying or selling shares or securities on the ASX they will need to use a stockbroker authorized to trade on the ASX.

The ASX provides a handy explanation on getting started on its website. The process is similar to dealing with the Toronto Stock Exchange (TSX), which requires investors to use either online stockbrokers or full-service brokerages to trade on the TSX.

The Australian exchange deals with two sorts of stockbrokers: those that will provide advice on where to invest and how to achieve set investor goals, like a full-service organization, and those that give no advice, and simply do what the investor asks of them, like an online broker.

Tools to find authorized stockbrokers are also available on the ASX website.

For investor research, public companies operating in Australia are bound by rigid legal frameworks that require high levels of transparency, so statistics on operational performance and information on company finances are easily accessible through individual company websites.

To get you started, the Investing News Network keeps an eye on the top stocks on the ASX. For a peek at some of the largest stocks in the land down under, take a look at some (or all) of our top Australian stocks articles, which cover copper, rare earths, nickel, gold, lithium and graphite.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Resolution Minerals Ltd Drilling Program at Sunrise Gold Prospect Completed

Adelaide, Australia (ABN Newswire) – Resolution Minerals Ltd (ASX:RML) (FRA:NC3) is pleased to announce that it has completed the Company’s first drilling program on the Sunrise Gold Prospect at the 64North Project in Alaska. Drilling was conducted along an existing access road, targeting outcropping granite hosted mineralisation, analogous in style to Kinross’s Fort Knox Gold Mine, which is one of Alaska’s most profitable mines. The Sunrise Prospect was identified in 2020 by a RML trenching program and is located less than 5km from Northern Star’s operating Pogo Gold Mine.

Summary

– A 1400m long “fence line” of 27 shallow RAB drill holes designed to test outcropping mineralisation at the Sunrise Prospect has been completed.

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Argyle Diamond Mine Closure: The End of a Sparkling Era

Pink and red diamonds are among the most special gems in the world. The value of these highly sought-after natural stones speaks for itself, but their rarity has arguably increased since the closure of Rio Tinto’s (ASX:RIO,LSE:RIO,NYSE:RIO) Argyle mine.

The asset, which ceased mining activity on November 3, 2020, had been in operation since 1983. In that time, 865 million carats of rough diamonds were produced.

The unique geological chemistry of the Western Australia location birthed the rarest hues, including champagne, cognac, blue, violet and of course, the coveted Argyle pink and red diamonds. Millions of carats of white diamonds were produced at the prolific property as well.

Keep reading... Show less

Argyle Diamond Mine Closure: The End of a Sparkling Era

Pink and red diamonds are among the most special gems on earth. The value of these highly sought-after natural stones speaks for itself, but their rarity has arguably increased since the closure of Rio Tinto’s (ASX:RIO,LSE:RIO,NYSE:RIO) Argyle mine.

The asset, which ceased mining activity on November 3, 2020, had been in operation since 1983. In that time, 865 million carats of rough diamonds were produced.

The unique geological chemistry of the Western Australia location birthed the rarest hues, including champagne, cognac, blue, violet and of course, the coveted Argyle pink and red diamonds. Millions of carats of white diamonds were produced at the prolific property as well.

Keep reading... Show less

Graphite Metallurgical Test Work Update

Highlights:

  • Bulk sample of Springdale graphite concentrate estimated to be completed in Q2 2021.
  • Concentrate material will then be sent to Germany to test its amenability for the production of battery anode material suitable for use in EVs.
  • Final test results expected in Q3 2021.

Comet Resources Ltd (ASX:CRL) is pleased provide an update on ongoing test work on natural flake graphite from its Springdale Graphite Project (Springdale) located in Western Australia. Both excellent grade and recoveries were achieved on initial tests, leading to commencement of work to produce a bulk sample for further testing. Importantly, the graphite concentrates previously produced demonstrated a unique and potentially very valuable characteristic in its small size distribution, with two-thirds of the product passing the 38 µm size fraction screen. Generally, this small size fraction of graphite is a by-product of processing of larger flake fractions, which produces smaller size graphite, but in doing so also damages the smaller flake material in the process, reducing their performance and value. Deposits that contain high quality ultra-fine graphite are uncommon and are potentially suitable for supplying the expanding battery anode market, which continues to grow as the sales of electric vehicles (EVs) increase. Graphite suitable for battery anode production also achieves premium pricing in graphite markets, making it a highly sought-after product.

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Medallion Completes Diagnostic Testing with Australian Nuclear Science and Technology Organization

Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) “Medallion” or the “Company”) announces completion of a suite of diagnostic test work at the Australian Nuclear Science and Technology Organization (ANSTO) in Sydney, to extract rare earth elements (REE) from mineral sand monazite. The monazite was sourced from an Australian mineral sand mine. Discussion is ongoing with additional prospective suppliers.

Mineral sand monazite is an abundant REE-rich feedstock, that can be accessed as a by-product from global mineral-sand mines that target zirconium and titanium, without the need for additional mining. Medallion’s business model is centered on the Medallion Monazite Process , a transferable and scalable technology designed to accept multiple mineral-sand monazite feedstocks and extract high-value REEs with high efficiency, high recovery and zero liquid waste.

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