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.
The post Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff appeared first on The Motley Fool Australia.
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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.
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