In high inflation and economically uncertain times, ASX mining shares continue to hold their own.
However, after more than a year of outperformance, all the usual names are already pretty popular.
To get you thinking outside the square, here are two mining-related stocks with smaller market capitalisations that Argonaut associate dealer Harrison Massey rates as buys:
‘A big pipeline of work’
GR Engineering Services Ltd (ASX: GNG) is not a resources producer itself but provides construction and procurement subcontractor services to mining clients.
And it’s handing out a mouthwatering 9.64% dividend yield that’s 100% franked.
Massey told The Bull he would buy the stock now.
“The engineering services company has entered into a binding term sheet with a subsidiary of Hastings Technology Metals Ltd (ASX: HAS) involving the construction of a plant and associated infrastructure for the Yangibana Rare Earths project worth $210 million.”
He added that the outlook for GR Engineering was looking positive.
“The company continues to build a big pipeline of future work. The company’s fully franked dividend yield is also appealing.”
The GR Engineering share price is the same as 12 months ago.
According to CMC Markets, Euroz Securities also agrees with Massey that the stock is a strong buy.
22-bagger? Yes, please
Meteoric Resources NL (ASX: MEI) is an exploration company, for those investors comfortable with that phase.
According to Massey, the company has much potential.
“Meteoric recently announced a global mineral resource estimate of 409 million tonnes of rare earths at 2626 parts per million at its Caldeira project,” he said.
“The company has planned a further 100,000 metres of air core and diamond drilling to target high-grade areas within the current resource model.”
On top of this, Meteoric Resources is currently “acquiring further licences surrounding the deposit”.
“Meteoric Resources is well capitalised, with $25 million in the bank.”
Believe it or not, Meteoric shares have lived up to its name by multiplying 22 times over the past 12 months.
Most of that rise has come since December, when information about the Caldeira site came to light.
The post 10% yield! 2 ASX shares to get rich from a mining boom appeared first on The Motley Fool Australia.
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More reading
- Guess which ASX rare earths share has exploded 1300% in a year?
- Why Macquarie, Meteoric Resources, Pointsbet, and Syrah shares are falling
- Explosive growth! 2 ASX mining shares rocketing around 1,000% in a year
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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