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3 ASX mining stocks UBS rates as a buy

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Four miners discussing with each other next to mining machinery.

As reporting season rolls on, it gives the brokers plenty to work with on valuing companies.

I’ve selected three of UBS’ new research notes that look at ASX mining stocks it thinks will outperform over the next 12 months.

Let’s see who they like.

Mineral Resources Ltd (ASX: MIN)

Mineral Resources delivered its strongest ever financial result this week, posting record revenue of $6.5 billion and underlying net profit of $822 million, up 831%.

The iron ore and lithium miner also shocked the market with a much larger-than-expected dividend, paying 83 cents per share, up from nothing the previous year.

Managing director Chris Ellison said of the result:

The past 12 months stand among the most significant in MinRes’ history. Record operational and financial results reflect years of strategic investment, positioning the company to enter its third listed decade with a stronger foundation than at any point in our 20-year journey on the ASX. Onslow Iron achieved nameplate capacity of 35Mtpa in August 2025, just three years after we reached a Final Investment Decision. The speed of delivery is a demonstration of the inhouse capability we have developed across the business, with strong cash flow from the project now accelerating the deleveraging of the balance sheet.

UBS said the company beat expectations across all key metrics and had a healthy balance sheet.

They expect to see higher earnings in the current year as iron ore, lithium, and mining services all ramp up.

UBS has a $76 price target on Mineral Resources shares, compared with the current $64.09.

Capricorn Metals Ltd (ASX: CMM)

UBS said there were no real surprises in the Capricorn result, with EBITDA slightly below expectations, driven by higher corporate and exploration costs.

The gold company’s full-year sales revenue came in at $769.3 million, up 46%, while net profit was 59% higher at $327.2 million.

Capricorn also declared a 5-cent dividend, fully franked.

For FY27, the company is forecasting gold production of 137,000 to 147,000 ounces, up 18.3% on the FY26 guidance, at an all-in sustaining cost of $1900 to $2100 per ounce.

UBS has a price target of $20.25 on Capricorn shares, compared with the current price of $17.42.

Lynas Rare Earths Ltd (ASX: LYC)

Lynas’ net profit of $222.4 million came in below expectations, on record revenue of $977.9 million.

The company also received a record price across all of its rare earths products.

The company is ramping up production across various assets and investing heavily in its Towards 2030 growth strategy, for which the company raised $932 million in new equity during the year.

UBS has a $22.50 price target on Lynas shares, compared with the current $16.19.

The post 3 ASX mining stocks UBS rates as a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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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