ASX mining shares have had a spectacular run due to rapidly rising commodity prices in CY25 and CY26.

In FY26, the ASX 200 materials sector, which is dominated by the miners, shot the lights out for investors.

The S&P/ASX 200 Materials Index (ASX: XMJ) soared 47% and produced total returns, including dividends, of 52%. 

That compares to a 3% rise and total returns of 7% for the benchmark S&P/ASX 200 Index (ASX: XJO).

A staggering outperformance of 7:1.

The S&P/ASX 300 Metals & Mining Index (ASX: XMM), which includes an extra 100 mineral explorers, did even better.  

ASX 300 mining shares rose 53%, and delivered total returns of 59% in FY26.

These explosive returns followed staggering increases in many commodity prices.

Commodity price surge

In FY26, the best price growth among commodities relevant to Australian mining was lithium spodumene, soaring 278%.

Lithium is a key component in rechargeable batteries for electric vehicles (EVs), e-bikes, smartphones, and energy storage systems.

In CY25, silver experienced the best price growth, up 147%.

Silver is an industrial metal used in solar panels, EVs, tech devices, and data centres due to its superior conductivity to copper.

The long-term tailwinds of decarbonisation and the artificial intelligence (AI) build-out contributed to mining’s outperformance in FY26.

The ongoing structural change in central banks purchasing gold to diversify their reserves away from US treasuries also played a role.

Experts say we’re in a new mining boom that will be different to the 2000s because it will be led by critical minerals, not iron ore.

While these long-term tailwinds will remain for decades, that doesn’t automatically translate to vertical commodity price growth.

This is made clear in the 5-year outlook for commodities just published by the Federal Department of Industry, Science, and Resources.

Commodity price predictions FY27

For the period FY26 to FY31, the government reckons FY27 is going to be the strongest year for many commodity prices.

According to the resources department’s latest Resources and Energy Quarterly:

Commodity prices are expected to peak in 2026–27 and then drift lower.

This is important information for ASX investors because commodity prices directly impact miners’ earnings, and thus, their share prices.

The report also looks at energy commodity prices.

In CY26, Brent crude oil, gas, and coal prices have surged due to the US-Iran conflict and Middle East supply disruptions.

This contributed to energy ranking second (behind materials) among the 11 ASX 200 market sectors for total returns in FY26.

The S&P/ASX 200 Energy Index (ASX: XEJ) increased 9.37% and produced total returns of 14.51%.

The energy sector has the same forecasted commodity price trend.

For the period FY26 to FY31, the government expects four out of five energy commodity prices to peak in FY27.

This will have a direct impact on ASX energy shares.

Let’s take a look at the forecasts.

Five-year outlook

The report outlines the Federal Government’s predictions for average annual commodity prices in FY27 and FY31.

There is a realised nominal price for FY26, a forecast price for FY27, and a projected price for FY31.

As you’ll see, over the next 5-year period, seven of the following 10 commodity prices are expected to peak in FY27.

Metals and minerals commodity prices

Iron ore price (62% fe)

FY26: US$92 per tonne

FY27: US$83 per tonne

FY31: US$72 per tonne

ASX iron ore mining shares: BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), Rio Tinto Ltd (ASX: RIO)

Copper price

FY26: US$11,767 per tonne

FY27: US$13,754 per tonne

FY31: US$12,786 per tonne

ASX copper mining shares: Sandfire Resources Ltd (ASX: SFR), BHP Group Ltd (ASX: BHP), Capstone Copper Corp CDI (ASX: CSC)

Lithium price (6% spodumene concentrate)

FY26: US$1,532 per tonne

FY27: US$2,499 per tonne

FY31: US$1,684 per tonne

ASX lithium mining shares: PLS Group Ltd (ASX: PLS), Liontown Resources Ltd (ASX: LTR), Elevra Lithium Ltd (ASX: ELV)

Gold price

FY26: US$4,268 per ounce

FY27: US$4,534 per ounce

FY31: US$4,149 per ounce

ASX gold mining shares: Newmont CDI (ASX: NEM), Evolution Mining Ltd (ASX: EVN), Minerals 260 Ltd (ASX: MI6)

Nickel prices

FY26: US$16,348 per tonne

FY27: US$17,226 per tonne

FY31: US$18,473 per tonne

ASX nickel shares: IGO Ltd (ASX: IGO), Nickel Industries Ltd (ASX: NIC)

Energy commodity prices

Brent crude oil price

FY26: US$79 per barrel

FY27: US$87 per barrel

FY31: US$68 per barrel

ASX oil shares: Ampol Ltd (ASX: ALD), Viva Energy Ltd (ASX: VEA)

LNG prices

FY26: A$13 per gigajoule

FY27: A$16 per gigajoule

FY31: A$11 per gigajoule

ASX energy shares: Woodside Energy Group Ltd (ASX: WDS), Santos Ltd (ASX: STO)

Metallurgical coal price

FY26: US$213 per tonne

FY27: US$233 per tonne

FY31: US$225 per tonne

ASX met coal shares: Whitehaven Coal Ltd (ASX: WHC), BHP Group Ltd (ASX: BHP)

Thermal coal price

FY26: US$117 per tonne

FY27: US$128 per tonne

FY31: US$121 per tonne

ASX thermal coal producers: New Hope Corporation Ltd (ASX: NHC), Yancoal Australia Ltd (ASX: YAL)

Uranium price

FY26: US$82 per pound

FY27: US$93 per pound

FY31: US$113 per pound

ASX uranium shares: Paladin Energy Ltd  (ASX: PDN), Boss Energy Ltd (ASX: BOE), Deep Yellow Ltd (ASX: DYL)

The post Own ASX mining shares? Official forecasts show commodity prices peaking in FY27 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Santos share price jumps to fresh multi-year high: Here’s what brokers tip next
• Up 42% in a year. How much higher can BHP shares go?
• Are Rio Tinto shares a buy following its Q3 update?
• Woodside, New Hope, Flight Centre shares: Buy, hold, or sell?

Motley Fool contributor Bronwyn Allen 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The analyst team at Barrenjoey has been poring over some exploration results recently, and has produced new reports on two companies they think have good prospects.

Let’s see who they like.

Turaco Gold Ltd (ASX: TCG)

Turaco shares have increased by more than 60% over the past 12 months, but Barrenjoey believes they have plenty further to go.

The company recently reported new drilling results at its Woulo Woulo deposit at the Afema project in south-east Côte d’Ivoire.

Results from that drilling campaign included 56m at 3.87 grams per tonne of gold from 266m, and 59m at 1.67 grams per tonne from 255m.

The company added:

Latest results continue to confirm the potential for a significant body of broad, higher-grade gold mineralisation, beneath the current 1.7Moz Mineral Resource estimate and Ore Reserve open pit design which has potential to expand both the open pit and support underground extraction.

Further deeper drilling at Woulo Woulo has now started, the company said, while resource extension drilling was also continuing at the Asupiri-Adiopan and Begnopan Deposits, “where recent results have demonstrated substantial high-grade resource growth”.

Managing Director Justin Tremain said:

Woulo Woulo is a very large, robust gold system with mineralisation over 3 kilometres and widths of up to 50 metres. We are beginning to define a significant zone of higher-grade gold mineralisation where drilling has delineated a continuous high-grade shoot extending approximately 700 metres along strike and 500 metres down plunge.

Barrenjoey has a price target of $1.25 on Turaco shares compared to 83 cents at the time of writing.

Many Peaks Minerals Ltd (ASX: MPK)

This company has also recently reported good exploration results, saying it had intersected broad gold mineralisation beneath its existing Ouarigue mineral resource.

The results included 188.9m at 3.58 grams per tonne of gold from 633m, and 59.2m at 2.30 grams per tonne from 556.8m.

Many Peaks said it now had enough data for an update to its mineral resource estimate, which was scheduled to be completed in the current quarter.

It also said open-pit study work was advancing, and an integrated economic assessment including a scoping study evaluation of underground development options was under review.

Managing Director Travis Schwertfeger said:

These strong extension drill results again demonstrate the strong continuity of high-grade gold beneath the existing Ouarigue resource and suggest increasing ounces per vertical metre at depth. The results will inform the planned resource update and evaluation of underground development options alongside the ongoing open-pit study work.

Barrenjoey has a price target of $1.60 against the Many Peaks share price of $1.13 at the time of writing.  

The post 2 ASX gold explorers tipped to rise 40% to 50% appeared first on The Motley Fool Australia.

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• This ASX gold developer could rise more than 70%: Broker

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 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.

Using superannuation is a fantastic way to build wealth and create retirement passive income.

Lower taxes in the wealth-building phase and potentially no taxes in the retirement phase (depending on the superannuation balance) are a very compelling proposition. An Australian (retiree) investor is likely better off in net income terms to have dividends flow through superannuation than in their own name.

Everyone has a different taxation position, so I’m not going to focus on tax for the rest of the article.

What’s needed for $7,500 of monthly passive income?

I’d bet that many Australians would love to have $7,500 of passive income hit their bank account every month. In annual terms, that’s $90,000 per year of dividends.

The required superannuation balance to generate $90,000 in annual dividends depends on the portfolio’s dividend yield. It’s a similar situation to the interest rate required from a term deposit or savings account.

With a 5% yield, someone would need a $1.8 million portfolio (ignoring tax) to make $90,000 per year.

With a 6% yield, an investor would need a $1.5 million portfolio to make $90,000 per year, or $7,500 per month.

With a 4% yield, an investor would need a $2.25 million portfolio for the passive income goal.

I often talk about my appreciation of the diversified investment conglomerate Washington H. Soul Pattinson and Co Ltd (ASX: SOL) as an option for reliable dividends, but its grossed-up dividend yield, including franking credits, is only around 3.5% right now.

There are plenty of ASX dividend share options that can provide a higher dividend yield, so let’s run through some of the possibilities.

ASX dividend share ideas

How good would it be to have a portfolio of stocks in superannuation with dividend yields of 5%, 6%, or even more to generate the monthly passive income?

Charter Hall Long WALE REIT (ASX: CLW) is a real estate investment trust (REIT) that owns and leases various types of property, including service stations, hotels, telecommunication exchanges, distribution centres, and government-related buildings (such as Geosciences Australia). It expects to pay 25.5 cents per security in FY27, which translates to a yield of 7.8%.

Another idea is listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), which uses a combination of normal investing and short selling to look for opportunities across both ASX shares and international shares. It’s increasing its dividend every quarter and could pay a grossed-up dividend yield of 5.1% in FY27, including franking credits.

Next, I want to highlight another REIT called Centuria Industrial REIT (ASX: CIP), which owns a portfolio of industrial properties across Australian cities. It’s growing its distribution by another 3% in FY27 despite the higher interest rates, thanks to rising demand for industrial land for uses like distribution centres (including e-commerce purposes), refrigerated space (for food and medicine), and data centres. Its forecast yield is 6.1%.

Another name I’d highlight is the LIC MFF Capital Investments Ltd (ASX: MFF), which is increasing its payout every six months. It largely invests in strong international shares with good prospects for dividend growth. I expect it will pay an annual dividend of 25 cents per share in FY27, translating into a grossed-up dividend yield of 6.9%, including franking credits.

A portfolio of the above names, as well as other ASX shares, could be compelling to unlock a monthly passive income of $7,500 (or more) in superannuation.

The post How much is needed in superannuation to target a $7,500 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $700,000 superannuation balance?
• The 3 factors that have helped me build a six-figure ASX share portfolio at 35
• CBA vs Soul Patts: Which ASX share wins in 2026?
• Where to invest $10,000 in ASX dividend shares today
• How much is needed in superannuation to target a $100,000 annual passive income?

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.