ASX mining shares finished strongly in August, driven by stronger commodity prices and robust FY26 earnings. Among some of the biggest names are South32 Ltd (ASX: S32), Mineral Resources Ltd (ASX: MIN) and BHP Group Ltd (ASX: BHP).

Let’s take a look at how the mining giants are tracking today. And what brokers tip for the next 12 months.

Buy South32 shares

The ASX miner announced a substantial jump in its ore reserve estimate at its Sierra Gorda mine in late-August. The increase comes after significant drilling to define the orebody, providing more certainty over future production. The update extends the mine’s reserve life by another five years, to 2045.

The company also posted a robust FY26 financial results last week. The miner posted a 1% increase in revenue from continuing operations, a 28% increase in EBITDA, and a 55% increase in underlying earnings.

At the time of writing, the shares are flat for the day at $5.16 a piece. South32 shares are now up around 45% for the year to date and are 89% higher than 12 months ago.

Going forward, brokers are positive about the outlook for the stock. Market Index data shows the majority have a buy rating but after a recent rally, the $5.09 average target price now implies a downside of around 1%.

Buy Mineral Resources shares

The lithium miner posted its strongest-ever annual results last week. Mineral Resources reported a 44% year-on-year increase in revenue, an 183% increase in underlying EBITDA, an 831% increase in underlying NPAT, and a 236% increase in reported NPAT for FY26.

Management also announced it would bring back shareholder dividends. For FY26, the miner will pay a fully-franked dividend of 83 cents per share.

Mineral Resources said its record performance was driven by growth in the company’s Mining Services division, the ramp-up of Onslow Iron to nameplate capacity, and improved results in its lithium operations.

At the time of writing, the lithium miner’s shares are up around 0.5% for the day and are changing hands at $64.79 a piece. For the year-to-date the shares are now 17% higher, and they’re a huge 76% above trading levels seen this time last year.

Going forward, it looks like analysts are positive about the shares. But after a strong rally this year we could be reaching around fair value. Market Index data shows the majority have a buy rating on Mineral Resources shares, and the $65.36 average target price implies a potential 1% upside ahead.

Hold BHP shares

BHP started trending higher in early August as the market grew more bullish on copper prices.

But the share price picked up pace after the miner reported its record FY26 earnings results on the 18th of August. The mining giant posted a strong operational performance across all its key segments. It also announced an impressive 27% increase in its underlying EBITDA. 

Investors were clearly thrilled with the update and many rushed to snap up a stake in the mining company.

At the time of writing, BHP shares are up largely flat for the day so far, and are changing hands for $66.20 a piece.

But it looks like the experts are now concerned that the ASX mining shares have now passed their peak. Market Index data shows the majority have a hold rating on BHP shares. The $61.78 average target price now implies a potential downside of around 7%, at the time of writing.

The post Buy, hold, sell: South32, Mineral Resources, BHP shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. 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.

Spring has arrived, which can be a good excuse to take another look at a portfolio and consider what might be worth adding.

If I had $20,000 ready to invest today, I would put it behind three businesses I think have plenty of room to grow over the years ahead.

Here’s what I would buy.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would probably receive the largest portion of my money.

Its Visage software is already used by some of the largest healthcare systems in the US, yet the company estimates it still has only around 11% of that market.

I think that is a powerful combination. Pro Medicus has proved its technology can handle the demands of major hospital networks, while most of the potential US market remains available.

The opportunity is also expanding beyond radiology. Cardiology and enterprise imaging could allow Visage to handle more of the medical images produced across a healthcare organisation. Artificial intelligence may create further opportunities as hospitals look for faster and better ways to work with growing volumes of imaging data.

Over a long timeframe, I think Pro Medicus can win many more customers while becoming increasingly valuable to those it already serves.

James Hardie Industries plc (ASX: JHX)

James Hardie gives me exposure to a very different type of long-term opportunity.

This ASX share is best known for fibre cement building products, particularly in North America, where its products are used across housing construction and renovation.

What interests me is the amount of existing housing that will need to be repaired, renovated, or upgraded over the coming decades.

Homeowners do not need a housing boom for that spending to happen. Ageing properties eventually need work, and James Hardie’s products can benefit when owners replace siding or invest in improving their homes.

The company’s acquisition of AZEK also expands its presence across outdoor living products such as decking and railing. I think that gives James Hardie more ways to participate when homeowners spend money improving the outside of their properties.

Sigma Healthcare Ltd (ASX: SIG)

My final investment would go into Sigma Healthcare.

Following its merger with Chemist Warehouse, investors now have exposure to one of Australia’s best-known pharmacy and retail businesses.

I think the next stage of the story could increasingly happen overseas. Chemist Warehouse already has a growing presence in New Zealand and has started testing the UK market. If its value-focused retail model travels successfully, the addressable opportunity becomes far larger than Australia alone.

There is still room to grow domestically through stores, online sales, pharmacy services, and the wider distribution business.

I think Sigma now has several avenues to become a much larger healthcare and retail company over time.

Foolish takeaway

With $20,000 to invest this spring, I would be comfortable putting the entire amount to work across these three ASX shares.

Most importantly, I would be buying with several years in mind and giving each business time to pursue the opportunities already in front of it.

The post Where I’d invest $20,000 in ASX shares this spring appeared first on The Motley Fool Australia.

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• ASX 200 mining shares outperform in final week of earnings season
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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Gold shares delivered the standout month of the Australian reporting season.

Morgan Stanley calculates that the sector rose 34% across August.

The gold price then fell 2.9% on Friday night to US$4,529.90 an ounce.

Traders were reacting to rising expectations of United States interest rate hikes, so the question that remains is whether September can continue August’s good momentum.

Why gold shares ran so hard

Gold spent most of August trading around US$4,500 an ounce.

At that level, the economics of an Australian gold mine look extraordinary.

My colleagues noted that the conversation has shifted away from the gold price itself and toward cash flow, balance sheets and dividends.

That is what a maturing sector looks like, however, any future gains may be harder to come by.

Northern Star: a record year with a warning attached

Northern Star Resources Ltd (ASX: NST) is the largest of the ASX gold shares and the clearest illustration of the problem at hand.

The company’s FY26 result delivered revenue of $7.6 billion, underlying EBITDA of $4.3 billion and underlying net profit after tax of $1.8 billion.

The company sold 1.54 million ounces at an all-in sustaining cost of $2,698 an ounce.

Lastly, the full-year dividend rose to 55 cents per share.

Then you reach the cash flow statement.

Underlying free cash flow was just $190 million, because capital spending at KCGM has hit its peak.

FY27 guidance sharpens the point further, with production of 1.5 million to 1.65 million ounces expected at an all-in sustaining cost of $3,050 to $3,450 an ounce.

That is a rise of several hundred dollars an ounce in a single year.

There is a leadership change to absorb as well.

Stuart Tonkin stepped down as managing director on 28 August, with Ryan Gurner serving as interim chief executive until Suresh Vadnagra takes over on 5 October.

Capricorn Metals: the low-cost alternative

Capricorn Metals Ltd (ASX: CMM) is a fraction of Northern Star’s size. The company produced a record 123,589 ounces in FY26 at an all-in sustaining cost of $1,629 an ounce.

Cash costs before royalties were only $1,251 an ounce.

Cash and gold holdings stood at $507 million, and the company declared a fully franked final dividend of 5 cents per share in late August.

FY27 should be bigger.

Capricorn is guiding to 137,000 to 147,000 ounces as the Karlawinda expansion is commissioned, heading toward a 150,000 ounce annual run rate.

Costs are expected to rise to between $1,900 and $2,100 an ounce, which is still well below Northern Star’s guidance.

Behind that is Mt Gibson, where reserves now stand at 5.2 million ounces and federal environmental approval has been granted.

What could end the run in gold shares

Two things would do it.

The first is a sustained fall in the gold price, and the rate hike expectations driving Friday’s move are a genuine risk.

Higher real interest rates make a non-yielding asset less attractive, and gold has always been sensitive to that.

The second is cost inflation, which the FY27 guidance from both companies already flags clearly.

Foolish takeaway

A 34% month is most likely not repeatable, and I would not buy this sector expecting one.

What has changed is that the better operators are now generating real cash and paying real dividends.

Capricorn looks like the more disciplined business on cost, while Northern Star offers scale and a much larger production base.

Both need the gold price to hold somewhere near current levels to justify their FY27 spending plans.

For investors who want exposure, gold shares are worth owning as a portfolio hedge.

The post ASX gold shares soared 34% in August. Is the run over? appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Tuesday
• Northern Star shares slide 5% as investors digest another surprise
• Why Liontown, Northern Star and Telstra shares are turning heads on Monday
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Mark Verhoeven 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.