ASX Mining Shares Poised for Financial Returns in Net Zero Transition
As the world transitions to net zero carbon emissions, investing in ASX mining shares may not be the first thing that comes to mind. However, the reality is that green technologies rely on minerals that are vital for their construction. This creates an opportunity for investors who are interested in financial returns from this global shift. Here are two ASX mining shares worth considering:
1. RPMGlobal Holdings Ltd (ASX: RUL):
– RPMGlobal develops software and provides advisory services to the mining industry.
– The company is well-positioned to benefit from the structural trend towards net zero emissions and reducing environmental impacts in mining.
– The share price climbed 25% in just over a week last month.
– RPMGlobal delivered an impressive 2023 earnings update in July, displaying strength across its divisions, particularly in the newly acquired advisory services unit.
– The stock is also rated as a strong buy by the team at Moelis Australia.
2. South32 Ltd (ASX: S32):
– South32 is a diversified mining and metals company.
– The company offers exposure to commodities that play a vital role in powering the green energy transition.
– Currently, South32 shares pay out a dividend yield of over 7%, fully franked.
– Bell Potter private wealth advisor Christopher Watt is bullish on South32’s prospects.
– According to CMC Markets, 11 out of 17 analysts currently recommend South32 as a buy, with nine of those rating it as a strong buy.
These ASX mining shares present an opportunity for investors to capitalize on the global shift towards net zero carbon emissions. With the demand for minerals increasing as green technologies become more prevalent, companies like RPMGlobal Holdings Ltd and South32 Ltd are well-positioned to benefit. However, as with any investment, it’s important to conduct thorough research and consider the risks before making any decisions.
