Ramelius Resources (ASX:RMS) and Red 5 (ASX:RED) were the top performing mining stocks to shine on the S&P/ASX200 today (5 September), with the index gaining 31.90 points or 0.40% to close at 7,982.40.
The index has lost 0.78% for the past five days and sits 2.04% below its 52-week high.
Gold miner Ramelius was 5.339% higher while fellow Australian gold producer Red 5 was up 5.172% at the close of trade on Thursday.
The precious metal continues its run and is currently priced at $3,735.55 (US$2,509.17). At the beginning of Q2 2024, the gold price reached a then new high of $3,511 on 3 April.
Meanwhile, the woes of embattled mining company Mineral Resources (ASX:MIN) continue with its share price declining 5.876% on Thursday almost hitting a four-year low.
Just over a week ago founder and Managing Director Chris Ellison announced MinRes will not pay a final dividend for the first time more than a decade. The company is looking to preserve cash as lithium prices continue sliding and questions surrounding viability of high-cost iron ore operations.
The price of lithium has hovered near three-year lows after falling 13.47% since the start of 2024. That decline follows a slide of more than 80% over 2023 — from more than US$67,000 to roughly US$12,992 by the end of December.
Iron ore prices have stabilised in recent months, following price falls of some 30% in the March quarter 2024. The recovery reflects inventory restocking and improved demand sentiment — given strengthening forward indicators of Chinese industrial production, according to the Department of Industry, Science and Resources’ (DISR) latest issue of its Resources and Energy Quarterly: June 2024.
Lower prices projected over the outlook period will reduce Australia’s iron ore export earnings from $138 billion in 2023–24 to $114 billion in 2024–25 and $102 billion in 2025–26, DISR notes.
Images: Stock & ABC Bullion
