A three to five-year "structural bull market" for ASX mining shares and commodities is yet to play out.

That's according to energy, mining, and commodities expert Ben Cleary, who manages listed investment company (LIC) Tribeca Global Natural Resources Ltd (ASX: TGF).

Cleary says of all the commodities, battery metals are likely to lead the way in coming years.

What's the opportunity for ASX investors today?

In an interview with Livewire, Cleary said: "Whether it's base metals or battery metals, the big supply-demand deficits kick in in 2025-2026".

Cleary says commodity prices have already dipped to the same lows seen during the global financial crisis and in 2015. That's despite globally low inventories. And there's been a flow-on effect to ASX mining shares.

Cleary said:

Think aluminium, which hit a 30-year low on the LME yesterday. Copper, nickel, iron ore, oil, all these commodities are in very short supply generally.

So the markets are bearish to the point where stocks are trading at these very deeply depressed trough valuation levels, but inventory is low and demand is still strong.

We've stress test demand, and even with a recession in Europe and a slowdown in the US, we're still getting deficits.

Cleary pointed out that the resources sector is generating record cash flows. This is despite COVID-19 and labour availability challenges, as well as higher oil prices and a tighter supply of mining inputs.

He also said the valuations of various ASX mining shares were "looking more and more attractive".

Cleary said:

Despite all those headwinds, the sector's never made more cash flow. And on top of that, I think the delta of those challenges is improving.

While the outlook is somewhat uncertain with Europe and its energy woes and potential recessions, I think generally it's been a big pullback across all asset classes and there is some very heavy valuation support in the resources industry that is looking more and more attractive.

What's next for ASX mining shares?

Cleary attended the annual Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia this week.

He said the leaders of various companies he is invested in told him labour shortages were decreasing.

Cleary also believes oil prices won't remain around US$100 per barrel. He thinks they are likely to decline toward the end of 2022.

However, he said iron ore could face more pressure in the coming months:

The softer property market in China has impacted all things related to building materials, particularly on steel subsidiaries. But iron ore prices have held up pretty well.

That is because, like a lot of these commodities, there's been a number of supply issues. But if the Chinese property market remains soft, iron ore is going to face some headwinds. But that could very quickly turn into a tailwind depending on the outcome of Chinese monetary policy into the year-end.

Which ASX mining shares might be buys?

When asked to pick the five best presentations at Diggers and Dealers, Cleary nominated Develop Global Ltd (ASX: DVP), Genesis Minerals Ltd (ASX: GMD), Capricorn Metals Ltd (ASX: CMM), Syrah Resources Ltd (ASX: SYR), and Bellevue Gold Ltd (ASX: BGL).

Cleary said all five companies are well funded with impressive production growth, yet not beholden to commodity prices.

He said:

They [are] going to make good margins regardless of whether commodity prices remain high. 

Another common thread through those five stories was that they are all at the bottom of their respective cost curves. And they all have been very focused on keeping their best people as labour is tight. 

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For years many investors have pointed to lithium as the number one beneficiary of the energy transition. Indeed, some of the ASX's biggest lithium players – like Pilbara Minerals Ltd (ASX: PLS) and Sayona Mining Ltd (ASX: SYA) ­– have seen their share prices double time and time again over the last five years.

But one less obvious commodity has more to gain from the world's electrification movement than lithium, according to Tribeca Global Natural Resources Ltd (ASX: TGF) portfolio manager Ben Cleary.

And that commodity is copper.

Let's take a look at why the fundie is bullish on the recently embattled metal and which ASX copper share he thinks has the brightest future.

Copper has most to gain from electrification: fundie

The price of copper hit a 17-month low early last month amid concerns of global recessions and a potential slowdown in China – the world's largest metals consumer.

The falling price of copper – as well as dips in other commodity prices – has been weighing on many ASX materials shares lately.

But there's a silver lining. The fall has presented a longer-term buying opportunity, Cleary's fund noted in its latest monthly update.

On top of that, the fundie apparently thinks copper has more to gain than lithium in the energy transition, telling Livewire.

Copper really is the biggest beneficiary of electric electrification and the world consuming more electricity going forward.

There is just not enough supply coming online to meet that demand growth.

The fund has noted it expects the supply of natural resources to tighten from 2024 onwards.

Meanwhile, Cleary told Livewire "big supply-demand deficits" in base and battery metals will kick off in 2025 to 2026. He said:

Copper, nickel, iron ore, oil, all these commodities are in very short supply generally. So, the markets are bearish to the point where stocks are trading at these very deeply depressed trough valuation levels, but inventory is low and demand is still strong.

We've stress test demand, and even with a recession in Europe and a slowdown in the US, we're still getting deficits.

Which ASX copper share is the fundie tipping?

Cleary's apparent favourite copper share comes in as one of Tribeca Global Natural Resources' largest holdings.

It is none other than $395 million copper developer Develop Global Ltd (ASX: DVP).

In mid-July, the fund tipped Develop Global shares to have a valuation of $3.20. That's 30% higher than where it's currently trading – $2.45.

The post Move over ASX lithium shares, this commodity will be 'the biggest beneficiary of electrification': fundie appeared first on The Motley Fool Australia.

The Venturex Resources Ltd (ASX: VXR) share price has once again become in focus after breaking into uncharted territory today.

This comes despite the mining company not making any new announcements since the beginning of the week.

During midday trade, Venturex shares reached an all-time high of 87.5 cents. However, some profit-taking from investors has led its shares to slightly retrace to 86.5 cents, up 8.13%.

What's been driving Venturex shares higher?

In its latest update, Venturex presented a basic overview of its operations and funding capability at the Diggers & Dealers Mining Forum on Monday.

The company highlighted a couple of agendas in its presentation, namely changing the company's name from Venturex to "Develop". The mining outfit stated that it will focus on building an underground capability whilst achieving decarbonisation.

The company's flagship asset, Sulphur Springs, contains key elements such as copper, zinc and silver. These clean metals will help push the world's efforts on decarbonising the environment.

In addition, Venturex noted that its Sulphur Springs strategy is progressing with $10 million committed into a drilling program. It is expected that drilling will lead to upgrading the majority of the company's Inferred Resource to the Indicated Category. This increases the level of geological knowledge and confidence of Sulphur Springs containing probable Ore Reserves.

The drilling program will form a part of a resource update in June 2022. Final project approvals are anticipated to be obtained sometime in the second half of next year.

Venturex is aiming for Sulphur Springs to become a bankable project by end of 2022.

Quick take on Sulphur Springs

Located 144 kilometres south east of Port Hedland, Western Australia, the Sulphur Springs project contains copper, zinc and silver deposits.

A Definitive Feasibility Study (DFS) was completed in 2018 which identified the project as economically strong. The site has a combined total Mineral Resource of 13.8 million tonnes grading 1.5% copper, 3.8% zinc and 17 grams per tonne of silver.

The initial mine life is expected to be around 10-plus years.

Venturex share price summary

Over the last 12 months, the company's shares have accelerated by an astonishing 1,300%, reflecting positive investor sentiment.

Based on today's price, Venturex presides a market capitalisation of about $588 million, with more than 680 million shares outstanding.

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The Venturex Resources Ltd (ASX:VXR) share price is again rocketing higher this week. This means that the company's shares are now almost 20% higher than they were at the start of Monday.

At market close, the Venturex Resources share price is up 4.61%, trading at 80 cents.

The strong gains made come from Tuesday's Whim Creek update and today's release about an infill drilling program.

Sulphur Springs strategy underway

According to its statement, Venturex advised it has commenced a $10 million drilling program to develop its Sulphur Springs project.

Located 144 kilometres south east of Port Hedland, Western Australia, the Sulphur Springs project contains copper, zinc and silver deposits.

A Definitive Feasibility Study (DFS) was completed in 2018 which identified the project as economically strong. The site has a combined total Mineral Resource of 13.8 million tonnes grading 1.5% copper, 3.8% zinc and 17 grams per tonne of silver.

Venturex noted that since the completion of the DFS, the price of copper and zinc has jumped around 50% and 15%, respectively.

The infill drilling campaign aims to upgrade the majority of the mineral resources into the Indicated Category. This increases the level of geological knowledge and confidence of Sulphur Springs containing probable Ore Reserves.

If successful, this will essentially de-risk the project and give Venturex options to secure funding.

The company will target drilling in both the open pit and underground resources at Sulphur Springs. In addition, extension drilling will take place to test the known resource and mineralisation boundaries.

It is expected that the drilling program will form a part of a resource update in June 2022. Remaining project approvals are anticipated to be received later in the second half of next year.

Venturex managing director, Bill Beament touched on Sulphur Springs strategy to become a bankable project by the end of 2022. He said:

We aim to grow and advance the project at the same time. This approach will maximise our ability to unlock its full value, bringing forward the time to production and cashflow while expanding the mining inventory.

About the Venturex share price

Over the last 12 months, Venturex shares have accelerated to astronomical gains of more than 1,300%, with year-to-date up 600%.

On valuation grounds, Venturex has a market capitalisation of roughly $553 million, with more than 667 million shares outstanding.

The post Venturex (ASX:VXR) share price continues its strong run, up 5% today appeared first on The Motley Fool Australia.

The Venturex Resources Ltd (ASX:VXR) share price is within sights of breaking its multi-year record today. This comes after the mining company announced an update on its Whim Creek Joint Venture Project.

The company holds a 20% stake in Whim Creek Project, with the remaining 80% interest held by Anax Metals Ltd (ASX: ANX).

Whim Creek discovers extensive anomalies

In today's statement, Venturex released a Anax presentation advising it has defined multiple cohesive platinum, nickel-copper and gold anomalies at Whim Creek.

The company conducted a soil sampling programme at the Kent Well and Mays Find North Prospects. Notably, no previous sampling had taken historically explored at the site.

Fieldwork, consisting of an initial 3,500 ultrafine soil samples commenced in February 2021 and is now 50% complete. Ultrafine soil sampling is a newly proven soil analysis technique that is ideal for gold and base metals exploration.

The ongoing soil programme has been highly successful and results have generated new nickel-cobalt and platinum anomalies. This coincides with the company's geological mapping along with geophysical and geochemical surveys.

Once soil surveys and systematic rock chip sampling is completed, both companies will conduct further exploration work. This includes geophysical surveys across these extensive units, followed by drilling.

About the Venturex share price

Investors would be ecstatic with the Venturex share price movement. Over the last 12 months, the company's shares have accelerated by an astonishing 1,300%. Year-to-date is just as impressive, sitting at a 570% gain.

It's worth noting that Venturex shares are close to breaking its multi-year high of 82.7 cents achieved in 2012.

Based on today's price, Venturex presides a market capitalisation of about $517 million, with more than 667 million shares outstanding.

The post Why the Venturex (ASX:VXR) share price is surging 7% in afternoon trade appeared first on The Motley Fool Australia.

Shares in Venturex Resources Ltd (ASX:VXR) are flying out the door today on news of increased mineral resources at the Whim Creek Copper-Zinc joint venture project. At the time of writing, the Venturex share price is up 8.16%, with shares in the mining company swapping hands for 80 cents.

The resource update comes from the project's Whim Creek deposit, which has been found to house 37% more copper than previously estimated.

Whim Creek is a joint venture between Anax Metals Ltd (ASX: ANX) and Venturex. Anax holds 80% of the project, while Venturex has a 20% holding.

As part of the joint venture agreement, Anax will pay for Venturex's interest in the project through to when a decision is made to start mining.

Anax's share price is falling on the news. It's currently down by 9% and its shares are trading for 10 cents.

Let's take a closer look at the news driving the Venturex share price today.

New mineral resources

According to a statement from Venturex, the new mineral resource was discovered through an audit of historical data and a single diamond drill hole.

Both the recording of the data and the drilling were completed by Anax in 2020.

The drill hole's results included 5 metres at 2.43% copper and 1.02% zinc from 52 meters, and 7 metres at 1.19% copper from 60 metres.

Anax now plans to complete field reconnaissance and a review of historical data to find future drilling targets. It states there's an area west of the pit that's a prospect for strike extensions.

Anax is working on feasibility workstreams and hopes to submit a mining proposal for Whim Creek in the third quarter of this year.

Venturex share price snapshot

2021 has been bumper year on the ASX for the Venturex share price.

Currently, the Venturex share price is up 627% year to date. It's also gained a whopping 1,233% since this time last year.

The miner has a market capitalisation of around $331 million, with approximately 425 million shares outstanding.

The post Here's why the Venturex (ASX:VXR) share price is up 8% today appeared first on The Motley Fool Australia.

The Venturex Resources Ltd (ASX: VXR) share price is falling hard today, down 16% in late morning trade.

Venturex closed yesterday at 51 cents per share and is currently trading at 44 cents per share, down 15%.

Below we take a look at the ASX mining company's half year results for the financial year ending 31 December (H1 FY21), released yesterday after market close.

Financial results for H1 FY21

Venturex shares are tumbling today after the company reported a consolidated loss (both before and after income tax) of $2,789,000. That compares to a loss of $2,775,000 in the prior corresponding period. (Note, figures rounded to the nearest thousand.)

Basic and diluted loss per share both came in at 0.75 cents compared to 0.99 cent loss per share in H1 FY20.

Venturex ended the half-year with cash and cash equivalents of $2,595,000. This was up from $2,257,000 in the corresponding prior half-year. Borrowing fell to $1,171,000 from $2,088,000.

The company did not pay any dividends for the half year.

Venturex reported that during the half year its focus remained on "the further advancement to development of the Sulphur Springs Copper-Zinc Project" and the ASX resource explorer "continued to explore its tenements, which are located in the Pilbara in Western Australia".

Management said that due to continued uncertainty surrounding the COVID-19 pandemic, forecasting the potential impact on future operations was not practicable.

Share price snapshot

The Venturex share price has been a star performer over the past 12 months, with shares really taking in February. That rapid boost has seen shares gain 514% since this time last year. By comparison the All Ordinaries Index (ASX: XAO) is up 40% in that same time.

Despite falling hard today, the Venturex Resources share price remains up a stellar 231% in 2021. At the current share price, Venturex has a market cap of $178 million.

The post Why is the Venturex (ASX:VXR) share price crashing today? appeared first on The Motley Fool Australia.

The Venturex Resources Ltd (ASX: VXR) share price is blasting off today. At the time of writing, it's up 233% to trade at 35 cents a share.

Venturex is a base metal mining company focused on developing its flagship Copper Zinc Sulphur Springs Project in Western Australia. The company is also pursuing other assets in the Pilbara region.

We investigate why the Venturex share price is soaring today. 

Venturex share price goes crazy after capital placement

This afternoon, Venturex announced a new funding package and capital placement spearheaded by prominent mining executive Bill Beament.

The company advised that Mr Beament will subscribe for $8.9 million in a placement at 8 cents a share with a one-for-two attached option exercisable at 13.5 cents per share. There's a two-year expiry date.

A $5.1 million allocation to institutional and professional investors is also included in the placement under the same conditions.

Existing Venturex shareholders are to receive a one-for-seven entitlement offer at 8 cents a share. The company advised that this will raise an additional $4.4 million.

Venturex will use the capital to position itself as a growing supplier of new-generation energy and technology materials. 

New executives to assume key Venturex roles

As of 1 July 2021, Mr Beament will assume the role of executive director with Venturex. He is currently executive chair and a founder of Northern Star Resources Ltd (ASX: NST).

Mick McMullen will be appointed as an executive director immediately and transition to the position of non-executive director once Mr Beament assumes his role.

Mr McMullen joins Venturex following time spent as CEO and president of Detour Gold and Stillwater Mining Company.

Venturex executive director Anthony Reilly commented on the capital raise and new appointments, saying:

This growth strategy is a game-changer for Venturex. The combination of the funding provided to the company and the exceptional talents of those joining the board will position Venturex to become a near term producer.

Snapshot of the Venturex share price

The Venturex share price was trading at 9 cents just 6 months ago and has gained 288% in that period.

At today's price, the company has a market capitalisation of $40.68 million. There are currently 387.4 million shares outstanding.

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