Mining stocks have generally experienced a positive 6 months for their investors. Their share prices have risen on the whole. I’m optimistic about the sector because I think many mining stocks have improved their business models, and I also think commodity prices could rise. However, I also think it will be a volatile place to invest.
That volatility may or may not be eased by the diversity of BHP Billiton plc (LON:BLT) (LSE:BLT.L). Its shares are 32% higher than 6 months ago. I think it has potential to rise further in the long run, as I’m optimistic about the oil price prospects in particular. I think demand and supply could be more favourable for oil producers like BHP Billiton, which makes it one of my preferred resources stocks.
I’m also optimistic about the investment prospects of Glencore PLC (LON:GLEN) (LSE:GLEN.L) and Anglo American plc (LON:AAL) (LSE:AAL.L). I think the 2 stocks have done well to improve their financial standing and efficiency in a relatively short time span. I think Glencore’s balance sheet and Anglo American’s narrowed operations should mean their shares make more gains following their 71% and 54% rises of the last 6 months.
I think Vedanta Resources plc (LON:VED) (LSE:VED.L) and Rio Tinto plc (LON:RIO) (LSE:RIO.L) also have potential. Rio Tinto obviously has a dominant position within iron ore, and I’m encouraged by its investment in other areas. I think this will help to reduce its reliance on iron ore ahead of what may be a volatile time for the commodity.
Vedanta is still in a turnaround period in my view, but I think its diversity should allow it to be a beneficiary of any commodity prices rises in future. Their 46% and 88% share prices rises in the last 6 months may continue in the long run, in my opinion.
Overall, I’m optimistic about the prospects for the 5 stocks. I think mining shares in general may stay volatile for a good while, so I’m cautious but encouraged by their performance in the last 6 months.