Best ASX Mining Stocks for Long Term Wealth Creation

Fortescue, Rio Tinto, Northern Star and South32 have all shown pretty solid FY25 results as Production was steady, costs were under control, balance sheets were strong and these companies look well placed to keep creating long term value with their new growth projects.

Best ASX Mining Stocks for Long Term

Fortescue Limited (ASX: FMG)

Rio Tinto Limited (ASX: RIO)

Northern Star Resources (ASX: NST)

South32 Limited (ASX: S32)

Fortescue Limited (ASX: FMG)

had a solid FY25 backed by stable iron ore demand and very tight cost controls. The company shipped 198.4Mt of ore and made about US$15.5 billion revenue. Underlying EBITDA was US$7.9 billion which gave it a margin of 51%. NPAT stood at US$3.4 billion and earnings per share came to US$1.10. Free cash flow was around US$2.6 billion and net operating cash flow touched US$6.5 billion showing strong margins even though prices were a bit weaker. The balance sheet looks healthy with US$4.3 billion cash against US$5.4 billion debt so net debt is just US$1.1 billion. Shareholders got back A$1.10 a share in fully franked dividends which totals A$3.4 billion equal to a 65% payout ratio. is also pushing into green metals and clean energy with projects in solar, hydrogen and decarbonisation. This could help it move beyond iron ore and take advantage of energy transition trends.

Rio Tinto Limited (ASX: RIO)

posted solid results for 1H FY25 even though iron ore prices were weaker and Pilbara operations faced cyclone issues. The group made revenue of about US$26.9 billion and underlying EBITDA was US$11.5 billion. NPAT was US$4.5 billion which was helped by stronger performance from copper and aluminium. Operating cash flow was US$6.9 billion and free cash flow was US$2 billion but net debt rose to US$14.6 billion after the Arcadium Lithium acquisition worth US$6.7 billion. Shareholders were paid an interim dividend of 148cps equal to around 50% payout ratio. For outlook, Rio expects Pilbara shipments between 323-338Mt at costs of US$23 to 24.50 per wmt, copper between 780-850kt and bauxite at the higher side of guidance. With Simandou shipments starting late 2025, lithium integration on track and spending on decarbonisation, Rio looks set to use its diversification and long life assets for future growth.

Northern Star Resources (ASX: NST)

posted record results in FY25 making it one of the biggest gold producers in the world after buying De Grey Mining and its Hemi Project. Group revenue jumped 30% to about A$6.42 billion and underlying EBITDA went up 60% to A$3.5 billion with margins improving to 55%. NPAT more than doubled to A$1.42 billion helped by steady gold sales of 1.63Moz at an average price of A$3,922 per ounce. Cash earnings stood at A$2.87 billion and free cash flow came in at A$536 million. Operating cash flow improved by 43% to A$2.95 billion. T. Shareholders got a final dividend of 30cps taking total dividends to 55cps plus a A$300 million buyback. For FY26 the company expects gold sales between 1.7 to 1.85Moz at AISC of A$2,300–2,700/oz while investing in the KCGM Mill Expansion and the Hemi Project. 

South32 Limited (ASX: S32)

had a big turnaround in FY25. The company moved from a loss of about in FY24 to a statutory profit of US$213 million this year. Underlying earnings also jumped 75% to US$666 million mainly because of stronger performance from copper, aluminium and manganese. The balance sheet is stronger now with US$1.8 billion in cash and another US$1.4 billion credit facility not used yet. Net debt stayed low at US$393 million and credit ratings are still at BBB+/Baa1. With a strong balance sheet and focus on copper, zinc and manganese South32 is in a good spot to benefit from global decarbonisation trends and new infrastructure investments.

(Source: Company Announcements)