Top Picks for ASX Mining Stocks by Rick Rule, a Notable Investor
In the bustling world of mining, two companies have recently caught the attention of investors: Meteoric Resources and Sovereign Metals.
Meteoric Resources (ASX: MEI), a mining company with a flagship asset, the Caldeira rare earth ionic clay project in Brazil, is currently enjoying strong financial backing. This backing is evident in a recent oversubscribed $42.5 million placement, leaving the company well-capitalized with approximately $53.5 million in cash as of June 30, 2025. This funding is earmarked to advance the Caldeira project towards a final investment decision (FID) within the next 6 to 12 months, including establishing a pilot plant critical for de-risking and producing samples for customer qualification.
Rick Rule, a veteran investor, has been a known supporter of Meteoric Resources. Despite his entry price being between US$0.13 and $0.18, and currently being underwater on this investment, he believes in the potential of the Caldeira project. The project's positioning as one of the most advanced rare earth projects outside China has attracted strong US institutional interest aimed at diversifying global rare earth supply chains.
Meteoric Resources aims to become the world's lowest-cost producer of rare earths products through the Caldeira project. The project has a global mineral resource estimate of 740 million tonnes at 2,572 parts per million (ppm) total rare earth oxides (TREO) at a 1,000 ppm TREO cut-off grade.
Meanwhile, Sovereign Metals (ASX:SVM, OTCQX:SVMLF), a rutile and graphite developer in Malawi, has also made waves in the mining sector. Sovereign describes itself as the next largest, lowest-cost, and lowest-carbon producer of rutile and graphite. Its flagship project, the Kasiya rutile-graphite project, holds 17.9 million tonnes of rutile, making it the world's largest-known rutile deposit.
Toho Titanium (TSE:5727) has confirmed that natural rutile from Sovereign Metals' Kasiya project is suitable for high-performance titanium metal production, further boosting Sovereign's reputation. Rick Rule, in his list of top three ASX mining stocks, included Sovereign Metals, highlighting its potential.
Emerald Resources (ASX:EMR), another Australian-based company, also finds itself in the limelight. Rick Rule has a significant investment in Emerald Resources, but advises against entering it due to current market conditions. Despite this, Sovereign Metals' rutile from the Kasiya project exceeds the 95 percent rutile grade requirement, setting it apart in the industry.
In conclusion, Meteoric Resources and Sovereign Metals are making strides in the mining sector. Meteoric Resources' financial performance and institutional interest, coupled with Sovereign Metals' rutile quality and market potential, make these companies worth watching in the coming months.
Investors looking for opportunities in precious metals could consider gold and silver investing, given Meteoric Resources' significant advances in the rare earth sector. Meanwhile, sports enthusiasts might find it interesting to know that Rick Rule, a renowned investor, has Sovereign Metals, a rutile and graphite developer, included in his list of top ASX mining stocks.
