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Asteroid Mining Stocks

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by Gavin in Blog
October 19, 2021 0 comments
asteroid mining stocks

Today we will talk about asteroid mining stocks. Let us know in the comments your thoughts about these companies and if you would consider investing in them.

Once relegated to the pages of science fiction and movies, asteroid mining and the companies powering this frontier (and by relation, asteroid mining stocks) are now knocking on our real-world door.

Contents

So What Is Asteroid Mining?

The resources found on Earth are limited, finite.

Whether it be water to drink (or for recreation), or metals pulled from the Earth’s crust, there is only so much to go around.

Enter asteroids and their near-limitless numbers and resources.

As space expands beyond our human vision into a vast universe where galaxies bigger than our own only show up as microscopic dots in a map of the cosmos, if we (as humans) want to find more resources than our humble planet can offer, space and its contents are where we’ll find them.

But What About Costs?

Make no mistake, travel outside the Earth’s atmosphere is not an insignificant amount of money, but new technologies are making space travel not only feasible but more affordable.

The  Earth’s sky is no longer the limit.

However, as with any endeavor, there are risks.

So, as most investors do, the entrepreneurial companies involved consider the return on their investment.

Let’s look at 16 Psyche, one of the largest and closest asteroids, rich in minerals and other resources.

This asteroid is a whopping 140 miles wide.

It is speculated that the value of its resources when mined would be approximately $10,000 quadrillion – or more precisely $10,000 million billion.

In other words, if a company spent even $10,000 billion and was able to mine 16 Psyche to full capacity, it’s a return of $1 million to $1.

Even at only 1% of the resources, it returns $10,000 to $1 – for a single asteroid.

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Feasible, Just Not Yet Commonplace

While space travel is no longer bound within the imagination, it’s still a way off from being an everyday occurrence.

As such, there are early leaders with any emerging technology, but the landscape is always changing.

Therefore, an option when investing in asteroid mining may not be with any single company but with multiple companies.

These could be “umbrella” companies, where a single entity manages the entirety of the process.

Think of something like Dell for PCs: they make the final product, but many components are making up a PC, like the processor chip, the motherboard, the power supply, the USB connections, etc.

Dell doesn’t manufacture all of the parts making up its PCs but instead packages the parts into a final product.

So you could look for a Dell (the “umbrella”), or you could look for the companies that offer the different components making up the PCs that Dell offers.

Likewise, you could look for a company whose “end product” is the mined resources, or you could look for the companies that would be involved along the way.

It could be the companies making the robots/drones responsible for the actual mining, or companies whose technology is instrumental in getting to/from the asteroid – or in some cases, relocating the asteroid to a closer location (and thereby making for more reliable and cost-efficient expeditions).

Remember that the people who make the most money during a gold rush are the ones selling the shovels.

Companies To Consider

Note that while some investing opportunities may exist, you also may need to be an accredited investor (per your location) before you can invest directly in these companies and/or opportunities.

Like Planetary Resources and Deep Space Industries, early leaders have been acquired and are no longer single offshoots.

There are companies like Space Venture Investors who are focused on the current leaders of the industry.

Other companies, such as ispace, are still in the early stages of funding but are hoping to provide some of the infrastructure of the moon- and/or asteroid-based mining operations.

Similarly, OffWorld focuses on the robots that will be used for “heavy lifting on Earth, Moon, asteroids and Mars” (from their website).

asteroid mining stocks

Another company, TransAstra, has a vision to “unlock the potential of thousands of asteroids to yield propellant and manufacturing materials, far away from Earth’s precious shores.

Our technology will […] be in service of p21st-century industries such as space solar power, space tourism, space data processing, in-orbit manufacturing, and untold others.”

Companies such as SpaceFab are taking things in smaller stages, with a build-up towards the end goal being “cost reduction and readily available resources, [so] humankind will expand throughout the solar system and far beyond” (from their website).

While not specifically asteroid focused, Moon Express is looking to harvest water from the moon’s surface.

What’s interesting is that they are in the development of “scalable robotic explorers” that aren’t necessarily restricted to expeditions to/from the moon but may include “other solar system destinations” (from their website).

In Conclusion

Space travel and exploration (more than just via satellite) is without a doubt a hot topic that many entrepreneurial companies and individuals see in our immediate future.

Whether in a direct effort to preserve Earth’s resources or open new opportunities for growth on off-world locations, asteroid mining will become the focus of the next few years.

The companies mentioned above are not comprehensive and will most assuredly change at some point as the industry picks up mainstream momentum.

However, each offers some promising future perspectives and is worth keeping an eye on in the upcoming years.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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