Peter Stephens reports that for investors in the mining sector, 2015 has been very challenging. Commodity price falls, a weak outlook for demand and declining consumer sentiment have combined to cause share price falls across the industry. As a result, many investors are understandably nervous about investing in the sector.\n\nAdd to this a fear regarding smaller mining stocks and their financial outlook and it is perhaps surprising, at first glance, that Sirius Minerals and Rare Earth Minerals have been able to deliver a rise of 64% and a flat performance, respectively, since the turn of the year. After all, a number of smaller mining companies have come under intense scrutiny from investors who are concerned about the financial outlook while prices for most commodities remain relatively low. However, in the case of Sirius Minerals, 2015 has been a superb year. It has gained approval for the potash mine near York and, while there is still a long way to go before it begins to generate revenue, its prospects remain bright. For starters, the crop studies which are being carried out on the polyhalite fertilizer that it hopes to sell are progressing well and, with the company sounding out potential buyers, it could experience strong demand in the medium to long term.\n\nSimilarly, Rare Earth Minerals also has a very bright future. Unlike Sirius Minerals, it has multiple locations and, as such, may offer greater diversity in case there is disappointment with one or more projects. And, with demand for lithium set to rise at a brisk pace over the long run as the world embraces more renewable forms of energy production, it appears to have excellent long-term potential to post strong sales and profit growth.\n\nAnd, while Rare Earth Minerals also has huge potential, its short term outlook is highly dependent upon news flow regarding the aforementioned pre-feasibility study, which is very much a known unknown and could be positive or negative.
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