Its strong copper growth pipeline puts Southern Copper in an excellent position to capitalize on rising demand. Although there’s some uncertainty about the Teck transactions, the company has significant copper growth potential. Freeport-McMoRan is one of the world’s largest publicly traded copper producers.

In fact, Barrick’s balance sheet is so strong that it’s able to offer up a modest dividend – an 8-cent-per-share payout that has quadrupled in just four years. That said, it’s not completely undiluted exposure to gold – it also produces copper, silver, zinc and lead. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.

Should you buy mining stocks?

Adding a “controllable load resource” like bitcoin miners to the grid acts as a sort of life insurance policy, or a hedge against disaster. During the crypto boom of 2021, Riot Platforms was raking in cash from bitcoin mining. Now the company is losing so much money that it’s counting on energy credits from selling power back to the Texas grid to keep its costs under control. The crown jewel of Freeport’s portfolio is the Grasberg mine in Indonesia, one of the world’s largest single copper and gold sources. BHP is also a co-owner of Resolution Copper with Rio Tinto (45%/55%).

mining companies stock

The company is one of the leading lithium miners, with a market value on par with other leading commodities names like Barrick Gold Corporation (GOLD). It engages in the extraction and processing of precious and scattered metal, as well as sulphuric chemistry. The company’s products include copper cathode, gold, silver, sulphuric acid, copper rod, copper tube, and copper foil. Company history is an important factor when evaluating a gold mining stock.

Risks of Copper Stock Investing

Rio Tinto (RIO, $59.23) is one of the world’s largest mining stocks, boasting 60 operations in 36 countries. What Buffett likely sees in Barrick is its ability to generate cash. You can thank both rising gold prices as well as its late 2018 merger with Randgold for the healthy bump. For the most part, we’re targeting companies with strong financial positions that can generate gobs of cash – in other words, firms with the resources to ride out rockier periods for their underlying commodities.

  • Discovered in 2020, the Winu copper and gold resource has the potential to become a large-scale mining operation.
  • Gold companies can likely generate higher total returns than simply an investment in physical gold because, when the price of gold rises, these companies can expand their operations and their profits.
  • The company is also the single largest taxpayer in Chile, which has prompted recent discussion about the government taking an increased stake.

His commentary has appeared in numerous respected outlets including CNBC, the Fox Business Network, USA Today, MarketWatch, US News, Kiplinger, and CNN Money, among others. After many lithium stocks reached record highs in late 2021, the sector hit a bit of a roadblock in 2022 and many stocks are well off their highs. For manufacturers, price and demand for lithium goods are important, but so is the quality of their products. Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio.

Should you invest in other precious metals besides platinum?

Mining companies are unique in that their growth is limited by the assets available to them in their mining properties. The major issue for investors is that mining companies do not know exactly how much of each target asset is available until they’ve spent the time and money to mine those properties. However, at times, the precious metal can be more volatile than gold and silver because of top 100 richest people in the world 2018 its smaller supply. It’s estimated that there are 5 billion ounces of gold above the ground, 3 billion ounces of silver but only 200 million ounces of platinum, the bulk of which is produced by South Africa. By 2031, it anticipates increasing production by 69% from its 2022 level. The company has approved several large-scale expansion projects that should drive long-term copper growth.

If price spikes happen in symphony with this tax relief, the financial gains could look even rosier for this sector of its business. If copper prices spike, Newmont Corporation could move closer toward net income growth and reverse its current downward trajectory. Despite high operating costs in 2022, the company isn’t considered incredibly risky due to its extra liquidity buffer held in gold. After so many years of strong growth, lithium stocks were due for a correction. In late 2021, Goldman Sachs warned that overall lithium stocks prices were too high, based on market conditions. This prediction seemed spot on as prices have since fallen to Goldman’s target range.

Platinum stocks to consider for investment

Once you’ve chosen the stocks you wish to own, you’ll want to make sure you have a brokerage account and that you’ve funded your account. Though not exactly small, Pilbara is a bit difficult to research given that it trades over the counter and lacks analyst coverage in the U.S. Nevertheless, average daily trading volume is more than 200,000 shares, and its 2022 annual report shows it is indeed profitable with more than $500 million in adjusted earnings. Lithium Americas doesn’t sport as solid a balance sheet as these other companies, with long-term debt of $158 million that’s more than triple its $50 million in cash on hand.

How to Invest in Platinum Stocks – Money

How to Invest in Platinum Stocks.

Posted: Wed, 13 Sep 2023 13:54:15 GMT [source]

Elang is one of the world’s largest undeveloped copper and gold porphyry deposits and is currently in the feasibility stage. At the end of the first quarter of 2022 metals and minerals were setting all-time records led by bellwether copper which briefly traded above $5 a pound or more than $11,000 per tonne. Iron ore, the second most traded bulk commodity after crude oil and the cash cow for the top tier of the mining world, was above $150 a tonne. Unsurprisingly, Barrick Gold Corporation’s bread and butter is gold, but it also dabbles in copper mining. The company caught a huge break this year when Zambia, home of one of its largest copper mines, announced plans to restructure and ultimately lower mineral royalty taxes on copper. Net income has been erratic over the past several years, starting at a loss of $76 million in 2017, peaking at $2.88 billion net income in 2019, and settling down to $1.11 billion in 2021.

Zijin Mining Group Co. Ltd. (ZIJMF)

The mining company’s growing copper production should support increasing cash returns to shareholders. Freeport has set a framework to use as much as 50% of its excess cash flow for shareholder returns, including dividends and share repurchases. As a development company and a penny stock, Cobalt Blue is a very risky investment with success contingent on the company getting its mining operations online. Nevertheless, if its mine does begin operations, Cobalt Blue is worth keeping an eye on as a potential leader in cobalt production. It is a top user of cobalt as well, and China Molybdenum is a top producer of the element. In fact, via its copper mining assets in the Democratic Republic of Congo, China Molybdenum is the world’s second-largest producer of cobalt (which it derives as a byproduct from refining copper).

Anglo American, Rio Tinto, and BHP: What’s Behind the Rally for … – TipRanks

Anglo American, Rio Tinto, and BHP: What’s Behind the Rally for ….

Posted: Thu, 14 Sep 2023 15:35:58 GMT [source]

We also believe this is a great time to invest in hard assets and the companies involved in the production of these assets because of the unprecedented monetary and fiscal stimuli unleashed over the last 12 months. We believe inflation rate will surprise to the upside over the next couple of years. Is it long-term capital appreciation, or do you expect a short-term surge in gold prices?

Next Up In Investing

Focus on investing in established businesses with a track record of generating healthy profit margins, especially if you are an investor seeking more stable returns or investment income. Particularly due to rising demand for lithium-ion batteries in electronic devices and electric cars, cobalt prices have been steadily rising during the COVID-19 pandemic. Investing in cobalt stocks is worth considering for investors wanting to bet on increased use of battery technology and renewable energy. Like any basic materials and metals investment, betting on lithium isn’t for the faint of heart. Soaring demand for a material used in the manufacture of a product doesn’t automatically equate to higher sales and profits for a company.

If gold prices fall, junior miners may struggle to get funding or continue operating. If the economic outlook is shaky and gold prices rise, miners may find themselves with additional cash and incentives. Platinum, a rare and valuable precious metal, is known for its industrial applications and potential as a hedge against inflation.

In 2021, BHP signed a partnership agreement with AI computing start-up KoBold Metals, which uses algorithms to make decisions on land purchasing and exploration. The agreement is designed to help BHP obtain metals such as cobalt and nickel used in the manufacture of electric vehicle batteries and other renewable energy projects. Operating profit margins rose into the 40% range in 2022, helping the company invest in expanding its production. However, as an emerging growth play, Livent’s pockets aren’t as deep as some of its larger peers, although it does have minimal debt. Demand for copper will likely rise steadily, as it is a critical element in the energy transition because the metal is used in electric vehicles, charging stations, wind turbines, and solar panels. The price of copper is largely influenced by the health of the global economy.

  • Now, most economists — according to a recent story on the subject by Reuters, anyway — believe that raise streak is over and the ECB will hold steady.
  • The first Indonesian company to make it into the top 50 is Amman Minerals Internasional, owner and operator of the Batu Hijau copper and gold mine and developer of the adjacent Elang project.
  • Besides precious metals, Wheaton also acquires significant amounts of cobalt.
  • Shares can be purchased over the counter as an ADR (which represent the stock of a foreign company).
  • For example, Russia — the world’s second largest producer of platinum — saw its exports drop by 10% in 2022 as a result of its war with Ukraine.

If current market circumstances cause a rise in copper pricing, it’s not likely to be permanent. Experts are projecting price swings as the impacts of the pandemic continue in their unpredictability. If the price of copper does spike, this is one company that is likely to reap some of the monetary benefits. Although these two groups have a very different emphasis when they speak it, they are both right; mining is big business.

In 2023, Goldman Sachs is predicting that copper prices will reach record high prices of $11,000 per tonne. Today we’ll take a look at why there’s a projected price spike, and some stocks that could stand to benefit over the short term. A junior mining stock typically sees the most action leading up to, and immediately after, a feasibility study. If the study is positive, then the value of the company may shoot up. For instance, the portfolio of our monthly newsletter’s stock picks has beaten the market by over 111 percentage points since March 2017 (see details here). Some of the portfolio holdings of our monthly newsletter have been shared publicly too.