In this piece, we will take a look at the 13 best mining stocks to buy now. If you want to skip our analysis of the mining industry and want to jump to the top five stocks in this list, head on over to 5 Best Mining Stocks To Buy Now.
The global supply of mineral commodities from underground sources is crucial for numerous industries worldwide. In terms of volume, the most widely extracted commodities globally include iron ore, coal, potash, and copper. Leading in coal production are China, Indonesia, and India, while China also holds the third position as the largest producer of iron ore. Notably, the country also emerged as the primary mining country for various commodities, particularly in the case of rare earths, where it contributed to 70% of the global production in 2022, underscoring its increasing prominence in this sector.
Despite strong financial performance, mining revenue remained constant at $711 billion in 2022. However, increasing costs and economic uncertainties resulted in a squeeze on EBITDA margins, declining from 32% to 29%, as indicated by a recent analysis by PwC into the sector. The 20th edition of PwC's annual review, titled "Mine: The era of reinvention," focused on trends within the global mining industry, particularly examining the Top 40 mining companies. The report revealed a significant growth in market capitalization for these top companies, soaring from $400 billion in 2003 to an impressive $1.2 trillion in 2022.
One particular mineral, Gold, holds significant importance in the financial world, particularly due to its well-established relationship with the U.S. dollar. The correlation between gold prices and the value of the U.S. dollar is widely recognized. Changes in the dollar's value tend to result in corresponding changes in gold prices. This relationship is grounded in the perception of gold as the ultimate safe-haven asset. Consequently, gold prices generally exhibit an inverse correlation with the U.S. dollar. Gold is often regarded as a key indicator of investor sentiment against the dollar. Notably, in the week ending December 22, gold experienced a second consecutive rise, attributed to the decline in the dollar and U.S. Treasury yields, fueled by growing expectations that the Federal Reserve will implement interest rate cuts early in the coming year.
The global mining market witnessed growth, increasing from $2022.6 billion in 2022 to $2145.15 billion in 2023, with a compound annual growth rate (CAGR) of 6.1%. However, the Russia-Ukraine war has impeded the prospects of a swift global economic recovery from the COVID-19 pandemic, particularly in the short term. This conflict has resulted in economic sanctions on multiple nations, a surge in commodity prices, and disruptions in the supply chain. These factors have contributed to inflation in both goods and services, impacting various markets worldwide. Despite these challenges, the mining market is anticipated to continue its growth trajectory, reaching $2775.5 billion in 2027, with a projected CAGR of 6.7%.
With that in mind, today we will explore some of the best mining stocks for potential investment, with prominent choices including Freeport-McMoRan Inc. (NYSE:FCX), Teck Resources Limited (NYSE:TECK), and Agnico Eagle Mines Limited (NYSE:AEM).
13 Best Mining Stocks To Buy Now
Drills extracting gold from a gold mine, revealing the company's gold mining operation.
Our Methodology
In creating our selection of the best mining stocks to buy, we initially identified the forty largest mining companies globally, ranking them based on market capitalization. Subsequently, we assessed the number of hedge funds that had invested in their shares as of September 2023 using data from Insider Monkey's database, encompassing 910 hedge funds. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Sigma Lithium Corporation (NASDAQ:SGML) stands as a prominent Canadian mining enterprise specializing in the exploration and development of lithium deposits located in Brazil. The company boasts full ownership of the Grota do Cirilo, Genipapo, Santa Clara, and São José properties, which collectively cover 27 mineral rights across an expansive area of approximately 191 square kilometers.
In September, Sigma Lithium Corporation (NASDAQ:SGML) announced the successful production of 22,500 tonnes of battery-grade, carbon-neutral lithium, marketed as "Triple Zero Green Lithium." This eco-friendly product is devoid of hazardous chemicals and tailings, aligning with sustainability principles. The lithium has been prepared at Vitoria Port for transport to Glencore as part of their collaborative venture. The collaboration with Glencore aims to establish an environmentally conscious and socially responsible lithium supply chain, catering to the global electric vehicle market.
According to Insider Monkey’s third-quarter database, 15 hedge funds held long positions in Sigma Lithium Corporation (NASDAQ:SGML), reflecting an increase from 12 funds in the previous quarter. Balyasny Asset Management, under the leadership of Dmitry Balyasny, is a noteworthy stakeholder in the company, holding 540,139 shares valued at approximately $17.5 million.
Much like Freeport-McMoRan Inc. (NYSE:FCX), Teck Resources Limited (NYSE:TECK), and Agnico Eagle Mines Limited (NYSE:AEM), Sigma Lithium Corporation (NASDAQ:SGML) ranks as one of the best mining stocks to buy now.
Alamos Gold Inc. (NYSE:AGI) is an intermediate gold producer based in Canada, boasting diversified production from three operational mines in North America and a robust portfolio of growth projects. These mines encompass the Young-Davidson and Island Gold mines in northern Ontario, Canada, and the Mulatos mine in Sonora State, Mexico. Notably, the company has exceeded analyst EPS estimates in all four of its most recent quarters. Additionally, in November 2023, Scotiabank upgraded AGI shares to Sector Outperform from Sector Perform.
As of September 2023, 23 out of the 910 hedge funds polled by Insider Monkey had invested in Alamos Gold Inc. (NYSE:AGI). Jean-Marie Eveillard’s First Eagle Investment Management was the firm’s biggest shareholder as it owned $107 million worth of shares.
Wheaton Precious Metals Corp. (NYSE:WPM) is a Canadian multinational company focused on precious metals streaming. The company plays a key role in the production of over 26 million ounces and the sale of more than 29 million ounces of silver, sourced as a by-product from the main operations of other mining companies.
On December 6, Canaccord analyst Carey MacRury maintained a Buy rating on Wheaton Precious Metals Corp. (NYSE:WPM) stock and raised the price target to C$74 from C$67.
At the end of the third quarter of 2023, 24 hedge funds in the database of Insider Monkey held stakes worth $488 million in Wheaton Precious Metals Corp. (NYSE:WPM), compared to 24 in the previous quarter worth $534 million.
BHP Group Limited (NYSE:BHP) is a prominent global metals and mining company, operating across Asia, Oceania, North America, and various other regions. In keeping with the industry's shift towards renewables and environmentally sustainable practices, BHP Group Limited (NYSE:BHP) announced plans for a new battery energy facility for its Australian mines in November 2023.
Insider Monkey examined the shareholdings of 910 hedge funds during the September quarter of this year, revealing that 25 held a stake in the company. Among these, Fisher Asset Management, led by Ken Fisher, stands out as the largest investor in BHP Group Limited (NYSE:BHP), owning 19.3 million shares valued at $1 billion.
Rio Tinto Group (NYSE:RIO) is recognized as one of the largest diversified mining companies worldwide, committed to the exploration, mining, and processing of a wide array of mineral resources. The company's expansive portfolio encompasses minerals such as lithium, aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, and molybdenum.
In the September quarter of 2023, among the 910 hedge funds monitored by Insider Monkey, 27 initiated positions in the company's shares. Fisher Asset Management, under the leadership of Ken Fisher, emerged as the largest hedge fund investor in Rio Tinto Group (NYSE:RIO) with a significant stake valued at $990 million.
Kinross Gold Corporation (NYSE:KGC) is a Canadian gold and silver mining company that was established in 1993, with its headquarters located in Toronto, Ontario, Canada. Presently, Kinross operates six active gold mines. Notably, the company has demonstrated strong financial performance in recent times, surpassing analyst EPS estimates in all four of its latest quarters.
29 out of the 910 hedge funds part of Insider Monkey’s Q3 2023 database had invested in Kinross Gold Corporation (NYSE:KGC). Jim Simons’ Renaissance Technologies was the firm’s biggest shareholder as it owned $128 million worth of shares.
Headquartered in Rio de Janeiro, Brazil, Vale S.A. (NYSE:VALE) and its subsidiaries are actively involved in the production and sale of iron ore and iron ore pellets, serving as essential raw materials for steelmaking, both within Brazil and in the global market. The company operates through two segments: Iron Solutions and Energy Transition Materials.
In the third quarter of 2023, Vale S.A. (NYSE:VALE) reported a 7% year-over-year increase in net operating revenues, totaling $10.62 billion. The company's adjusted EBIT from continuing operations demonstrated robust growth, with a 17.5% year-over-year increase, reaching $3.40 billion. Additionally, the adjusted EBITDA from continuing operations experienced a significant 13.9% year-over-year rise, amounting to $4.18 billion. Vale S.A. (NYSE:VALE) also achieved a noteworthy improvement in gross profit, reaching $4.31 billion, reflecting an 18.9% increase compared to the same quarter in the prior year. Furthermore, the net income from continuing operations attributable to VALE stood at $2.84 billion.
During the third quarter of 2023, 34 out of the 910 hedge funds surveyed by Insider Monkey held a stake in the company. The largest stakeholder among these is Fisher Asset Management, led by Ken Fisher, with ownership of shares valued at $242.96 million.
Barrick Gold Corporation (NYSE:GOLD), based in Toronto, Ontario, Canada, is a mining company specializing in the production of gold and copper, operating across 16 sites in 13 countries. During the third quarter of 2023, the company recorded net earnings of $368 million, accompanied by a rise in gold production to 32.4 tons, compared to 31.5 tons in Q3 2022. Notably, Barrick Gold Corporation (NYSE:GOLD) also completed the acquisition of 7 million warrants to acquire additional shares in Hercules Silver Corp. (TSXV:BIG) on November 10, 2023, for an approximate sum of $4.76 million.
According to Insider Monkey’s database, the hedge fund sentiment was positive toward Barrick Gold Corporation (NYSE:GOLD)’s stock. In the third quarter, the number of hedge funds bullish on the stock was 36, up from 32 in the previous quarter. Ken Griffin’s Citadel Investment Group was among the top stakeholders in the company.
Barrick Gold Corporation (NYSE:GOLD) joins the ranks of Freeport-McMoRan Inc. (NYSE:FCX), Teck Resources Limited (NYSE:TECK), and Agnico Eagle Mines Limited (NYSE:AEM) as one of the best mining stocks to invest in.
