Best Dividend Paying Mining Metal Stocks

SPECIAL FOCUS

VALE CEO: EDUARDO BARTOLOMEO RIO TINTO CEO: JAKOB STAUSHOLM SIBANYE-STILLWATER CEO: NEAL JOHN FRONEMAN

VALE S.A. IS A BRAZILIAN MULTINATIONAL CORPORATION ENGAGED IN METALS AND MINING AND ONE OF THE LARGEST LOGISTICS OPERATORS IN BRAZIL. VALE, FORMERLY COMPANHIA VALE DO RIO DOCE, IS THE LARGEST PRODUCER OF IRON ORE AND NICKEL IN THE WORLD RIO TINTO GROUP IS AN ANGLO-AUSTRALIAN MULTINATIONAL COMPANY THAT IS THE WORLD'S SECOND-LARGEST METALS AND MINING CORPORATION. THE COMPANY WAS FOUNDED IN 1873 WHEN OF A GROUP OF INVESTORS PURCHASED A MINE COMPLEX ON THE RIO TINTO, IN HUELVA, SPAIN. SIBANYE-STILLWATER IS A MULTINATIONAL PRECIOUS METALS MINING COMPANY, REVEALING A DIVERSE PORTFOLIO OF PLATINUM GROUP METALS IN SOUTH AFRICA AND THE UNITED STATES, GOLD AND BASE METALS OPERATIONS AND VARIOUS MINING PROJECTS IN SOUTH AFRICA AND THE AMERICAS.

BEST DIVIDEND PAYING MINING METAL STOCKS

We were interested in finding out which miners paid the greatest payouts. We discovered five companies that provide a dividend yield of over 6%.

BHP CHAIRPERSON: KEN MACKENZIE SOUTHERN COPPER CEO: OSCAR GONZALEZ ROCHA DIVIDEND YIELD VALE 13.61 %

RIO TINTO 11.15%

SIBANYESTILLWATER 9.22%

BHP 10.39%

SOUTHERN COPPER 6.43%

BHP (BHP BILLITON) IS AN AUSTRALIAN-BRITISH MULTINATIONAL MINING, METALS AND PETROLEUM PUBLIC COMPANY THAT IS HEADQUARTERED IN AUSTRALIA. THE BROKEN HILL PROPRIETARY COMPANY WAS FOUNDED ON 16 JULY 1885. BY 2017, BHP WAS THE WORLD'S LARGEST MINING COMPANY. SOUTHERN COPPER CORPORATION IS A MINING COMPANY THAT WAS FOUNDED IN 1952. THE CURRENT INCARNATION OF SOUTHERN COPPER CAN BE TRACED TO THE 2005 ACQUISITION OF SOUTHERN PERU COPPER CORPORATION BY THE MEXICAN COPPER PRODUCER MINERA MÉXICO.

One may argue that lithium is the most valuable metal currently being mined. Lithium's commodity price has climbed by about 400 percent in the last year, while gold's price has only increased by 4.3 percent. The value of four of the world's largest lithium miners soared by over 315 percent, with shares of four of the top companies rising by roughly 47 percent. However, none of these miners pay a dividend. Over half of gold mining businesses, three out of four copper miners, and three out of seven silver miners pay a dividend. Other industrial metals miners, such as aluminum and iron ore, frequently pay dividends.

SPECIAL FOCUS

Vale

Vale S.A. (NYSE: VALE) of Brazil produced more iron ore than any other firm in the world in 2020, with 300 million metric tons (tons). Brazil is second only to Australia in terms of iron ore reserves, a vital component of steel production. This year, Vale plans to produce 400 million tons of iron ore.

Rio Tinto made a bid to buy 49 percent of Turquoise Hill Resources' Mongolian copper and gold mine for $2.7 billion.

Turquoise Hill's copper production declined 33% year over year and 22% sequentially in the March quarter, while gold production dropped 60% year over year and 25% consecutively. Copper production is expected to be between 110,000 and 150,000 tons in fiscal 2022, with gold production between 115,000 and 165,000 ounces.

Rio Tinto has an 11.15 percent dividend yield and a daily trading volume of roughly 4.5 million shares. The mining behemoth's payout ratio is around 52 percent, with $17.96 billion in free cash flow over the last four quarters.

Vale's stock has declined roughly 8.6% in the last year, after a year-to-date increase of more than 18%. For every quarter of the last four quarters, the company has failed analysts' revenue projections while beating earnings estimates in the last two. This isn't a really impressive track record.

The business said in April that it would repurchase up to 500 million shares (about 10% of outstanding shares) in the coming 18 months, a program valued at $8.3 billion at the time. Even coronavirus-related lockdowns in China are unlikely to have a substantial impact on the company's performance this year, given a 33 percent increase in production and an estimated price hike owing to the Russian invasion of Ukraine.

Then there's Vale's 13.61 percent dividend yield, which is paid in semi-annual payments. For the past ten days, daily trading volume has averaged roughly 43.3 million shares, with a payout ratio of nearly 61 percent. For the previous 12 months, free cash flow was $17.72 billion.

Rio Tinto Group

(NYSE: RIO) is a global mining company that produces aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium. Rio Tinto is the world's second-largest iron ore miner, with most of its production coming from its Australian mines.

It has a high-grade lithium development project in Serbia that has had its licenses canceled by the government, but the business is optimistic that it will overcome obstacles. Copper mines are also owned and operated by firms in Mongolia, Utah, and Arizona.

Rio reported reduced iron ore shipments both sequentially and year over year in its March quarter operational assessment. Copper exports decreased 5% sequentially but up 4% year over year. In March,

Sibanye Stillwater Ltd.

(NYSE: SBSW) is a South African company that mines precious metals, notably gold and platinum group metals (PGM), in South Africa, Zimbabwe, Canada, Argentina, and Montana. Miners striking for a $12.62 monthly salary hike have been targeting the company's South African gold facilities since March. The three mines affected by the strikes employ approximately 30,000 people. Negotiations are still underway, with a meeting set for Thursday.

The value of four of the world's largest lithium miners soared by over 315 percent, with shares of four of the top companies rising by roughly 47 percent.

Sibanye Stillwater operates the United States' only platinum mine and platinum recycling facility in Montana. In a year, gold prices have dropped around 4%, while platinum prices have dropped nearly 22%.

Gold production has dropped by roughly half sequentially and year over year, according to the company's March-quarter operations statement. Although the average gold price increased by around 5.5 percent, all-in sustaining costs increased by over 50 percent.

PGM production fell by roughly 4% sequentially and by more than 20% yearly. PGM basket prices were down nearly 17% on average year over year, with all-in costs practically steady. The dividend yield of Sibanye Stillwater is 9.22%.

Its payout ratio is around 55 percent, and its daily trading volume is around 3.8 million shares. The company generated $2.36 billion in free cash flow during the last 12 months.

SPECIAL FOCUS

BHP Group Ltd.

(NYSE: BHP) BHP Group is the world's third-largest iron ore miner, as well as one of the world's top copper and coal producers. In the March quarter, BHP produced 370,000 tons of copper and 60 million metric tons of iron ore.

Copper production increased by 1%, but iron ore production decreased by 10%. BHP's metallurgical coal production increased by 20% to 20.6 million tons, while thermal coal production increased by 13% to 2.6 million tons. BHP's petroleum business sale to Woodside Petroleum of Australia is expected to close on June 1. The deal marks the end of BHP's oil and gas extraction operations. Copper production is expected to dip between 1.57 million and 1.62 million tons in the fiscal year 2022 (which ends in June). 249 million to 259 million tons of iron ore are expected to be produced.

BHP has a dividend yield of 10.39 percent and a payout ratio of approximately 90 percent. On a typical day, about 4.7 million shares are traded. BHP has had a free cash flow of $24.1 billion during the last year.

Copper from the South

Copper and molybdenum are mined by Southern Copper Corp. (NYSE: SCCO) in Peru, Mexico, Argentina, Ecuador, and Chile. It ranks fifth in the world, behind Chile's Codelco, BHP, FreeportMcMoRan, and Glencore. The company generated more than 1 million tons of copper in 2020.

Southern sold approximately 208 million tons of copper in the first quarter of this year, down 13.4% yearly. Silver sales fell 16.8% year on year to 4.4 million ounces.

Copper sold for an average of $4.54 per pound (up 17.6% year over year), while silver sold for an average of $24.05 per ounce (down 8.5 percent year over year).

Southern has a 6.43 percent dividend yield and a payout ratio of 72.8 percent. Shares are traded infrequently, with an average of 1.1 million changing hands every day. The corporation generated $3.47 billion in free cash flow over the last four quarters.

We thrive on challenges

golder.com

ADVERTISING INDEX

Azcon ........................................... 45 Barr Engineering........................... 13 CR Meyer ...................................... 17 FloLevel Technologies ................. 21 Fryberger....................................... 13 General Equipment Supplies ....... 05 Global Minerals Engineering ....... 45 Golder Associates........................ 45 Halcor ........................................... 09 Lake Superior Chapter ISEE......... 45 Malton Electric Company ............ 45 ME Elecmetal ............................... 07 Minnesota Power ......................... 15 Mielke Electric Works .................. 15 Naylor Pipe ................................... 48 Neo Solutions............................... 37 Northern Engine & Supply............ 45 Optiro ............................................ 02 SEH ............................................... 29 TDS6 ............................................. 19