5 Best Mining Stocks That You Should Buy Now

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We are from Statanalytica, and we'll be sharing with you the best Industrial stocks that you can buy. On the other hand, you can Follow us at https://statanalytica.com/tolearnmore.

INTRODUCTION01

Ifyouarelookingforthebestminingstocks,thenyouareattherightplace.Miningstocks havebeenpopularamonginvestorsforseveralreasons.First,thedemandforraw materialsisincreasingasmoreandmorecompaniesusethemintheirmanufacturing processes.Asaresult,morenaturalmaterialsaremined.Furthermore,miningstocksoften addvalue,whichbringsattentiontomanybuy-and-holdinvestors.

Miningcompanieshaveoutperformedthebroadermarketinthelastyear.Thebenchmark

SPDRS&PMetals&MiningETF(XME),anexchange-tradedfund,hasaone-yeartrailing totalreturnof5.0%,whiletheRussell1000Indexhasareturnof-17.0%.

INTRODUCTION

FollowingRussia’sinvasionofUkraineinFebruary,thepricesofmanycommodities, includingmetals,havebeenincreasingcontinuously.Asaresult,thereisasignificantgain inminingstocks.

Herearethe5bestminingstocksyoushouldbuybefore2022.Butlet’sfirstknowwhatis miningstocks.

What Is a Mining Stock?

Aminingstockisthestockofacompanythat minesmineralssuchassilver,gold,uranium, feldspar,coal,tin,zinc,ornickel.Mining companiesextractmineralsfromtheground andrefinethemsothattheycanbeusedin industrialorcommercialapplications.Mining companieslookforareaswheretheybelieve thesemineralsmayexistandthendrillto

Miningisariskybusinessbecauseitrequiresa significantamountofworkbeforemineral depositscanbeextractedorevenidentified.It canalsobeprofitablebecauseofthehigh

1. BHP Group (NYSE:BHP)

FirstonourlistofbestminingstocksisBHPGroup (NYSE:BHP).BHPGroupisaresourcecorporation.It ownsandoperatesfullyintegratedminingresources fortheextractionandprocessingofcopper,ironore, coal,nickel,zinc,andpotash.Themarketcapitalization ofthiscompanyisabout129.65billiondollars.

Ontheotherhand,itsminingresourcesarespread acrosstheglobe.BHPGroupalsohadanoiland naturalgasbusiness,whichmergedwithWoodside Petroleum(NYSE:WDS)ina2022deal.BHPwas transformedintoapure-playminingcompanydueto themerger.

2. Barrick Gold

SecondonourlistofbestminingstocksisBarrick Gold.Barrickgoldisoneofthelargestgoldminersin theworld,whichoperatesinmanydifferentcountries.

Ontheotherhand,itisalsoaleadingproducerof copper.ThemarketcapitalizationofBarrickGoldis about26.74billiondollars.

TierOneminesproducearelativelyconsistentsupply oflow-costgoldandcopper,whichallowsBarrickto makesomeprofitevenwhenthepriceofgoldand copperislow.

3. Cleveland-Cliffs Inc. (NYSE:CLF)

Thirdonourlistofbestminingstocksis Cleveland-CliffsInc.Themarketcapitalizationofthis companyisabout7.94billiondollars.InNorth America,Cleveland-CliffsInc.isthelargestflat-rolled steelproducer.

Ontheotherhand,thecompanyisinvolvedinthe miningandpelletizingofironore.Cleveland-CliffsInc.

(NYSE:CLF)sharesfellin2022,andthestockisnow tradingatabargainlevel.Cleveland-CliffsInc. (NYSE:CLF)hasatrailingtwelve-monthPEratioof2.39 asofOctober2022.Thecompanyhasmorethan$3 billioninfreecashflows.Asaresult,thisisthebest miningstockamongotherstocks.

4. Rio Tinto

NextonourlistofbestminingstocksisRioTinto.The marketcapitalizationofRioTintoisabout145.30 BillionAustraliandollars.

RioTintoisadiversifiedminingcompany.Itisamajor producerofthethreemostimportantindustrial metals:ironore,aluminium,andcopper.RioTintoalso minesboron,salt,diamonds,andtitanium,among othermetalsandminerals.

5. Glencore plc (OTC:GLNCY)

Glencoreplc(OTC:GLNCY)isametalsandmining companythatmanufactures,refines,andprocesses copper,cobalt,nickel,zinc,aluminium,andironore, amongotherthings.Glencoreplc(OTC:GLNCY)trades atalowvaluationandpaysanincredibledividend.

AsofOctober2022,thestockhasaP/Eratioof4xand aforwarddividendyieldof4.75%.Thecompanyhas over$5billioninfreecashflowsandatrailing twelve-monthoperatingmarginof8.4%.Asaresult, Glencoreplc(OTC:GLNCY)isoneofthebestmining stockstobuynow.

Should You Invest in Mining Stocks? Is It Safe

Miningisacapital-intensiveandcyclicalindustry.

Duringperiodsofeconomicexpansion,mining companieshavemoremoneytoinvestinnewmines andexpansionprojects.Ontheotherhand,thelong leadtimesrequiredtocompleteprojectscommonly causeproblemsforminingcompanies.Projects developedduringboomtimesoftendonotcome onlineuntilthecyclechanges,whichimpactsreturns. Asaresult,theinvestorshouldfocusontopmining companieswithhigh-valuestocksandlow-cost production.

Conclusion

Thisistheendofthispostwhichisthe5 stocksyoushouldbuyin2022.Ontheotherhand,the miningindustryisoneofthegrowingfieldsinthe world.Withoutminers,thematerialsneededtobuild buildingsandpowerelectricvehiclesarenearly impossibletofindintheopenmarket.

However,aswithanyotherindustry,itiscriticalto conductresearchbeforeinvestinginthemining sector.Afterall,notwocompaniesareequally created,nordobothcompanieshavethesamemarket capitalization.