5 Best Mining Stocks That You Should Buy Now

That

Hello

INTRODUCT

1ION

If you are looking for the best mining stocks, then you are at the right place.

Mining stocks have been popular among investors for several reasons. First, the demand for raw materials is increasing as more and more companies use them in their manufacturing processes. As a result, more natural materials are mined. Furthermore, mining stocks often add value, which brings attention to many buy-and-hold investors.

Mining companies have outperformed the broader market in the last year. The benchmark SPDR S&P Metals & Mining ETF (XME), an exchange-traded fund, has a one-year trailing total return of 5.0%, while the Russell 1000 Index has a return of -17.0%.

INTRODUCT ION

Following Russia’s invasion of Ukraine in February, the prices of many commodities, including metals, have been increasing continuously. As a result, there is a significant gain in mining stocks.

Here are the 5 best mining stocks you should buy before 2022. But let’s first know what is mining stocks.

What Is a Mining Stock?

A mining stock is the stock of a company that mines minerals such as silver, gold, uranium, feldspar, coal, tin, zinc, or nickel. Mining companies extract minerals from the ground and refine them so that they can be used in industrial or commercial applications.

Mining companies look for areas where they believe these minerals may exist and then drill to extract them.

Mining is a risky business because it requires a significant amount of work before mineral deposits can be extracted or even identified. It can also be profitable because of the high demand for minerals.

1. BHP Group (NYSE:BHP)

First on our list of best mining stocks is BHP Group (NYSE:BHP). BHP Group is a resource corporation. It owns and operates fully integrated mining resources for the extraction and processing of copper, iron ore, coal, nickel, zinc, and potash. The market capitalization of this company is about 129.65 billion dollars.

On the other hand, its mining resources are spread across the globe. BHP Group also had an oil and natural gas business, which merged with Woodside Petroleum (NYSE:WDS) in a 2022 deal. BHP was transformed into a pure-play mining company due to the merger.

2. Barrick Gold

Second on our list of best mining stocks is Barrick Gold. Barrick gold is one of the largest gold miners in the world, which operates in many different countries. On the other hand, it is also a leading producer of copper. The market capitalization of Barrick Gold is about 26.74 billion dollars.

Tier One mines produce a relatively consistent supply of low-cost gold and copper, which allows Barrick to make some profit even when the price of gold and copper is low.

3. Cleveland-Cliffs Inc.

(NYSE:CLF)

Third on our list of best mining stocks is Cleveland-Cliffs Inc. The market capitalization of this company is about 7.94 billion dollars. In North America, Cleveland-Cliffs Inc. is the largest flat-rolled steel producer.

On the other hand, the company is involved in the mining and pelletizing of iron ore. Cleveland-Cliffs Inc. (NYSE:CLF) shares fell in 2022, and the stock is now trading at a bargain level. Cleveland-Cliffs Inc. (NYSE:CLF) has a trailing twelve-month PE ratio of 2.39 as of October 2022. The company has more than $3 billion in free cash flows. As a result, this is the best mining stock among other stocks.

4. Rio Tinto

Next on our list of best mining stocks is Rio Tinto. The market capitalization of Rio Tinto is about 145.30 Billion Australian dollars.

Rio Tinto is a diversified mining company. It is a major producer of the three most important industrial metals: iron ore, aluminium, and copper. Rio Tinto also mines boron, salt, diamonds, and titanium, among other metals and minerals.

5.

Glencore plc (OTC:GLNCY)

Glencore plc (OTC:GLNCY) is a metals and mining company that manufactures, refines, and processes copper, cobalt, nickel, zinc, aluminium, and iron ore, among other things.

Glencore plc (OTC:GLNCY) trades at a low valuation and pays an incredible dividend.

As of October 2022, the stock has a P/E ratio of 4x and a forward dividend yield of 4.75%. The company has over $5 billion in free cash flows and a trailing twelve-month operating margin of 8.4%. As a result, Glencore plc (OTC:GLNCY) is one of the best mining stocks to buy now.

Should You Invest in Mining Stocks? Is It Safe

Mining is a capital-intensive and cyclical industry. During periods of economic expansion, mining companies have more money to invest in new mines and expansion projects. On the other hand, the long lead times required to complete projects commonly cause problems for mining companies. Projects developed during boom times often do not come online until the cycle changes, which impacts returns. As a result, the investor should focus on top mining companies with high-value stocks and low-cost production.

Conclusion

This is the end of this post which is the 5 best mining stocks you should buy in 2022. On the other hand, the mining industry is one of the growing fields in the world. Without miners, the materials needed to build buildings and power electric vehicles are nearly impossible to find in the open market.

However, as with any other industry, it is critical to conduct research before investing in the mining sector. After all, no two companies are equally created, nor do both companies have the same market capitalization.