Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Compass Minerals International, Inc. (CMP), Southern Copper Corp (SCCO), Materion Corp (MTRN): Top 3 Mining Companies

Page 1 of 2

Investing in mining stocks makes me uneasy. This is because there are so many exploration expenses to pay even before these companies know whether they have made a bountiful claim. But sometimes a sector is too alluring to ignore. As demand for high end products increases in the developing world, mining stocks have huge potential to profit. I recommend well-established mid- and small-cap firms that don’t place all their chips on one mineral claim.

Compass Minerals International, Inc. (NYSE:CMP) looks to be the stock to purchase in the mining sector. The company has increased its revenue over each of the last four quarters, from $179 million in the second quarter of 2012 to $384 million in the first quarter of 2013. That represents more than a 100% increase and is a sign that operations are expanding for the company. The general opinion of this stock has been weak, with Morningstar indicating a hold. However, the company is continuing to beat expectations, and that means the stock is likely undervalued.

While the revenue is increasing at a staggering pace, the company also has a stake in agriculture, which is an industry set to experience increased growth as the world food shortage worsens. Compass Minerals International, Inc. (NYSE:CMP) is heavily weighted in the potash fertilizer sector, and as crop production increases due to global food demand, there will be a greater need for potash.

Southern Copper Corp (NYSE:SCCO)

Southern Copper Corp (NYSE:SCCO) is the company to purchase if you are looking for some of the best profit margins in the business. Not only has the company nearly doubled its revenue in the last four years, it also has a nearly 30% profit margin on a consistent basis. While revenue fell slightly from 2011 to 2012 (from $6.8 billion to $6.7 billion), the company has still reached a new level: in 2009 Southern Copper Corp (NYSE:SCCO)’s revenue was over $3.7 billion, and that increased to nearly $6.7 billion last year.

The company is one of the world’s largest mining firms, and processes minerals such as copper, zinc, lead, molybdenum, silver and coal. Investing in copper via such a large player in the industry is a safe way to get in on the metal. With China’s economy recovering, there should be an increase in copper demand.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!