In this article, we discuss 11 best mineral stocks to buy now.
As the global economy rebounded from the COVID-19 pandemic in the second half of 2020, the metals and mining sector was a beneficiary of the rising prices. Demand for most metals heightened as pent-up consumer spending came into play, and government efforts to stimulate the economy and the global energy transition also helped the metals and mining industry. Although S&P Global expects metals prices to slip slightly in 2022 from their record highs, medium-term supply shortages are making way for historically above-average prices through 2025. These elevated prices will be supported by accelerated demand for materials used in the energy transition worldwide.
The global mining market is forecasted to grow from $1843.33 billion in 2021 to $2064.72 billion in 2022, representing a compound annual growth rate (CAGR) of 12.0%. The mining market is expected to reach $3358.82 billion by 2026 at a CAGR of 12.9%. The mining market comprises minerals, precious metals, and materials such as sand, gravel, coal, and stone. Asia Pacific was the largest region in the mining market in 2021, followed by North America.
Remote operations and commissioning, health and safety, collaboration, and decarbonization are the key trends to watch in the mining and minerals space in the future. The industry is also relying on the latest technology including artificial intelligence, the internet of things, and data analytics to advance visualization of the production cycle, optimize throughput, lower downtime, and reduce carbon footprint. Some of the best mineral stocks to buy now include Freeport-McMoRan Inc. (NYSE:FCX), Newmont Corporation (NYSE:NEM), and Wheaton Precious Metals Corp. (NYSE:WPM).
Our Methodology
We selected the following mineral stocks based on growth fundamentals, positive analyst coverage, and strong hedge fund sentiment as of June 2022. We have arranged the list according to the number of hedge fund holders in each firm, tracked by Insider Monkey as of the second quarter of 2022.
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Best Mineral Stocks To Buy Now
11. Ivanhoe Electric Inc. (NYSE:IE)
Number of Hedge Fund Holders: 12
Ivanhoe Electric Inc. (NYSE:IE) was incorporated in 2020 and is based in Vancouver, Canada. It is a mineral exploration and development company, operating through Critical Metals, Technology, and Energy Storage segments. Ivanhoe Electric Inc. develops copper, gold, and silver projects.
Raymond James analyst Farooq Hamed on September 29 initiated coverage of Ivanhoe Electric Inc. with an Outperform rating and a $12 price target. The company represents a unique portfolio among copper explorers and developers in the U.S. with proprietary exploration technology that could allow for improved target generation and make exploration drilling more cost-effective, the analyst told investors in a research note. These assets benefit from operating under the “Ivanhoe” brand with Chairman and CEO Robert Friedland, given his track record of discovering and developing substantial mineral deposits and his ability to finance these projects, the analyst added.
According to Insider Monkey’s data, 12 hedge funds were long Ivanhoe Electric Inc. at the end of the second quarter of 2022, with combined stakes worth $54.4 million.
In addition to Freeport-McMoRan Inc., Newmont Corporation, and Wheaton Precious Metals Corp., Ivanhoe Electric Inc. is one of the best mineral stocks to monitor.
10. Eldorado Gold Corporation (NYSE:EGO)
Number of Hedge Fund Holders: 13
Eldorado Gold Corporation (NYSE:EGO) is a Canadian firm specializing in the mining, exploration, and sale of mineral products in Turkey, Canada, Greece, and Romania. The company produces gold, silver, lead, and zinc. On October 12, Eldorado Gold Corporation announced Q3 2022 preliminary gold production of 118,790 ounces, and year-to-date preliminary gold production of 325,461 ounces. The company remains on track to achieve the low end of its full-year guidance for 2022 of 460,000 ounces, as operating trends improve and sequential quarterly advancements in production materialize. Eldorado Gold Corporation is one of the best mineral stocks to invest in.
On October 31, investment advisory Canaccord maintained a Buy recommendation on Eldorado Gold Corporation but lowered the firm’s price target on the stock to C$10.50 from C$11. Analyst Carey MacRury issued the ratings update.
Among the hedge funds tracked by Insider Monkey, 13 funds reported owning stakes worth $76.3 million in Eldorado Gold Corporation at the end of Q2 2022, compared to 17 funds in the prior quarter worth $144.7 million. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 5.85 million shares valued at $37.3 million.
9. NovaGold Resources Inc. (NYSE:NG)
Number of Hedge Fund Holders: 15
NovaGold Resources Inc. (NYSE:NG) is based in Vancouver, Canada, and the company explores for and develops gold mineral properties in the United States. In its Q3 earnings report, NovaGold Resources Inc. disclosed a robust cash position of $132 million as of August 31, with additional funds of $25 million due in July 2023 from Newmont Corporation, which should be enough to finance the Donlin Gold project. NovaGold Resources Inc. is one of the top mineral stocks to consider.
On October 25, B. Riley analyst Lucas Pipes reiterated a Buy rating on NovaGold Resources Inc. but lowered the price target on the shares to $10 from $28. The analyst revised his price deck for silver and gold, and said the dollar strength and rampant rates continue to serve as short to medium-term headwinds for precious metals.
According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on NovaGold Resources Inc., compared to 18 funds in the last quarter. John Paulson’s Paulson & Co is the largest stakeholder of the company, with 22.2 million shares worth nearly $107 million.
8. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Holders: 15
SSR Mining Inc. (NASDAQ:SSRM) is a Colorado-based company specializing in the acquisition, exploration, and development of precious metal properties in Turkey and the Americas. The company explores for gold, silver, copper, lead, and zinc deposits. On October 24, SSR Mining Inc. announced that it will acquire an additional 30% ownership interest in the Kartaltepe Mining joint venture at the Ҫӧpler District in Turkey from its partner Lidya Mining for $150 million in cash. This will increase its ownership stake in the Ҫӧpler District to 80%. SSR Mining Inc. is one of the premier mineral stocks to buy now.
On October 24, Scotiabank analyst Ovais Habib reiterated an Outperform rating on SSR Mining Inc. but trimmed the firm’s price target on the shares to C$30 from C$33.50.
According to Insider Monkey’s records, 15 hedge funds were long SSR Mining Inc. at the end of the second quarter of 2022, compared to 21 funds in the prior quarter. The collective stakes held by elite funds in Q2 stood at $206 million, compared to $262.3 million in Q1 2022.
Here is what Palm Valley Capital Management has to say about SSR Mining Inc. in its Q3 2022 investor letter:
“We also purchased SSR Mining during the quarter. SSR Mining is a precious metals mining company that we previously sold in November 2021 after it reached our valuation. SSR Mining’s stock has fallen significantly this year due to lower precious metal prices and the temporary closure of its Copler mine. We repurchased its shares in late September after the Copler mine restarted on schedule, since the stock remained depressed. SSR Mining should generate significant free cash flow at current gold and silver prices and has a very strong balance sheet with over $600 million in net cash and $4.1 billion in stockholders’ equity. While we expect the stock to remain volatile, we believe the company is selling at an attractive price relative to its asset-heavy balance sheet and our net asset valuation.”
7. Southern Copper Corporation (NYSE:SCCO)
Number of Hedge Fund Holders: 17
Next on our list of the best mineral stocks is Southern Copper Corporation (NYSE:SCCO), an Arizona-based company engaged in mining, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. Southern Copper Corporation’s Q3 2022 earnings per share of $0.67 outperformed Wall Street consensus by $0.12. It is one of the premier mineral stocks to monitor.
On October 5, Deutsche Bank analyst Abhi Agarwal maintained a Hold rating on Southern Copper Corporation and lowered the price target on the stock to $45 from $47. The analyst trimmed target prices and earnings estimates in metals and mining to reflect weakening demand and macro risks. While the analyst sees downside risk in the short term, he said a “lot of bad news has already been thrown at markets”, with metals equities “already pricing in a mild recession.”
According to Insider Monkey’s data, 17 hedge funds reported owning stakes worth $274.8 million in Southern Copper Corporation at the end of June 2022, compared to 16 funds in the prior quarter worth $406 million. Ken Fisher’s Fisher Asset Management featured as the biggest position holder in the company, with 3.6 million shares valued at $178.3 million.
6. Osisko Gold Royalties Ltd (NYSE:OR)
Number of Hedge Fund Holders: 17
Osisko Gold Royalties Ltd (NYSE:OR) is headquartered in Montreal, Canada, and the company acquires and manages precious metal royalties, streams, and other interests in Canada and internationally. It is also involved in the exploration, evaluation, and development of mining projects, primarily exploring for gold, silver, and diamonds. The company earned 23,850 attributable gold equivalent ounces in Q3 2022, which was a new record since its inception in 2014. The quarterly cash margin of C$49.3 million or 92% also set an all-time high record.
On October 13, National Bank analyst Shane Nagle raised the price target on Osisko Gold Royalties Ltd to C$22 from C$20 and kept an Outperform rating on the shares.
Among the hedge funds tracked by Insider Monkey, Osisko Gold Royalties Ltd was part of 17 public stock portfolios at the end of June 2022, with combined stakes exceeding $190 million. Israel Englander’s Millennium Management is the leading position holder in the company, with 8 million shares worth $80.8 million.
Like Freeport-McMoRan Inc., Newmont Corporation, and Wheaton Precious Metals Corp., Osisko Gold Royalties Ltd is one of the best mineral stocks to monitor.
Here is what Palm Valley Capital Management has to say about Osisko Gold Royalties Ltd in its Q2 2021 investor letter:
“The top contributors to the Fund’s second quarter returns (includes) Osisko Gold Royalties (ticker: OR). Osisko’s partner mines are performing well, and the stock has benefited from several positive developments since the end of last year, including: the spinoff of the Cariboo development project into an independent publicly-traded company, Agnico Eagle/Yamana’s decision to proceed with underground development of Canadian Malartic (Osisko’s largest royalty), and a significant rebound in diamond prices, which brings Osisko’s Renard stream nearer to long-term viability.”
5. Alamos Gold Inc. (NYSE:AGI)
Number of Hedge Fund Holders: 19
Alamos Gold Inc. (NYSE:AGI) is a Toronto-based multinational gold producer. The company owns and operates three mines, including the Young-Davidson Mine and the Island Gold Mine in Ontario, and the Mulatos Mine in Sonora, Mexico. On October 26, the company reported a Q3 non-GAAP EPS of $0.07, in line with market consensus. The revenue came in at $213.6 million, up 7.9% year-over-year, beating Wall Street estimates by $2.8 million. The company reported that the third quarter of 2022 marked the highest production in nearly two years. Alamos Gold Inc. is one of the best mineral stocks to invest in.
On October 13, National Bank analyst Mark Parkin raised the price target on Alamos Gold Inc. to C$13 from C$12.50 and maintained an Outperform rating on the shares.
According to Insider Monkey’s data, 19 hedge funds were bullish on Alamos Gold Inc. at the end of June 2022, compared to 21 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading position holder in the company, with nearly 12 million shares worth $83.5 million.
4. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. is a Canadian streaming company with interests in precious metals such as gold, silver, palladium, and cobalt. The company’s business model, paired with a fortress balance sheet and a strong liquidity position, provides protection from heightening operating costs within the precious metals sector. It is one of the best mineral stocks to invest in.
On October 19, investment advisory Stifel maintained a Buy rating on Wheaton Precious Metals Corp. but lowered the firm’s price target on the shares to C$64 from C$66.50. Analyst Ingrid Rico issued the ratings update.
Among the hedge funds tracked by Insider Monkey, 27 hedge funds were bullish on Wheaton Precious Metals Corp. at the end of June 2022, compared to 28 funds in the earlier quarter. Murray Stahl’s Horizon Asset Management is a prominent stakeholder of the company, with 3.4 million shares worth $123 million.
3. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 31
Agnico Eagle Mines Limited (NYSE:AEM) is headquartered in Toronto, Canada, and the company is engaged in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. The company primarily deals in gold, silver, zinc, and copper. On October 26, Agnico Eagle Mines Limited declared a quarterly dividend of $0.40 per share, in line with previous. The dividend is payable on December 15, to shareholders of record on December 1. The company’s dividend yield on November 1 came in at 3.50%.
On October 17, Barclays analyst Matthew Murphy raised the price target on Agnico Eagle Mines Limited to $63 from $62 and kept an Overweight rating on the shares. The analyst prefers gold equities over base metal equities as global growth softens.
According to Insider Monkey’s data, 31 hedge funds were long Agnico Eagle Mines Limited at the end of June 2022, compared to 38 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading position holder in the company, with 17.5 million shares worth $798.5 million.
2. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 56
Newmont Corporation is headquartered in Denver, Colorado, and the company engages in the production and exploration of gold, copper, silver, zinc, and lead. The company has operations and assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.
On October 27, Newmont Corporation declared a quarterly dividend of $0.55 per share. The dividend is payable on December 29, to shareholders of record on December 8. Since the inception of its dividend policy, the company has returned approximately $4 billion to shareholders. Newmont Corporation is one of the premier mineral stocks to buy now.
National Bank analyst Mike Parkin on October 13 raised the price target on Newmont Corporation to C$80 from C$79 and kept an Outperform rating on the shares.
According to Insider Monkey’s data, 56 hedge funds were bullish on Newmont Corporation at the end of June 2022, compared to 53 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 34.8 million shares worth over $2 billion.
Here is what First Eagle Investments Global Fund has to say about Newmont Corporation in its Q2 2022 investor letter:
“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.
It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 56
Freeport-McMoRan Inc. is an Arizona-based company engaged in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals. It is one of the best mineral stocks to consider. The company distributed a $0.15 per share quarterly dividend to shareholders on November 1.
On October 5, Deutsche Bank analyst Abhi Agarwal maintained a Hold rating on Freeport-McMoRan Inc. but lowered the price target on the shares to $30 from $35. When the global cycle recovers, the market will experience tight inventories and prices could once again shoot up to attractive levels, the analyst told investors in a research note.
According to Insider Monkey’s data, 56 hedge funds were bullish on Freeport-McMoRan Inc. at the end of June 2022, compared to 68 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 52 million shares worth $1.5 billion.
Here is what Carillon Tower Advisers specifically said about Freeport-McMoRan Inc. in its Q2 2022 investor letter:
“Mining company Freeport-McMoRan Inc. fell with the price of copper as emerging market credit and rate hike jitters weighed on metal prices. Copper is projected to be in very short supply into the end of the decade due to a scarcity of new mines being developed and the increasing use of renewable energy, but economic recession fears, a slowdown in construction in China, and a slowing housing market in the United States dented the stock price.”
You can also take a look at 11 Best Healthcare Dividend Stocks To Buy and 10 Best Utility Dividend Stocks To Buy.
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This article is originally published at Insider Monkey.
