Below we presented the list of 5 Best Mining Stocks to Buy Now. For our detailed discussion and a more comprehensive list please see 12 Best Mining Stocks to Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best mining stocks to buy:
5. Reliance Steel and Aluminum Co. (NYSE:RS)
No of HFs: 30
Total Value of HF Holdings: $267 Million
The metal solutions provider, RS is the 5th best mining stock to buy now. RS shares currently trade at $124. At the end of September, a total of 30 hedge funds tracked by Insider Monkey were long this stock. One of the biggest hedge funds saving stakes in the company is Royce and Associates which had $52 million invested in the stock at the end of September. They recently entered into an amended and restated $1.5 billion credit facility. The facility includes an increase option for up to an additional $1.0 billion and allows for prepayments.
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4. Royal Gold, Inc. (NASDAQ:RGLD)
No of HFs: 30
Total Value of HF Holdings: $352 Million
RGLD was mentioned as one of the 20 Best Gold Stocks to Buy Now According to Billionaire Hedge Fund and is ranked as the 4th best mining stock to buy now. One of the biggest hedge funds saving stakes in the company is Jean-Marie Eveillard’s First Eagle Investment Management which had $303 million invested in the stock at the end of September. During the third quarter of 2020, the company reported a net income of $38.6 million or $0.59 per share.
3. Alcoa Corporation (NYSE:AA)
No of HFs: 33
Total Value of HF Holdings: $415 Million
AA is the 3rd best mining stock to buy now. One of the biggest hedge funds saving stakes in the company is Ken Fisher’s Fisher Asset Management which had $77 million invested in the stock at the end of September. An insider purchased 400 shares at around $17 in January 2021. The stock is up 23% since then. AA was mentioned as one of the 10 Biggest Companies That Were Dropped From the Dow Jones Industrial Average (DJIA). The company conducts operations in 10 countries.
2. Newmont Corporation (NYSE:NEM)
No of HFs: 55
Total Value of HF Holdings: $1.95 Billion
The Colorado-based mining company has the largest gold reserve base in the industry. NEM shares currently trade at $60. One of the biggest hedge funds saving stakes in the company is Jean-Marie Eveillard’s First Eagle Investment Management which had $1.23 billion invested in the stock at the end of September. First Eagle Investment Management mentioned NEM in its Q2 2020 investor letter:
“Given what we view as a high-quality management team and robust balance sheet, Colorado’s Newmont is a prime example of a miner that was prepared to meet the challenges of Covid19. With rigorous protocols already in place, the company has been proactive in managing its mines to protect local communities and infrastructure while at the same time mitigating the pandemic’s impact on its business. In contrast with broad market trends that have companies cutting or suspending dividend payments, Newmont recently increased its quarterly dividend by 79%.”
1. Freeport-Mcmoran, Inc. (NYSE:FCX)
No of HFs: 57
Total Value of HF Holdings: $1.57 Billion
The best mining stock to buy now is FCX. The company operates large, geographically diverse assets with significant reserves of copper, gold, cobalt, oil, and gas. FCX shares currently trade at $32. One of the biggest hedge funds saving stakes in the company is Ken Fisher’s Fisher Asset Management which had $632 million invested in the stock at the end of September. An insider recently purchased 85,000 shares at around $10 in March 2020. The stock is up 220% since then. In 2020, the company completed a sale of $650 million aggregate principal amount of its 4.375% senior notes due 2028 and $850 million aggregate principal amount of its 4.625% senior notes due 2030. During the third quarter of 2020, the company reported revenue of $3.85 billion.
Please also see 12 Best Silver Stocks To Buy Now and 14 Best Low-Risk Stocks to Buy Right Now.
