For mining and exploration companies, 2013 has been somewhat of a brutal year. Metal miners in particular have been hit significantly this year as falling metal prices, weaker demand, and rising operational costs continue to plague the industry. Popular exchange-traded funds, like Van Eck’s Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ), and other industry giants, such as Barrick Gold Corporation (USA) (NYSE:ABX), have suffered significant losses these year; both of these securities have shed more than 45% year-to-date [for more commodity news and analysis subscribe to our free newsletter].
But outside of the metal space, there have been some bright spots in the mining world, particularly in the raw materials that not many investors pay attention to, such as diamonds and industrial minerals. Below, we highlight three mining stocks that have managed to dish out attractive returns so far in 2013:
Hi-Crush Partners LP (NYSE:HCLP), Up 51%
U.S. Silica Holdings Inc (NYSE:SLCA), Up 43%
Together with its subsidiaries, this holdings company engages in the mining and processing of commercial silica – yet another mineral that can be used as fracturing sand in oil and natural gas wells. As of February 26, 2013, U.S. Silica Holdings Inc (NYSE:SLCA) had approximately 307 million tons of proven and probable recoverable mineral reserves. The stock currently boasts a 2.10% dividend yield and earnings of $1.47 per share. In a recent report, the company stated that it expects to double EBITDA earnings by 2016, a rather compelling trajectory for investors wanting to make a play on the company.
Mountain Province Diamonds, Inc. (NYSEAMEX:MDM), Up 29%
Headquartered in Toronto, this company is involved in the discovery and development of diamond properties. Currently, the company holds a 49% interest in the Gacho Kue project, which consists of a cluster of four diamondiferous kimberlites and has probable mineral reserves of a total diamond content of 49 million carats. Thought the small-cap stock is very thinly traded, its performance in 2013 certainly warrants a closer look from investors. Year-to-date, the stock is up roughly 29% [see a Deeper Look At the World of Diamonds].
Don’t forget to subscribe to our free daily commodity investing newsletter and follow us on Twitter @CommodityHQ.
Disclosure: No positions at time of writing.
This entry was posted in Actionable Ideas, Asset Allocation, Commodity Producers, Diamonds, Energy,Natural Gas, WTI and tagged HCLP, MDM, SLCA. Bookmark the permalink.
Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.
Recommended Reading:
