We recently published a list of 10 Best Mineral Stocks to Buy Right Now. In this article, we are going to take a look at where Vale S.A. (NYSE:VALE) stands against other best mineral stocks to buy right now.
At the heart of industrial growth lies the global mineral market, as there is a strong demand for essential metals in technology, clean energy, and infrastructure. The global mineral market is projected to grow from $2,260 billion in 2024 to $2,402 billion in 2025, demonstrating a CAGR of 6.2%, according to The Business Research Company. Lithium, cobalt, and copper are leading the market with their essential roles in battery storage and electrification, while gold and silver, on the other hand, remain key assets for hedging against inflation and economic uncertainty.
The U.S. mineral market, which generated $106 billion worth of mineral production in 2024, is experiencing stable demand for industrial minerals such as crushed stone, sand, and cement, according to the U.S. Geological Survey. These industrial minerals accounted for 68% of the total production of minerals in the U.S. in 2024, while crushed stone accounted for 24% of the total production, indicating a high demand for the category. Recycling activity was also strong, with $48 billion worth of metals and minerals recycled, signaling an increasing focus on sustainability.
On the other hand, rising investor and industrial demand have pushed gold and silver prices to record highs in 2024, a year that marked a 9% increase in the United States gold production, according to the USGS.Gov. Gold prices have risen by 19.7% over the past six months, reaching $2,888.3 on February 6, 2025. Moreover, silver prices have increased by 25% in 2024 due to an increased demand for solar panels and electronics. Furthermore, continued central bank purchases and inflationary concerns mean gold and silver prices will be on an upward trend in 2025 as well.
Lithium experienced a challenging 2024, as its prices fell by 22% in 2024 due to oversupply and weakened demand, as discussed in our recent article. As production cuts are made, and the market stabilizes, analysts project lithium’s surplus decreasing from 84,000 metric tons in 2024 to 33,000 metric tons in 2025. Nevertheless, the lithium market’s long-term growth prospects are still bright and clear with analysts projecting it to grow and reach $134.02 billion by 2032 at a CAGR of 22.1%.
Similarly, cobalt, another key battery raw material, is suffering from decreasing prices due to oversupply in the market, especially from China. However, its long-term prospects are strong as the global cobalt market is projected to grow from $10.8 billion in 2023 to $24.9 billion by 2030. This potential growth is tied to increasing demand for energy storage solutions and tighter supply chain regulations.
Another key component of the mineral market is copper, which is a highly sought-after metal in the renewable energy sector. The metal’s demand is attributed to rising adoption of renewables across the globe. In the U.S., the imposition of tariffs on Chinese imports could affect copper prices in the U.S., and could also increase investment in the exploration sector.
Thus, 2025 is expected to be an eventful year for the copper market as well as the mining sector overall, according to analysts. China controls over 90% of global rare earth metals, putting the U.S. in a vulnerable state, especially as China imposes export controls on 25 metal products. Instead of relying on China, the U.S. is turning toward alternative sources like Ukraine, which has access to 22 out of 50 critical minerals identified by the U.S., including graphite, lithium, and Uranium. In exchange for offering military support, the U.S. is seeking Ukraine’s mineral deposits to strengthen the U.S. mineral supply landscape. Thus, this deal has a tremendous potential to benefit local miners in the U.S. in accelerating the growth of critical minerals like graphite and lithium in the future.
As discussed, the minerals sector is at the heart of the global economy. Thus, we must shed light on the top players in the mineral sector.
Methodology
To compile the list of the 10 Best Mineral Stocks to Buy Right Now, we used the Yahoo Finance stock screener. Using the screener we compiled a list of mineral stocks sorted by market capitalization. Next, we ranked these stocks based on the number of hedge fund holders as per Insider Monkey’s third-quarter 2024 database.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial view of a giant iron ore mine, showcasing the mineral deposits of the company’s Ferrous Minerals segment.
Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 34
Vale S.A. (NYSE:VALE) is a Brazil-based company that is engaged in the production of iron ore, iron ore pellets, nickel, and copper. The company primarily focuses on high-quality iron ore and essential metals for electrification through its Iron Solutions and Energy Transition Materials segments.
In Q4 ended December 31, 2024, Vale S.A. (NYSE:VALE)’s iron ore production declined by 4.6% year-over-year to 85 million tons. This decline resulted from the company’s shift toward higher-margin products. However, the record output of 83 million tons from the company’s S11D iron ore mine brought full-year production up to 328 million tons. This production volume was the highest for the company since 2018. Sales followed a similar pattern, with a 10% decline in the fourth quarter and a 2% increase for the full year. Copper production exceeded guidance, reaching 345,000 metric tons, up 6.6% year-over-year, while similar to iron ore, nickel output aligned with expectations at 160,000 metric tons.
In February 2025, Vale S.A. (NYSE:VALE) acquired full control of the Baovale iron ore project further solidifying its iron ore asset base. The company paid $23.4 million for a 50% stake in the Agua Limpa mine, but the transaction is pending regulatory approval from Brazil’s CADE.
With a solid iron ore asset base, Vale S.A. (NYSE:VALE) projects iron ore production of 325 to 335 million tons during 2025. Iron pellet production is forecast to range from 38 to 42 million tons, while the production outlook for copper stands between 340,000 and 370,000 metric tons. The company is also working to reduce costs through operational efficiencies. With its high-quality iron ore portfolio, focus on premium products, and cost-efficiency initiatives, Vale is set to remain one of the top players in the global mining industry.
Overall, VALE ranks 4th on our list of best mineral stocks to buy right now. While we acknowledge the potential of VALE, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VALE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.