3 of the Best Mining Stocks in Q4 2020
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3 of the Best Mining Stocks in Q4 2020

These three mining stocks show positive signals, as the industry is returning to normalcy.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Discovering the best mining stocks is no simple task. The performance of the market going into the last quarter is middling on the whole. It could take a few more quarters for normalcy to return, that is certain. The upside of this is that many stocks could be below their true value. In other words, investors still have an opportunity to make some gains.

Top Mining Stocks in Late 2020

This applies to mining companies as well, which are slowly picking up their operations. There might be a lot of potential here — not just in the stalwarts, but newer high growth companies. Despite a negative impact on the environment, the mining industry is not going away. Fortunately, new regulations have made the sector a great fit for impact investing.

The following is our list of mining stocks with serious potential in the last quarter of 2020.

1. Barrick Gold Corporation (NASDAQ:GOLD)

Image courtesy of Nasdaq.

Barrick Gold is a well-known mining company that deals with gold and copper. The company operates in 13 countries through 16 mining sites, with its headquarters in Canada.

It was the world’s largest gold mining company until 2019. Production has been good despite the effects of the pandemic. The estimates are between 4.6 to 5 million ounces of gold in 2020. For copper, it’s between 440 and 500 million pounds.

Barrick Gold stated in May that production for the most part is not affected this year. This might be a good sign for investors — preliminary production numbers in both Q2 and Q3 2020 indicate this. Q4 and beyond is assumed to be even better as a result of reopened operations.

  • Third-quarter preliminary gold production was marginally higher than the second quarter of 2020.
  • The company is on track to achieve full-year production guidance.
  • A 10.8% drop in Q3 gold production is expected as their mine in Papua New Guinea remained shut down.
  • Q3 2020 results will be released on November 5.

2. Rio Tinto (NASDAQ:RIO)

Image courtesy of Nasdaq.

Rio Tinto is the world’s second-largest metals and mining company, and produces iron ore, copper, diamonds, gold, and uranium. It is listed on the New York Stock Exchange, the London Stock Exchange, and the Australian Securities Exchange. It also has operations in refining.

The company has been under the scanner for some of its operations. The destruction at Juukan Gorge resulted in CEO Jean-Sébastien Jacques and two other executives resigning. However, in terms of business, the company has been faring well, with operating margin largely growing over time.

  • Q2 2020 results showcased strong performance by the company, with iron ore and bauxite mining numbers particularly good.
  • The company’s new Oyu Tolgoi mine design is on track for production between October 2022 and June 2023.
  • Q3 2020’s results also indicated resistance against the pandemic’s effects; bauxite production was reported to be 14.5 million tonnes, 5% higher than during the same period last year.

3. Lithium Americas Corp. (NASDAQ:LAC)

Image courtesy of Nasdaq.

Lithium Americas is a company with a much shorter history than others of its kind. The development-stage company mines Lithium, a resource that is becoming increasingly valuable. The advent of electric-powered vehicles has pushed the demand for it.

Analysts have projected Lithium’s growth to be 20% per year for the entire upcoming decade. Electric vehicles, the stocks of which are also growing, are surging with mass manufacturing and favorable government policy. This, and the growth potential of Lithium Americas, puts it in a good position going forward.

  • The second-quarter earnings reports for 2020 shows that the company has $50 million in cash.
  • The company has made “significant progress” on its liming plant, SX plant, civil construction, and solar evaporation ponds.
  • It has also received regulatory approval from Chinese authorities as a part of a $174 million strategic investment.
  • The third-quarter earnings report is slated for release on November 10.

Final Thoughts

While mining companies have had a faltering first half of the year, the prospects are now much better. Most operations are swinging back into action, and quarterly reports corroborate the same.

As is the case with some other industries, the fundamental analysis of these stocks herald growth. This situation could offer valuable opportunities for investors seeking bargain prices.

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What do you think of the stocks listed? Are mining companies a good buy? Let us know what you think in the comments below.

Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.

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