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.
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.
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.
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.
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.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.