In 2020, the top 40 mining companies had a global combined revenue of $544 billion, and that was during a pandemic.
Now, in the second half of 2021, the industry as a whole is in the midst of a bull run that seems to be gaining momentum rather than slowing down.
According to Sheldon Inwentash, the founder and CEO of ThreeD Capital Inc., mining and metals “are a great place to grow your money right now,” and he believes the sector “is just heating up.”
Sheldon Inwentash isn’t being optimistic. Rather, he’s one of many experts who see a lot of value in mining and metals. And rightfully so. The industry, which has been doing well, will definitely benefit financially from the U.S. infrastructure bill.
When the infrastructure projects begin, metals are going to be needed — lots of them.
That’s good news for mining operations.
Omar Ayales, chief strategist and editor of Gold Charts R Us, told Forbes the infrastructure bill “keeps the buying pressure on for commodities, particularly the metals with high industrial use. We’ll continue adding to our resource portfolio if upside potential continues to develop.”
In other words, the industry is just getting started.
Of course, there are factors other than the infrastructure bill that make mining companies a good value for people who still want to invest in the sector. The bill seems to be the force behind the newest round of positive attention that mining and metals are currently receiving. If the experts are correct, it would be wise to explore mining and metals stocks before the rest of the marketplace catches on this trend.
While there are numerous investment opportunities to consider, here are four companies to keep your eyes on:
First Quantum Minerals Ltd. (CS: FQVLF)says it is“a fast-growing copper company in a world that will increasingly rely on copper to move towards a more energy efficient future.” Although 80% of the Canadian-based company’s revenue comes from copper mining operations, First Quantum also produces nickel, gold, zinc, and cobalt. The latter three are by-products from their copper and nickel extraction.
Alcoa Corporation (NYS: AA),which saw its stock rise 80% in the last six months, is one of the world’s leading producers of bauxite, alumina, and aluminum products. Headquartered in Pittsburgh, PA, Alcoa has mining operations in 10 countries. Numerous experts and organizations recommend this stock as its products stand to see a boost in demand once the U.S. infrastructure bill’s projects commence.
Auxico Resources Canada Inc. (CS: AUAG) has worldwide rights to an environmentally friendly gold and silver extraction process, thus reducing the environmental impact of the entire mining process. The proprietary leaching extraction method has people talking, especially in an industry that is getting greener, and may help launch Auxico into the stratosphere. In recent weeks, the company’s 52-week high has increased several times.
Newmont Mining (NYS: NEM)is a U.S. based fortune 500 company headquartered in Colorado. It has a market value of $49.6 billion.Although the stock has underperformed this year, it has a predicted comeback of 19.95% within the next year, which has many analysts closely watching the world’s top performing gold stock.