Best Basic Materials Stocks

Freeport-McMoRan Inc is an international mining company. It operates geographically diverse assets with proven and probable mineral reserves of copper, gold and molybdenum. The company’s portfolio of assets includes the Grasberg minerals district in Indonesia; and mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. It derives key revenue from the sale of Copper.

Ternium SA is a flat steel producer operating in Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America. It produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers and steel processors or end-users. The company operates in two segments: Steel and Mining. In its steel segment, the company produces slabs, billets & round bars, hot-rolled coils & sheets, bars & stirrups, wire rods, steel pipes, and other products. The Mining segment sells iron ore as concentrates (fines) and pellets. The vast majority of its revenue comes from the steel segment. Its geographical segments are Mexico, the Southern region, and Brazil & Other markets.

LyondellBasell Industries NV is a petrochemical producer with operations in the U.S. and Europe. It operates in six segments: Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Advanced Polymer Solutions (APS), Refining and Technology. The company is a major producer of polyethylene, the world’s largest producer of polypropylene, and the second- largest producer of propylene oxide. Its chemicals are used in various consumer and industrial end products. Substantially, all of the company’s revenue is derived from product sales.

Founded in 1940, Air Products has grown to be a world-leading industrial gases company and leading supplier of liquefied natural gas process equipment and technology. With operations in 50 countries and more than 17,000 employees, the company serves over 30 industries including metals, chemicals, refining, manufacturing, electronics and food and beverage. It runs over 750 production facilities and approximately 1,800 miles of industrial gas pipeline.

Air Products ended fiscal 2019 with $8.9 billion in sales — the U.S. and Canada accounted for 41% — and a net income of $1.9 billion. It also reported $7.94 diluted earnings per share, an increase from $6.59 in 2018.

Newmont is the world’s dominant gold company, producer of silver, copper, lead and zinc and the only gold producer listed in the S&P 500 index. Its collection of talent, prospects and assets is secured in favorable mining territories in Australia, Africa, South America and North America. In 2019, Newmont ranked Top Miner on CR Magazine’s 100 best corporate citizens list as well as Top Gold miner on DJSI for ESG performance for the 5^th consecutive year.

The gold company reported $9.7 billion in sales and $3.91 diluted earnings per share in fiscal 2019. It also generated $2.9 billion net income from continued operations and $1.4 billion in free cash flow. Newmont was able to pay down over $1.2 billion of debt, refinance more than $600 million at the lowest rate in mining and metals history and return $1.4 billion to shareholders through share repurchases and dividends. Over the next 5 years, the company expects to deliver nearly 8 million gold equivalent ounces per year — the most of any gold company.