Contributor, Benzinga
February 28, 2024

B2Gold (AMEX:BTG)

B2Gold Corp is a Canadian mining company that deals in gold mining. The company has projects in Asia, the Americas and Africa. The company’s main operating mines are in Mali, Nicaragua, the Philippines and Namibia.

BTG has a 52-week range of $4.15 to $7.55 and a market cap of $4.62 billion. The company’s 2020 revenues were $1.79 billion and it trades 7,955,714 shares daily. 

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Vol / Avg.14.332K / 9.181MMkt Cap3.127B
Day Range- - -52 Wk Range2.400 - 4.400

Sibanye Stillwater (NYSE:SBSW)

Sibanye Stillwater Ltd is a South Africa-focused mining company. The Group currently owns and operates five underground and surface gold operations in South Africa: the Cooke, DRDGOLD, Driefontein, and Kloof operations in the West Witwatersrand region, and the Beatrix Operation in the southern Free State province. In addition to mining, the company owns and manages extraction and processing facilities at its operations, where gold-bearing ore is treated and beneficiated to produce gold dore. The gold dore is further refined at Rand Refinery into gold bars with a purity of at least 99.5% and is then sold on international markets. Sibanye holds a 44% interest in Rand Refinery, global refiners of gold, and the largest in Africa. Rand Refinery markets gold to customers around the world.

$4.11
-0.10[-2.38%]
Last update: 7:27AM (Delayed 15-Minutes)
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Vol / Avg.90.006K / 5.228MMkt Cap2.908B
Day Range- - -52 Wk Range4.000 - 9.880

Barrick Gold (NYSE:GOLD)

Barrick Gold, one of the largest producers of gold in the world, operates in more than 12 countries. It’s also the leading producer of copper in the world. The company has managed to excel in the mining industry because of its Tier One mining assets. A Tier One mine has the following features:

  • A minimum production scale of 500,000 ounces annually.
  • Remaining productive life of the mine is a minimum of 10 years.
  • Can deliver the total cash cost per ounce, in the lower half of the mining industry curve.

The mines have the ability to produce low-cost copper and gold at a consistent rate. This enables the company to continue making money even when prices drop. Barrick Gold has also strengthened its balance sheet through the cash selling of non-core mines. It then uses the cash to repay debts owed by the company. The cash-rich balance sheet owned by the company has given it financial flexibility. This gives the company an excellent opportunity to excel in the mining industry.

$14.39
-0.02[-0.14%]
Last update: 7:26AM (Delayed 15-Minutes)
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Vol / Avg.46.215K / 18.703MMkt Cap25.263B
Day Range- - -52 Wk Range13.760 - 20.750

Freeport-McMoRan (NYSE:FCX)

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.

$37.71
-0.45[-1.18%]
Last update: 7:03AM (Delayed 15-Minutes)
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Vol / Avg.4.305K / 12.276MMkt Cap54.092B
Day Range- - -52 Wk Range32.825 - 44.700

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Alexco Resource Corp is engaged in mineral exploration, and mine development and operational activities primarily in Yukon Territory, Canada. The company explores silver, lead, zinc, and gold deposits. The firm’s projects include Keno Hill Silver District, Flame and Moth, Bermingham, Lucky Queen, Bellekeno, and others.

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The mining industry involves different exploration, extraction and processing of valuable minerals and materials. Mining stocks can be a great investment. Minerals are divided into two main categories: metallic and nonmetallic, including:

  • Precious metals (silver, gold, palladium, diamond and platinum)
  • Industrial metals (copper, aluminum, iron ore, nickel, cobalt, zinc and lithium)
  • Construction materials (sand, limestone and crushed stones)
  • Fertilizers (phosphate, potash and boron)
  • Energy materials (uranium, coal and bitumen)

Many minerals play an essential role in running the global economy. During periods of expansion, minerals are in high demand. Economic recessions may plunge mining stocks into the stocks under $5 category

As an investor, you need to carefully observe and analyze the global market before you invest in these stocks. Some minerals have a higher value and higher demand compared to others. These are premarket movers in the mining industry. These stocks offer a viable long-term investment option as long as you pick the right mining stocks. 

Here’s a list of the best mining stocks you may want to add to your portfolio.

Quick Look at the Best Mining Stocks:

Overview

The demand for safe-haven investment options is rising and the mining industry offers tax revenue for global governments. A reliable investment vehicle for most investors are mining stocks. These stocks are made of specialty metals and non-metals are always in demand.

Over the years, investors have been able to gain a lot of exposure to the wide variety of precious metals. Investors have invested in these stocks of companies that deal in mining and exploration of precious metals. Some of the companies in the mining industry have outperformed many companies despite the COVID-19 economic fallout. 

Gold can be found above the under $10 category. Gold has outperformed many commodities in the economy and investors are investing more in gold. 

Best Online Brokers for Mining Stock

Here’s a list of online brokers to guide and help you invest in the best mining stocks.

Features to Look for in Mining Stock

The mining industry is capital intensive and highly cyclical. The industry is profoundly affected by the economy and mines are costly to construct — the mining industry has suffered in the past due to its need for lots of capital when building mines and ended with meager profits. 

As a result, a majority of mining stocks have ended up underperforming in the market, with stocks under $20. To find the best mining stocks, you need to look at the following features:

  1. Low production cost: A mining company with low production costs will remain profitable even during weak periods. Mining companies can reduce production costs by using the latest mining technologies, which also improves the efficiency of the mining process.
  2. Strong balance sheet: A company’s balance sheet should include an investment-grade bond rating, borrowing capacity, manageable debt and lots of capital. Financial flexibility means a company can survive an economic storm and still offer its shareholders competitive earnings per share

Mining Stocks for Your Portfolio

Mining is indeed a tough business. As an investor, you need to focus on miners, which can remain productive even during tough economic times. A strong balance sheet and low production costs are critical. These 2 factors play an essential role in guaranteeing investors returns for their capital through buybacks and dividends. Investors are also positioned to increase the value of their shares during successful economic times.

Frequently Asked Questions

Q

What are mining stocks?

A

Mining stocks are shares in companies that mine for mateirals and minerals.

Q

Are mining stocks a good investment?

A

Mining stocks are a good investment because the materials and minerals that are mined are important for many sectors.

Q

What are the best mining stocks?

A

Benzinga lists the best mining stocks on the list above.

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