Investing in mining stocks has become a lot more popular in the last year and a half. Before we look at why let’s look at what types of mining stocks are out there. The most commonly traded mining stocks are related to gold and silver. In 2020, both of these metals reached new record highs in the stock market. When the dollar fell in value, investors turned to precious metals instead.
There are many other types of mining stocks that are performing well in addition to gold and silver. Copper stocks have been trending in the market as well. Copper is used in a large variety of electronics due to its conductivity and cost. One market that copper is associated with, is electric vehicles. Electric vehicles use hundreds of pounds of the metal, much more than a traditional car.
Lithium stocks have been trending in the market for a similar reason as copper. Lithium-ion batteries are the most commonly used form of battery technology in electric vehicles. So as the EV sector has grown over time, lithium stocks have as well. There are still many more mining stock sectors to look at, such as steel, uranium, iron ore, and much more. No matter which sector you invest in, many of them have experienced high levels of success in the last year and a half at some point. With all of that in mind, let’s look at three mining stocks to keep your eyes on in August.Top Mining Stocks To WatchCleveland-Cliffs Inc. (NYSE: CLF)
Cleveland-Cliffs Inc. is an iron ore mining stock that operates in the United States and Canada primarily. Its key segments in the company are mining, pelletizing, and metallic. It operates three iron mines, the Tilden mine, Northshore mine, and United Taconite mine. Cleveland-Cliffs products are used to produce blast furnace steel, flat-rolled carbon, stainless, and electrical steel products. The steel products produced are used in the automotive, infrastructure, and manufacturing markets.
On July 27th, Cleveland-Cliffs completed the redemption of all outstanding preferred shares with $1.2 billion in cash or $21.18 per common share. This resulted in the reduction of its diluted share count by 10%. One day after this announcement was made, CLF stock is up more than 6% in the market.
The Chairman, President, and CEO Lourenco Goncalves said, Given the strength of our business fundamentals and where our common shares have been trading, the buyback of the preferred shares at an attractive price was a no-brainer, highly accretive deal for our shareholders. We actually believe this transaction is even better than a common share buyback, because we acquired the entire tranche at a 20-day VWAP without making any noise in the market.” With this in mind, will you add CLF to your mining stock watchlist?Rio Tinto Group (NYSE: RIO)
Rio Tinto Group is a mining stock that explores for, mines, and processes various mineral resources. Rio’s main products are aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium, salt, iron ore, and uranium. Rio does aluminum smelting, and many types of mining. Back in April, Rio Tinto announced that it has begun producing lithium. A demonstration plant has started producing with 10 tons expected per year. Following this plant, the company will decide whether to build a full-scale plant for $50 million.
On July 27th, Rio Tinto achieved financial results that were record-breaking for the company. Rio Tinto’s Chief Executive, Jakob Stausholm said, “We focused on safely running our world-class assets and supplying products to our customers. This enabled us, despite operational challenges, to deliver record financial results with a free cash flow of $10.2 billion and underlying earnings of $12.2 billion, after taxes and government royalties of $7.3 billion. We are further strengthening the portfolio with our commitment to fund the high-quality Jadar lithium project, which signals our large-scale entry into the fast-growing battery materials market.” The day after the announcement, RIO stock is up 5% in the market. Will this company make your list of mining stocks to watch in August?Newmont Corporation (NYSE: NEM)
Newmont Corporation is a mining stock that produces and explores for silver, gold, copper, zinc, and lead. Newmont’s property is all in the United States, Mexico, Canada, Peru, and a few other countries. It had proven and probable gold reserves as of December 31st, 2020 that totaled 94.2 million ounces. Newmont Corporation has more than 58,900 square km of land.
On July 22nd, Newmont released its second-quarter 2021 results. The company delivered good results, which in turn has caused NEM stock to perform well. The company’s President and CEO Tom Palmer said, “Capitalizing on the strength of our assets and integrated operating model, Newmont delivered a solid second-quarter performance with $1.6 billion in adjusted EBITDA and $578 million in free cash flow. Our performance and disciplined approach to capital allocation allowed Newmont to declare a second-quarter dividend of $0.55 per share, whilst we continue to reinvest in our business through our most profitable projects.” Will you add NEM to your mining stock watchlist this week?Top Mining Stocks To Buy?
Deciding which mining stocks are the best to buy can be a difficult decision to make. Many mining stocks in different sectors are going up or down all the time. That is why creating an investment strategy can be a very useful tool when buying or selling mining stocks. It can be as simple as looking for the latest news in the world, the sector, and the company. Looking at the volume of a mining stock can often be very telling as well. So keeping this information in mind, which mining stocks will you add to your watch list before August?