Many investors historically have turned to safe haven assets such as precious metals in times of economic and political turmoil. One way to gain exposure is by owning companies in the metals and mining industry, which are involved in the exploration, extraction, and sale of metals and other minerals. These materials are used in a wide range of applications in jewelry making, industry, technology, aviation, aerospace, and more. Some of the industry’s biggest companies globally include Franco Nevada Corp. (FNV) and Wheaton Precious Metals Corp. (WPM).
Mining companies have vastly outperformed the broader market in the last year. The benchmark SPDR S&P Metals & Mining ETF (XME) has provided 1-year trailing total returns of 103.1% compared with 35.7% for the Russell 1000. All figures throughout are as of June 9, 2021.
Here are the top 3 mining stocks with the best value, the fastest earnings growth, and the most momentum.
These are the mining stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
Source: YCharts
- Centerra Gold Inc.: Centerra Gold is a Canada-based gold mining and exploration company. It engages in the operation, exploration, development, and acquisition of gold properties in North America, Asia, and other global markets. The company reported in May said that the Kyrgyz government had effectively taken control of a key mining operation in mid-May. The company has filed in the Southern District of New York under Chapter 11 of the federal U.S. Bankruptcy code in relation to the events above.
- Jaguar Mining Inc.: Jaguar is a Canada-based mining company that explores and develops gold properties in Brazil.
- Turquoise Hill Resources Ltd.: Canada-based Turquoise Hill Resources is a mining company engaged in the exploration and development of mineral and metal properties in Asia and Australia. The company’s primary mining operation is in southern Mongolia. In May, the company reported results for Q1 2021, ended March 31, 2021. Income soared year-over-year (YOY) on strong revenue growth.
These are the top mining stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
Source: YCharts
- Vale SA: Vale S.A. is a Brazil-based producer of iron ore, manganese, gold, copper, aluminum, and other products. The company also owns and operates railroads and maritime terminals in Brazil. On June 4, Vale announced that it had halted operations at its Mariana Complex based on a government-mandated interdiction of activities in the area close to the Xingu dam. The company clarified on June 10 that the dam faces “no imminent risk of rupture.”
- Aya Gold & Silver Inc.: Aya Gold & Silver is a mineral exploration and development company based in Canada. The company acquires, explores, and evaluates mining properties in Morocco. Aya does not have an entry under EPS growth in the column above because it went from negative EPS in Q1 2020 to positive EPS in Q1 2021, making a growth calculation impossible.
- Maverix Metals Inc.: Canada-based Maverix Metals is a mining royalty and precious metal streaming services company. The company buys and holds precious metals streams and royalties. Based on strong Q1 2021 results, Maverix increased its dividend by 25% to $0.0125. The dividend will be paid on June 15.
These are the mining stocks that had the highest total return over the last 12 months.
Source: YCharts
- Foran Mining Corp.: Foran Mining is a mineral exploration and development company based in Canada. The company explores and develops copper, zinc, and gold properties in Manitoba and Saskatchewan, Canada.
- American Battery Metals Corp.: American Battery Metals Corp. is a company that recycles lithium-ion batteries. The company also engages in exploration of battery metals mining properties and extraction of battery metals. The company is in the process of changing its name to American Battery Technology Company. It announced on May 20 that it had filed an application to list on the Nasdaq stock market.
- Eskay Mining Corp.: Eskay Mining Corp. is a Canada-based mineral exploration and development company. Eskay focuses on gold and silver mineral properties in British Columbia, Canada.
The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.