It could not be a better time to invest in mining stocks. Mining stocks have seen an amazing upwards climb in the last year that was completely unexpected pre pandemic. While an exciting sector, there are still some essential steps you should take if you plan on investing in the mining stock sector. There is plenty of mining stocks that have been trending, but how do you know which is right for you? The first step if you want to invest in mining stocks, would be research. For example, news related to the pandemic often moves the direction in which precious metal prices move. The sooner the economy can recover, the sooner mining stocks will not be able to perform as well.
But as you know, we are far away from that at the moment. In the meantime, the government keeps signing stimulus bills. First a large $900 billion bill back in December, and now a $1.7 trillion emergency relief bill in January 2021. Things such as jobless reports, price of the dollar, mine operations, and more will also impact the price of mining stocks. When looking at a single mining company, you should look out for a few things as well. These things include but are not limited to advancements in the mines, acquisitions by the company, its earnings, controversy, and positional changes. These can all help you lean in either direction when investing in mining stocks. Some may think that the time isn’t right to invest in mining stocks at the moment. Other analysts predict that gold prices could push as high as $2,500 per ounce in 2021. Obviously this seems ambitious, but based on what happened last year anything is possible. Speculation aside, let’s now look at four mining stocks that have shown great potential and could maybe even make your list of mining stocks to watch.Top Mining Stocks To Watch
- Teck Resources Limited (NYSE: TECK)
- Rio Tinto Group (NYSE: RIO)
- Pretium Resources Inc. (NYSE: PVG)
- Gerdau S.A. (NYSE: GGB)
First up on this list is Teck Resources Limited. Teck Resources is a mining company that focuses on research, exploration, development, and production of natural resources. The company runs in the Asia Pacific, the Americas, and Europe. Its different segments include Steelmaking Coal, Copper, Zinc, and Energy. Teck is in these segments, in which it produces coal, copper, zinc, bitumen, gold, silver, and plenty more resources. It owns interest in Frontier oil sands projects, and exploration and development projects. These many projects are located in Alberta, Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. How is Teck performing in 2021 so far?
The company’s latest update came from January 29th. The company announced that it will hold its financial results and investor conference call on February 18th, 2021. This is likely when we will see the next large price movement in TECK stock. Nothing is for sure, but usually financial results will move a mining stock.Rio Tinto Group
Next up on this mining stock list is Rio Tinto Group. Rio is a mining company 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. So how has RIO stock and the company performed now that we have arrived into 2021?
Rio’s latest update was on January 27th. The company announced that it has named a new chief operating officer and chief executive for its Australia business. The new CEO Jakob Stausholm said, “I want to re-establish Rio Tinto as a trusted partner for host communities, governments and other stakeholders.” Back on January 18th, the company released its fourth quarter production results. Stausholm added here, “We have delivered a strong safety and operational performance in the face of the significant global challenges of COVID-19.” In the last 6 months, RIO stock has gone from $61 per share to $78 per share on average.Pretium Resources Inc.
Next up on the list is Pretium Resources Inc. Pretium is a mining business that acquires, explores for, and develops precious metal resource properties. The company’s operations take place in both North America and South America. Primarily, Pretivm looks for gold, silver, and copper deposits. Its main project is located in British Columbia, at the Brucejack project. This project has 4 mining leases and 6 mineral claims that cover more than 3,300 hectares. Now let’s take a look at Pretium’s 2021 performance so far.[Read More] Top Mining Stocks To Buy Right Now? 4 To Watch
The company recently announced that it has achieved above the mid point of 2020 production guidance. It additionally announced that it has reduced its debt with a discretionary payment of $160 million. Lastly, Pretium provided 2021 production, cost, and free cash flow outlooks. Jacques Perron, the President and CEO of the company said, “Our gold production along with the value captured from the sale of the Snowfield Property has allowed us to significantly reduce our long-term debt and maintain a robust cash balance.” That is the latest update from Pretium, it will be interesting to see what impacts PVG stock next.Gerdau S.A.
The last mining stock to watch is Gerdau S.A. Gerdau is company that offers basic materials such as steel products and services in both the United States and Canada. The company also operates out of Brazil. Gerdau sells semi-finished products like billets, blooms, and slabs. It similarly produces long rolled products like wire rods, rebars, and other metal products. This includes fence wires, fences, and concrete reinforcing wire mesh.
Gerdau was forced to increase its steel prices last year due to its struggles financially. Its long steels increased by about 11% as a result. GGB stock is moving with the price of metals at the moment. The company is yet to release any 2021 updates, so that is why this is the case. Gerdau could potentially release another update or financial report soon, which is why it has made it on to this watch list.