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 136.9% compared with 48.3% for the Russell 1000. All figures throughout are as of March 11, with the exception of the Russell 1000 returns figure which is as of March 10.
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.
|Best Value Mining Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Sibanye Stillwater Ltd. ( SBSW)||18.76||13.7||1.7|
|Trilogy Metals Inc. ( TMQ)||2.23||0.3||2.0|
|Dundee Precious Metals Inc. ( DPM.TO)||CA$7.83||CA$1.4||5.5|
- Sibanye Stillwater Ltd.: Sibanye Stillwater is a South Africa-based mining company that develops and extracts mineral properties. The company serves customers in South Africa and the U.S. On February 23, Sibanye Stillwater announced that it had entered into an investment agreement with Keliber Oy, a leading European lithium company. Sibanye Stillwater will make an initial phased equity investment of 30 million euros for a 30% stake in Keliber. In addition, Sibanye Stillwater also will make a 10 milion euro issuance to Keliber shareholders. The resulting partnership will give Sibanye Stillwater an entry into the battery metals industry.
- Trilogy Metals Inc.: Trilogy Metals is a Canada-based exploration and development mining company. The company's sites include the Upper Kobuk Mineral Projects in Alaska. The company's focus is on exploring and developing copper, zinc, gold, silver, and cobalt sites in Northwest Alaska.
- Dundee Precious Metals Inc.: Canada-based Dundee Precious Metals is a mining company that acquires, explores, and develops gold mining properties primarily in Bulgaria and Namibia. The company reported on February 23 that its pre-feasibility study of the Timok Gold Project in Serbia had yielded results suggesting "potential as an attractive organic growth opportunity." The company will proceed with a feasibility study of the site.
These are the mining stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Mining Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Sierra Metals Inc. ( SMT.TO)||CA$3.45||CA$0.6||1,010|
|Calibre Mining Corp. ( CXB.TO)||CA$1.50||CA$0.5||623.9|
|GoGold Resources Inc. ( GGD.TO)||CA$2.10||CA$0.6||393.4|
- Sierra Metals Inc.: Sierra Metals is a Canada-based mining company that targets properties in Mexico and Peru. In January, the company announced that Jose Vizquerra Benavides was appointed chairman of its board of directors. Vizquerra is president, CEO, and director of O3 Mining Inc. and a director of Osisko Mining Inc. He replaces Alberto Arias, chairman since 2013, who remains on the board.
- Calibre Mining Corp.: Calibre Mining is a Canada-based mineral exploration company. It targets properties in Nicaragua for potential precious and base metal mining development. For Q4 2020, Calibre Mining net income climbed by more than 640% YOY and revenue increased by 37.9% YOY. The company reported more than 136,000 ounces of gold produced in FY 2020, beating the high end of its guidance.
- GoGold Resources Inc.: GoGold Resources is a Canadian gold and silver mining firm focused on operations in Mexico. It currently operates the Parral Tailings mine in the state of Chihuahua and has two ongoing exploration projects in the state of Jalisco.
These are the mining stocks that had the highest total return over the last 12 months.
|Mining Stocks With the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|American Battery Metals Corp. ( ABML)||2.04||1.1||3,940|
|Eskay Mining Corp. ( ESK.V)||CA$2.43||CA$0.4||1,120|
|Piedmont Lithium Ltd. ( PLL)||67.35||0.9||936.1|
|SPDR S&P Metals & Mining ETF (XME)||N/A||N/A||136.9|
- 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. On March 11, the company responded by what it called an attack by short sellers on its stock. American Battery described "false and defamatory information" posted on March 9 and 10 in the form of videos and reports. American Battery said they are "part of a coordinated campaign by short sellers to release false and misleading statements in order to lower the price of [the company's] common stock."
- Eskay Mining Corp.: Eskay Mining Corp. is a mineral exploration and development company. Eskay focuses on gold and silver mineral properties in British Columbia, Canada. On March 8, Eskay announced that it had acquired a 19.5% stake in Garibaldi Resources Corp., an exploration company, from The Sprott Foundation.
- Piedmont Lithium Ltd.: Piedmont Lithium is an Australia-based mineral exploration company developing lithium mining properties. The company also manages drill, land expansion, and other programs. It operates projects in the U.S.
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.
YCharts. "YCharts." Accessed Mar. 13, 2021.
Sibanye Stillwater Ltd. "Sibanye-Stillwater secures entry into the battery metals sector through a partnership with andinvestment into Keliber, a leading European lithium company," Page 1. Accessed Mar. 13, 2021.
Dundee Precious Metals Inc. "Dundee Precious Metals Announces Positive Pre-Feasibility Study and Encouraging New Exploration Results for the Timok Gold Project in Serbia." Accessed Mar. 13, 2021.
Sierra Metals Inc. "Sierra Metals Announces Appointment of New Chairman." Accessed Mar. 13, 2021.
Calibre Mining Corp. "Calibre Exceeds High End of 2020 Production Guidance With 136,009 Ounces and Beats Low End of All-in Sustaining Cost Guidance at $1,043 Per Ounce." Accessed Mar. 13, 2021.
American Battery Metals Corp. "American Battery Metals Corporation Adamantly Denies Short Sellers Attack of False, Manipulative and Defamatory Reports." Accessed Mar. 13, 2021.
Eskay Mining Corp. "Eskay Closes Acquisition of 19.5% of Garibaldi Resources Corp." Accessed Mar. 13, 2021.