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).
Despite the economic upheaval in 2020, though, mining companies as a group have dramatically underperformed the broader market. The benchmark iShares MSCI Global Metals and Mining Producers ETF (PICK) has provided 1-year trailing total returns of 4.3% as compared with 12.6% for the Russell 1000 as of September 21, 2020. All other figures below are as of September 22, 2020.
Here are the top 3 mining stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Mining Stocks
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|
|Turquoise Hill Resources Ltd. (TRQ.TO)||CA$1.10||CA$2.2||4.8|
|Jaguar Mining Inc. (JAG.TO)||CA$7.29||CA$0.5||8.8|
|Barrick Gold Corp. (ABX.TO)||CA$37.44||CA$66.6||11.2|
- Turquoise Hill Resources Ltd.: Turquoise Hill Resources is a Canadian mining company focused on Asian and Australian sites. The company explores for and develops mines producing gold, copper, coal, molybdenum, and other minerals. Some of Turquoise Hill's main mining operation are located in Mongolia and Kazakhstan. On August 28, the company increased its gold production outlook for 2021 to a range of 500,000–550,000 ounces. The previous anticipated range was 450,000–500,000 ounces.
- Jaguar Mining Inc.: Jaguar is a Canada-based mining company that explores, develops, and operates gold mineral properties in Brazil.
- Barrick Gold Corp.: Barrick Gold is a Canada-based mining company principally engaged in the production and sale of gold and copper. The company has operating mines and development projects in the U.S., Canada, South America, Australia, and Africa. On September 18, Barrick Gold reported that it had accepted the decision by Chile's Antofagasta Environmental Court to uphold a closure order and sanctions on the company's subsidiary's mining operation at Pascua-Lama. The court's action stemmed from concerns about water quality.
Fastest Growing Mining Stocks
These are the mining stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Mining Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Sandstorm Gold Ltd. (SSL.TO)||CA$11.50||CA$2.2||314.4|
|Agnico Eagle Mines Ltd. (AEM.TO)||CA$104.50||CA$25.3||271.2|
|Eldorado Gold Corp. (ELD.TO)||CA$14.83||CA$2.6||236.7|
- Sandstorm Gold Ltd.: Sandstorm is a Canada-based metals company that owns the rights to purchase gold and other metals from either mining companies or advanced stage development projects.
- Agnico Eagle Mines Ltd.: Agnico Eagle is a Canada-based gold exploration and production company that has operations throughout Canada, Europe, Latin America, and the U.S.
- Eldorado Gold Corp.: Eldorado is a Canada-based gold mining company. The company has operations throughout the world, including Brazil, China, Turkey, and Greece.
Mining Stocks With the Most Momentum
These are the mining stocks that had the highest total return over the last 12 months.
|Mining Stocks With the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|De Grey Mining Ltd. (DGMLF)||1.02||1.3||2,520|
|Skeena Resources Ltd. (SKE.TO)||CA$2.90||CA$0.5||574.4|
|Pure Gold Mining Inc. (PGM.V)||CA$2.60||CA$1.0||319.4|
|iShares MSCI Global Metals and Mining Producers ETF (PICK)||N/A||N/A||4.3|
- De Grey Mining Ltd.: Australian company De Grey Mining focuses on exploration and mining of gold, silver, platinum, zinc, and other metals.
- Skeena Resources Ltd.: Canada-based Skeena Resources develops prospective mining properties in Canada. The company focuses on the Golden Triangle in British Columbia and particularly on the Eskay Creek gold-silver mine. On September 15, the company announced the discovery of high-grade gold-silver mineralization at its Eskay Deeps prospect.
- Pure Gold Mining Inc.: Pure Gold Mining is a Canadian mining company exploring for gold at properties in Canada. During Q2, Pure Gold made important advances at its Red Lake Mine Project, including receiving the first of three approvals for the project from the Ontario government. The company expects to bring first ore to the mill by the end of the year.
YCharts. "YCharts." Accessed Sept. 22, 2020.
Turquoise Hill Resources Ltd. "Turquoise Hill announces increased 2021 gold production outlook and files 2020 Oyu Tolgoi Technical Report," Page 1. Accessed Sept. 22, 2020.
Barrick Gold Corp. "Barrick Accepts Environmental Court Ruling, Continues to Seek New Opportunities in Chile." Accessed Sept. 22, 2020.
Skeena Resources Ltd. "Skeena Discovers Mineralization at Eskay Deeps." Accessed Sept. 22, 2020.
Pure Gold Mining Inc. "Pure Gold Reports Second Quarter Financial Results." Accessed Sept. 22, 2020.