Jan 14, 2024 By Triston Martin
Metals and minerals like these are essential to the world economy. Raw materials are essential to industrial construction and production of goods, products, and infrastructure. The price of mined commodities rises as the economy grows. The mining business, on the other hand, is cyclical. A slowdown in the economy tends to reduce the demand for mined resources. During a recession, mining stock prices tend to fall.
Russia's invasion of Ukraine is a contributing element to inflation. Iron and steel production, as well as fertilizer production, are important sectors in both nations. Commodity prices might rise much further if the battle persists. Investors need to focus on mining firms that can withstand future economic downturns. Let's take a deeper look at some of the finest mining stocks for 2022 and see what investing in the mining sector is like.
Here is a list of some of the most reputable mining firms:
Sibanye Stillwater Limited, a South African precious metals mining corporation, is the first business on our list of the top mining stocks to purchase. The mining corporation produces gold and platinum-group metals. Agarwal of Deutsche Bank established a Buy rating on Sibanye Stillwater Limited (NYSE: SBSW) on October 12 with a $19 price objective. By 2020, Agarwal expects Sibanye's expanding mineral portfolio to create free cash flow.
On October 26, the mining stock rose by 3.5% due to Appian Capital Advisory's acquisition of nickel and copper mines. The mining corporation will pay $1 billion in cash and a 5% net smelter return royalty to acquire these Brazilian assets. Sibanye Stillwater Limited had 15 long positions at the end of June compared to 16 in the first quarter of 2021, according to Insider Monkey.
Over 90 nations are represented by BHP Group, one of the world's major mining enterprises. The Australian mining firm mines iron ore in the Australian Outback. Bernstein and Macquarie assigned an Outperform rating to BHP.
A total of 18 hedge funds in Insider Monkey's database had $753 million invested in BHP Group at the end of the second quarter of 2021. Investment company Harding Loevner mentioned a few stocks in its Q1 2021 investor letter, and BHP Group was one of them.
Located in the state of Nevada, MP Materials Corp. is a rare earth mining firm. Lanthanum, neodymium, and praseodymium are all mined by MP Materials Corp., as is SEG+. Various products, including electric vehicle batteries, medical gadgets, and lasers, use this chemical element. Miner's stock has increased 50% this year.
Revenue at MP Materials Corp. surged 143 percent year-over-year to $99.7 million in the third quarter, exceeding expectations by $22.6 million. After the second quarter of 2021, Insider Monkey's database showed that 20 hedge funds had $2.57 billion invested in MP Materials Corp at the end of that quarter.
The Rio Tinto Group, headquartered in London, UK, is one of the world's largest mining firms. Copper are the essential resources mined by the corporation. Over 35 nations are home to the mining behemoth's activities. Rio Tinto Group experienced a decrease in hedge funds with Rio Tinto stock holdings in the second quarter, but institutional investors continue to favor the stock.
At the end of June, 21 of the 873 funds tracked by Insider Monkey held a position in the firm, compared to 25 in the first quarter of this year. While keeping an Equal Weight rating, Morgan Stanley analyst Alain Gabriel raised his price objective for Rio Tinto Group from GBP 4,750 to GBP 4,880 on November 3.
The largest uranium producer in the world, Cameco Corporation, is based in Canada. Over 53 million pounds of uranium concentrates are produced by the Canadian mining firm each year. The mining corporation also has a fuel division with activities in Asia, Europe, and the Americas. Lawson Winder, an analyst at Bank of America, raised Cameco to a Buy rating from a Neutral rating on November 3.
Analysis suggests that Cameco will gain from the increased popularity of nuclear energy in global decarbonization. ' There were 25 long positions in Cameco Corporation at the end of the second quarter of 2021, compared to 30 in the first quarter of that year, among the 873 top funds tracked by Insider Monkey. With 8.9 million shares worth over $195 million after the third quarter, Florida-based investment company Kopernik Global Investors is a prominent stakeholder in Cameco Corporation.