There is a large variety of factors that are hurting and helping mining stocks at the moment. Let’s first talk about those that are hurting the assets. The pandemic is the primary reason that metals were able to shoot up in value so much. Gold, silver, and more all reached new record highs in 2020.
Right now vaccines are being widely distributed in massive numbers. More than 38% of the U.S. population has received at least one dose of the COVID vaccine. COVID numbers themselves are also going down dramatically. The infection numbers are as low as when there was no testing available, except there is now meaning the pandemic is really slowing down.
This could be bad as it could cause the gains from the pandemic to dwindle down. Except, there is stuff in the way of this happening. First of all, if COVID disappeared tomorrow it would still take the economy time to recover after the huge amount of damage that has been done. For this reason, metal prices could remain high in the market. This could help gold stocks, silver stocks, and others.
There are many types of mining stocks other than just gold and silver stocks. Lithium stocks have been high performers due to their huge role in electric vehicles. No matter what type of mining stocks you invest in, there is a lot of potential in the market for these assets right now. Sometimes mining stocks pullback in price, and often investors won’t if they are holding the assets long term. Let’s now look at three mining stocks that are showing high performance in the market recently.Top Mining Stocks To Buy Or SellFreeport-McMoRan Inc.
Often when a corporation releases new financial and operational filings, its stock price will go up or down depending on how things are looking. Freeport-McMoRan, a mining company that searches for gold, silver, copper, and molybdenum, just reported its first quarter results for 2021. Some of its announcements included solid execution of operating plans, production volumes being on target, and more.
The company’s net income was strong at $718 million or $0.48 per share. It sold more than 825 million pounds of copper in the first quarter of 2021. Its consolidated sales for the year are expected to total 3.85 billion pounds of the conductive metal. Operating cash flows, net cash costs, and more all looked solid in terms of performance from Freeport-McMoRan.
Richard C. Adkerson, Chairman, and Chief Executive Officer, said, “During the first quarter, our global team delivered solid operational execution, building a strong foundation for near-term growth in volumes and cash flows.” The company also plans on switching to clean energy, already making strides in this direction. Overall nearly all of its figures increased year over year.Vale S.A.
Before we jump into what is going on with Vale, we have to talk about what the company does first. Vale is a producer and seller of iron ore and iron ore pellets to be used as raw materials in steel creating. It also produces gold, silver, copper, cobalt, manganese, and more. The iron ore market has been soaring in price, which could reflect on Vale S.A.’s performance in the market.
On April 26th, Vale reported its first-quarter 2021 results after the closing bell. In the company’s recent first-quarter 2021 production update, gave a sneak peek at what is going on with the company. Its iron ore production for the first quarter of 2021 was 14.2% higher year over year.
This was aided by the reopening of multiple mines owned by the company. Iron ore prices are going up because the demand is much higher than the supply. This price increase could cause VALE stock to increase if it is reflected in the company’s financial results. Currently, there are concerns of a supply shortage from Brazil, and in China steel production is growing strong. We just have to wait to see what will happen when Vale releases its report in three days, this could potentially be a mining stock to watch.Cleveland-Cliffs Inc.
The last company on this list is moving higher due to similar reasons as Vale. However, who is Cleveland-Cliffs, and what is their future looking like at the moment? Cleveland-Cliffs is an iron ore mining corporation that operates in the United States and internationally. The company operates three iron mines, the Tilden mine, Northshore mine, and United Taconite mine.
Already CLF stock is seeing a lot of upside because of iron ore price increases. While Cleveland-Cliffs has a variety of products, the company really focuses on iron ore products. On April 22nd, the company reported its first quarter 2021 results. Last year, its revenue in this quarter was $359 million. In 2021 Cleveland-Cliff’s revenue has shot up to $4 billion. Its net income was at $41 million as well.
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Its steelmaking was valued at $537 million compared to $44 million the previous year. Originally Cleveland-Cliffs set guidance for $3.5 billion for its 2021 adjusted EBITDA. The company has now increased its full-year adjusted EBITDA guidance to $4 billion, a $500 million increase in expectations.
In regards to this increase, the CEO of the company Lourence Goncalves said, “As the year progresses, it will become abundantly clear that the pricing environment we are in – and will continue to benefit from going forward – is not a consequence of luck. Our expectation of $4 billion in adjusted EBITDA for the full-year is predicated on conservative pricing expectations relative to today’s pricing and the current forward curve.”
After these financial results were released, CLF stock has gone up more than 2%. In the last 6 months, this iron stock has grown more than 105% in the market. If iron ore prices stay this high then it will potentially be a wild record breaking year for Cleveland-Cliffs.