In this article, we will discuss the 10 Best Mineral Stocks to Buy Right Now.
At the heart of industrial growth lies the global mineral market, as there is a strong demand for essential metals in technology, clean energy, and infrastructure. The global mineral market is projected to grow from $2,260 billion in 2024 to $2,402 billion in 2025, demonstrating a CAGR of 6.2%, according to The Business Research Company. Lithium, cobalt, and copper are leading the market with their essential roles in battery storage and electrification, while gold and silver, on the other hand, remain key assets for hedging against inflation and economic uncertainty.
The U.S. mineral market, which generated $106 billion worth of mineral production in 2024, is experiencing stable demand for industrial minerals such as crushed stone, sand, and cement, according to the U.S. Geological Survey. These industrial minerals accounted for 68% of the total production of minerals in the U.S. in 2024, while crushed stone accounted for 24% of the total production, indicating a high demand for the category. Recycling activity was also strong, with $48 billion worth of metals and minerals recycled, signaling an increasing focus on sustainability.
On the other hand, rising investor and industrial demand have pushed gold and silver prices to record highs in 2024, a year that marked a 9% increase in the United States gold production, according to the USGS.Gov. Gold prices have risen by 19.7% over the past six months, reaching $2,888.3 on February 6, 2025. Moreover, silver prices have increased by 25% in 2024 due to an increased demand for solar panels and electronics. Furthermore, continued central bank purchases and inflationary concerns mean gold and silver prices will be on an upward trend in 2025 as well.
Lithium experienced a challenging 2024, as its prices fell by 22% in 2024 due to oversupply and weakened demand, as discussed in our recent article. As production cuts are made, and the market stabilizes, analysts project lithium’s surplus decreasing from 84,000 metric tons in 2024 to 33,000 metric tons in 2025. Nevertheless, the lithium market’s long-term growth prospects are still bright and clear with analysts projecting it to grow and reach $134.02 billion by 2032 at a CAGR of 22.1%.
Similarly, cobalt, another key battery raw material, is suffering from decreasing prices due to oversupply in the market, especially from China. However, its long-term prospects are strong as the global cobalt market is projected to grow from $10.8 billion in 2023 to $24.9 billion by 2030. This potential growth is tied to increasing demand for energy storage solutions and tighter supply chain regulations.
Another key component of the mineral market is copper, which is a highly sought-after metal in the renewable energy sector. The metal’s demand is attributed to rising adoption of renewables across the globe. In the U.S., the imposition of tariffs on Chinese imports could affect copper prices in the U.S., and could also increase investment in the exploration sector.
Thus, 2025 is expected to be an eventful year for the copper market as well as the mining sector overall, according to analysts. China controls over 90% of global rare earth metals, putting the U.S. in a vulnerable state, especially as China imposes export controls on 25 metal products. Instead of relying on China, the U.S. is turning toward alternative sources like Ukraine, which has access to 22 out of 50 critical minerals identified by the U.S., including graphite, lithium, and Uranium. In exchange for offering military support, the U.S. is seeking Ukraine’s mineral deposits to strengthen the U.S. mineral supply landscape. Thus, this deal has a tremendous potential to benefit local miners in the U.S. in accelerating the growth of critical minerals like graphite and lithium in the future.
As discussed, the minerals sector is at the heart of the global economy. Thus, we must shed light on the top players in the mineral sector. With this, let’s now move on to our list of the 10 Best Mineral Stocks to Buy Right Now.
Methodology
To compile the list of the 10 Best Mineral Stocks to Buy Right Now, we used the Yahoo Finance stock screener. Using the screener we compiled a list of mineral stocks sorted by market capitalization. Next, we ranked these stocks based on the number of hedge fund holders as per Insider Monkey’s third-quarter 2024 database.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 22
BHP Group (NYSE:BHP) is a leading global miner that operates within the segments of iron ore, copper, steelmaking coal, energy coal, and nickel. The company maintains leadership in iron ore whilst strategically expanding into commodities like copper. This strategy perfectly aligns with BHP Group’s plan for long-term success. It is one of the best material stocks on our list.
For the year ending June 30, 2024, BHP Group (NYSE:BHP) reported an impressive revenue of $55.7 billion. This was a 3% increase from last year’s revenue of $53.8 billion. The increase in revenue was mainly attributable to high prices of iron ore and copper. However, lower energy coal and nickel prices led to a massive decline in profits. Accordingly, attributable profit dropped sharply by almost 39%, from $12.9 billion in 2023 to $7.9 billion in 2024.
As for the first half of 2025, BHP Group (NYSE:BHP) has experienced busy operations. Copper production increased by 10% year-over-year and iron ore production improved by 2% quarter-over-quarter. Higher production of iron ore was aided by enhanced supply chain management; however, weaker demand from China remains a prominent concern. In contrast to improved copper and iron ore production, production for nickel took a hit due to the temporary suspension of operations. This temporary suspension was a result of an oversupply of nickel in the market.
Despite a few temporary setbacks, BHP Group (NYSE:BHP) is poised for continued growth. The company’s copper operations, especially the Vicuña Corp project, are gaining momentum. This will help the company establish a strong presence in the growing and high-demand sector. Moreover, the Jansen Stage 1 potash project is expected to begin production in late 2026. This will further help BHP unlock significant long-term value. Despite a major hit to the company’s profits, BHP’s stock has climbed 6.14% year-to-date. Analysts expect a further increase of 2.6% with a 12-month target price of $53.2.
9. Compass Minerals International, Inc. (NYSE:CMP)
Number of Hedge Fund Holders: 24
A producer of essential minerals, Compass Minerals International, Inc. (NYSE:CMP), specializes in salt and plant nutrition products. Major assets operated by the company include the Goderich mine in Ontario, which is the world’s largest underground salt mine, and the Ogden facility in Utah, which is North America’s top producer of sulfate of potash.
For Q4 ended September 30, 2024, Compass Minerals International, Inc. (NYSE:CMP) reported an 11% year-over-year decline in revenue. Due to mild winter conditions that reduced salt demand and prefill activity, the company’s revenue fell to $208.8 million, and adjusted EBITDA came in at $15.6 million for the quarter. However, for the full year, despite weather challenges, the salt segment saw a 10% increase in revenue per ton. This brought the full-year revenue to $1.1 billion, while adjusted EBITDA rose to $228 million.
Aside from reduced salt demand, a major reason for the depressed financial performance in 2024 was the termination of the company’s lithium project. Even though the decision for a strategic shift allowed the company to refocus on its core business, it also incurred associated costs and impairments.
For the year 2025, Compass Minerals International, Inc. (NYSE:CMP) plans to increase sales volume by 9%. The company has projected adjusted EBITDA to range between $225 million and $250 million. Cash flows would also be improved through the company’s efforts to restore the Ogden Plant Nutrition complex. This will improve SOP production consistency and lower all-in product costs. Additionally, to strengthen cash flow during mild winter conditions, the company is exploring debt refinancing and a more flexible covenant structure.
8. Southern Copper Corporation (NYSE:SCCO)
Number of Hedge Fund Holders: 25
Southern Copper Corporation (NYSE:SCCO) is a major player in the global copper industry and operates across Peru, Mexico, Argentina, Chile, and Ecuador. In addition to copper, the company engages in the exploration, mining, smelting, and refining of other base metals. Its assets include open-pit and underground mines, smelting plants, and refineries. With a 12-month return of nearly 26%, SCCO is one of the best material stocks to invest in.
Southern Copper Corporation (NYSE:SCCO) reported strong financial performance during the third quarter of 2024. Earnings per share saw a 46% year-over-year increase with EPS for the third quarter reaching $1.15. Along with higher sales volumes of copper, molybdenum, silver, and zinc, favorable metal prices also helped with the improved performance. Copper rose 10% while zinc climbed 14.5%, and silver surged a whopping 24.7%. Net sales increased to $2.9 billion which was a 17% increase YoY, whereas operating profits grew by 36%. As a result, adjusted EBITDA grew 30.5% year-over-year to $1.68 billion.
The impressive performance for the quarter was attributed to the increase in copper, zinc, and silver production. Copper production rose by 11.5% to 252,219 tons, while silver production increased by 21.5%. What stood out the most was Southern Copper Corporation (NYSE:SCCO)’s zinc production, which advanced by 91% with support from the new Buenavista zinc concentrator.
Due to Southern Copper Corporation’s (NYSE:SCCO) promising financials, production growth, and rising prices, the company is positioned for long-term success. This has led to strong investor confidence.
7. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 28
MP Materials Corp. (NYSE:MP) is a dominant player in the rare earth materials industry. It supports the supply chain for electric vehicles, electronics, and defense systems. The company operates the only large-scale rare earth mining and processing facility in the United States, named the Mountain Pass mine.
For Q3 ended September 30, 2024, rare earth prices weakened, which resulted in a 30% year-over-year decline in revenue. Despite the decrease in revenue, MP Materials Corp. (NYSE:MP) sustained a strong adjusted EBITDA margin of 41% and achieved $11 million in net income through increased production levels. The dip in revenue levels was influenced by the construction progress and operational development at the company’s Fort Worth facility, which promises increased long-term profits. Mountain Pass also set new production records in 2024 by surpassing 45,000 metric tons of rare earth oxides and 1,300 metric tons of neodymium-praseodymium (NdPr) oxide.
The financial standing of MP Materials Corp. (NYSE:MP) improved significantly after receiving a $58.5 million tax credit in April 2024 for Fort Worth facility development. The financial support enabled the company to reduce its debt and ensure operational growth. Investor trust in MP Materials remains robust, as its stock experienced a 56% increase in 2025 due to strategic investments and strong production growth. MP is one of the best materials stocks on our list.
MP Materials Corp. (NYSE:MP) is ready to continue expanding in the upcoming years. Automotive-grade NdFeB magnet trial production has begun at the Fort Worth facility, with shipments expected for delivery by the end of 2025. MP Materials also plans to increase production to 1,000 metric tons of magnets per year. This will help decrease dependence on foreign suppliers while capitalizing on increasing market demand.
6. Peabody Energy Corporation (NYSE:BTU)
Number of Hedge Fund Holders: 28
Supplying thermal and metallurgical coal to power plants, industries, and steelmakers, Peabody Energy Corporation (NYSE:BTU), ranks as one of the top coal producers globally. Along with mining, the company provides coal marketing, brokerage, and transportation services. Its operations span across the United States and Australia. The company has been focusing on expanding metallurgical coal production, which is crucial in steel manufacturing.
Owing to this transitional phase, Peabody Energy Corporation (NYSE:BTU)’s financial performance suffered in the year ended December 31, 2024. Revenue declined from $4.94 billion in 2023 to $4.24 billion. Net income saw the largest downturn as it dropped from $759.6 million to $370.9 million in 2024. However, these declines are temporary due to the capital-intensive nature of metallurgical coal production and a longer ramp-up period compared to thermal coal.
Although this transitional phase poses short-term challenges, it is expected to help the company achieve higher margins in the long term. The Centurion Mine in Queensland’s Bowen Basin is expected to produce 4.7 million tons annually. Peabody Energy Corporation’s (NYSE:BTU) acquisition of Tier 1 coal mines from Anglo American will further solidify its position in the industry. By 2025, Peabody expects metallurgical coal production to reach 8.5 million tons, with major contributions from Centurion and Shoal Creek.
Even with promising future production values, the company will be facing external pressures. These mainly stem from the 15% tariffs imposed by China on United States coal exports. These tariffs might impact sales of Peabody Energy Corporation (NYSE:BTU) in the short term. However, market adjustments are expected to mitigate these impacts in the long term by redirecting coal exports from the United States to regions like India and Europe.
5. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 29
Rio Tinto Group (NYSE:RIO) is a global mining company with operations spread across Australia, North and South America, and Africa. Through large-scale mining, refining, and processing facilities, the company specializes in the production of iron ore, aluminum, copper, and other minerals.
During the fourth quarter of 2024, Rio Tinto Group (NYSE:RIO) produced 86.5 million tons of iron ore and its shipments totaling 85.7 million tons. This marked a slight decrease of 1% year-over-year due to site depletion and the transition to the Western Range mine. Meanwhile, copper output reached 202,000 tons (26% YoY increase) owing to the ramp-up at Oyu Tolgoi and higher grades at Escondida.
Historically, Rio Tinto Group (NYSE:RIO)’s stock has experienced highly fluctuating returns, ranging from an 18% gain in 2022 to an 11% gain in 2023 and a 15% decline in 2024. However, despite historical volatility, Rio Tinto Group’s stock gained 5% in 2025 in comparison to the broader market’s return of 3%, which makes it one of the best material stocks on our list.
Moving forward, the company plans to produce 60,000 tons of battery-grade lithium carbonate annually by 2028. This will be done through Rio Tinto Group (NYSE:RIO)’s $2.5 billion investment in Argentina’s Rincon lithium project. In October 2024, the company acquired Arcadium Lithium for $6.7 billion, making Rio Tinto the world’s third-largest lithium miner. Falling prices of lithium due to slowing EV demand and oversupply from China might raise concerns in the short term. However, the company’s diversified portfolio and strategic investments have positioned it for long-term growth.
4. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 34
Vale S.A. (NYSE:VALE) is a Brazil-based company that is engaged in the production of iron ore, iron ore pellets, nickel, and copper. The company primarily focuses on high-quality iron ore and essential metals for electrification through its Iron Solutions and Energy Transition Materials segments.
In Q4 ended December 31, 2024, Vale S.A. (NYSE:VALE)’s iron ore production declined by 4.6% year-over-year to 85 million tons. This decline resulted from the company’s shift toward higher-margin products. However, the record output of 83 million tons from the company’s S11D iron ore mine brought full-year production up to 328 million tons. This production volume was the highest for the company since 2018. Sales followed a similar pattern, with a 10% decline in the fourth quarter and a 2% increase for the full year. Copper production exceeded guidance, reaching 345,000 metric tons, up 6.6% year-over-year, while similar to iron ore, nickel output aligned with expectations at 160,000 metric tons.
In February 2025, Vale S.A. (NYSE:VALE) acquired full control of the Baovale iron ore project further solidifying its iron ore asset base. The company paid $23.4 million for a 50% stake in the Agua Limpa mine, but the transaction is pending regulatory approval from Brazil’s CADE.
With a solid iron ore asset base, Vale S.A. (NYSE:VALE) projects iron ore production of 325 to 335 million tons during 2025. Iron pellet production is forecast to range from 38 to 42 million tons, while the production outlook for copper stands between 340,000 and 370,000 metric tons. The company is also working to reduce costs through operational efficiencies. With its high-quality iron ore portfolio, focus on premium products, and cost-efficiency initiatives, Vale is set to remain one of the top players in the global mining industry.
3. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 40
Alcoa Corporation (NYSE:AA) operates across the U.S., Spain, Australia, Iceland, and other international markets. It produces bauxite, alumina, and aluminum products. The company serves the transportation, construction, packaging, and manufacturing industries through its two segments; Alumina and Aluminum.
For Q4 which ended on December 31, 2024, Alcoa Corporation (NYSE:AA) reported a 20% sequential increase in revenue, bringing it to $3.5 billion. Higher realized prices and increased shipments led to a 45% increase in the alumina segment’s third-party revenue. On the other hand, higher prices resulted in a 5% increase in the aluminum segment’s third-party revenue. As a result, net income rose from $90 million in Q3 2024 to $202 million in Q4, doubling earnings per share to $0.76. The improvement in pricing, shipments, and energy costs led to an increase of $222 million in adjusted EBITDA. Additionally, the company’s profitability improvement program led to $675 million in realized savings by the year-end.
The year 2024 marked record production at five of the company’s 11 smelters. Alcoa Corporation (NYSE:AA) was able to improve its relationship with key customers and suppliers while enhancing its value-added aluminum products. Furthermore, the company began 2025 on a strong note by completing the acquisition of Alumina Limited. This acquisition strengthens the company’s market position as a pure-play, upstream aluminum producer. The company’s financial health looks robust as it repaid $385 million in debt while maintaining its quarterly dividend.
Looking ahead, Alcoa Corporation (NYSE:AA) expects alumina production of somewhere between 9.5 million and 9.7 million tons in 2025, while recording shipments of 13.1 million to 13.3 million tons. Furthermore, targeted aluminum production stands at 2.3 million to 2.5 million tons, while shipments are projected between 2.6 million and 2.8 million tons. The company anticipates growth in 2025 driven by $700 million in capital expenditures, the majority of which is directed toward sustaining operations while $75 million is directed toward growth initiatives.
Although alumina production remains costly, Alcoa Corporation (NYSE:AA) believes in the effectiveness of its cost-saving initiatives, strategic plays, and operational efficiencies. Thus, analysts project a 15% price appreciation in the company’s stock over the next year, attributing it to aluminum price recovery and continued growth of the company.
2. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 69
Teck Resources Limited (NYSE:TECK) operates through its steel-making coal, copper, zinc, and energy segments. The main products include copper, zinc, steelmaking coal, and blended bitumen. In 2024, TECK made a major move by divesting its steelmaking coal business, EVR, to concentrate on copper, zinc, and other metals critical to the energy transition. After this sale, Teck repurchased shares and decreased its debt by $2.75 billion, enhancing its future growth prospects and boosting its capital structure.
In Q3 ended September 30, 2024, Teck Resources Limited (NYSE:TECK) recorded an adjusted EBITDA of $986 million, fueled by solid copper production and strong sales from its Red Dog operations. Copper output totaled 114,500 tons, with Quebrada Blanca contributing 52,500 tons. The company’s adjusted profit from ongoing operations, designated to shareholders, was $314 million or $0.61 per share. However, a loss of $759 million was also recorded, due to an impairment charge at its trail operations. Teck’s copper growth strategy is in the right place, with Q3 results reflecting a positive market environment, as the average copper price was $4.18 per pound.
Teck Resources Limited (NYSE:TECK)’s decision to sell its coal business has enabled it to focus on copper and zinc production, positioning it to excel in the metals sector. The sale of coal assets allowed the company to repurchase $398 million worth of Class B subordinate voting shares and return $322 million in dividends, with a special dividend of $0.50 per share. On January 1 and October 23, 2024, Teck distributed $1.3 billion to shareholders. Additionally, the company’s debt reduction efforts improved its balance sheet, with $1.5 billion in debt repaid in the third quarter.
Teck Resources Limited (NYSE:TECK) aims to boost its copper production with its QB operations estimating a 50% increase in copper production for the coming quarter. The company’s updated 2024 guidance targets 200,000 to 210,000 tons of copper, with a goal of 240,000 to 280,000 tons in 2025. Its main focus on energy transition metals will provide more growth in the future. Analysts from Raymond James and JP Morgan support Teck assigning “Outperform” and “Overweight” ratings, respectively, despite downward revisions to their earnings forecasts.
Teck Resources Limited (NYSE:TECK)’s disciplined approach toward financial management and determination to return value to shareholders places it in a prime position for ongoing success. As the company further progresses with this transition it is financially set for upcoming projects and prepared to capitalize on the increasing demand for energy transition metals.
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 79
Freeport-McMoRan Inc. (NYSE:FCX) is a prominent global natural resource company that mainly focuses on copper, gold, and molybdenum. With properties across North and South America, Africa, and Indonesia, Freeport runs some of the largest mining operations, including the Grasberg complex in Indonesia. The company has a noticeable presence in the market and some major programs to expand its copper production to satisfy the rising demand for this vital metal for green technologies.
Throughout the year ended December 31, 2024, Freeport-McMoRan Inc. (NYSE:FCX) recorded significant financial growth. EBITDA grew by 14%, reaching $10 billion compared to 2023. Operating cash flows also increased significantly, rising 35% to over $7 billion. An average copper price of $4.21 per pound was recorded with gold slightly exceeding $2400 per ounce. Capital expenditures for the year 2024 reached $3 billion, with forecasts suggesting an increase to $4.4 billion annually in 2025 and 2026.
In another massive move, Freeport-McMoRan Inc. (NYSE:FCX) redeemed $730 million in senior notes in Q4 ended December 31, 2024, decreasing its debt and increasing financial agility. Currently, the company has a net debt of nearly $1 billion, strengthening its position for further development. Furthermore, $4.7 billion has been returned to shareholders through dividends since the implementation of the shareholder policy.
In Q4 2024, Freeport-McMoRan Inc. (NYSE:FCX) focused on improving copper production, with leach operations expected to reach 300 million pounds by 2025.
Nevertheless, challenges persisted, specifically regarding export permits from Indonesia. Damages from the fire at Grasberg smelter also require repairs, with an estimated cost of $100 million, which will be covered by insurance. Additionally, the company is seeking approval for the 10% US tax credit for copper, which, if approved in 2025, would grant a benefit of $500 million. Regardless of these obstacles, Freeport-McMoRan Inc. (NYSE:FCX) is progressing in some major projects in the US and South America.
The company is set for some major development, with an estimated EBITDA exceeding $11 billion at $4 copper and over $15 billion at $5 copper by 2026 and 2027. Operating cash flows are also anticipated to rise, reaching nearly $8 billion at $4 copper and exceeding $11 billion at $5 copper. The company is dealing with capital expenditures efficiently while managing geopolitical issues in Indonesia. Freeport’s focus on organic growth projects and cost control while facing export and regulatory hurdles makes it an attractive option for investors looking for consistent returns in the mineral sector.
Overall Freeport-McMoRan Inc. (NYSE:FCX) ranks first on our list of the Best Mineral Stocks to Buy Right Now. While we acknowledge the potential of FCX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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