In this article, we discuss the 5 best mining stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Mining Stocks To Buy Now.
5. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 29
Agnico Eagle Mines Limited (NYSE:AEM) is a Canadian gold mining company that has established mines in Mexico and Finland. The company also engages in mineral exploration activities in Colombia and the US. Agnico Eagle Mines Limited (NYSE:AEM) is one of the best mining stocks to buy now, with payable gold production of 1,736,568 ounces in 2020.
Josh Wolfson of RBC Capital upgraded Agnico Eagle Mines Limited (NYSE:AEM) to Outperform from Sector Perform, with a $63 price target on October 6. The analyst sees upside potential for the company including a stronger balance sheet and anticipated milestones such as Detour Lake and Fosterville projects from its merger with Kirkland Lake Gold Ltd. (NYSE:KL).
Of the 873 elite funds tracked by Insider Monkey, 29 were long Agnico Eagle Mines Limited (NYSE:AEM) at the end of June, up from 28 in the first quarter of 2021.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Agnico Eagle Mines Limited (NYSE:AEM) with 5.24 million shares worth more than $272 million at the end of September quarter.
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 44
Cleveland-Cliffs Inc. (NYSE:CLF) is the largest iron ore producer in North America following its acquisitions of ArcelorMittal USA and AK Steel in 2020. The company engages iron ore and coal mining and steelmaking in its 46 facilities.
The mining stock gained 5.8% on November 8 after the House of Representatives passed the $1.2 trillion infrastructure bill over the weekend. Shares of Cleveland-Cliffs Inc. (NYSE:CLF) rose 53% year to date.
Analyst Gordon Johnson of GLJ Research maintained a Buy rating on Cleveland-Cliffs Inc. (NYSE:CLF) and increased his price target for the mining stock to $36.06 from $28.35.
The Ohio-based mining company also saw a considerable increase in hedge fund positions over the last two quarters. Out of the 873 funds in Insider Monkey’s database, 44 held stakes worth $1.11 billion in Cleveland-Cliffs Inc. (NYSE:CLF) at the end of the second quarter of 2021, up from 36 in the preceding quarter.
3. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 44
Alcoa Corporation (NYSE:AA) is one of the largest global bauxite miners in the world. The Pennsylvania-based company sells its aluminum, alumina, and bauxite products internationally. The company supplies metals to manufacturers in different industries including aerospace and EV. The mining company grew its revenue in the third quarter by 10% to $3.11 billion, beating estimates by $194 million.
Alcoa Corporation (NYSE:AA) recently introduced a technology roadmap to decarbonize the aluminum supply chain. This will also assist the company in meeting its goal of achieving net-zero greenhouse gas emissions across its global operations by 2050. The stock gained 105% year to date.
Jefferies analyst Christopher LaFemina upgraded Alcoa Corporation (NYSE:AA) to Buy from Hold rating on November 2. LaFemina believes that the global decarbonization initiative can help Alcoa grow even more. The analyst raised his price target for the stock to $60 from $52.
Meanwhile, The metal company announced plans to restart 268,000 mt/year of aluminum capacity at the Alumar smelter in São Luís, Brazil, in September. The first molten metal is expected in the second quarter of 2022, with the full capacity of 268,000 mt/year operational in the fourth quarter of 2022.
At the end of the second quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $1.16 billion in Alcoa Corporation (NYSE:AA), up from 38 in the previous quarter worth $1 billion.
2. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 47
Barrick Gold Corporation (NYSE:GOLD) is a Canadian gold and copper mining company that has established operations in 13 countries. The company has ownership interests in gold mines in the US, Canada, Tanzania, Argentina, Dominican Republic, and the Democratic Republic of Congo.
On November 10, shares of Barrick Gold Corporation (NYSE:GOLD) rose 4.6% as gold prices jumped over $40 on the day, with December Comex futures trading at $1,867.50.
Of the 873 elite funds tracked by Insider Monkey, 47 were long Barrick Gold Corporation (NYSE:GOLD) at the end of June, compared to 49 in the first quarter of 2021. New York-based First Eagle Investment Management is the leading stakeholder of the company at the end of the September quarter.
In the Q2 2021 Investor Letter, Ariel Investments highlighted a few stocks and Barrick Gold Corp (NYSE:GOLD) is one of them. Here is what the fund said:
“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 76
We’ll wrap up our list of the 10 best mining stocks to buy now with Freeport-McMoRan Inc. (NYSE:FCX), an Arizona-based mining giant. In the third quarter, Freeport-McMoRan Inc. (NYSE:FCX) produced 987 million pounds of metal, making the company the world’s largest copper miner. The mining company has established operations in North America, South America, and Indonesia.
The mining company’s revenue in the third quarter grew 58% year over year to $6.08 billion, owing to higher copper prices and increased production. The stock gained 98% in the previous year.
Argus Research analyst David Coleman increased his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $45 from $40 on October 22. Coleman maintained a Buy rating on the stock, believing that the Arizona-based mining company is well-positioned to profit from rising metal prices. The analyst also raised his EPS forecast for 2021 from $2.85 to $2.97.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Freeport-McMoRan Inc. (NYSE:FCX) with 46 million shares worth more than $1.53 billion as of the third quarter.
At the end of the second quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $3.87 billion in Freeport-McMoRan Inc. (NYSE:FCX), up from 68 in the previous quarter worth $3.29 billion.
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