In this article, we will take a look at the 5 best zinc stocks to buy in 2023. If you want to read our discussion on the zinc industry, go to the 11 Best Zinc Stocks to Buy in 2023.
5. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 29
Value of Hedge Fund Holdings: $217,519,580
Rio Tinto Group (NYSE:RIO) is amongst the largest companies operating in the global metals and mining sector.
The company has made substantial efforts to incorporate sustainable practices into its operations. Rio Tinto Group (NYSE:RIO) has a planned investment of $537 million over the next eight years to achieve decarbonization of its Rio Tinto Iron and Titanium (RTIT) Quebec Operations in collaboration with the Government of Canada.
Here’s what Harding Loevner said about Rio Tinto Group (NYSE:RIO) in its Q1 2023 investor letter:
“In terms of geographical performance, the eurozone emerged as the top-performing region, and our stocks did better still, fueled by the strong performance of Infineon, L’Oréal, and Schneider Electric. EMs, which lagged the index, were boosted by the improving outlook for semiconductor companies TSMC and Samsung. Mexico’s FEMSA also contributed strongly to relative returns. Europe ex EMU was the weakest region primarily due to the underperformance of SE Banken and UK miner Rio Tinto Group (NYSE:RIO). The latter was affected by concerns over softer iron ore pricing in the current year, another reflection of manufacturing weakness in steelmaking giant China.”
As of Q2 2023, 29 hedge funds reported owning a stake in Rio Tinto Group (NYSE:RIO).
4. Hudbay Minerals Inc. (NYSE:HBM)
Number of Hedge Fund Holders: 29
Value of Hedge Fund Holdings: $270,417,340
Hudbay Minerals Inc. (NYSE:HBM) is a Toronto, Canada-based natural resource mining company that is mainly involved in producing concentrates of copper and zinc.
Hudbay Minerals Inc. (NYSE:HBM) is considered a major player in the global zinc market and is the owner and operator of the 777 zinc-copper-gold-silver mine in Canada. The company has stated that it intends to produce 28,000 tonnes to 36,000 tonnes of zinc from its operations in Manitoba, Canada, in 2023. Zinc production plays an active role in the top line and bottom line of the company. Hudbay Minerals Inc. (NYSE:HBM) has recently discovered a new deposit in Manitoba, which is expected to increase the mine’s operational life to 2038. Click here to read the company’s Q2 2023 earnings call transcript.
3. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 49
Value of Hedge Fund Holdings: $652,584,040
Newmont Corporation (NYSE:NEM) is a Denver, Colorado-based company that has the distinction of being the biggest gold mining company in the world with an asset base spread across Africa, Australia, and North and South America. The company has significant exposure to zinc mining as well. Newmont Corporation (NYSE:NEM) completed the acquisition of Newcrest Mining in May 2023 and received the go-ahead from the Australian regulator on August 21. The company produces zinc from the Peñasquito mine in Mexico.
2. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 49
Value of Hedge Fund Holdings: $1,342,299,400
Vale S.A. (NYSE:VALE) is a Rio de Janeiro, Brazil-based mining company.
The company is the operator of the Salobo mine in Brazil, which is primarily a copper-gold mine but also yields zinc concentrates as a by-product. Additionally, Vale S.A.’s (NYSE:VALE) Sudbury nickel operations in Canada also contribute to zinc concentrate production. The company is considering the possibility of separating its base metal business from the iron ore business. By isolating its base metal business, which includes zinc, Vale S.A. (NYSE:VALE) aims to increase the company’s operational efficiency.
1. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 79
Value of Hedge Fund Holdings: $2,354,476,900
Teck Resources Limited (NYSE:TECK) is a Vancouver, Canada-based mining and exploration company that is considered one of the biggest zinc miners in the world.
Teck Resources Limited (NYSE:TECK) is the operator of the Red Dog mine in northwest Alaska and Trail Operations in British Colombia, Canada. The Red Dog mine is expected to continue operations till 2031. Teck Resources Limited (NYSE:TECK) has the capacity to produce 295,000 metric tonnes of refined zinc annually. The company generated 20% of its top line from zinc in 2022 as it mined 650,000 metric tons of zinc concentrate.
Here’s what L1 Capital said about Teck Resources Limited (NYSE:TECK) in its Q1 2023 investor letter:
“The broad-based market sell-off in mid-March from the banking crisis allowed us the opportunity to add to several of our high conviction long positions at exceptional prices, including:
Teck Resources Limited (NYSE:TECK): We added to our holding around C$46 after a 15% share price fall. Teck subsequently received an all-share takeover offer from Glencore in early April at an implied value of C$58 per share.”
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