We recently published a list of 10 Best Mineral Stocks to Buy Right Now. In this article, we are going to take a look at where Compass Minerals International, Inc. (NYSE:CMP) stands against other 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).
A close up of an essential mineral being extracted from a large rock wall.
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.
Overall, CMP ranks 9th on our list of best mineral stocks to buy right now. While we acknowledge the potential of CMP, 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 CMP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.