We recently compiled a list of the 10 Best Mining Penny Stocks to Buy Now. In this article, we are going to take a look at where Taseko Mines Limited (NYSEAMERICAN:TGB) stands against the other mining penny stocks.
The global demand for essential metals and materials has been on the rise, helping the mining industry expand. The global mineral market is forecasted to grow at a compound annual growth rate (CAGR) of 6.2%, as per The Business Research Company. The market is forecasted to grow to $3 trillion by 2029, driven by infrastructure upgradation, foreign direct investment (FDI), and automation. Capital inflows to mining projects are potentially growing due to government incentives and technological advancements.
As the metals and mining industry mitigates earnings pressure, it remains financially stable due to flexible shareholder returns and lower debt levels. On one end, due to increasing costs, gold has crossed the $2,000 per ounce mark, and metallurgical coal has surpassed $200 per ton, according to a report by S&P Global. Moreover, as North American producers of steel look to rationalize capacity, Chinese exports have seen an increase regardless of decreasing output.
On the other hand, lithium miners are facing price headwinds, whereas aluminum demand remains stable due to the demand from the transportation and packaging industries. Although M&A remained controlled within the industry, steelmakers were able to continue acquisitions, while miners, on the other hand, are putting efforts toward efficiency and cost-cutting, as technology and capital requirements shape profitability.
Key metals have seen strong price movements in 2025, which reflect the sector’s bullish outlook. Accordingly, gold and silver demand has risen as safe-haven assets due to economic uncertainty. Gold futures have seen a 38.63% increase, year-on-year, as of writing this article, while silver futures recorded an increase of 37.63%. Furthermore, Gold ETFs have seen a record gain of 26% in 2024 since 2010. Due to inflationary pressures and global trade tensions, as well as President Donald Trump’s tariffs, this pattern is expected to continue, fueling investor demand for metals.
On the other hand, industrial metals are also witnessing a growing demand. Lithium demand is expected to reach $9.01 billion by 2025, up from $7.75 billion in 2024, largely due to its use in battery production. As reported in one of the previous Insider Monkey articles, 80% of mined lithium goes toward the production of batteries, which is expected to grow to 95% by 2030. Furthermore, copper demand remains stable, with the market valued at $176.88 billion in 2024, bolstered by China and India’s infrastructure projects. Similarly, according to Zinc.org, Zinc demand is also rising in the renewable energy sector, with consumption of 568,000 tons expected by the solar industry by 2030.
Thus, the mining industry is revolutionizing due to technological advancements, bolstering efficiency and lowering costs. Mine development time has been brought down to nine years from 16, driven by AI and advanced analytics. Likewise, the time to perform geophysical data analysis has been reduced to mere weeks from two years. Furthermore, according to KPMG Mining Outlook 2024, core sample evaluations now take 12 minutes, compared to 45 days previously. Moreover, innovations have helped enhance sustainability for metal recycling. Accordingly, new methods now achieve a 95% recovery rate from steel mill waste, transforming waste into reusable materials used in construction and manufacturing.
However, the industry faces challenges in terms of geopolitical instabilities and changing trade policies. The U.S.-China tariff dispute, including potential policies against American goods, can potentially disrupt the global supply chains, especially those of critical minerals. Moreover, market volatility is still a risk as China holds around 90% of global rare earth refining capacity.
Nevertheless, the mining industry looks toward long-term growth, driven by strong demand for major metals, infrastructure development, and cost-cutting through automation.
Methodology
To curate our list of the 10 Best Mining Penny Stocks to Buy Now, we looked into ETFs, and a stock screener to come up with several top mining stocks trading below $5, as of the time of writing this article. Out of this list, 10 stocks were shortlisted based on their popularity among top hedge funds and positive outlook from analysts. Accordingly, the stocks are ranked in ascending order based on the number of hedge funds holding stakes in the respective stocks, as of Q4 2024. The data for hedge funds was extracted from Insider Monkey’s database, which tracks over 1000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of the Yellowhead copper project, the scale of the landscape revealed.
Taseko Mines Limited (NYSEAMERICAN:TGB)
Number of Hedge Fund Holders: 12
Share Price as of the close of March 7: $2.09
Taseko Mines Limited (NYSEAMERICAN:TGB) is involved in the production of copper and molybdenum by operating its Gibraltar Mine in British Columbia, which was acquired in March 2024. The mine produced a total of 106 million pounds of copper and 1.4 million pounds of molybdenum in 2024.
Moreover, the company is making progress with its Florence Copper Project in Arizona, as 60% of construction is completed. The production is expected to start by early 2026. Taseko Mines also operates the Yellowhead and New Prosperity projects in Canada, with progress in feasibility studies.
Looking at Taseko Mines Limited (NYSEAMERICAN:TGB)’s financials, it reported a record revenue of approximately $450 million for the full year ended December 31, 2024. This was made possible through strong copper prices, averaging around $4.17 per pound, and the full acquisition of Gibraltar. Accordingly, the company reported an adjusted EBITDA of approximately $165 million, with an operating cash flow of $175 million.
However, the company recorded a net loss of $10 million, partially driven by losses in non-cash foreign exchange. Additionally, it faced production disruptions at Gibraltar due to maintenance work, which was caused by a labor strike, decreasing its copper production by 15 million pounds.
On the brighter side, Taseko Mines Limited (NYSEAMERICAN:TGB) was able to recover its production in Q4, with copper output at 29 million pounds at a cash cost of $2.42 per pound. Mill throughput excelled in its design capacity, and the production of molybdenum exceeded 600,000 pounds due to higher grades at the Connector pit.
Furthermore, copper output at Gibraltar is expected to increase by 120 to 130 million pounds in 2025, with better performance forecasted in the latter half of the year. The company is also resuming operations at its SX/SE plant, which will increase cathode production by 3 to 4 million pounds. It is looking at its Florence Copper Project to grow, targeting production start in 2026, and increasing it to 85 million pounds by 2027. Taseko Mines Limited (NYSEAMERICAN:TGB) is expected to benefit from favorable government policies such as tax credits, which can improve project economics. Thus, it is one of the best penny stocks to buy now.
Overall TGB ranks 8th on our list of the best mining penny stocks to buy now. While we acknowledge the potential of TGB as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TGB 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.
