Will These Mining Stocks Uptick?
The market for mining stocks has been ever growing in the last year. Some may put their focus on metals such as gold and silver because they are the most popular. But this is a missed opportunity to invest in other types of mining stocks that are also performing well. The pandemic caused many types of mining operations to increase their value since it began. Often investors will put money into mining assets during times where the economy is not performing well. Let’s shift the focus to one type of mining stock that has been performing well in the market. The sector in question happens to be steel stocks. Steel has always been a massive industry in the United States. The amount of steel mills has been declining over time though, as competition overseas is performing better.
Despite the pandemic still going on, production has started once again at most major steel operations. The demand for the metal is also high in the market at the moment. So who is buying all of this steel? A large portion of steel’s demand comes from automotive companies. This is similar to the other type of mining stock that will be on this list, lithium stocks. Lithium ion batteries are made with lithium, which is being used in electric vehicles at the moment. Electric vehicles are one of the largest growing markets in the automotive sector. This means the demand for lithium is very high at the moment. Both steel and lithium are performing well in the market in the last year. So there are many great mining stocks to watch between the two. Let’s have a look at four mining stocks to watch that could potentially show higher performance.
Top Mining Stocks To Buy Or Sell
- Nucor Corporation (NYSE: NUE)
- Steel Dynamics Inc. (NASDAQ: STLD)
- Reliance Steel & Aluminum Co. (NYSE: RS)
- Livent Corporation (NYSE: LTHM)
First up on this list of mining stocks is Nucor Corporation. Nucor Corporation will company sell and manufacture steel and steel products. It produces hot-rolled, cold-rolled, and galvanize sheet steel. It also sells most steel products you can think of. The company has experienced a great amount of growth in recent times. Let’s check out the most recent updates from the company and NUE stock price.
Its most recent update comes from March 25th, when it announced that it will build a new tube mill in Kentucky near its Nucor Steel Gallatin sheet mill. The President and CEO of Nucor said, “With our recent investments to expand capacity at Nucor Steel Gallatin and add a galvanizing line, our Gallatin campus is an ideal location to build our new tube mill.” The tube mill will be able to produce 250,000 tons of hollow structural section steel tubing, and more. On the day of the announcement, NUE stock price nearly went up 5% in shares. NUE stock has gone from $33 a share to $72 a share in just one year.
Steel Dynamics Inc.
Now let’s talk about Steel Dynamics Inc. This company is one of the largest United States steelmakers out there. Steel Dynamins is a steel producer and metal recycler. The company operates in the United States. It offers steel operations products such as hot roll, cold roll, and coated steel products and more. Steel Dynamic’s products are used in automotive, construction, manufacturing, heavy and agriculture equipment, and transportation sectors. Let’s see how this steel stock is performing before April 2021 comes around.
On March 24th a new advancement was announced from the company. Steel Dynamics got a deal with environmentalists to help endangered whooping cranes. It will encourage regulators to approve a pending pollution permit for Steel Dynamics $1.9 billion mill in Texas. The company agreed to make a special marsh called constructed wetland to filter its wastewater above and beyond what is required. The company stated, “Scientific literature has shown that constructed wetlands can remove 50% or more of metals in wastewater, depending upon the metal being evaluated,” the company and environmentalists said in the statement.” Since the announcement the company has experienced an uptick.
Reliance Steel & Aluminum Co.
This next steel stock has brought a 102% return to investors in the last 5 years. Reliance Steel & Aluminum Co. is a corporation that operates as a metal service center. It will provide steel, alloy, aluminum, brass, copper, and more to a variety of companies. These include manufacturing, construction, aerospace, energy, electronics, and many other sectors. The company additionally will sell precision sheet metal fabrication services, such as laser cutting. Let’s see what the company is up to in March 2021.
On March 16th, the company gave a virtual presentation at the J.P. Morgan 2021 Industrials Conference. Back in February the company announced positive fourth quarter and full year 2020 financial results. Included in this was record annual gross profit margin of 31.5%. Its annual cash flow was strong as well, and its quarterly dividend increased 10%. Jim Hoffman, CEO of Reliance said, “Despite the extraordinary challenges 2020 presented on a global scale, we are extremely pleased with the strong execution of all of our employees within the Reliance Family of Companies who demonstrated the resiliency of our business model with our core values of health and safety at the forefront.”
The final company on this list of mining stocks to watch is Livent Corporation. Livent is a manufacturing company that makes and sells lithium batteries. The company also sells polymer and chemical synthesis applications as well. It operates in North America, Latin America, Europe, Middle East, Africa, and the Asia Pacific. Livent offers lithium compounds for use in applications like lithium hydroxide for potteries.
One year ago LTHM stock was valued at about $5.30 per share. Now as of March 25th, LTHM stock price is nearly $16 a share. Its last financial results the companies realized pricing was higher, and it increased production volumes. Livent additionally announced a multi year supply agreement with BMW Group recently. This could potentially drive Livent to new heights as this deal is big.
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