Which mining stocks are on your watchlist for the rest of July?
This month has been quite an interesting one for mining stocks. Some mining stocks were able to achieve gains in July, while others were not. Usually, mining stocks will move up or down based on the price of precious metals and minerals. For example, if gold goes up in price, it is very possible that a gold stock will too. But mineral prices are not the only thing that has an impact on mining stocks.
When investing in the mining sector, there are a few things you should look out for. Shortages, increased demand, and surplus are all things that can have a heavy effect on the price of a mining stock. There are a few other steps you can take to help decide which mining stocks to watch. Looking at recent news can be very useful to investors. This can be anything from sector news, world news, to company-specific news.
There is a lot of inflation fear in the market right now. Nobody knows how this could affect the mining stock sector right now. What we do know is that a lot of second-quarter earnings have been or are about to be released. Earnings and operational reports often provide good insight as to where a company is at right now. So when it is earnings season, these reports can be the decider for if a stock is going to go up or down. It all depends on the information released, as sometimes the reports have little to no effect on a company. With all of this info in mind, let’s look at three mining stocks to watch at the end of July.
Top Mining Stocks To Watch
Cleveland-Cliffs Inc. (NYSE: CLF)
Cleveland-Cliffs Inc. is a mining stock that primarily searches for iron ore. It operates in the United States, Canada, and internationally as well. Its main segments of the company are mining, pelletizing, and metallic. It runs 3 iron ore mines, the Tilden mine, Northshore mine, and United Taconite mines. Its products are used to produce blast furnace steel, flat-rolled carbon, stainless, and electrical steel products. These are used in the automotive, infrastructure, and manufacturing markets.
On July 22nd, Cleveland-Cliffs released its second-quarter results for 2021. The company reported a lot of new company records in the report. Its quarterly revenue achieved a new record of $5 billion. Its net income and adjusted EBITDA were $795 million and $1.4 billion respectively, both breaking records.
The President and CEO Lourenco Goncalves said, “In the second quarter of 2021 we achieved all-time quarterly records in revenue, net income, and adjusted EBITDA. The numbers unequivocally confirm our efficiency in operating the new footprint, resulting from the integration of the two major steel companies acquired in 2020 as a single and indivisible mining and steel company. They also demonstrate our flawless execution in ramping up our state-of-the-art Direct Reduction plant in Toledo to the current level of production above nominal capacity.” Will you add CLF to your list of mining stocks to watch?
Rio Tinto Group (NYSE: RIO)
Rio Tinto Group is a mining stock that explores for, mines, and processes various mineral resources. The company’s main products are aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium, salt, iron ore, and uranium. Rio does aluminum smelting, and many types of mining.
On July 22nd, the company announced that it has progressed its studies for potential underground mining at the Kennecott copper operations. If this mine is able to increase Rio’s supply, it will be great for the company.
Chief Executive at Rio Tinto Copper Bold Baatar said, “Kennecott holds a range of options to extend our supply of copper and other critical materials, to meet the strong demand being driven by electric vehicles and renewable power technologies. The operation is uniquely positioned to supply these emerging markets, with one of only two operating smelters in the United States that also processes concentrates from third parties, a long history delivering high-quality products and significant resources that are yet to be developed.” Keeping this recent advancement in mind, will you add RIO to your mining stock watchlist?
Silvercorp Metals Inc. (NYSE: SVM)
Silvercorp Metals Inc. is a mining stock that has been performing well recently. This is a company that acquires, explores, and mines at different mineral properties. All of Silvercorp’s assets are located in China. The materials that the company searches for are silver, gold, lead, and zinc. The company owns an interest in many projects such as the Ying project in Henan Province, China.
[Read More] 3 Copper Stocks To Watch As Material Prices Rise
Now Silvercorp has reported its operational results on July 13th. The company reported sales decreases in gold, silver, and lead sold in the quarter. This production decline was a result of mining contract renewal negotiations at the Ying Mining District. The company’s lead sales increased despite the other decreases during the quarter.
Now Silvercorp intends on reporting its first quarter fiscal 2022 unaudited financial results on Thursday, August 5, 2021, after the market closes. This is an important date for investors to take note of from the company. With all of this being said, will SVM enter your watchlist?
Best Mining Stocks To Buy In July?
It can be difficult to decide which mining stocks are the best to buy in July. That is why creating an investment strategy can be very helpful when entering this sector. The pandemic is still affecting mining stocks right now, due to closures causing shortages. With everything in mind, which mining stocks will make your watchlist?
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