The S&P 500 and tech-heavy Nasdaq took a pause in the stock market today. As virus concerns reemerged, growth names to a back seat to value. ETFs like the SPY and QQQ traded lower. But the Dow and associated ETF (NYSE: DIA) posted the 6th straight day of climbing higher.
This helped give a boost to safe-haven stocks as well. VanEck’s Gold Miners ETF (NYSE: GDX) climbed the highest in early trade among the sector ETFs leading the charge. Meanwhile, gold futures shrugged off the premarket slump from the 4 AM ET session, bouncing into the post-bell trading hours. This was a stark contrast to earlier sessions commanded by tech, biotech, and energy.
As they say, the trend is your friend. With that, we look at a few mining stocks to watch on sector strength.
Mining Stocks To Watch Today
BHP Group Ltd.
Shares of BHP Group stock were battling back from 52-week lows last month. Since reporting its FY 2021 earnings and giving 2022 guidance this past summer, the hard-hit mining stock has been jockeying for support. For FY 2022, BHP expects to produce 99-106 million barrels of oil equivalent, upward of 1.8 million tons of copper, as between 249 and 259 million tons of iron ore and 85,000 to 95,000 tons of nickel, among other key metrics.
The latest rise in BHP stock may be credited to the company’s continued expansion efforts. It has continued pushing for a buyout of Noront Resources. This deal would give BHP access to Noront’s extensive nickel, copper, platinum, and palladium deposits. The apparent push for renewable energy and electric vehicles has placed a very clear microscope on mining companies. So far, Noront’s board has entertained another deal with Wyloo Metals, which offered a superior bid for the company. However, they also allowed BHP to match the offer. As of this article, no further details have emerged.
Another mining stock that has pulled an about-face since late November is ArcelorMittal. Thanks to uncertainties due to new virus fears, the company’s shares had come under some pressure last month. However, with a focus on steel, Arcelor may have fallen into the reopening category, which global industrialization efforts have helped. This month the company expanded its partnership with LanzaTech with a $30 million investment. LanzaTech is a carbon capture and reuse specialist.
“We have worked with LanzaTech for several years, know their leadership team well and understand the potential of their technology and the role it can play in not only helping us to decarbonize but also in producing valuable products from our carbon-bearing gases which can help the decarbonization of other sectors. Extending our relationship through this investment was, therefore, a natural next step, and we are very pleased to now have an excellent CCU technology company within our XCarb™ innovation fund portfolio.” – Pinakin Chaubal, chief technology officer, ArcelorMittal
Adding to the excitement, ArcelorMittal has also deployed several share buybacks over the last few months. This week’s latest report shows that as of market close on December 28th, the company repurchased over 34 million shares.
Gold Fields Ltd.
Like other companies on this list of mining stocks, Gold Fields has placed a particular focus on cutting carbon emissions. The gold producer announced its 2030 ESG (environmental, social, governance) targets this month, highlighting new goals for its water and environmental stewardship. This includes how its tailing facilities are managed and improving safety for its workers. To that end, Gold Fields set an investment target of $400 million in energy projects with a particular focus on renewable energy. Furthermore, Gold Fields also plans on constructing a solar power plant at its South Deep project providing the mind with roughly 1/4 of its power requirements.
When it comes to decarbonization efforts, the company set a target of 30% net emission reductions by 2030 and net-zero by 2050.
“In finalising these targets we ensured that they were informed by detailed programmes, strategies and budgets. These targets are ambitious, but we realise that without this commitment to creating enduring value beyond mining and positively impacting our local stakeholders we cannot guarantee the long-term sustainability of our assets where we operate.”Gold Fields CEO Chris Griffith
Assuming 2022 could be a year for climate change initiatives and ESG expansion, GFI stock could be one of the mining names to know right now.
Mining Stocks To Watch In 2022
The new year is days away, and investors are already planning things out. Renewables and energy metal mining stocks will likely be one trend. However, since precious metals aren’t going anywhere anytime soon, traditional miners are vying for position as attractive “green” stocks.
The apparent hurdles are clear, and energy infrastructure may not be widely available. However, focusing on decarbonization or even net-zero targets has its perks. With the new year and new trends ahead, these and other mining stocks are on the path to meet these new investor requirements.
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