With the stock market down today, the hunt is on for cheap stocks to buy. Considering the emphasis put on rates this week, one of the discussion topics is hedging in 2022. Wednesday’s hawkish comments from the Federal Reserve have shaken markets, causing a sell-off in stocks.
Mining Stocks 30-Second Overview
- Mining stocks are becoming more actively traded in 2022
- When retail traders want to gauge sentiment, they look at things like analyst ratings, what discussions boards say, and what insiders are doing
- Following the money simply means following the activity of big investors (including insiders)
- Today we look at some of the most active mining stocks to watch today
“Participants generally noted that, given their individual outlooks for the economy, the labor market, and inflation, it may become warranted to increase the federal funds rate sooner or at a faster pace than participants had earlier anticipated. Some participants also noted that it could be appropriate to begin to reduce the size of the Federal Reserve’s balance sheet relatively soon after beginning to raise the federal funds rate,” said the minutes.
Read: Best Copper Stocks To Watch For January 2022
Is this the first sign of a stock market crash in 2022? While we’re still a ways away from a technical “crash,” there is fear prompting trading trends right now. This has signaled to some that it may be time to play defense and with that is an offensive move in safe-havens. However, it’s not gold or silver benefiting from fear of a stock market crash but other types of mining stocks. Today we’ll look at 3 of the most active.
Most Active Mining Stocks Today
- ICL Group Ltd. (NYSE: ICL)
- VALE S.A. (NYSE: VALE)
- Rio Tinto Plc (NYSE: RIO)
ICL Group Ltd. (NYSE: ICL)
Specialty minerals have come back into focus during the early days of 2022. ICL Group mainly focuses on the ones to support demands from the oil and gas industry. In fact, in recent comments from the company, ICL said it plans on boosting its clear brine fluid sales to the Emirates this year.
Anat Tal, president of Industrial Products for ICL, explained, “Sales of clear brine fluids have increased as the year has progressed, and we anticipate this trend will continue into 2022. With the return of drilling activity, we foresee additional commercial opportunities in the Emirates.”
With energy stocks taking off, ICL has managed to weather a storm otherwise unmanageable compared to the broader metals mining industry. For example, if you look at many of the “traditional” miners like Barrick Gold (NYSE: GOLD), share prices have been greatly depressed for some time. As far as ICL is concerned, its stock price has enjoyed a move of nearly 100% since last January.
VALE S.A. (NYSE: VALE)
As one of the largest miners in the world, Vale has become a go-to amid the reopening initiatives globally. With projects in over 30 countries, the company’s history has more or less forced its evolution beyond mining alone. Vale also participates in logistics work, infrastructure development, energy, and even steel making.
In its most recent update, the company discussed its mineral resource development plans with Anglo American (OTC: NGLOY). Based on preliminary discussions, the company outlined the possibility of developing specific resources of the Serpentina Project in South America. The company also struck an agreement to sell its Moatize coal mine and the Nacala Logistics Corridor to Vulcan Minerals for $270 million, plus a 10-year royalty deal subject to particular mine production and coal price conditions.
Read: Mining Stocks Continue Surge As Traders Buy EV Stocks In 2022
There’s still much to be desired from VALE stock right now. But its global reach could be attractive to some as reopening efforts continue.
Rio Tinto Plc (NYSE: RIO)
Rio Tinto has cast a wide net on the global mining industry like VALE. However, its most recent focus has been on lithium. The company recently announced the acquisition of Rincon Mining’s lithium project in Argentina. Rio said this deal was a show of faith in its commitment to build its battery materials business. It also wants to strengthen its portfolio for the global energy transition.
Rio Tinto Chief Executive Jakob Stausholm said, “This acquisition is strongly aligned with our strategy to prioritize growth capital in commodities that support decarbonization and to continue to deliver attractive returns to shareholders. The Rincon project holds the potential to deliver a significant new supply of battery-grade lithium carbonate, to capture the opportunity offered by the rising demand driven by the global energy transition.”
According to Rio, once the acquisition is complete, the Rincon project will be subject to studies to confirm the resource and define an Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves, 2012 (JORC Code) compliant resource statement.
There will also be a development strategy and project timetable outlined. Rio further said it would secure updates to existing Environmental Impact Assessment Permits. This will allow development and production, and “undertake ongoing engagement with communities, the province of Salta and the Government of Argentina.”
Mining Stocks For 2022
These are just a few of the most active mining stocks to watch right now. Global reach and emerging industries have put these companies at the forefront of several trends. Whether it’s electric vehicles, alternative energy, traditional oil & gas, or something else, knowing about current market conditions can help you compile a robust list of mining stocks to watch for 2022. Will any of these be on your heading into the new year?
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