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Mining Stocks to Own Now

The global mining market is diverse and complex. However, like many industries, the mining sector has also suffered from prolonged setbacks due to the pandemic. Now, analysts expect a stronger growth rate this year with more moderate and familiar rates in the years to come. Overall, the global mining market is expected to grow from USD 1641.67 Billion in 2020 to USD 1845.55 Billion in 2021 and at a compound annual growth rate (CAGR) of 12.4%, according to data by Research and Markets. This growth is mainly due to companies rearranging their operations and recovering from the pandemic’s impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that have resulted in operational challenges. The market is also expected to reach USD 2427.85 Billion in 2025 at a CAGR of 7%. TD Holdings, Inc. (NASDAQ: GLG), Hudbay Minerals Inc. (NYSE: HBM), Teck Resources Limited (NYSE: TECK), Turquoise Hill Resources Ltd. (NYSE: TRQ), Hecla Mining Company (NYSE: HL)

One major segment of the mining market is non-ferrous metals, which includes aluminum, copper, lead, tin, nickel, titanium, and zinc. These metals are used across a wide range of industries including highly growing innovative tech sectors. For example, titanium is used in anodic spark deposition, a technology that has the potential for expanding titanium’s suitability for automotive, biomechanical, marine, and industrial applications. Furthermore, according to a research by Technavio, it is also used in the manufacturing of titanium exhausts. Another example is copper, which has widespread applications in different end-user segments and sectors including electrical and electronics, construction, transportation, and consumer durables. Additionally, copper’s unique property to restrict bacterial growth on its surface makes it useful in air conditioning systems and in the healthcare sector.

TD Holdings, Inc. (NASDAQ: GLG) just announced breaking news that, “the Company entered into a strategic cooperation framework agreement (the “Framework Agreement”) with Sinotech Minerals Exploration Co., Ltd (“Sinotech”), a state-controlled company engaged in the exploration and development of commercial mineral resources and exploit global mineral resources. 

Pursuant to the Framework Agreement, the parties established a framework for guidance purposes and indicated their intentions to enter into definitive agreements in the future for various projects. The parties agree to cooperate closely on the exploration and development of domestic and foreign mining projects, and regularly exchange information and share opportunities for cooperation in mining projects. Sinotech agrees to act as a technical professional consultant for the Company’s mining development by leveraging its advantages, personnel and experience in mineral exploration, mining and processing, and the mineral market.

Ms. Renmei Ouyang, Chairwoman and Chief Executive Officer of TD Holdings, commented, ‘We are excited to enter into the strategic alliance with Sinotech. Currently, our commodity trading business is mainly purchasing non-ferrous metal products from suppliers and then selling them to our customers. The supply chain service business is mainly serving as a one-stop commodity supply chain service and a digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. The Framework Agreement enables us to leverage our own advantages to integrate and develop global mineral resources through close cooperation with Sinotech in the exploration and development of mining projects and consolidate the Company’s position and influence in the mining field. Exploiting global mineral resources is in line with our global growth strategy. In the next 5-10 years, we expect to gradually acquire the mining rights and ownership of multiple metal mines, expand our business to the integration of upstream resources, and improve our overall profitability.'”

Hudbay Minerals Inc. (NYSE: HBM) is a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; molybdenum concentrates; and zinc metals. Back in April, the Company reported that the final land user agreement for Pampacancha has been completed and Hudbay now has full access to the site to begin pit development activities. In January 2021, the company commenced pre-development activities, including haul road construction and site preparation work, which will allow Hudbay to commence pre-stripping activities shortly. Pampacancha is a high-grade copper and gold satellite deposit located approximately seven kilometres from Hudbay’s Constancia mine and processing facilities in Peru. Pampacancha is expected to contribute to an increase in copper and gold production at Constancia from 2022 to 2025 as the higher grades enter into the mine plan.

Teck Resources Limited (NYSE: TECK) engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Last year the company reported that it is partnering with TransLink, Vancouver Coastal Health, VGH & UBC Hospital Foundation, Coalition for Healthcare Acquired Infection Reduction (“CHAIR”), and the University of British Columbia to test antimicrobial copper coatings on high-touch transit surfaces on buses and SkyTrain in Vancouver, B.C. Copper alloy surfaces are naturally antimicrobial with self-sanitizing properties, with research showing that these surfaces eliminate up to 99.9% of harmful bacteria and viruses. “We are proud to be working with all the partners on this important pilot project to expand the use of antimicrobial copper in high-traffic public areas and prevent infections,” said Don Lindsay, President and CEO, Teck. “Through the Copper & Health program, Teck has been partnering with healthcare professionals, academia and others for years to help make communities safer. This pilot builds on those efforts at a critical time as the world works to prevent the spread of COVID-19.”

Turquoise Hill Resources Ltd. (NYSE: TRQ) together with its subsidiaries, operates as a mining company. The company explores for copper, gold, and silver deposits. Back in March the company announced that Oyu Tolgoi LLC (“Oyu Tolgoi”) has declared force majeure in connection with customer contracts for concentrate as a result of Oyu Tolgoi shipments of concentrate to its Chinese customers being suspended due to COVID-19 health and safety precautions related to Chinese-Mongolian border crossings. Oyu Tolgoi continues to support the Government of Mongolia’s efforts to work with Chinese officials to resume the shipments of copper concentrate to its Chinese customers as soon as possible.

Hecla Mining Company (NYSE: HL) together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally. The company offers lead, zinc, and bulk concentrates, as well as carbon materials to custom smelters, metal traders, and third-party processors; and unrefined gold and silver bullion bars to precious metals traders. Back in April the company reported its preliminary production for the first quarter of 2021. Zinc and lead production increased 25% and 82%, respectively, due to Lucky Friday production. In addition, Silver production of 3.5 million ounces, an increase of 7%, due to growing Lucky Friday production.

S. Jack Heffernan Ph.Dhttps://www.knightsbridgelaw.com
S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.

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