Cleveland-Cliffs, Rio Tinto, & Freeport: 3 Mining Stocks To Explore

Summary

  • Cleveland-Cliffs’ consolidated revenues were US$4.0 billion in Q1 of 2021.
  • Rio Tinto reported a 30% increase in adjusted EBITDA in Q1.
  • Freeport McMoRan posted revenue of US$4850 million in the first quarter.

Trading in precious metals, such as iron, gold, and aluminium, is an integral part of our economic activity. These metals are often used as reserves during periods of financial hardships.

As such, the mining companies engaged in the exploration of precious metals and minerals make a significant contribution to our economic well-being.

They provide raw materials for various industries like technology, aerospace, jewellery, shipbuilding, etc. Thus, mining companies have continued to extend their services to our industries even during the pandemic.

Here are three mining stocks to explore:

Cleveland-Cliffs Inc. (NYSE:CLF)

Cleveland-Cliffs is one of the largest steel and iron producers in North America. In 2020, it purchased AK Steel and ArcelorMittal. Its market cap is US$9.4 billion. Thursday’s closing price of the CLF stock was US$18.42.

The company employs over 25,000 people across Canada and the US.

Source: Pixabay.

Also read: Six Major Gold Miners with Massive Reserves

Despite the pandemic, the company’s consolidated revenues rose to US$4.0 billion, compared to US$359 million in Q1 of 2020. It posted a net income of US$41 million and adjusted EBITDA1 of US$513 million.

Also read: Why is Copper at a New Seven-Year High?


RIO Tinto (NYSE:RIO)

RIO produces the three most consumed metals: copper, iron, and aluminium. Besides, it also produces minerals like salt, diamonds, boron, and titanium. Its market cap is US$140 billion. The stock was priced US$86.58 at the close on Thursday.

It reported a 30% increase in adjusted EBITDA in Q1 of 2021, taking its revenue to US$29 billion. It produced 77.8 million tonnes of Iron ore in Q1, up 7% from Q1 of 2020.

Aluminium production was 0.8 million tonnes, up 3%, compared to Q1 of 2020.

Also read: How is ESG impacting mining companies?

Freeport McMoRan (NYSE: FCX)

FCX, one of the largest publicly traded companies, produces copper, mainly in the US and Indonesia. Its market cap is US$19.1 billion.

Net income for Q1 2021 was US$718 million, and adjusted net income was US$756 million. It sold a total of 258,000 ounces of gold and 825 million pounds of copper, among other metals. Revenue for Q1 was US$4850 million against US$2798million in Q1 of 2020.

Also read: Gold slides as bond yield & US dollar strengthens, is this an opportunity?

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