Top 5 mining stocks to watch amid economic recovery

Highlights

• The total revenue of Centerra Gold Inc (NYSE: CGAU) jumped about 56% in Q2.
• The net income of Vale S.A. (NYSE: VALE) rose about 600% in the second quarter.
• The shares of Cleveland Cliffs Inc. (NYSE: CLF) soared 69.42 percent YTD.

Mining stocks are companies engaged in the exploration, extraction, and processing of minerals and materials. These stocks are cyclical and directly linked with the economic health. Therefore, economic activities that require metal and materials are dependent on the sector.

In 2020, the income of most mining companies was hit by the pandemic. However, the infrastructure bill, passed by the Senate recently, and the ongoing economic recovery from the pandemic, are expected to give impetus to the sector.

Let’s explore some of the top mining stocks that may benefit from the improving economy.

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Centerra Gold Inc (NYSE: CGAU)

The stock of this Canadian company was priced at US$6.98 at 10:21 am ET on Aug 18, down 3.35 percent from its August 17 closing price. The stock value of CGAU fell 39.8 percent YTD.

Its market cap is US$2.07 billion, the forward P/E one year is 11.12, and the earnings per share (EPS) is US$-1.32. The highest and lowest stock price of Centerra for the last 52 weeks was US$10.03 and US$6.75. Its share volume on August 17 was 44,071.

The total revenue of the Toronto-based company surged around 56 percent YoY to US$202.3 million in Q2, 2021. Its net earnings from continuing operations came in at US$33 million, or US$0.11 per common share, compared to a loss of US$39.4 million, or US$0.13, in the year-ago quarter. The adjusted net earnings from continuing operations on a non-GAAP basis was US$49.9 million, or US$0.17 apiece.

Source: Pixabay

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Turquoise Hill Resources Ltd. (NYSE: TRQ)

The stock of this mineral exploration firm was priced at US$14.21 at 10:31 am ET on August 18, down 3.33 percent from its August 17 closing price. The stock rose 11.53 percent YTD. Its market cap is US$2.87 billion, the P/E ratio is 4.63, and the earnings per share (EPS) is US$3.09.

The highest and lowest stock price of the company for the last 52 weeks was US$21.89 and US$7.49. Its share volume was 413,256 on August 17.

Turquoise’s revenue surged 14.3 percent YoY to US$317.8 million in Q2, 2021, from US$278 million in Q2, 2020. Its income for the quarter came in at US$118.8 million, compared to US$72.3 million in the year-ago quarter. Turquoise has liquidity reserves of US$0.7 billion, sufficient for the company's spending requirements through Q3, 2022, the company said.

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Vale S.A. (NYSE: VALE)

The stock of this metal and mining firm was priced at US$19.57 at 11:02 am ET on August 18, down 3.74 percent from its August 17 closing price. The VALE stock rose by 16.84 percent YTD.

Its market cap is US$98 billion, the forward P/E one year is 3.43, and the earnings per share (EPS) is US$3.29. The highest and lowest stock price of the Brazilian company for the last 52 weeks was US$23.18 and US$10.29. Its share volume on August 17 was 25,808,240.

The company’s net income in Q2, 2021, was US$7.586 billion, up about 600 percent from the year-ago quarter. In addition, its earnings before interest, taxes, and other expenditures, surged about 32 percent YoY to US$11 billion, according to its securities filings.

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Cleveland Cliffs Inc. (NYSE: CLF)

The stock of Cleveland traded at US$25.42 at 11:17 am ET on August 18, up 4.05 percent from its August 17 closing price. The stock of CLF increased by 69.42 percent YTD. Its market cap is US$12.60 billion, the forward P/E one year is 3.98, and the earnings per share (EPS) is US$1.52.

The highest and lowest stock price of the Cleveland, Ohio-based firm for the last 52 weeks was US$26.51 and US$5.48. Its share volume was 24,011,680 on August 17.

The total revenue of the firm in the second quarter of 2021 was US$5.0 billion, compared to US$1.0 billion in the year-ago quarter. Its net income for the period came in at US$795 million, compared to a loss of US$108 million in Q2, 2020. Its total adjusted EBITDA 1 was US$1.4 billion, compared to a loss of US$82 million for the same period a year ago.

Source: Pixabay

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Nucor Corporation (NYSE: NUE)

The stock of this steel-producing company was priced at US$122.43 at 11:35 am ET on August 18, up 2.39 percent from its August 17 closing price. The stock rose by 127.71 percent YTD. Its market cap is US$35.95 billion, the forward P/E one year is 6.31, and the EPS is US$10.07.

The highest and lowest stock price of the North Carolina-based firm for the last 52 weeks was US$128.81 and US$44.05. Its share volume on August 17 was 4,321,323.

The company reported consolidated net earnings of US$1.51 billion in Q2, 2021, or US$5.04 per diluted share compared to US$942.4 million, or US$3.10 per diluted share in the first quarter of fiscal 2021.

Its consolidated net sales rose by 103 percent YoY to US$8.79 billion in Q2. In the first six months, its consolidated net earnings came in at US$2.45 billion, or US$8.13 per diluted share.

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Bottomline

The mining stocks have performed well in recent sessions. These companies are expected to maintain that momentum as the economic recovery gathers pace. However, investors would require more information about the sector and the companies before investing.