Which zinc stocks should investors watch this fall? Three Raymond James analysts recently revealed their top picks for the coming months.
Last year, zinc was the best-performing LME metal, reaching multi-year highs. In 2017, prices have continued to increase, but at a slower pace.
That said, in the past month zinc has been supported by supply concerns and falling warehouse inventories, and many experts remain bullish on zinc for the rest of the year.
Most recently, Raymond James analysts Brian McArthur, Farooq Hamed and Brandon Throop gave their top zinc stocks, saying that supply tightness in the market should drive prices higher. Below we take a brief look at the companies they have on their watch list.
First Quantum Minerals (TSX:FM)
Current price: $12.25; year-to-date movement: -8.24 percent
Metals and mining company First Quantum Minerals produces mainly copper, gold, nickel and zinc. The company’s assets are located in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru. First Quantum’s Cayeli mine in Turkey produces zinc bulk concentrate and zinc concentrate as well as copper. The company also owns the zinc-copper Pyhasalmi mine in Finland.
Hudbay Minerals (TSX:HBM,NYSE:HBM)
Current price: $9.20; year-to-date movement: +19.79 percent
Hudbay Minerals is an integrated mining company that produces copper concentrate and zinc metal at operations across the Americas. The company’s zinc operations include the 777 and Lalor mines in Manitoba.
Teck Resources (TSX:TECK.B,NYSE:TECK)
Current price: $22.16; year-to-date movement: +10.63 percent
Teck Resources bills itself as Canada’s largest diversified resource company, with business units focused on zinc, copper, steelmaking coal and energy. The company operates the Red Dog mine, one of the world’s largest zinc mines, as well as the Pend Oreille mine in the US.
Trevali Mining (TSX:TV)
Current price: $1.33; year-to-date movement: +17.7 percent
Trevali Mining is a zinc-focused base metals miner with two commercially producing operations. The company is actively producing zinc and lead–silver concentrates from its 2,000-tonne-per-day Santander mine in Peru and its 3,000-tonne-per-day Caribou mine in Northern New Brunswick. Trevali also owns the Halfmile and Stratmat base metals deposits, also located in New Brunswick.
Arizona Mining (TSX:AZ)
Current price: $2.93; year-to-date movement: +19.59 percent
Arizona Mining is a mineral exploration and development company that is focused on its 100-percent-owned zinc-lead-silver Hermosa project in Arizona. Hermosa is home to the Taylor and Central deposits, and the company says Taylor is one of the 15 largest zinc-lead deposits in the world; it is also one of the highest-grade deposits compared to similar-sized zinc-lead silver deposits.
Ivanhoe Mines (TSX:IVN)
Current price: $4.41; year-to-date movement: +73.62 percent
Ivanhoe Mines explores and develops mineral properties in South Africa and the Democratic Republic of Congo. Its assets include the Kamoa copper project, the Platreef platinum–palladium-gold-nickel-copper discovery and the zinc-copper-lead-germanium Kipushi mine, where upgrades are currently taking place.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Arizona Mining and Trevali Mining are clients of the Investing News Network. This article is not paid-for content.