An Introduction to Zinc Mining Stocks
Did you know that the value of mined zinc (based on zinc contained in concentrate) equated to about $2.1 billion in the year 2019? What’s more astonishing is that zinc was mined in only six states, at 15 total mines that are operated by five companies.
Zinc is a metal found in the earth’s crust with several different biological and industrial uses.
You are likely to associate or find zinc in street lamp posts, and suspension bridges. Meanwhile, zinc oxides are found in your day-to-day items: paints, cosmetics, batteries, and soaps. Its wide use is what makes zinc so popular.
Aside from that, you will find zinc processed in mineralization to galvanize metals to prevent rusting. It is also used in die castings and alloys that are important in the automobile, energy, and electrical industries.
Besides zinc, the only other base metals that are used more often are aluminum, copper, and iron.
While zinc is consistently found in our everyday products, the history of zinc mining stocks has been volatile. It can swiftly change as trends in housing, home improvements, and construction shift.
2020 finished with an incredible bang and we are likely to continue to see growth through 2021. As the novel COVID-19 pandemic shifts and things begin to open up, construction is likely to increase and so, too, will the demand for zinc.
The Zinc Mining Stocks You Should Know
Zinc mines are a marketable commodity for mining operations and to a smelter. Finding a great company that respects the land and what it offers while providing a viable return on investment is important for many folks. Here we present a list of mining companies to consider investing in for sustainable growth and some possible great returns.
Teck Resources Limited (NYSE: TECK)
Teck Resources Limited is a leading mining company that mines copper, zinc, other metals, and coal worldwide. Teck has a thriving zinc-lead and silver project that helps them thrive in the zinc market.
They are also well known for producing minerals for agricultural needs, such as fertilizers. They are an attractive company to invest in because of their sustainability goals, dedication to working with indigenous people where their mines are located, and to lessen their impact on the environment.
Stock performance has been riddled with incredible highs and lows. We have seen major increases followed by devastating lows.
However, the past year has been kind to overall stock performance. In May of 2020, stock shares sat at around $8.50. As of this publication, the stock has increased by a staggering 189% only 12 months later. The market cap is impressive with a value of $13 billion.
Hecla Mining Company (NYSE: HL)
Hecla Mining Company is regarded as one of the leading companies for silver and lead mining. Their products also include zinc, gold, and other precious metals.
Hecla operates three mines, two in the US and one in Canada. The company is expecting to grow and is in pre-development in Montana. They’re also exploring 12 locations in Canadian and American regions.
Stock performance history is similar to their competitors, with lots of highs and lows, but they’ve seen an overall 180% growth in the past year.
Their lowest stock price of $2.53 per share took place in May of 2020. Their highest price occurred in February of 2021 when the price reached $7.30 per share.
Should you invest in the company?
Well, it makes for a great diversification investment in your portfolio. While silver and gold are the major drivers of their stock value, zinc prices and their output helps to keep the stock from dropping too far low to make it worth your time. This is a long-term commitment, rather than a quick investment for fast cash rewards.
Hudbay Minerals, Inc. (NYSE: HBM)
Hudbay began in Manitoba, Canada over 90 years ago. They are a company focused on mining zinc and copper concentrate (which includes silver and gold). Their zinc production facilities are located in Saskatchewan, Manitoba, and Cusco Peru. Hudbay Minerals has a strategic focus on lifelong mines that are cost-effective.
Zinc stocks for HBM over the past year have been excellent. Their lowest point was in May of 2020 when shares were $2.05 each. Given the global pandemic, that is not a surprise. However, they have bounced back with 280% growth and a high point of $9.23 per share in May of 2021.
The most attractive reason to invest in Hudbay Minerals is their relatively low cost per share.
Getting in now for a long-term investment can potentially lead to a high return in later years.
With demand for zinc in technology growing, it may be a safer investment than some of the other companies with higher share prices.
Lundin Mining Corporation (OTCMKTS: LUNMF)
Lundin Mining Corporation launched in 1994, is a newer company than the aforementioned. The company has a strong focus on producing gold and copper amongst its five mining locations. Yet two of these locations, Neves-Corvo and Zinkgruvan, are responsible for around 150,000 tonnes of zinc each year.
Lundin Mining shares are sold on over-the-counter markets (OTCMKTS), which can be a volatile market.
While return on investment can be incredibly high, it does come with the danger of devastating lows.
Investing in Lundin is great for risk-takers who want to see fast growth. The affordability of the shares combined with zinc demands in pharmaceuticals and biotech on an easy-to-trade platform makes this a quick return crowd-pleaser.
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Mining stocks for companies that produce high-grade gold, zinc, silver, and copper are hot commodities right now.
Because of the recent pressure and focus on healthcare industries, the demand for zinc is seeing an all-time high.
This is a great time for anyone, beginners to investing or seasoned veterans, to jump on board.
Disclaimer: All investments involve the risk of loss. Nothing on this website should be misconstrued as investment advice. Any reference to an investment’s historical or projected performance is not a recommendation or guarantee of profit or desired outcome.