Best Mining Stocks For January 2022

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If you’re looking ahead at 2022 thinking about how to play inflation, it may not surprise you that mining has become a bit more popular lately. Generally speaking, when things get volatile or uncertain in the stock market, safe havens like precious metals start to shine brighter. But as other industries have evolved, so has mining, and it isn’t only about the latest gold or silver deposits at some undiscovered location.

The rise of the electric vehicle industry has opened a seat at the table for things like lithium and antimony. Meanwhile, alternative energy trends have placed a spotlight on uranium and graphite. Of course, you’ve got your precious metals that aren’t going away anytime soon, so, yes, gold and silver are still in the picture. However, my point is that when it comes to the best mining stocks for the new year, it may not be what the masses might assume.

In today’s article, we’ll look at a handful of mining stocks to watch for January. You’ll see some of the overreaching industry trends and gain a better understanding of what this traditionally “boring” industry may have in store for an exciting new year.

Best Mining Stocks To Watch For January 2022

Freeport-McMoRan

Freeport has successfully extended its reach across continents and industries as an international mining company. It has built a diversified asset base of copper, gold, and molybdenum reserves. With the significant rise of interest in electric vehicle manufacturing, copper has been in high demand. That’s because EVs typically use twice as much copper as internal combustion engines.

FCX stock could be one of the top mining stocks to watch next year if you’re betting big on EVs. The company produces more than 1 billion pounds of copper annually in the US. In its last quarterly report, the company also said that the market outlook for the metal is “extraordinarily positive.”

Aside from beating expected profit figures, Freeport also announced an up to $3 billion share repurchase program and declared quarterly dividends for 2022 of $0.15 per share. “With the recent achievement of our net debt target, strong execution of operating plans, and favorable market conditions for our products, we are pleased to commence implementation of our performance-based payout framework,” said Chairman and Chief Executive Officer Richard Adkerson in comments back in November.

FCX Stock Forecast

As far as analysts are concerned, the outlook appears bullish based on price targets. Over the last few weeks, Wolfe Research, Stifel, and Morgan Stanley set price targets of $47, $48, and $34 respectively. Though Morgan Stanley’s target is lower than current trading levels, this was issued as an increase to its former PT.

MP Materials Corp.

Another hot area of the mining industry is rare earth materials. For use in everything from semiconductors to photovoltaic cells, these materials include some of the more exotic metals that most haven’t likely heard of. Neodymium, Yttrium, Cerium, Terbium, Scandium, Erbium; these are just a few to name. MP has put a particular focus on neodymium-praseodymium oxide. This is a major ingredient in high-strength magnets. Where would these be used? High-strength magnets are used in many different applications. For electric vehicles specifically, you may find them in motors, pumps, power mirrors and seats, drivetrains, and even steering wheels.

In fact, to this exact point, MP recently inked a deal to build a U.S. magnet factory and enter a long-term agreement with General Motors (NYSE: GM). The Deal with GM will…

 

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