3 Hot Mining Stocks to Consider Today

Mining stocks like First Quantum Minerals Limited (TSX:FM) and others have been some of the best performers on the TSX in recent weeks.

| More on:
Safety helmets and gloves hang from a rack on a mining site.

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Commodities have weakened compared to a very strong first half of 2022, as fears of a recession have steadily increased. Yesterday, the S&P/TSX Global Base Metals Index and the S&P/TSX Battery Metals Index dropped 4.34% and 6.53%, respectively. Today, I want to look at three mining stocks that are red hot in this environment. Are these equities still worth snatching up in the final weeks of August? Let’s jump in.

This base metal mining stock still offers good value in late August

Ivanhoe Mines (TSX:IVN) is the first mining stock I want to zero in on today. This Vancouver-based company is engaged in the exploration, development, and recovery of minerals and precious metals located primarily in Africa. Shares of this mining stock jumped 5.29% on Tuesday, August 23. The stock has dropped 13% in the year-to-date period.

The company unveiled its second-quarter (Q2) fiscal 2022 results on August 15. It delivered profit of $351 million compared to a loss of $108 million in the second quarter of fiscal 2021. Ivanhoe received a huge boost from the income generated at the Kamao-Kakula joint venture.

Shares of this mining stock currently possess a favourable price-to-earnings (P/E) ratio of 17. Ivanhoe is also trading as a better price than the industry average. Investors should be encouraged after it has achieved profitability once again.

Lithium stocks have regained momentum in the beginning of the 2020s

Lithium exploration companies and producer attracted a lot of attention in the middle of the previous decade. That hype led to record prices for some of the top names in the lithium space. Investors took a hit, as the lithium bubble deflated, but the sector has regained momentum in the early 2020s. Lithium Americas (TSX:LAC)(NYSE:LAC) is a Vancouver-based company that is focused on its lithium projects in the United States and Argentina.

This mining stock has dropped 8.6% in 2022 as of close on August 23. Its shares have still soared 73% in the year-over-year period. Lithium Americas released its second-quarter fiscal 2022 earnings on July 28. It reported total assets of $1.04 billion as at June 30, 2022 — up from $817 million in the previous year. This was primarily due to the acquisition of Millennial Lithium, which owns 100% of the Pastos Grandes lithium brine project.

Investors should be encouraged by the strong earnings trajectory Lithium Americas has demonstrated in recent years. I’m still looking to snatch up this mining stock after its sharp summer dip.

One more mining stock to snatch up today

First Quantum Minerals (TSX:FM) is the third mining stock I’d look to target in this environment. This Toronto-based company is engaged in the exploration, development, and production of mineral properties. Its main product is copper, which has seen its price suffer due to a manufacturing slowdown in China. Shares of this mining stock have dropped 15% in the year-to-date period. The stock is still up marginally year over year.

In Q2 2022, First Quantum saw copper production increase to 192,668 tonnes compared to 182,210 tonnes in the second quarter of 2021. Sales revenues were reported at $1.90 billion — up from $1.78 billion in the prior year. Moreover, adjusted earnings rose to $337 million, or $0.49 per share, compared to $173 million, or $0.25 per share, in Q2 2021. This mining stock possesses an attractive P/E ratio of 10.

Should you invest $1,000 in Lithium Americas right now?

Before you buy stock in Lithium Americas, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Lithium Americas wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,391.46!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the Top Stocks * Returns as of 1/7/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Metals and Mining Stocks

Young Boy with Jet Pack Dreams of Flying
Stocks for Beginners

1 Canadian Stock Ready to Rocket Through 2025

This next year might be a bit volatile, which is why this stock looks like a strong buy.

Read more »

nugget gold
Metals and Mining Stocks

Betting on a Gold Rush in 2025? Buy These 2 Canadian Stocks

Here's why Nemont Gold (TSX:NGT) and Barrick Gold (TSX:ABX) are two top gold miners worth buying right now.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Metals and Mining Stocks

TFSA $7,000: Where to Invest That TFSA Contribution for Top Income

The TFSA is one of the best ways to invest, and this stock is a strong option to pick.

Read more »

Man data analyze
Metals and Mining Stocks

1 Copper Stock Down 27% to Buy Immediately

When it comes to future favourites, look for companies that are valuable, pay dividends, and have a strong outlook --…

Read more »

nugget gold
Metals and Mining Stocks

Barrick Gold Stock: Buy, Sell, or Hold in 2025?

Barrick Gold is a cheap mining stock that trades at a discount to consensus estimates in 2025. Is ABX stock…

Read more »

A plant grows from coins.
Stocks for Beginners

1 Canadian Stock Ready to Surge In 2025

First Quantum stock is one Canadian stock investors should seriously consider going into 2025, and hold on for life!

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Franco-Nevada Stock: Buy, Sell, or Hold in 2025?

Franco-Nevada's Q3 reveals the power of streaming amidst record gold prices. Its zero debt balance sheet, US$2.3 billion in capital,…

Read more »

coins jump into piggy bank
Dividend Stocks

A 10% Dividend Stock Paying Out Consistent Cash

This 10% dividend stock is one strong option for long-term income, but make sure you get a whole entire picture…

Read more »