Do you have these top nickel mining stocks on your watchlist for this week?
Check Out These 3 Top Nickel Mining Stocks In The Stock Market Today
Nickel mining stocks have been on the rise in recent years in the stock market. Notably, nickel has become an increasingly popular metal. Nickel is used in a variety of industries, including the production of stainless steel, batteries, and coins. As a result, top nickel mining stocks have become an attractive investment to some investors. As the global economy continues to grow, the demand for stainless steel is expected to increase. This has led to a surge in nickel prices, and as a result, nickel mining stocks have become increasingly popular.
Investors gravitate towards nickel mining stocks because they offer exposure to a commodity that is essential for industrial growth. Notably, nickel companies like Materion Corporation (NYSE: MTRN) have seen their shares recover by over 7% in the last six months. In addition, nickel mining stocks tend to be relatively volatile, which means that they can offer investors the opportunity to potentially generate high returns. However, nickel mining stocks also have risk associated with the industry as well. If you’re keen on investing in the nickel mining industry, here are five names to watch this week.
Nickel Mining Stocks To Watch This Week
- Vale S.A. (NYSE: VALE)
- BHP Group Limited (NYSE: BHP)
- Glencore plc (OTCMKTS: GLNCY)
Starting off our list today is Vale S.A. (VALE). For starters, Vale is the largest producer of nickel in the world. In detail, the company has nickel operations in places such as Brazil, Canada, and Indonesia to name a few. Also, Vale has fully owned and joint venture refineries in China, South Korea, Japan, the United Kingdom, and Taiwan. Shares of VALE stock is set to open Monday’s trading session at $13.20 per share.
In other news, the mining company recently reported its second-quarter earnings in July. In the report, Vale posted earnings of $0.88 per share on revenue of $11.2 billion. Wall Street’s consensus earnings estimate was $0.81 per share on revenue of $13.7 billion. Additionally, nickel sales were relatively in line q/q, outpacing production by 13%, as a result of the inventory strategies the company implemented in the first quarter.
“With the substantial reshaping of our business, such as the sale of the Midwestern System, the company is much better prepared to deliver on its production recovery agenda. We stay committed to a disciplined capital allocation and to generating and returning value to our shareholders, as further evidenced by the announcement to pay US$ 3 billion in dividends“, stated Eduardo Bartolomeo, Chief Executive Officer. All in all, will you add VALE stock to your watchlist right now?
BHP Group Limited
Following that, let’s have a look at BHP Group. The company is one of the largest diversified natural resources companies across the globe. BHP owns a diverse portfolio of world-class and low-cost operations worldwide. While it has exposure to a wide range of commodities, a key one right now is nickel. Just last month, the company announced it engaged in a Memorandum of Understanding (MOU) for nickel supply with Ford Motor Company (NYSE: F).
In detail, BHP will explore the opportunity to supply Ford with nickel from its Nickel West asset in Western Australia. Actually, its Nickel West asset is a producer of some of the most sustainable and lowest carbon intensity nickel worldwide. The deal includes nickel supply for multiple years. The agreement can start as early as 2025.
BHP Chief Commercial Officer, Vandita Pant, stated, “We are pleased to announce this arrangement with Ford Motor Company, and more importantly, to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on end-to-end collaboration, as well as technological and commercial innovation.” Shares of BHP stock are up over 2% in the last month of trading. They are set to open Monday’s trading session at $54.40 a share. With that, will you be watching BHP stock this week?
Last but not least, let’s dive into Glencore. Glencore is one of the world’s largest global diversified natural resource companies. In fact, they are a large producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. For a sense of scale, Glencore companies employ nearly 135,000 people, including contractors, with a footprint in over 35 countries.
Shares of GLNCY stock is currently trading at $11.29 a share. Additionally, in the last month of trading GLNCY stock is up over 9%. This comes after the company recently reported its half-year production report for 2022. Diving in, the company reported their own sourced nickel production came in at 57,800 tonnes. This is 10,100 tonnes more compared to the same period in 2021. This represents a 21% increase.
Glencore CEO, Gary Nagle commented, “Overall production was mixed period-over-period (5 commodities up and 5 down in the table below), reflecting the Ernest Henry (copper/gold) and Bolivia (zinc) portfolio disposals, and geotechnical and processing challenges at Katanga, offset by improved cobalt, nickel and ferrochrome production levels and the additional contribution from Cerrejon, reflecting its full ownership from early January.” Considering all this, is GLNCY a buy right now?