Best Zinc Stocks for 2024
Zinc is a precious metal that holds significance not only in infrastructure but also has a vital role in the advancement of renewable energy. Recently classified as a critical mineral by the U.S. Geological Survey due to its societal importance, zinc is gaining attention from investors amid growing interest in clean energy. This article explores some of the best zinc stocks to watch.
Table of Contents
What are Zinc Stocks?
Zinc is in the top five most-produced metals in the world, coming shortly after copper, iron, and aluminum. It is used for industrial purposes and is an essential component that galvanizes steel. Zinc is a significant commodity, especially in the transition to renewable energy, as it helps to protect solar panels and wind turbines from deterioration.
The global size of the zinc industry is valued at $26.64 billion. The industry is expected to grow around 11.6% each year and reach $64.10 billion by 2030. At the start of the Ukraine-Russia war, the price of zinc per metric tonne skyrocketed to $4,000 and disrupted the whole supply chain. The zinc prices per metric tonne are now hovering around $2,440.
The zinc mining industry is composed of companies that extract zinc from the earth through mining. These companies are important to the global demand for zinc, which is used in many other industries. There is a growing emphasis on sustainable mining practices, and companies are investing in technologies and processes to move towards green energy adaptation.
The increasing demand for zinc, as well as its growing production rate, make it a viable option for investment. Gaining exposure to the performance of zinc could include owning shares of zinc companies, zinc ETFs, or trading in zinc futures - offering a way to diversify a portfolio into a growing commodity industry.
Best Zinc Stocks to Watch
Below is a list of the best zinc stocks to watch right now. Which stocks are ‘the best’ is subjective; therefore, this section serves as a starting point for further research.
How have the best zinc stocks been selected?
The companies in this list are not just traditional mining companies but are involved in the manufacturing, selling, distribution, and other aspects of zinc production. Since most mining companies do not solemnly focus on zinc production, this selection offers a set of diversified mining companies that also mine other metals and minerals.
- Glencore - A significant natural resource company producing over sixty commodities
- Hecla Mining - Largest U.S. silver mining company and third-largest zinc producer
- BHP Group- World leading producer in copper and zinc concentrate
- Southern Copper - Major producer and refiner of copper and zinc, with operations in Peru and Mexico
- Teck Resources - Largest diversified mining company in Canada committed to responsible development
Glencore
Glencore was founded in the 1970s as a trading company. Today it has become one of the major producers of commodities, operating in around 35 countries and employing over 14,000 people. Glencore is involved in the mining, trading, and distribution of a diverse set of minerals and metals and has three core pillars. It aims to be a leader in enabling the transition to a low carbon economy whilst meeting the ‘continued demand for metals needed in everyday life’.
Glencore has four primary operations, focusing on metals and minerals, energy, marketing, and recycling - producing a large portion of the world's copper, zinc, and nickel. The company is also a lead producer of coal and one of the most prominent marketers of physical commodities. Glencore currently has a market cap of $65.90 billion, and the zinc stock ticker is LON: GLEN.
Hecla Mining
Hecla Mining was founded in 1891 and is the second-largest mining company in the U.S. It is North America's oldest NYSE-listed precious metal company. The company’s stock has been trading on the New York Stock Exchange for over 50 years. It currently has a market cap of $2.26 billion, and the ticker of the zinc stock is NYSE: HL.
Hecla is more than just the largest producer of silver in the U.S. It differentiates itself from competitors through the quality of its products and the location of its mines. The company’s focus is to create long-term value for its shareholders through mining silver and other precious metals. They achieve this by focusing on discovering, developing, and marketing mineral resources profitably. Additionally, they contribute to decarbonising the economy, a shift that increasingly relies on silver and zinc production for the renewable energy sector.
BHP Group
BHP Group started as two small mining companies in the 1800s. It has now grown into a world leader in the commodity industry. The company is involved in discovering, developing, producing, and distributing various precious metals, such as iron ore, copper, silver, and zinc.
It aims to support the decarbonisation of the economy by providing the essential resources needed for this transition, produced and mined sustainably. With operations in over 90 countries, the current market cap of BHP Group is valued at $152.66 billion, and the ticker for this zinc stock is ASX: BHP.
Southern Copper
Southern Copper Corporation was founded in 1952. The current company is owned by Mexican mining conglomerate Grupo Mexico, which took over the original company in 2005. It is one of the world's largest publicly traded copper mining companies and ranks amongst the highest producers of silver and zinc. Their mines operate from Mexico and Peru.
The company’s products include high-quality copper sheets and plates. It also offers various CNC services, such as advanced machining and precision cutting. Zinc production is expected to increase over the next year thanks to a new zinc concentrator currently being constructed in Mexico. The market cap of Southern Copper is currently valued at $63.55 billion, and its zinc stock ticker is known as NYSE: SCCO.
Teck Resources
Teck Resources is a prominent Canadian mining company with roots in 1906. Operating in the U.S., Chile, and Peru, it specialises in steelmaking coal, copper, zinc, and energy. Committed to continuous innovation and operational enhancement, the company prioritises a safe and sustainable work environment.
Being one of the world’s largest zinc producers, Teck Resources is vital in meeting the increasing demand for this precious metal in various industries. With a robust and expanding zinc business, Teck strives to establish itself as an industry leader. This has resulted in a market capitalisation of $19.9 billion, with its zinc stock trading under the ticker symbol NYSE: TECK.
How to Invest in Zinc Stocks
With Admiral Markets, you can trade and invest in global shares and ETFs with the following commissions:
- UK stocks and ETFs – 0.1% of trade value, 1 GBP minimum commission.
- US stocks and ETFs – From $0.02 per share, 1 USD minimum commission.
- France/Germany stocks and ETFs - 0.1% of trade value, 1 EUR minimum commission.
You can learn more about trading and investing commissions on the Admiral Markets Contract Specification page. You can search for global stocks and ETFs from the MT5 web platform and invest in four steps:
- Open an account with Admiral Markets.
- Click on Trade on one of your live or demo trading accounts to open the web platform.
- Search for your symbol at the top of the search window.
- Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level.
Pros & Cons of Investing in Zinc Stocks
Investing in zinc stocks offers several advantages, primarily driven by its growing demand. As a vital metal supporting the green transition, zinc will play a pivotal role in decarbonising the economy, possibly leading to future price increases for zinc and zinc stocks.
However, like other metals, the price of zinc can be highly volatile. There is no guarantee that the prices will increase in the future. For that reason, it is essential for investors to keep up-to-date with the latest developments in the market and regularly perform their own research.
Moreover, small zinc companies are subject to a high risk of failure due to the pressure of increasing energy costs and fluctuating prices. Investing in such stocks can therefore come with a higher level of risk. Investing in larger mining companies with diversified resources could be an alternative. However, investors must conduct thorough research before investing in any of the best zinc stocks as investments will go up and down.
Continue Reading:
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- How to Trade the US Stock Market
- The CFD Trading Guide
FAQs on Zinc Stocks
Who is the largest producer of zinc?
The largest producer of zinc is China, producing 4.2 million metric tons of zinc in 2022.
Is there a zinc ETF?
There are many zinc ETFs available for investment. One of the largest zinc ETFs, for example, is the iShares MSCI Global Metals & Mining Producers ETF.
Is zinc a good investment?
The zinc sector has grown considerably over the past years and is poised for further expansion, driven by the growing importance of zinc in the green transition. Consequently, zinc stocks exhibit some potential for the future. However, determining a good investment ultimately depends on each investor's individual goals and capabilities and there are never any guarantees.
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