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May 26, 2024
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Precious Metals

The 3 Best Precious Metals Stocks to Buy in January 2024

These three precious metal stocks give you a fighting chance in this high inflationary environment.

From being a hedge against inflation to use cases in jewelry and electronics or being a tangible asset with no counterparty risk, precious metals have always had a different appeal. Plus, they hold a high economic value due to their scarcity and usefulness. Not everybody agrees about their value as reliable investments.

However, we cannot deny that they have their place in the market. Investors who want exposure to these assets but don’t want the headache of buying, physically securing, and selling them might want to look at precious metal stocks instead. If that sounds like something you want to try, here are three top-tier companies.

Southern Copper Corporation (SCCO)

Southern Copper Corporation logo on a phone screen in front of the logo on a computer screen. SCCO stock.

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Southern Copper Corporation (NYSE:SCCO) is a world-class producer of metals like copper, molybdenum, silver, gold, and zinc. The company operates metallurgical facilities and mining units in Peru and Mexico and owns the world’s largest copper reserve. It also runs exploration activities in various areas of South America and Mexico. Its business segments involve open-pit copper mining, smelting, refining, and underground mining operations.

SCCO ended its latest quarter results with a solid showing. The company logged a 16.2% increase in net sales, 19.4% in net income, and 26.8% in adjusted EBITDA, all compared with the same quarter – last year. These strong numbers are attributed to its stringent cost management and heightened sales practices. 

Its strategic capital investments demonstrate SCCO’s commitment to expanding its production capability and optimizing critical project operations. Its outstanding performance and effective cost management puts the company in a strong position for sustained long-term growth and a worthy inclusion in any precious metal stocks list.

Royal Gold, Inc. (RGLD)

precious metals stocks Close up lump of gold mine on wooden table

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Royal Gold, Inc. (NASDAQ:RGLD) is a royalty and precious metals streams company whose operations specialize in managing and acquiring various precious metal streams, royalties, and production-based interests. Its operations are focused on either the acquisition & management of acquired assets or the acquisition and management of royalty interests. Its principal properties include Mount Milligan, Cortez, Khoemacau Project, Andacollo, Pueblo Viejo, and Penasquito. The company recently announced that it will be raising its dividend for the 23rd consecutive year.

RGLD’s latest financials reported a 5% increase in revenue, a 3% increase in operating cash flow, and an 8% increase in earnings YoY. It also reduced debt levels and raised its total available liquidity, highlighting the strength of its financials. While RGLD is experiencing some short-term delays in production, its CEO, Bill Heissenbuttel, has reiterated the company’s strong cash flow and capacity to repay its debt fully without shareholders’ dilution. 

RGLD’s strategic initiatives seem to back up that claim. Supporting projects with solid growth prospects, like improvements for the Fourmile Project at Cortez, highlights the management’s commitment to increasing company revenue. Its diverse revenue streams, exploration projects, and continued performance show why RGLD is one of the top precious metals stocks.

Freeport-McMoRan Inc. (FCX)

Freeport-McMoRan Stock's Long List of Catalysts Boosts Its Buy Status

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Freeport-McMoRan Inc. (NYSE:FCX) is a mining company focused on copper, gold, and molybdenum. Its mining operations are divided into four divisions: North American copper mines, Molybdenum mines, South American mining, and Indonesia mining. Its portfolio of assets includes the minerals district in Arizona and Indonesia. It also has operations in Peru and various mining operations in North America and South America.

FCX’s latest financial results were largely positive. Revenue increased by 16%, and operating income rose 55% compared with Q3’22. The company also reported a 12% increase in net attributable income and a 63% increase in its operating cash flow year-on-year.

As for full-year guidance, FCX is optimistic in that it expects gold sales to reach 1.74 million ounces, molybdenum sales of 80 million pounds, and copper 4.06 billion pounds. Its strong financial performance and bullish outlook put FCX in a positive light, making it one of the best precious metal stocks to consider. 

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

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