Best Zinc Stocks to Buy in 2025

Most likely, the majority of people hearing advice about zinc get it from people advocating its use for health. But the importance of zinc transcends our physical well-being.

In industrial applications, the metal is used in galvanized steel, making it an important material in infrastructure. The U.S. Geological Survey recently added zinc to its list of critical minerals. Critical minerals play a vital role in national security, the economy, renewable energy development, and infrastructure.

Investors should recognize that the green energy movement is increasing demand for zinc. The metal is an important component in parts that make up the electrical grid, and it helps to protect solar panels and wind turbines. With the global push towards greater clean energy adoption, it's no wonder that investors are on the prowl for zinc stocks.

Four top stocks

Four best zinc stocks to buy in 2025

Since mining companies don't solely focus on zinc production, people seeking exposure to the metal are left with diversified mining companies, which include zinc among the metals and materials they produce.

1. Glencore

1. Glencore

From the mining of various minerals and metals to marketing crude oil and natural gas to recycling electronics, Glencore operates an extensive array of natural resources businesses in 35 countries on six continents. But that doesn't mean its zinc business deserves short shrift; Glencore is a leading zinc producer.

Glencore produced about 919,000 tons of zinc in 2023, according to its preliminary results. This contributed to the company reporting revenue -- solely from the zinc business -- of about $12.6 billion and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $995 million. Management forecasts 2024 zinc production guidance of 900,000 tons to 950,000 tons.

Glencore is a formidable global force among zinc producers. Yet the company's zinc business doesn't come close to providing the lion's share of its revenue. In the first half of 2024, for example, zinc represented about 5% of the company's overall revenue and 16% of its adjusted EBITDA.

For zinc investors, Glencore's stock presents the opportunity to gain ample zinc exposure while simultaneously mitigating the risk of a steep downturn in the zinc market, thanks to the company's other businesses.

2. Hecla Mining

2. Hecla Mining

Although Hecla is closely identified with silver -- by some estimates, it's the largest primary silver producer in the U.S. -- it's also committed to producing gold, lead, and zinc. Through the first three quarters of 2024, the company's zinc business accounted for 14% of its overall revenue.

Hecla has assets located throughout North America, from Canada to Mexico, but it relies on only two mines for zinc production: Lucky Friday in Idaho and Greens Creek in Alaska. Since 1989, Hecla has mined about 4 billion pounds of zinc at Greens Creek, and there are plenty of places left to continue extracting zinc from the ground. According to Hecla, Greens Creek has proven and probable zinc reserves of 658,730 tons. Couple this with its reserves at Lucky Friday, and Hecla Mining had total proven and probable zinc reserves of 940,490 tons as of the end of 2023.

This isn't to say that zinc production may not expand to other assets in the future. Hecla has several assets with zinc resources in its portfolio that are in various phases of development: Keno Hill, an operating mine in Canada; San Sebastian, an exploration property in Mexico; and Star, an exploration property in Idaho.

For the first three quarters of 2024, silver and gold represented 44% and 33%, respectively, of the company's revenue. For zinc-focused investors who are also interested in precious metals exposure, Hecla is certainly worth digging into.

3. Southern Copper

3. Southern Copper

As its name suggests, Southern Copper is a mining company primarily focused on copper production. In fact, the company claims that it's the fifth-largest producer of mined copper in the world and that it has the largest copper reserves of any publicly traded company. Copper, unsurprisingly, figures prominently in the company's financials, accounting for about 78% of revenue over the past three years.

But that's not to say that the zinc business, conducted at five underground mines in Mexico, is negligible. While molybdenum accounted for 11% of the company's revenue over the past three years, zinc accounted for 3% -- slightly less than silver, which came in at 4%. Zinc production is expected to increase in 2024, thanks to a new zinc concentrator at Buenavista in Mexico. According to Southern Copper, the new zinc concentrator will increase milling capacity and help the company recover zinc, copper, and molybdenum. Management, consequently, forecasts 2024 zinc production of 120,300 metric tons, an 84% year-over-year increase.

Income investors will also find Southern Copper compelling. Currently, the stock offers an enticing 2.8% forward dividend yield. Those who question the dividend's impact on the company's financial health will find their concerns allayed after checking the payout ratio. Over the past 10 years, Southern Copper has averaged a payout ratio of 68%, suggesting that management is not willing to jeopardize the company's financial well-being to placate people with a penchant for passive income.

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4. Teck Resources

4. Teck Resources

From three assets -- the Red Dog mine in Alaska, Trail Operations in British Columbia, and the Antamina mine in Peru -- Teck has grown a strong zinc business that has made it a global leader, leading it to characterize itself as "one of the world's largest producers of mined zinc." In 2023, for example, Teck produced 267,000 tons of refined zinc, and it projects 2024 refined zinc production of 240,000 to 250,000 tons -- an expected decline due to a fire that impeded operations at Trail Operations. For 2025 through 2027, however, management foresees higher refined zinc production, projecting 270,000 to 300,000 tons annually.

Although steelmaking coal has contributed significantly to the the company's top line for years, Teck Resources is narrowing its focus and concentrating on energy transition metals: copper and zinc. In support of this strategic shift in the company's business, Teck Resources sold its 77% interest in steelmaking coal business Elk Valley Resources to Glencore in July 2024 for $7.3 billion.

On the company's fourth-quarter 2022 conference call, Jonathan Price, Teck's CEO, said the metal "remains absolutely core to Teck Metals going forward as it is today in the portfolio."

Demonstrating its commitment to the role that zinc will play in the company's future, Teck plans on exploring the economic viability of developing Aktigiruq, a zinc resource located near Red Dog in Alaska.

Should you invest?

Are zinc stocks right for you?

Finding companies that offer exposure to zinc is simple. The harder question is determining which avenue one wants to pursue to achieve this end. If you are interested in the safety of a diversified materials industry stalwart, Glencore is a compelling choice. However, if you also want the benefit of a precious metals investment or copper investment, then Hecla, Southern Copper, or Teck are better choices.

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