Investing in the Top Mining Stocks

Many of these metals and materials are crucial to the global economy. Industries need the raw materials to build and manufacture goods, products, and infrastructure. When the economy is expanding, mined materials are in high demand, which boosts prices.

However, the mining industry is cyclical. Demand for mined materials tends to fall when the economy slows down. Mining stock prices typically decline during a recession.

Given the mining industry’s cyclicality, investors need to focus their attention on mining stocks that can weather future economic storms. Let's dig into some of the best mining stocks and take a closer look at investing in the mining industry.

Barrick Gold (NYSE:GOLD) is one of the largest gold miners in the world, with operations in more than a dozen countries. It's also a leading copper producer.

One thing that sets Barrick Gold apart from other precious metals companies is its focus on Tier One mining assets. It defines a Tier One mine as one that:

• Produces more than 500,000 ounces per year
• Has at least 10 years of productive life remaining
• Delivers total cash costs per ounce in the lower half of the industry cost curve

Tier One mines produce a relatively steady supply of low-cost gold and copper, enabling Barrick to continue making money when prices are low.

Barrick Gold’s Tier One mines can generate lots of cash, allowing it to pay an attractive base dividend payment. It complements that base payout with a quarterly performance dividend payment that fluctuates with its cash balance.

BHP Group (NYSE:BHP) is a diversified resources company. It operates fully integrated mining assets that extract and process copper, iron ore, metallurgical coal, zinc, and potash. Its mining assets span the globe.

BHP Group aims to be a low-cost producer. It efficiently operates large, resource-rich mines and uses technology such as autonomous vehicles to reduce costs. The mining company's focus on minimizing expenses also helps to mute the impact of inflation.

BHP Group combines its low-cost operations with a strong balance sheet, which it strengthens by routinely selling its least profitable mines and noncore assets. It also seeks to acquire rival miners to increase its scale and growth prospects. In 2025, the company partnered with Lundin Mining (OTC:LUNMF) to acquire Filo for its Filo del Sol copper project. BHP Group invested $2 billion into the 50/50 joint venture.

The mining company is well positioned to invest in high-return expansion projects even when commodity prices are low. Its production volumes are relatively stable. Although there’s some variability to its cash flow, BHP’s low costs enable it to generate free cash flow to reliably pay dividends and repurchase stock.

Like Barrick, BHP Group’s dividend has some variability. The company pays out at least 50% of its profits each reporting period in dividends, so its dividend outlay will rise or fall with its cash flow.

Rio Tinto (NYSE:RIO) is a diversified mining company. It's a leading producer of the three most consumed industrial metals -- iron ore, aluminum, and copper. Rio Tinto is also building a world-class lithium operation.

Like BHP Group, Rio Tinto aims to be a low-cost producer of metals and minerals. It's able to keep costs down by operating mining assets that are integrated and big. Rio Tinto's investments in new technologies, such as autonomous vehicles, artificial intelligence, and renewable energy, reduce costs and increase productivity.

Rio Tinto has proven its ability to make money even during weak market conditions. It has a strong balance sheet and routinely sells noncore mines to reallocate cash to better opportunities. For example, in recent years, it has exited the coal mining business due to the sector’s dwindling prospects amid climate change concerns.

Meanwhile, in late 2024, Rio Tinto approved the $2.5 billion Rincon project in Argentina, its first commercial-scale lithium operation. It followed that up in early 2025 by closing its $6.7 billion acquisition of Arcadium Lithium. The deal establishes the mining giant as a major lithium producer. The company also regularly invests money to expand its best mines.

Rio Tinto is another mining company that pays dividends to shareholders and repurchases its own shares throughout the economic cycle. It tries to pay 40% to 60% of its cash flow in dividends, with payments varying each period depending on its earnings.

Mining stocks are publicly traded companies focused on finding, extracting, and processing deposits of valuable minerals and materials. These substances include:

• Precious metals such as gold, silver, platinum, and palladium.
• Industrial metals such as iron ore, copper, aluminum, nickel, lithium, cobalt, and zinc.
• Construction materials such as sand, crushed stone, and limestone.
• Energy materials, including coal, oil sands (bitumen), and uranium.
• Fertilizers such as boron, potash, and phosphate.

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