Wondering what the top zinc stocks are? Check out this list of three zinc companies that have seen share price increases so far this year.
Click here to read the previous top zinc stocks on the TSX article.
Zinc prices have been at the mercy of smelters and treatment and refinement charges for the past few years. However, zinc was one of the best-performing metals in 2020 and the zinc price has continued to surge in 2021.
The base metal started January out at US$2,799 per tonne on the London Metal Exchange. As global economies begin to rebound after the COVID-19 pandemic, zinc metal prices have held on to the gains made in 2020, hitting a high of US$3,063.5 in mid-May 2021.
Positive price movement in the zinc market has also been good for some zinc mining stocks, and with that in mind the Investing News Network has put together a list of the three top zinc stocks on the TSX in 2021. Data was gathered on July 9, 2021, using TradingView’s stock screener, and only companies with market caps greater than C$50 million at that time were considered.
1. Teck Resources (TSX:TECK.A,TSX:TECK.B)
Share price: C$35.75; year-to-date gain: 30 percent
Teck Resources is a diversified mining and mineral development company with major business units in copper, steelmaking coal and zinc, in addition to investments in energy assets. Teck is one of the world’s largest zinc producers, and its Red Dog zinc mine in Alaska is one of the world’s largest zinc mines.
In 2021, Teck production guidance calls for 275,000 to 290,000 tonnes of copper, 585,000 to 610,000 tonnes of zinc, and 300,000 to 310,000 tonnes of refined zinc. Shares of Teck reached a year high of C$42.50 on June 2.
2. Trilogy Metals (TSX:TMQ)
Share price: C$2.99; year-to-date gain: 17.72 percent
Through its 50 percent ownership of Ambler Metals LLC, Trilogy Metals is actively exploring the Upper Kobuk Mineral projects in Alaska’s Ambler mining district. This region is known to host world-class polymetallic volcanogenic massive sulphide (VMS) deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high-grade copper and cobalt mineralization.
The 2021 field exploration season was announced in May with a budget of US$27 million and will include 14,600 meters of diamond drilling. Trilogy Metals’ share price hit a year-high of C$3.70 on June 1.
3. Trevali Mining (TSX:TV)
Share price: C$0.255; year-to-date gain: 15.38 percent
Global base metals mining company Trevali Mining has four main operational assets, including the 90 percent-owned Perkoa zinc mine in Burkina Faso, the 90 percent-owned Rosh Pinah zinc-lead-silver mine in Namibia, the wholly-owned Caribou zinc-lead-silver mine in northern New Brunswick, Canada and the wholly-owned Santander zinc-lead-silver in Peru.
In May 2021, the company released its Q1 2021 financial and production results, including quarterly production of 74.8 million pounds of zinc at an all-in sustaining cost of US$0.99 per pound. Adjusted EBITDA for the quarter was US$24.5 million which Trevali attributed to “business improvement initiatives, the increase in the zinc price, and reduction in benchmark treatment charges for 2021.”
Shares in Trevali Mining reached a year-high of C$0.275 on May 21.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.