4 Mining Stocks to Buy for a Booming 2025

Oil and gold are the first things that come to mind when investors think about mining and exploration stocks, but the sector is far more diverse and expansive than just two commodities.

Coal, natural gas, construction materials like limestone, industrial metals like copper and aluminum, and even the lithium in our batteries, all come from mining companies.

However, mining operations consume immense amounts of time and capital expenditure, so mining companies tend to perform well during economic booms, and poorly during downturns.

As luck would have it, we have a strong economy, low inflation, and a new, business-friendly administration, all pointing to a very good year for mining stocks.

Here are four stocks that are well-positioned for growth through 2025.

Rio Tinto Group RIO

Rio Tinto Group is a diversified large-cap mining company with a $100 billion market cap and operations in numerous industrial metals and materials. Based in Melbourne, RIO trades on several global stock exchanges, including the FTSE, ASX, and the NYSE.

The company was named after the original mine it purchased from the Spanish government in 1871. Over time, RIO has become the world’s second-largest public mining company, focusing on iron ore, aluminum, copper/diamonds, and energy minerals (like uranium).

RIO shares have a few tailwinds that could benefit investors in 2025. First, the company has been dropping unprofitable coal mining operations to improve efficiency and recently purchased Arcadium Lithium in a $6.7 billion deal to add more properties to its renewable energy portfolio (RIO is now the third largest lithium miner in the world).

Additionally, the company is said to be pursuing a merger with Glencore, which would create the largest combined mining company in the world. With demand for copper, aluminum, and lithium expected to increase as more electric infrastructure is built, RIO is set up to be a major beneficiary. The stock is a consensus Buy based on nine analysts covering the stock, and the average price target is $73, representing a 17% upside. Plus, that 7% dividend yield isn't too shabby, either.

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Constellium SE CSTM

Constellium was part of Rio Tinto Group but was spun out in 2011 when the company sold its Alcan Engineered Products unit. Today, Constellium is a major manufacturer of aluminum and various related alloys with plants in North America, Asia, and Europe. Constellium is headquartered in Paris and employs over 12,000 full-time workers.

Compared to its former parent company, Constellium is small. The company has a mere $1.5 billion market cap and posted $1.6 billion in revenue last quarter, but it has a high-profile list of clients in the aerospace and automotive industries, including BMW, Mercedes-Benz, Audi, Boeing, and Airbus.

According to analyst reports, the stock is a consensus Buy with an average price target over $20, which would be nearly double the current market price. The company recently announced it's moving to US-based accounting principles (like filing 10K reports with the SEC), which could hint at potential expansion into new US markets. With defense spending expected to increase over the next decade, companies manufacturing lightweight and innovative aluminum products stand to reap the rewards.

Alcoa Corp. AA

Alcoa Corp. used to be a staple amongst Jim Cramer's most essential earnings calls and guidance reports. Still, the long-time aluminum producer has seen its market cap shrink from nearly $17 billion to just over $10 billion in the last three years.

Year-over-year revenue growth declined for seven consecutive quarters starting in Q3 2022, and 2023 full-year gross profit was a disappointing $738 million (down from $2.2 billion in 2022). However, the last two quarterly reports have shown that revenue is growing again, and the stock is positioned fundamentally and technically for a turnaround. 

Alcoa primarily produces aluminum and bauxite and operates in 10 countries, including the United States, Australia, Iceland, and several Caribbean nations. At its peak in the bull market in 2022, the stock traded near the $90 range.

Today, it sits around $40 and only has a Hold rating and a $43 price target based on 15 analyst reports. However, revenue growth has returned, and the stock's 200-day moving average could act as a support level for a continuing uptrend. 

BHP Group BHP

BHP is the world's largest mining company, with a market cap of over $125 billion and operations in materials like iron core, copper, zinc, gold, silver, uranium, and more. The company is based in Australia but has mines worldwide, including domestic operations in Queensland and Western Australia, plus international extraction sites in Canada, Brazil, and Chile.

BHP's copper operations are expected to be a main profit driver over the next few decades as the material is required for EV batteries, data center grids, and other electrification projects. The company expects copper demand to increase by 70% by 2050, and recent output from the Escondida mine in Chile has significantly boosted BHP's production.

Additionally, the company has found another profit driver: potash! BHP has become one of the largest potash producers, a water-soluble potassium mineral commonly used in fertilizer. Based on coverage from eight different analysts, BHP shares are currently a consensus Buy, with an average price target of $67 (indicating a potential 34% upside from the current market price).

The valuation looks cheap with a 16.1 P/E ratio, and the stock also pays a hefty 5.8% dividend yield. BHP is also a serial M/A participant, and that type of business is expected to pick up under a merger-friendly Trump administration.

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