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5 Best Mining Stocks to Buy Now

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When investors think of mining stocks, they typically think of gold miners – the firms that search for and extract gold, and become popular whenever gold prices soar, like they have in 2020.

Gold mining stocks, often used as a hedge against disaster, can indeed be fruitful investments. Factors such as uncertainty and fear in traditional stocks, or a weak U.S. dollar, can drive gold prices (and in turn, gold stocks) higher, and because their prices aren't strongly correlated to the broader market, they can be a useful source of portfolio diversification.

But they're not the only ways to invest in extracting valuable commodities from the ground. Diversified mining stocks that produce ores such as iron and copper can be used to position portfolios to reap the riches of economic expansion and infrastructure spending. And companies searching for other elements that are powering today's newest technologies can provide high growth potential.

Today, we'll look at five of the best mining stocks to buy today. For the most part, we're targeting companies with strong financial positions that can generate gobs of cash – in other words, firms with the resources to ride out rockier periods for their underlying commodities. But we'll also examine one more aggressive pick that might not have the cleanest of balance sheets, but does boast explosive potential.

Data is as of Oct. 19. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.

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Newmont Mining (NEM, $61.71), an S&P 500 component, is one of the world's top gold mining stocks and its overall top producer. It operates in nine countries, including the U.S., across four continents, and it boasts the largest gold reserves in the world, at just more than 100 million ounces.

That said, it's not completely undiluted exposure to gold – it also produces copper, silver, zinc and lead.

Newmont offers significant upside potential as the company realizes the full breadth of two recent deals. In April 2019, NEM acquired major producer Goldcorp, targeting $365 million in synergies before any sales of as much as $1 billion in what the company determined were "non-core" assets. Newmont also entered into a joint venture with Barrick Gold (GOLD) in March 2019, combining both companies' assets in Nevada to create Nevada Gold Mines, with target synergies of up to $500 million.

"We think NEM is poised to unlock value at several underperforming assets in the legacy Goldcorp portfolio," writes CFRA analyst Matthew Miller, who rates the stock at........

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