As most investors to Stockhouse know, the global mining industry is massive. And growth in certain critical sectors (i.e. Platinum Metals Groups) is expected continue at a rate that sometimes exceeds supply.
The S&P TSX Gold Index consists of 70 precious metal mining companies alone, trading on the Toronto Stock Exchange – of which 59 percent of the global economy’s mining financings were executed on the TSX. An historic driver of the Canadian economy, Canada ranks in the top five countries in the global production of 16 major minerals and metals. According to Statista, the top 40 global mining companies, representing a vast majority of the whole industry, reported in excess of $US680 billion in
revenue in 2018. Coal was the largest revenue-generating raw material extracted that year, and it was used to generate about 38 percent of the electricity produced globally.
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As reported in a
recent Stockhouse article, we detailed how copper is not just part of the giant electrical and electronics industries, but is now a vital component in the exploding solar, wind, and electric vehicle industries. Lithium is also an essential metal for the sector as it's used to manufacture batteries for EVs, as well as to warehouse power generated by wind and solar.
Analysts say other industrial metals like iron ore and aluminum will remain in high demand since it’s crucial to supporting the sustainable growth of the global economy. Precious metals like gold and silver will likely stay in favor with investors who turn to them as a safe haven in times of economic uncertainty and geopolitical crisis.
Because of the importance of metals and minerals to the future of the global economy, mining companies should see a plethora of opportunities to grow their production and profitability. As always, this makes the Metals & Mining sector an intriguing one for investors to consider.
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