Global mining firms face significant uncertainty heading into 2025. Ongoing geopolitical turmoil has been both a help and a hindrance—at times it has driven investors toward safe haven assets like precious metals, but it also makes operations for many mining firms more challenging. The prospect of the second Trump administration's policies is also a major question mark. On one hand, tariffs could have a severely negative impact on the industry; on the other, analysts have speculated that a more favorable petitioning process for non-U.S. firms could make the process of setting up operations within the United States—notoriously difficult for mining companies—somewhat easier.
There's no easy answer to the question of how mining stocks may perform in the months to come. However, investors interested in the space may wish to look to companies with unusually high trading volumes relative to the broader industry. A number of firms stand out for their high trading volumes in the month ending December 19, 2024, including Vale S.A. (NYSE: VALE), Cleveland-Cliffs Inc. (NYSE: CLF), and Kinross Gold Corp. (NYSE: KGC).
Vale: Opportunity to Buy While Shares Are Down
Like many other mining firms, Brazilian iron ore producer Vale experienced a share price slump in 2024, with the price of its stock falling about 43% in the year leading to December 19, 2024. Currency devaluation and shifting interest rates have both likely contributed to this performance, as has volatility in the price of iron ore.
However, there are many reasons investors might be optimistic about Vale in the long term, and the increase in trading volume could indicate added activity surrounding the stock while the price is relatively low. Fundamentally, Vale appears to be undervalued, with a P/S ratio of 0.96 and a forward P/E ratio of 4.2.
The company also has a strong cash flow yield of 14% projected for 2025, thanks to modest production costs, which should allow it to continue to strengthen its dividend. Currently, the firm's dividend yield is an impressive 10.4%, with a sustainable payout ratio of 42.1%. The company has a 30-day trading volume of more than 439 million.
Cleveland-Cliffs: Domestic Steel Maker Poised For Growth
Cleveland-Cliffs is another iron ore miner whose stock has fared even worse than Vale in the last year, falling by more than 55% over the same time period. However, the firm's November acquisition of Stelco Holdings—a move that makes it the largest flat-rolled steel maker in North America—is likely to provide benefits including an improved supply chain and lower costs in 2025 and beyond.
Cleveland-Cliffs could also be the beneficiary of the Trump administration's tariffs, given that it is an American company conducting operations in the United States.
The company's P/S ratio following its share sell-off throughout 2024 is an attractive 0.24, and analysts have assigned Cleveland-Cliffs a consensus price target of $17.39, more than 84% above the stock price as of December 19.
This may have contributed to the company's 30-day trading volume of over 208 million.
Kinross: Record Free Cash Flow, Debt Repayment
Kinross Gold's share price history over 2024 appears very different from the companies above. The gold miner is up more than 47% in the last year as of December 19; like many other gold mining stocks, it rose along with the price of gold throughout much of the year. However, shares have dipped by 9% in the last month as of the same date.
One of Kinross' highlights is its strong free cash flow. For the third quarter, the firm reported a record of more than $414 million in free cash flow, bringing the total for the first three quarters of the year to nearly $906 million.
This allowed the company to repay some $350 million in debts, significantly reducing its debt load.
Combine this with production that remains strong despite a slight drop, and it's easy to see why investors are trading KGC shares at a 1-month volume of more than 212 million.
Taking a Broader View
Trading volume is just one metric relating to a company's stock activity, and investors should keep in mind that high trading volumes do not necessarily mean that a firm's shares will rise in value. However, all three of the firms above have various other indicators which may compel investors to consider them heading into 2025.
