2 Mining Stocks to Buy in February

It's nary concealed that mining commodity prices, successful this lawsuit copper and lithium, tin beryllium volatile, and it's hard to foretell wherever they are heading. Still connected the ground that existent prices are the champion estimation of wherever prices volition beryllium successful a twelvemonth oregon so, some Freeport-McMoRan (NYSE: FCX) and Albemarle (NYSE: ALB) look similar unmissable value. Here's why.

Ultimately, the thought is that some stocks person little downside imaginable than upside, making them bully worth stocks looking for asymmetric banal picks. Freeport-McMoRan looks similar a large worth for 3 reasons.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

First, successful each net presentation, the institution lays retired its net earlier interest, taxes, depreciation, and amortization (EBITDA) sensitivity to copper prices. The past update for EBITDA successful 2027/2028 assumes $11 cardinal astatine a terms of copper of $4 per pound, and $19 cardinal astatine a terms of $6 per pound. Given that the existent terms is $5.66, a unsmooth estimation would beryllium $17.6 billion, and assuming the existent endeavor worth (EV) of $96.9 billion, Freeport would commercialized connected an EV/EBITDA aggregate of conscionable 5.5 times successful 2027 -- a historically precise favorable valuation.

Second, arsenic discussed elsewhere, Freeport is acceptable to ramp up accumulation successful Indonesia implicit the adjacent fewer years pursuing a tragic mishap past year.

Third, the company's leaching inaugural (a low-cost mode to retrieve copper from existing stockpiles) continues to summation traction. Management has baked successful an presumption of 250 cardinal to 300 cardinal pounds into its 2026 guidance (included successful the illustration above), but beyond that, it hasn't included the 400 cardinal pounds it expects to deed successful 2027, oregon thing else, arsenic it ramps to 800 cardinal pounds by 2030. As such, there's upside imaginable for the company's copper income volumes, and fixed its already charismatic valuation, Freeport is an fantabulous bargain for investors comfy with copper.

A large driblet successful lithium prices, caused by little concern successful electrical vehicles aft the pandemic boom, led to a crisp diminution successful Albemarle's income starting successful 2022. Consequently, the institution reported losses successful 2024 and 2025.

However, absorption didn't basal inactive and, having divested noncore businesses and chopped costs, it's present positioned to payment from the caller terms pickup.

Like Freeport, Albemarle's valuation appears appealing fixed existent lithium prices. In January, the mean terms of lithium carbonate equivalent (LCE) was $20 per kg. If this terms holds done 2026, Albemarle could gain $2.4 cardinal to $2.6 cardinal successful EBITDA. With a existent EV of $23.5 billion, this would equate to an EV/EBITDA ratio of 9.4 for 2026.