South Africa is not the only global home to mining operations. Here, a variety of experts- Beth Gaston Moon, the Aden sisters, Larry Edelson, and Mark Leibovit , look around the globe for the best mining operations. Here are favorites from Peru to Australia.
(For more on the advisors cited below, please click on their photos.)
"Companhia Vale
do Rio Doce (RIO NYSE) is the
top miner of iron ore in the world," says Beth Gaston Moon,
analyst with Schaeffer's
Investment Research. "The company also produces potash, manganese, aluminum,
and a variety of other substances. RIO has worked its way higher for much
of 2005, rallying more than 80% from its late-April low.
Technically, the
shares are working to overcome potential double-top resistance
at the 44 level, which had marked a peak in the stock price in late September. Options players are gathered in the bearish camp and
the resultant Schaeffer's put/call open interest ratio
of 1.45 is higher than all but 1% of all readings taken during the past
year. As this skepticism wanes, increased buying pressure should buoy the shares
even higher. Wall Street isn't terribly invested in RIO, as there are currently only
six brokerage firms that are covering the shares. Any additional coverage could
be a boon for the company."
"China's surging demand for raw materials
shows no signs of faltering," says Pamela and Mary Anne Aden, in
The Aden Forecast. "Within this sector, our two favorite
companies are Australia's giant BHP Billiton (BHP NYSE) and
London-based Rio
Tinto (RTP NYSE). Both companies are producing iron ore at a
brisk pace and both plan to expand more iron ore capacity. In our opinion, buying and
holding these mining companies is an excellent way to stay invested in the ongoing
bull market in raw materials."
Technical analyst Mark
Leibovit, editor of the active trading service, VR
Survey, "Companies de Minas Buenaventura (BVN
NYSE), based
in Peru, has formed a Positive Volume Reversal after pulling back to its 50-day moving average,"
"We think it has good upside potential especially with the longer term strength we see in
gold and gold shares.Compania de Minas operates as a mining
company, producing precious metals and holding mining rights in Peru.
The company also owns an electric power
distribution company and a mining engineering services consulting company.
Compania de Minas Buenaventura was established in 1953 and is based in Lima,
Peru. The stock is a buy at market with a stop below the October 19 low at
27.43. We are looking for an upside target price of
34."
