What are politically stable jurisdictions for mining operations?

Politically stable jurisdictions for mining typically refer to countries with strong rule of law, consistent regulations, and respect for property rights. For mining companies, this means places like Canada, Australia, and the United States, where there's little risk of sudden government interference, asset seizure, or arbitrary tax changes. These areas provide greater operational certainty and protect shareholder interests, making them more attractive for long-term investment.

Why does geopolitical risk matter for mining and resource stocks?

Geopolitical risk directly impacts mining companies because their physical assets (mines and processing facilities) can't be relocated if a political situation deteriorates. In unstable regions, mining operations face threats like nationalization, sudden tax increases, corruption demands, permit revocations, or even violent conflicts. These events can cause production disruptions, write-downs of assets, or complete loss of investments. Mining companies in stable regions avoid these risks, potentially leading to more predictable operations and returns.

What is a royalty company in the mining sector?

A royalty company provides upfront financing to mining companies in exchange for a percentage of future revenue or production from the mine. Unlike traditional miners, royalty companies don't operate mines or face direct operational costs and risks. They essentially function as specialized finance companies for the mining industry, collecting ongoing payments when mines produce. This business model offers investors exposure to precious metals and other commodities with potentially lower risk than owning mining operators directly.

How do commodity cycles affect these mining stocks?

Commodity cycles are the natural price fluctuations of raw materials like gold, copper, or zinc based on global supply and demand. When prices rise (up-cycle), mining companies typically see higher revenues and profits without necessarily increasing production. When prices fall (down-cycle), profits can decrease rapidly. The mining stocks in this collection are still exposed to these commodity price movements, but their operations in stable regions mean they face fewer additional complications during down-cycles and can more reliably capitalize on up-cycles.

13 handpicked stocks

Stable Suppliers

A carefully selected collection of mining and resource companies operating in politically stable countries. These stocks offer exposure to essential commodities while avoiding the uncertainties of volatile regions, handpicked by our professional analysts.

Han Tan | Market Analyst

Published on June 18

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Newmont Mining Corp.

NEM

Current price

$85.99

As a leading gold producer, it has a diversified portfolio of assets in stable jurisdictions like Australia, Canada, and the United States.

Teck Resources Limited

TECK

Current price

$43.38

This Canadian resource giant's portfolio is concentrated in copper and zinc operations across the Americas, primarily in stable regions.

SSR Mining Inc

SSRM

Current price

$23.50

It operates precious metal mines in the United States and Canada, aligning with the strategy of focusing on reliable jurisdictions.

Seabridge Gold Inc.

Current price

$24.85

Iamgold Corp

IAG

Current price

$12.90

Equinox Gold Corp

EQX

Current price

$10.93

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About This Group of Stocks

Our Expert Thinking

These stocks provide access to critical raw materials without the risks of unpredictable political environments. By focusing on miners in stable regions like Canada, Australia, and the US, you gain exposure to global commodity cycles while sidestepping the hazards of geopolitical instability.

What You Need to Know

In today's world of increasing trade tensions and regional conflicts, companies operating in politically stable jurisdictions command a premium. These stocks can serve as a defensive anchor in your materials sector investments, providing a buffer against international supply disruptions.

Why These Stocks

Each company was selected because their primary mining operations and development projects are located in countries with strong legal systems and proven track records supporting the mining industry. This strategic focus helps shield your investment from risks like sudden operational shutdowns or asset seizures.

Group Performance Snapshot

11 of 13

Stocks Rated Buy by Analysts

11 of 13 assets in this group are rated Buy by professional analysts.

25.6% vs 4%

Group Growth vs Bank interest

This group averaged a 25.6% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🌍

Supply Chain Winners

As global tensions rise, companies operating in stable regions are becoming increasingly valuable. These miners could benefit from the growing premium placed on reliable resource suppliers.

🔒

Peace of Mind Potential

Unlike miners in volatile regions, these companies operate where rule of law is strong. Your investment isn't at the mercy of sudden policy changes or political upheaval.

💼

Strategic Commodity Play

Get exposure to essential raw materials without the geopolitical drama. In a world increasingly concerned with secure supply chains, these stocks offer a smart way to access commodity upside.

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