#3 - Sociedad Quimica y Minera (NYSE:SQM)
If you’re going to invest in lithium miners, you might want to start in the country that has the largest amount of lithium reserves. That would be Chile, and that’s the home country of Sociedad Quimica y Minera (NYSE:SQM). According to CNBC, Chile is currently home to 7.5 million metric tons of lithium.
Investing in SQM stock gives investors exposure to lean into two of the trends that will dominate the investment landscape for the next decade. First is lithium. As of December 2019, the company had approximately 15% of the market share and in the trailing twelve months ending September 30, 2020, the company had generated $346 million in revenue from lithium. A total that accounted for 16% of the company’s gross profit.
Sociedad Quimica y Minera also has a Sustainable Development Plan that conforms to the Global Reporting Initiative (GRI) sustainability reporting standards. With climate change issues figuring to dominate clean energy initiatives, SQM looks to be a sought-out business partner with a commitment to be carbon neutral by 2030.
And that’s where the news gets better for investors because the United States has historically had a good trading relationship with Chile.
About Sociedad Química y Minera de Chile
Sociedad Química y Minera de Chile SA operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders.
Read More - Current Price
- $37.90
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $48.69 (28.5% Upside)
