2 FTSE 100 shares to buy for the long term

WIth precious metals becoming increasingly important as the world becomes greener, I’ve found two exciting FTSE 100 stocks that I’m buying now.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Key points

  • One FTSE 100 copper mining company has quadrupled its profits in the past five fiscal years
  • Silver is central for many efforts to find greener energy solutions
  • Both companies covered here could be pivotal for my long-term portfolio growth 

The FTSE 100 is full of exciting companies that are appropriate for my long-term portfolio. Recently, I’ve found two mining stocks that may be very important as the world seeks greener solutions. While I already own shares in Fresnillo (LSE: FRES), the Mexico-based silver miner, I want to know if I should buy more. Also, the copper miner Antofagasta (LSE: ANTO), from Chile, is appealing to me because of its excellent fundamentals. 

The FTSE 100 copper mining growth stock

Antofagasta operates two divisions: copper mining and transportation. For the fiscal years 2016 to 2020, the firm’s fundamental data demonstrate solid and consistent growth. During this time, revenue increased from $3.6bn to $5.1bn.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Furthermore, profit before tax more than quadrupled to $1.4bn. This profitability is especially appealing to me, a potential investor. Unsurprisingly, earnings-per-share (EPS) have risen at a compound annual growth rate of 9.5%. This means that this FTSE 100 company is delivering for its shareholders year in, year out.

What’s more, the business is potentially a bargain. With a price-to-earnings (P/E) ratio of 36, Antofagasta is undervalued compared to the mining sector. The sector’s average P/E ratio is 48. With the importance of copper for future green solutions like electric vehicles, I think it’s a good time for me to buy.

While a recent drought in Chile has caused some concern about the FTSE 100 company’s ability to mine copper, I see this as a short-term issue. Furthermore, the firm beat cost objectives and hit production targets in a recent report for the three months to 31 December 2021.

A silver miner that just might take off

Fresnillo mines silver in Mexico and has mixed fundamental data. For the five calendar years from 2016 to 2020, revenue increased from $1.9bn to $2.4bn. While this is encouraging, profits have been sliding and so have EPS. 

The FTSE 100 business also recently issued a production warning over Covid-19 and new labour laws, both of which have resulted in higher worker absences. The market reacted badly, with the share price falling over 20% in response.

In spite of all this, I remain optimistic. The production warning was based on issues that are fundamentally short-term in nature. In time, they will subside. Like copper, silver is also central to many decarbonising efforts around the world, not least in solar panels

While neither of these companies is without its problems, I think demand for copper and silver will continue to grow. Antofagasta is underpinned by solid growth and I expect this to remain. Furthermore, if Fresnillo can remedy its short-term issues, I think it can drive production higher. I will be buying more Fresnillo stock and purchasing Antofagasta shares in anticipation of long-term growth for my portfolio.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Andrew Woods owns shares in Fresnillo. The Motley Fool UK has recommended Fresnillo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How I’d apply the Warren Buffett method to buying shares

Learning from billionaire investor Warren Buffett, our writer explains his own approach to investing in shares for his portfolio.

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

This dividend share yields under 1% — but I’d still buy it

This dividend share has a low yield. So why would our writer consider adding it to his income portfolio?

Read more »

Young lady working from home office during coronavirus pandemic.
Investing Articles

Looking for a good share to buy? Here’s how I do it

Here are two approaches our writer uses when hunting for a good share to buy for his portfolio to aim…

Read more »

man in shirt using computer and smiling while working in the office
Investing Articles

One cheap FTSE 100 share I’d buy for a new bull market

This FTSE 100 share is unloved and starting to look seriously cheap, says Roland Head.

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

How I’d invest £500 in UK shares in 2022

Investing a small amount of capital in UK shares can result in high commission costs. Zaven Boyrazian explains how to…

Read more »

Black woman using loudspeaker to be heard
Investing Articles

2 battered FTSE dividend stocks to buy in July!

I'm still searching the FTSE 100 for the best bargains to buy. I think these two big dividend shares are…

Read more »

Woman pulling baffled face
Investing Articles

Can I trust Lloyds’ 6.1% dividend yield?

The Lloyds' share price has sunk in 2022, causing the bank's dividend yield to leap. But can I really trust…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

3 top stocks to buy before the market rebounds

Edward Sheldon highlights three beaten-up stocks he'd buy before global stock markets stage a recovery from their 2022 declines.

Read more »