The demand for EVs (electronic vehicles) is growing at a rapid rate. In just a few years, it has gone from a niche product to a dominant force in the automobile industry. It is estimated that EV sales will outstrip traditional cars by 2040. And to capitalise on this projected growth, I have identified the top UK shares that could power the EV revolution as possible additions to my portfolio. These two companies address a very specific problem in the industry right now, making it the perfect time for me to invest.

Why am I bullish on the EV industry?

It is clear to me that EVs are the future of the automobile industry. The top automobile manufacturers in the world have adopted the tech and are busy developing all-electric cars. And further mainstream adoption is already underway. 

Sweden is consistently ranked as the most sustainable country in the world. And the nation just witnessed record-breaking EV sales last month. EVs made up 50.1% of all automobile sales in July 2022. This was a big jump from 2021’s 37.6%. In fact, globally, June saw the highest EV sales in history with 913,479 new registrations in June, which is 54% more than a year ago. This could take global sales past 10m units next year.

And as manufacturing steps up pace to meet the demand, battery metals like lithium and copper have become highly valuable. There are some emerging mining UK shares with a focus on soft battery metals. And I think investing in these companies could boost my growth portfolio returns over the next decade.

UK shares to buy in the EV sector

Elon Musk stated earlier this year that the lack of battery-grade lithium is a major roadblock in EV production today. And Atlantic Lithium (LSE:ALL) is a company looking to address this issue.

The company owns and operated the Ewooya lithium project in Ghana. While still under exploration, the mine is estimated to hold 30.1Mt of Lithium ore. And recent drillings have found deposits much closer to the surface, which reduces the time required to reach extraction. 

Copper is another metal that batteries require. And thanks to the demand, copper prices have gone up by 125% since 2020. Taseko Mines (LSE:TKO) is a copper producer in Canada that owns and operates the Gibraltar Mines. The company produces an average of 130m pounds of copper and 2.5m pounds of molybdenum per year.

While most UK shares in this space are still under exploration, Taseko is an established business. It had its best quarter ever this year, amassing US$38m in revenue, up 61% from Q1 2021.

However, there are some big risks to consider. Mining is a cash-intensive operation and profits are highly dependent on commodity prices. Prices of these metals are currently high but could fall rapidly when demand stabilises, cutting profits.

Atlantic Lithium is yet to reach production, making it highly speculative. But I think its tie-up with Piedmont Lithium, a Nasdaq-listed mining giant, is a huge plus. Piedmont has a deal with Tesla that could make Atlantic Lithium a direct supplier to the most-recognised EV brand in the world.

Both UK shares are well-backed and fit right into the EV supply chain. And this is why I am willing to invest a £1,000 lump sum in these two companies if market performance is positive across 2022. 

The post 2 top UK shares I’m buying for the EV revolution appeared first on The Motley Fool UK.

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Suraj Radhakrishnan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

2022 is shaping up to be a bumper year for shareholders. Some 97 FTSE 100 companies are expected to pay out over £81bn in dividends, equating to a yield of 3.9%. I feel I’m simply spoilt for choice. But as my budget will not stretch to buy them all, these two dividend stocks are my crème de la crème buys today.

Dividend pick 1: Glencore

Mining stocks feature heavily among the top-10 dividend contributors in the FTSE 100. But for me, Glencore (LSE: GLEN) has the slight edge over Rio Tinto and Anglo American.

One thing that attracts me to Glencore shares is its thriving marketing business. This division trades in commodities, moving them from where they’re plentiful to where they’re needed.

In its latest trading update a few weeks ago, Glencore highlighted that “unprecedented dislocation in energy markets [has resulted] in record pricing differentials” in coal markets.

As the spectre of inflation returns to haunt investors, Glencore shares, like many other commodities, have seen a sell-off recently. Over the last month, the stock is down 20%. However, to me this has made the shares even more attractive. The total payout in 2022 is expected to be over £5bn. An estimated dividend yield of 8% is now even higher following the share price fall.

The clear risk to Glencore shares is its over-reliance on coal. Accounting for 20% of revenues in 2021, the company has been doubling down, recently acquiring more mines. In the years ahead, it will likely need to find alternative sources of revenue as coal usage declines.

My investment case for Glencore remains unchanged despite the share price wobble. I hope short-term headwinds will be but a distant memory in the years ahead as many of the metals it produces will be in high demand and short supply as the world transitions to a low-carbon economy.

Dividend pick 2: Shell

Sporting a dividend yield of only 3.9%, it may seem strange that my second pick is Shell (LSE: SHEL). However, appearances can be deceptive.

Shell’s estimated total payout of £5.6bn is the second-largest in the FTSE 100. Despite such a huge sum, dividend cover is over 5 times. This suggests that management is adopting an ultra-cautious approach. Crucially, the dividend has been increasing quarter-on-quarter and has risen 50% in a year.

But the real attraction of Shell’s stock is its huge share buyback programme. In the first half of 2022, the company bought back a record $8.5bn of its own shares. Some $5.5bn of this was from the sale of its shale business in the US Permian Basin.

Throughout the rest of 2022, shareholder distributions are expected to be in excess of 30% of cash flow from operating activities. Given that this figure was $14.8bn in Q1 alone, then the size of the distributions is eye watering.

A clear risk to Shell’s shares is the peak oil conundrum. A likely recession will hit oil usage across the globe and cause the price of brent crude to fall.

However, the sell-off has presented a good opportunity for me as an investor with a long-term view. Oil and gas are unlikely to disappear from use any time soon. The company is also investing heavily in the energy transition and could be a major player in this arena in the future.

The post My top 2 dividend stocks to buy in July as FTSE 100 shareholder returns soar appeared first on The Motley Fool UK.

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Andrew Mackie has positions in Shell plc. and Glencore. The Motley Fool UK has no position in any of the shares mentioned. 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.

Is Polymetal a bargain compared to its competitors or are there better options out there? Let’s explore.

Will FTSE 100 mining stocks go higher?

Three Footsie mining stocks on my watchlist have made flying starts to 2022.

The Anglo American (LSE: AAL) share price climbed 34% following a $12bn increase in operating profit and a $1.7bn net debt reduction. Over a third of the miner’s 2021 EBITDA came from platinum group metals. Looking ahead, the company should prove resilient to geopolitical uncertainty. Anglo American, which is up 33% in a year, operates on six continents and has no Russian presence, unlike Polymetal.

Antofagasta (LSE: ANTO) is also racing ahead of the Polymetal share price, rising 22% this year (but down 10% over 12 months). As copper mining is the lifeblood of this Chilean multi-national’s business, shareholders will be encouraged by Goldman Sachs‘ 12-month copper price target of $13,000 per tonne. Antofagasta can build on a robust financial position after earnings per share rocketed by $87.80 last year.

Rio Tinto (LSE: RIO) stock completes the trio — it’s up 25% in 2022, but only up 4% in a year. Iron ore production accounts for almost 78% of its underlying earnings. In 2021, Rio Tinto generated +60% net cash and ordinary dividends per share rose 71%. Moreover, China’s iron ore imports remain stable in 2022, despite its economic slowdown. This is good news for the Rio Tinto share price.

With global interest rates rising, metal prices and mining stocks may fall so all of these shares come with risks. However, I believe the metals bull market could just be beginning as production seems unlikely to meet demand. For me, the outlook remains positive while supply side issues persist.

Will the Polymetal share price go lower?

Polymetal’s focus is precious metals, particularly gold and silver. It has operations in Russia and Kazakhstan. Although it consistently increased production over five years, the share price has been hurt by liquidity troubles caused by sanctions on Russian banks.

In further worrying signs, Polymetal postponed its decision on its 2021 final dividend payment. And Deloitte recently resigned as its auditor, threatening its London Stock Exchange listing.

Arguably, the stock’s substantial decline and a dirt cheap price-to-cash-flow ratio of 1.4 mean the risks it faces are priced in. Nascent plans to separate its Kazakh assets from the rest of the business lifted the Polymetal share price somewhat in recent days.

Nonetheless, I’m pessimistic about Polymetal shares. Headquartered in Cyprus, it avoided direct sanctions like those levied on Roman Abramovich’s Evraz. In a rapidly evolving situation, this could change.

The mining shares I’d buy now

Exposure to metals plays an important role in my diversified portfolio. I’m impressed by all three FTSE 100 stocks on my watchlist. They have strong balance sheets and are collectively spread across different geographies and commodities. I’d divide any spare cash between them.

By contrast, I see potential for further declines in the Polymetal share price. It’s simply too risky for me to buy at present, so I’m looking elsewhere for a solid gold miner.

The post Will FTSE 100 miners outshine the Polymetal share price in 2022? appeared first on The Motley Fool UK.

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Charlie Carman has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

The Bluejay Mining share price (LSE: JAY) jumped today following news of a joint venture agreement with fellow exploration firm KoBold Metals. While a positive announcement in itself, it’s who is behind the deal that’s getting the market excited. 

Big backers

KoBold “uses machine learning to guide exploration for new deposits rich in the critical materials for electric vehicles“. Among its backers is a climate and technology fund called Breakthrough Energy Ventures. This fund is overseen by none other than Microsoft founder (and now committed philanthropist) Bill Gates. 

But Gates isn’t the only name that will be familiar to Foolish readers. Investors in his fund include former Amazon CEO Jeff Bezos, Alibaba‘s Jack Ma, and legendary money manager Ray Dalio. Michael Bloomberg and Norweigian energy giant Equinor are also on board. As rosters go, I’m not sure they get much better. 

So, what’s the deal?

The agreement will see Bluejay and KoBold develop the former’s Disko-Nuussuaq project in Central West Greenland. Once up and running, this “world-class battery deposit” will hopefully produce nickel, copper, and cobalt. We already know the electric vehicle revolution will place huge demand on miners to generate sufficient quantities of metals. Since this should push prices up, it’s fair to say this has the potential to be a highly lucrative investment for those involved. 

For its trouble, KoBold will be entitled to 51% of Bluejay’s licence for the area under a “two-stage earn-in” agreement. The remainder stays with the AIM-listed stock who will also manage field operations over this period. 

Unsurprisingly, Bluejay CEO Bo Stensgaard described today’s agreement as “transformative” for the company. So, where might the JAY share price go from here?

Where next for the JAY share price?

Today’s big uplift will naturally be welcomed by those already invested. However, it’s important to put this rise in perspective.

I last looked at Bluejay almost four years ago. Back then, the stock was available for a little over 18p a pop. Since then the JAY share price has been as high as 26p. This huge volatility tends to be the norm with junior miners, however promising they might be. Even so, it’s sobering that those who took positions back then will still be underwater.  

Of course, those that picked up the stock for around 3.5p as the first UK lockdown kicked in will have done very well indeed. So, the fact that JAY’s share price has been all over the shop doesn’t mean it hasn’t generated great returns for some investors already. Whether the announcement of a new partner means it now follows in the footsteps of Greatland Gold and multi-bags from here remains to be seen. 

Cautiously optimistic

It’s hard to look at today’s announcement and be anything but optimistic. Having some of the world’s best business minds on board certainly won’t do the JAY share price any harm either. 

As with other investment themes, however, a truckload of patience will be required. Drilling using KoBold’s tech will take time and a slowdown in global growth could be a catalyst for yet more volatility. For this reason, I’d need to make sure I was properly diversified elsewhere before taking a stake.

Bluejay could prove very rewarding in a few years’ time but one should never overlook the potential perils of penny stock investing.

The post Here’s why the JAY share price is rocketing 25% today! appeared first on The Motley Fool UK.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, and Microsoft. The Motley Fool UK has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.

I don’t have to look far for FTSE 100 stocks offering massive dividends at the moment. Actually, the number will have gone even higher after yesterday’s market wobble. There is one company, however, that catches my eye more than most. Its dividend yield stands at 10%!

Record production

BHP Group (LSE: BHP) is one of the world’s top producers of iron order and copper. It also has interests in nickel, zinc, coal, potash, oil and gas. As one might expect from all that, it’s also one of the biggest companies in the FTSE 100.

In today’s operational update, CEO Mike Henry said that the company had hit production records at its iron ore operations in Western Australia and its coal mine in Queensland. Annual copper production at the Olympic Dam project in South Australia also rose to its highest level since it was snapped up the asset 16 years ago. 

In addition to this, BHP also said that it had “brought on four major projects safely, on schedule and on budget” over the last year. This should mean that BHP is even better placed to profit from the huge need for metals over the next decade. Renewable energy sources, electric vehicles and increased urbanisation — all of these so-called ‘megatrends’ will require its help. This is one reason why I would buy BHP today. The other is the dividends.

FTSE 100 dividend demon

Despite being a rocky ride at times, BHP shares have rewarded long-term investors. Anyone buying five years ago would be sitting on a gain of 136%. In the last year, the FTSE 100 member’s valuation has increased 21%. 

Naturally, we’re just talking about share price gains here. If the dividends distributed to shareholders throughout this time were included, the result would be even better thanks to compound growth.

Right now, the consensus forecast is that the mining giant will return 220p per share for FY21 (according to Stockopedia). Using today’s share price, that becomes a mammoth yield of 10%. For comparison, even the best instant access Cash ISA pays out just 0.5%, according to Moneysavingexpert.com.

However, no investment case would be complete without a sober consideration of risks that come with investing in BHP. 

No sure thing

Perhaps the most apparent of these is the volatility in commodity prices. This means that BHP’s share price is ultimately determined by something it can’t control. That’s true of many companies but it’s something prospective investors like me would need to feel comfortable with. As a litmus test, I’d look at the share price graph. Would I have been able to sit on my hands between 2011 and 2016 when the shares tanked?

The cyclical nature of mining also means that dividends can never be guaranteed. In fact, last year showed that payouts can be the first things to be cut by any company when times get tough.

Even if they’re not wiped or suspended, they can vary from year to year. Obviously, I’d also prefer a company to be hiking its cash returns annually. Unfortunately, that’s not been the case with the FTSE 100 miner. The general direction has been up but there’s been some variability along the way.

This being the case, I think it’s vital that I invest in a number of stocks from other sectors to give myself a better probability of growing my income stream over time.

The post This FTSE 100 stock pays income of 10%! appeared first on The Motley Fool UK.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

So why did the share price surge? Will it continue to do so? And should I be adding the stock to my growth portfolio? Let’s take a look.

A mining company in distress?

As previously stated, Premier African Minerals is a mining business. It digs up tungsten from the ground. But in 2019 that’s not what happened. Due to a complication with Zimbabwe’s National Indigenisation and Economic Empowerment Fund (NIEEF), PREM’s tungsten mine became fully impaired. In other words, it’s currently non-operational, and the management team said it will remain that way until the matter with the NIEEF is resolved.

Consequently, the business generated no revenue in 2019, and the mine is still non-functional today. Needless to say, this isn’t exactly good news. So why did the share price suddenly start climbing?

It seems that PREM finally caught a break and was granted a three-year Exclusive Prospecting Order (EPO) in Zimbabwe. This agreement enables the firm to begin exploring a large area of land that is expected to contain up to 80 million tonnes of lithium oxide — an essential ingredient for electric vehicle batteries.

Given the limited supply and rising demand for the metal, this presents a fantastic opportunity for PREM and its share price. But let’s not get ahead of ourselves here.

The risks are high

The EPO is an exploration license only. Its purpose is to allow mining companies to find suitable sites to start digging in the future. As it stands, PREM doesn’t have any active mines, and its new lithium sites will take a good couple of years before becoming active.

During that time, many things can go wrong. Its tungsten operation (or lack thereof) is proof of that. Developing new mining sites and maintaining existing ones is an expensive process. PREM is not currently generating any revenue and has less than $40,000 of cash on its balance sheet. So the business is entirely dependent on outside funding that may not be available in the future.

What’s more, the mining industry worldwide is subject to numerous regulations designed to protect workers’ safety, the environment, and local economies. However, Zimbabwe is not the most politically stable country, exposing PREM to the risk of sudden regulatory change that may significantly impact its share price.

PREM share price: time to buy?

Securing the EPO is undoubtedly a good development for the firm. It most definitely adds more value to the business, and over the long term, could be a catalyst for the share price to keep on climbing.

But with no revenue, plenty of expenses, and a long road ahead to becoming profitable, the risks are exceptionally high, in my opinion.  Personally, I think the rise in PREM’s share price is a bit premature. Therefore, I won’t be adding the stock to my portfolio today.

The post Will the PREM share price keep climbing? appeared first on The Motley Fool UK.

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Zaven Boyrazian does not own shares in Premier African Minerals. The Motley Fool UK has no position in any of the shares mentioned. 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.

China is causing copper prices to climb

In 2020, copper inventory levels in the London Metal Exchange (LME) fell to their lowest point in the last 15 years. The supply was drastically cut due to mine closures as global lockdowns came into effect.

But recently, China has issued an enormous stimulus package to reboot its economy on a scale not seen since the 2008 financial crisis. As most of China’s economy is driven by industrial manufacturing, the demand for copper has surged, while the supply remains limited. So it’s not surprising that copper prices have risen to over $8,800/tonne – the highest it’s been in nearly 10 years.

But what does this have to do with Antofagasta? Well, if you haven’t guessed already, the FTSE 100 company is a leading supplier of copper. It has four mines in its portfolio that predominantly extract copper from the ground, as well as some other by-products such as gold, molybdenum (used to make steel alloys), and a small amount of silver.

Overall, the business looks like it’s in a powerful position to benefit from the rising copper prices. At least that’s what I think.

The risks of investing in mining stocks

Mining is a hazardous process. It requires highly skilled engineers as well as a considerable level of health and safety precautions. But despite all the protections put in place, accidents do happen, and they can be fatal. While no catastrophic events have occurred since 2012 on Antofagasta’s watch, it remains an ever-present threat to the business.

Accidents trigger significant reputational damage to the firm. But more importantly, if employees feel that their lives are in danger due to improper safety procedures, it’s unlikely they won’t complain. The mining sector is no stranger to worker strikes or even mass walkouts. Both of which disrupt operational performance.

Another risk for this business is its international operations. As the mines are in Chile, all operational costs are paid in Chilean pesos. What’s more, Antofagasta reports its sales and earnings in US dollars. Combined, this exposes the firm to fluctuating exchange rates across multiple currencies that can negatively impact the business’s performance.

Antofagasta: a FTSE 100 mining stock worth buying?

Covid-19 has undoubtedly had a significant impact on Antofagasta. For the first three quarters of 2020, metal production fell compared to quarters the previous year. However, in the last three months of 2020, its mines began exceeding normal production levels. Both copper and gold production saw double-digit growth compared to the end of 2019.

By the end of the year, overall copper production decreased by a marginal 4.7%. Not bad, considering the number of disruptions the company faced.

With copper prices on the rise, I believe Antofagasta is on track to continue thriving in 2021. And so, its definitely a stock I’ll be considering for my portfolio.

The post This FTSE 100 mining stock doubled in 2020. Is it still worth buying today? appeared first on The Motley Fool UK.

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Zaven Boyrazian does not own shares in Antofagasta. The Motley Fool UK has no position in any of the shares mentioned. 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.

The opportunity

Anglo Pacific is a mining company that doesn’t do any mining. That may sound odd at first, but it’s actually quite brilliant. The firm provides funding for other mining businesses – like Rio Tinto and BHP Group – to develop and operate new sites in exchange for royalties in the form of minerals dug up from the ground.

I’ve previously explored how Anglo Pacific’s unique business model creates extraordinary levels of profitability within an industry that has virtually no pricing power. Since then, two new pieces of information have been released – third-quarter earnings, and an exciting announcement for shareholders.

The earnings report mostly followed expectations, with a slight decline in royalty revenue from £6m to £5.7m. This reduction hardly good news. However, the cause is mainly due to a longwall change out at the Kestrel mine in Australia.

Put simply, the mine was extended and fourth quarter royalties are expected to see an increase in production.

Another change out is planned for Q3 2021. It is expected to cause a similar level of disruption but once again, will further increase the production of the site.

A more impressive result is that two sites extracting uranium and vanadium saw a triple percentage growth of 117% and 131%, respectively. Despite the massive disruptions from Covid-19, both minerals – in addition to copper and iron – are reaching multi-year highs in value.

Share buyback scheme

Beyond earnings, it successfully completed a £5m share buyback scheme. As a reminder, share buybacks are an alternative to dividends, as a method of returning profits to shareholders. Buying back shares reduces the number of shares available on the market and thus increases the value for existing shareholders.

Therefore, since Anglo Pacific has around 180m shares outstanding, the firm indirectly paid a dividend 2.8p per share. This is in addition to the direct dividend payments of 1.75p due on 13th November 2020 and 17th February 2021.

At the current stock price of £1.03, collectively these payments represent a 6.1% return on investment over the next three months.

The bottom line

The closure of mines back in March had a significant impact on operations. As such, the stock is unlikely to achieve its historical double-digit growth this year. However, the performance loss is not due to a problem with the company but rather a pandemic that affected the entire world.

Of course, this is only my opinion. But it also appears to be similar to the views of the management team. Several of the board members – including CEO Julian Treger – have been buying up shares over the past month.

In light of all this new information combined with an incredibly attractive share price, I have doubled my stake in the business in my attempt to get rich.

The post How I’d invest £1,000 today and get rich appeared first on The Motley Fool UK.

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Zaven Boyrazian owns shares in Anglo Pacific. The Motley Fool UK has recommended Anglo Pacific. 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.

In fact, 32 FTSE 100 companies have recently announced a cut, suspension, or a deferred dividend for shareholders. Moreover, only a small handful of firms will be paying the majority of the dividend payments that remain. Indeed, the top 20 dividend payers make up 84% of the whole index.

I think this is really risky for income investors. But if you can find a good firm, going cheap, and with one of the more reliable dividends, your ISA could be in for a long-term gain. And there are such firms on the FTSE 100 right now.

Income stock investors look to mining

On of the sectors supporting the rising FTSE 100 is mining. In fact, the mining sector is closely associated with the index. If miners are doing well, chances are that the footsie is too. 

Source: London Stock Exchange

So, the recent rise of the FTSE 100 looks good for mining stocks, and in particular, Anglo-American (LSE:AAL) and Rio Tinto (LSE: RIO).

These companies have benefitted from a combination of a high price for iron ore and financial belt-tightening. Iron ore is central to the production plans of both miners.

China is a major buyer of iron ore, where it is used in steel production. China is responding to the US trade tariffs by chucking money into road, rail, and construction projects. But economic stimulus like this becomes less effective over time. It’s likely that the coronavirus shut-down will also reduce demand in the short-term which may impact profitability.

However, these income-producing mining firms have solid steel balance sheets that should help them through a slow down.

Sustainable dividends for investors  

These companies were originally fairly cyclical, but are now cash-rich. Some analysts think of them as ‘boring dividend payers’.

But what may be ‘boring’ for them, I consider to be pretty exciting right now. A sustainable dividend payer is exactly what my ISA needs to improve my passive income.

Both Anglo-American and Rio Tinto are top-20 FTSE 100 dividend payers. Rio Tinto, in particular, is noted for its excellent yield, currently at 6.6%, compared with Anglo’s 5.4%.

And both are pretty safe. Rio Tinto can cover its dividend 1.6 times over but Anglo-American’s 2.49 times is even more impressive. And longer term, Anglo-American’s orientation towards consumption-driven commodities, such as platinum, may stand it in good stead for China’s potential future slow-down.

However, Rio has higher asset values relative to its peers, meaning it is able to keep profiting through commodity cycles. This is a big pull for me. 

Rio Tinto and Anglo-American are currently trading on price-to-earnings ratios of 9.2 and 5.9 respectively. These are below the usual double-figure average. The mining sector as a whole is far cheaper now than it was in 2019, when I think it was overpriced. Both companies are cash-rich, dependable dividend payers at attractive prices. This is what my ISA needs right now. I’m in.

The post 2 income stocks I’d buy right now for my Stocks and Shares ISA appeared first on The Motley Fool UK.

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Rachael FitzGerald-Finch has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Junior mining stocks have the ability to make early investors very wealthy indeed. So long as you can stand the higher levels of capital risk and possess a healthy amount of patience, I think there are a number of such opportunities on the market right now. Here are just two.

A play on clean energy

With the price of uranium at a 12-year low, it’s not all that surprising if Berkeley Energia (LSE: BKY) has been flying under many investors’ radars. However, it’s for this very reason — along with the huge potential of its wholly-owned and fully-funded Salamanca mine near Madrid — that I think the shares warrant closer inspection by those who believe the demand for clean energy can only go in one direction. 

Once up and running, the mine is expected to churn out 4.4m lb of uranium concentrate every year, making Berkeley one of the top 10 global producers. What’s even more remarkable, however, is the fact that the £120m cap still expects to make a profit even if uranium prices don’t budge. According to the company, it will have one of the world’s lowest production costs at $15/lb — far cheaper than FTSE 100 mining giants Rio Tinto or BHP Billiton.

To be sure, there’s no knowing when — exactly — the price of uranium will recover. Nevertheless, there are a number of potential catalysts. China is expected to double its nuclear capacity in two years (and double again by 2035) and Japan is restarting its nuclear programme after it was brought to a sudden halt following the Fukushima disaster in 2011. With hundreds of US and EU utilities also re-contracting up to one billion pounds of uranium over the next five years, Berkeley believes we are approaching a major demand/supply tipping point. 

Based on the notion that the only way to outperform the market is by doing the things that the majority of investors can’t or won’t, Berkeley looks a very interesting proposition at the current time.

Cop a load of this

Whether you like the idea of driving an electric vehicle or not, you’d better get used to the fact that the automotive industry is changing at a furious pace. 

One potential way of profiting from this is to buy shares in copper-focused miners such as Asiamet Resources (LSE: ARS), particularly as the current oversupply of the metal won’t last forever.

The £54m cap’s shares have rallied over the last few days following the release of an encouraging update on recent drilling near the company’s Beruang Kanan Main (BKM) prospect on the island of Kalimantan. In addition to its huge feasibility-stage copper project, Asiamet now believes it has found a standalone polymetallic deposit with tests revealing high grades of zinc, lead, silver and gold.

Aside from its assets (which also include the Jelai Gold project and part-owned Beutong resource), one other thing worth bearing in mind is the track record of Asiamet’s management team. Chairman and significant shareholder Tony Manini, for example, built up a $20m miner (Oxiana Ltd) into a £6bn commodity giant in just eight years. Sounds to me like he’s a good person to have around.

Like Berkeley Energia, Asiamet isn’t a stock for those with short investing horizons. Nevertheless, the prize for those able to sit on their hands could be worth the wait. 

The post Could these small-cap stocks help future-proof your portfolio? appeared first on The Motley Fool UK.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.