Top mining stocks to add to your portfolio

Professional investors Keith Watson and Rob Crayfourd of CQS Natural Resources Growth and Income tell us where they’d put their money.

Aerial view of open pit iron ore and heavy mining equipment.
(Image credit: Getty Images)

CQS Natural Resources is a £154 million investment trust focused on global energy and mining equities. We pick the commodities we are most bullish on and the stocks we think are most attractively valued. In normal times valuations are reflective of a bullish commodity outlook, but we believe distortions in the market led by an increased focus on the environment have allowed us to find attractively priced stocks in commodities we expect to appreciate. 

This is driven by several factors. Institutions have sold fossil-fuel producers owing to constraints imposed by environmental, social and governance (ESG) criteria, while banks don’t want to lend to the sector, meaning the stocks are cheap and new supply remains constrained. Similarly, sentiment for precious metals miners continues to remain weak despite gold at all-time highs. These both create attractive opportunities.

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Keith joined CQS in July 2013 from Mirabaud Securities where he was a Senior Natural Resource Analyst. Prior to Mirabaud, Keith was Director of Mining Research at Evolution Securities. 

Previous to this, he was a top-ranked business services analyst at Dresdner Kleinwort Wasserstein, Commerzbank and Credit Suisse/BZW. Keith began his career in 1992 as a portfolio manager and research analyst at Scottish Amicable Investment Managers. Keith holds a BSc (Hons) in Applied Physics from Durham University.

Keith Watson is a co-Fund Manager for CQS Natural Resources Growth and Income plc, Geiger Counter and Golden Prospect Precious Metals.