Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

While sometimes risky, mining stocks can also be strong performers when commodity prices move up. However, due to the volatility of these stocks, Pat McKeough recommends that they only form a modest part of a well-balanced portfolio.

Canadian penny mining stocks are some of the riskiest stocks you can buy. These companies are trying to find mineral deposits that mine at a profit and such a find are exceedingly rare. Because of this, it’s even more important to look for investment quality in penny mines.

For example, we automatically rule out investing in penny mines that promote themselves too aggressively or do so misleadingly. The mine-finding effort is more likely to succeed if the managers focus on finding a mine rather than hyping their stock.

Junior mining stocks are usually smaller companies that typically take on riskier mining projects. However, if a junior mining stock is successful at finding and mining, it can mean huge returns for investors.

No matter what type of mining stocks, or other stocks you invest in, TSI Network recommends following our three-part Successful Investor strategy:

  1. Invest mainly in well-established, mostly dividend-paying companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

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Mining Stocks Library Archives

Good time to add these to your portfolio

Commodity prices have weakened in the past few months, partly due to China’s slower-than-expected post-pandemic recovery. Even so, we still like the long-term prospects of these two leading resources stocks.
BHP GROUP LTD. (ADR) $62 is a buy. This company (New York symbol BHP; Conservative Growth Portfolio, Resources… Read More

New approval will lift Barrick gains

BARRICK GOLD, $21.02, is a buy. The miner (Toronto symbol ABX; TSINetwork Rating: Average) (www.barrick.com; Shares o/s: 1.8 billion; Market cap: $37.8 billion; Dividend yield: 4.1%) reports that it now has regulatory approval to start up the Goldrush underground mine at the Cortez Complex near Beowawe, Nevada. Goldrush… Read More

Specialized products cut its risk

NUTRIEN LTD. $71 is a buy. In addition to its main fertilizer business, the company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 494.5 million; Market cap: $35.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.0%; TSINetwork Rating: Average; www.nutrien.com), through its Loveland Products business, develops… Read More

Teck is poised to reward investors

TECK RESOURCES LTD. $52 remains a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 520.0 million; Market cap: $27.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.teck.com) has completed the first part of its plan to sell all of… Read More

Rising production forecasts lift their appeal

Whatever the near-term outlook for gold, we think top-quality gold stocks like Alamos and Lundin remain buys. That’s in part because of their prospects for increased production and cash flow—regardless of precious metal prices.
ALAMOS GOLD, $18.90, is a buy. Through the shares (Toronto symbol AGI; TSINetwork… Read More

IAMGold’s new mine almost built

IAMGOLD, $3.13, is a buy. The miner (Toronto symbol IMG; TSINetwork Rating: Speculative) (www.iamgold.com; Shares outstanding: 481.1 million; Market cap: $1.5 billion; No dividends paid) is now nearing completion of a mine at its 64.75%-owned flagship Cote gold project, and it aims to start it up in early 2024.
That… Read More

Three more high-quality Resource buys

We continue to recommend all investors maintain some exposure to the Resources sector—typically about 20% of your total portfolio. That’s mainly because resource stocks act as a hedge against inflation.
To further cut your risk, investors should stick with producers, such as the three we analyze… Read More

Good news for Newmont

NEWMONT CORP., $37.27, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 794.8 million; Market cap: $29.6 billion; TSINetwork Rating: Average; Dividend yield: 4.3%; www.newmont.com) has now re-opened its Penasquito mine in Mexico after the… Read More

Three more updates to protect your gains

TEGNA INC. $14 is still a hold. The company (New York symbol TGNA, Conservative Growth Portfolio, Consumer sector: Shares outstanding: 201.5 million; Market cap: $2.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 3.3%; TSINetwork Rating: Average; www.tegna.com) owns 64 TV stations and two radio stations in 51 U.S. markets.
In… Read More

Teck fields offers for coal division

TECK RESOURCES LTD. $57 remains a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 515.0 million; Market cap: $29.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 0.9%; TSINetwork Rating: Extra Risk; www.teck.com) continues to examine ways to re-organize its operations into two separate firms—one… Read More

Newmont strike still on

NEWMONT CORP., $40.66, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 794.7 million; Market cap: $33.2 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.newmont.com) is the world’s largest gold miner, with major mines in North America,… Read More

Newmont remains our top choice for gold

The best way for investors to add gold exposure to their portfolios is with high-quality producers like Newmont, instead of buying gold coins and bullion, which come with extra costs for storage and insurance. As well, Newmont’s upcoming acquisition of Newcrest will add to its… Read More

Sale of coal unit still possible

TECK RESOURCES LTD. $55 remains a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 515.0 million; Market cap: $28.3 billion; Price-to-sales ratio: 1.8; Dividend yield: 0.9%; TSINetwork Rating: Extra Risk; www.teck.com) sold 6.2 million tonnes of metallurgical coal (a key ingredient in steelmaking)… Read More

Drilling rebound is a big plus for these two

Demand for Major Drilling’s specialized services, especially from senior gold producers, including Australia’s largest mining companies, is now recovering. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to overall higher energy prices. We think there are still gains ahead for… Read More

A new takeover is still possible

TECK RESOURCES LTD. $57 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 512.3 million; Market cap: $29.2 billion; Price-to-sales ratio: 1.8; Dividend yield: 0.9%; TSINetwork Rating: Extra Risk; www.teck.com) recently dropped its plan to spin off its coal business due to… Read More

Newmont’s bid succeeds

NEWMONT CORP., $40.55, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 794.7 million; Market cap: $32.1 billion; TSINetwork Rating: Average; Dividend yield: 4.0%; www.newmont.com) reports that Austrailia-based Newcrest Mining has accepted its takeover offer. Newcrest operates… Read More

Newmont ups its bid

NEWMONT CORP., $47.49, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 794.7 million; Market cap: $38.2 billion; TSINetwork Rating: Average; Dividend yield: 3.4%; www.newmont.com) has now made a new offer to acquire Austrailia-based Newcrest Mining. It… Read More