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:
 How Successful Investors Get RICHLearn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor. How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger. |
Like most silver stocks, Hecla Mining is heavily influenced by silver prices. But we think the direction of silver prices—and for Hecla shares—is upward. That’s in part because global demand for silver, used in solar panels, electric vehicles and other key green technologies continues to… Read More
NEWMONT CORP. $44.10, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 793.7 million; Market cap: $34.6 billion; TSINetwork Rating: Average; Dividend yield: 3.6%; www.newmont.com) has now made a new offer to acquire Austrailan-based Newcrest Mining. It… Read More
Like most gold stocks, Alamos is heavily influenced by gold prices. But with cash of $116.7 million U.S. and no debt, the company has strong speculative appeal. Its prospects for increased production—from La Yaqui Grande and the phase II expansion at the Island mine—are also… Read More
NEWMONT CORP. $55 is a buy for long-term growth and a hedge against inflation. The company (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 793.7 million; Market cap: $43.7 billion; Price-to-sales ratio: 3.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.newmont.com) is the world’s largest gold… Read More
IAMGOLD, $3.58, is a buy. The miner (Toronto symbol IMG; TSINetwork Rating: Speculative) (www.iamgold.com; Shares outstanding: 479.0 million; Market cap: $1.7 billion; No dividends paid) continues to make moves to secure the financing it needs for the ongoing construction of a mine at its flagship Cote gold project. With… Read More
Barrick has moved up recently—along with gold prices. The gains were likely spurred by the growing belief among investors that interest-rate increases have started to slow as inflation eases. That should push up investor demand for gold as the appeal of interest-bearing investment and the… Read More
TECK RESOURCES LTD. $54 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 512.3 million; Market cap: $27.7 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.9%; TSINetwork Rating: Extra Risk; www.teck.com) explores for and develops various types of minerals, including copper, gold, zinc… Read More
An easy way for investors to gain international exposure is with well-established foreign firms whose shares trade as American Depositary Receipts on the New York exchange. Here are updates on three of our favourite ADR stocks (including Diageo, see box).
ABB LTD. ADRs $30 is a.. Read More
NEWMONT CORP. $47.47, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 793.7 million; Market cap: $36.3 billion; TSINetwork Rating: Average; Dividend yield: 4.6%; www.newmont.com) is the world’s largest gold producer. It also produces copper, silver, lead… Read More
In May 2022, Yamana received an offer from prospective buyer South African-based Gold Field. However, it recently got a higher joint takeover offer from Pan American Silver Corp. (symbol PAAS on Toronto) and Agnico Eagle Mines Ltd. (symbol AEM on Toronto).
YAMANA GOLD, $6.69, (Toronto symbol YRI;… Read More
Whatever the near-term outlook for gold and silver prices, we think top-quality gold/silver stocks like Alamos and Hecla remain buys. That’s in part because of their prospects for increased production and cash flow—regardless of precious metal prices.
HECLA MINING, $4.99, is a buy. The company (New York symbol… Read More
Teck is now shifting its focus to “low carbon metals,” such as copper and zinc. Under that plan, the company is selling its stake in an oil sands project. It could also spin off or sell its coal operations. These moves would help unlock more… Read More
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 higher energy prices. We think there are still gains ahead for both… Read More
TECK RESOURCES LTD. $45 is a buy for investors seeking long-term gains from the Resources sector of their portfolio. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $23.9 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.1%; TSINetwork Rating: Extra Risk;… Read More
NEWMONT CORP. $43.90, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 793.7 million; Market cap: $35.3 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.newmont.com) is the world’s largest gold producer. It also produces copper, silver, lead… Read More
NEWMONT CORP. $42 is a buy for long-term growth and a hedge against inflation. The company (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 793.7 million; Market cap: $33.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 5.2%; TSINetwork Rating: Average; www.newmont.com) is the world’s largest gold… Read More
China currently dominates rare-earth production due in part to higher labour costs and tighter environmental restrictions in the U.S. However, politicians and government officials in the U.S. are now trying to promote production in the U.S. MP Materials should benefit from that effort—and it already… Read More
TECK RESOURCES LTD. $41 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $21.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.2%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steelmaking… Read More
LUNDIN GOLD, $8.55, is a buy. The miner (Toronto symbol LUG; TSINetwork Rating: Speculative) (www.lundingold.com; Shares outstanding: 234.7 million; Market cap: $2.0 billion; Dividend yield: 4.7%) now plans to start paying a dividend. That’s a result of its significant cash flow generation.
Under this newly established policy, the company anticipates… Read More
Barrick has moved down—along with gold prices—since earlier this year. Gold does move generally up along with inflation; however, while inflation remains high, interest rate hikes (such as the U.S. Fed’s recent 75 basis-point rise) are aimed at controlling and bring down the inflation rate… Read More
