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

Cyclical upswing benefits Alcoa

ALCOA CORP. $36 is still a buy. The company (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares o/s: 185.9 million; Market cap: $6.7 billion; Price-to-sales ratio: 0.7; No dividends paid; TSINetwork Rating: Extra Risk; www.alcoa.com) is a leading producer of bauxite ore. It also operates refineries… Read More

Alamos Gold lifts your dividend

ALAMOS GOLD $11.15 (Toronto symbol AGI; TSINetwork Rating: Speculative) (www.alamosgold.com; Shares outstanding: 392.7 million; Market cap: $4.3 billion; Divd. yield: 1.1%) benefited in the quarter ended December 31, 2020, from higher gold prices. Revenue rose 21.8%, to $226.8 million from $186.0 million. (All figures except share price and… Read More

Biden’s green plan should help Teck

TECK RESOURCES LTD. $27 is a buy. The stock (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $14.3 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.teck.com) explores for and develops various types of minerals, including copper, gold, zinc… Read More

Its shift from coal benefits investors

BHP GROUP LTD. (ADR) $69 is a buy. This company (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.5 billion; Market cap: $172.5 billion; Price-to-sales ratio: 4.1; Dividend yield: 3.1%; TSINetwork Rating: Average; www.bhp.com) is a leading producer of iron ore (which supplies 50% of… Read More

Lundin Gold aims to strike again

LUNDIN GOLD $10.24 (Toronto symbol LUG; TSINetwork Rating: Spec.) (www.lundingold.com; Shares outstanding: 224.4 million; Market cap: $2.3 billion; No dividends paid) will now go ahead with expansion plans for its Fruta del Norte gold mine in Ecuador. The $18.6 million expansion will increase output by around 20%. That will… Read More

Newmont is our top gold

NEWMONT CORP. $59.73, remains a buy for long-term growth and as a hedge against inflation. The stock (New York symbol NEM; Shares outstanding: 803.4 million; Market cap: $48.1 billion; TSINetwork Rating: Average; Dividend yield: 2.7%; www.newmont.com) continues to expand its production following COVID-19 disruptions and restrictions in the… Read More

Major Drilling rises along with gold

MAJOR DRILLING $7.57 (Toronto symbol MDI; TSINetwork Rating: Speculative) (www.majordrilling.com; Shares outstanding: 80.6 million; Market cap: $627.4 million; No dividends paid) is a large contract driller that mainly serves the mining industry.
Demand for Major’s specialized drilling services, especially from senior gold producers, is beginning to recover. That has pushed… Read More

Tap into rising copper with Teck

TECK RESOURCES LTD. $19 is a still buy. The stock (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares o/s: 547.3 million; Market cap: $6.0 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.8%; TSINetwork Rating: Extra Risk; www.teck.com) has more than doubled since falling to $8.15… Read More

Newmont deal adds value

NEWMONT CORP. $63.45, remains a buy. The stock (New York symbol NEM; Shares outstanding: 803.1 million; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 1.6%; www.newmont.com) is now selling 11 more royalty streams to Vancouver-based Maverix Metals Inc. (Toronto symbol MMX).
In 2018, Newmont transferred to Maverix the… Read More

Buy these two stocks on the upswing

Long-time readers know that we keep you informed on important news about the stocks we cover. That means spotlighting developments that promise to brighten their outlook. Here are two that stand out as buys this month:
CALIAN GROUP $62.75 is a buy. The Ottawa-based company (Toronto symbol CGY;… Read More

Yamana aims to broaden its appeal

YAMANA GOLD $8.29 (Toronto symbol YRI; TSINetwork Rating: Speculative) (www. yamana.com; Shares o/s: 951.7 million; Market cap: $7.9 billion; Dividend yield: 1.1%) lets you tap its five gold mines, in Canada, Brazil, Chile and Argentina.
Yamana has announced that it is in the advanced stages of applying to list… Read More

Warren Buffett buys into Barrick Gold

BARRICK GOLD $39.49 (Toronto symbol ABX; TSINetwork Rating: Average) (www.barrick.com; Shares o/s: 1.8 billion; Market cap: $70.3 billion; Yield: 1.1%) now counts Warren Buffett’s Berkshire Hathaway (symbol BRK.B on New York) as its 11th largest investor. That’s after Berkshire bought 20.9 million shares of Barrick for $563.5 million… Read More

Here are two stocks we now see as sells

Long-time readers know that we continually evaluate the stocks we recommend to see if they should remain in thePower Growth Investor newsletter. Here’s a look at two we now see as sells.
CAMECO CORP. $14.00, is a sell. The company (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (www.cameco.com;… Read More