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

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

Mulan gives Disney a needed boost

WALT DISNEY CO. $127.77 (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares outstanding: 1.8 billion; Market cap: $230.9 billion; No current dividend) continues to draw new users to its streaming service during the pandemic—even as COVID-19 lockdowns ease. There are now 60.5 million subscribers worldwide (as… Read More

These juniors will beat 209% and 408% gains

Alamos Gold is up 209.4% since its March 2020 low, and we think the outlook for gold—and the stock—is still strong. Meanwhile, Amerigo Resources’ shares have skyrocketed 408.3% since March, and we feel the prospects for the company, and copper prices, remain very positive.Here’s a.. Read More

Newmont gains with gold

NEWMONT CORP. $70.25, remains a buy. The stock (New York symbol NEM; Shares outstanding: 802.6 million; Market cap: $56.4 billion; TSINetwork Rating: Average; Dividend yield: 1.4%; www.newmont.com) gives investors exposure to the world’s largest gold miner following its purchase of Vancouver-based Goldcorp Inc. last year for $10 billion.
Newmont… Read More

Hecla soars along with silver

HECLA MINING $5.33 (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares o/s: 526.1 million; Market cap: $2.6 billion; Dividend yield: 0.2%) explores for, mines and processes silver and gold in the U.S., Canada and Mexico.
The company’s shares continue to rise along with silver prices. At $22.56… Read More

Improving outlook should lift Alcoa

ALCOA CORP. $11 is still a buy. The company (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares o/s: 185.9 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.2; No dividends paid; TSINetwork Rating: Extra Risk; www.alcoa.com) is a leading producer of bauxite ore. It also operates refineries… Read More

Newmont rises with gold

NEWMONT CORP. $56.02, remains a buy. The company (New York symbol NEM; Shares outstanding: 802.6 million; Market cap: $45.0 billion; TSINetwork Rating: Average; Dividend yield: 1.8%; www.newmont.com) gives investors exposure to the world’s largest gold miner now that Newmont has acquired Vancouver-based Goldcorp Inc. for $10… Read More

Three key updates for Successful investors

TELUS CORP. $23 is a buy. The stock (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.3 billion; Market cap: $29.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.telus.com) lets you tap Canada’s third-largest wireless carrier after Rogers Communications (No… Read More

Updates on your safety-conscious stocks: Crescent Point Energy, Newmont Corp. and Brookfield Renewable Partners L.P.

CRESCENT POINT ENERGY $4.49, is a buy for aggressive investors. The oil and gas producer (Toronto symbol CPG; Shares outstanding: 547.2 million; Market cap: $2.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.9%; www.crescentpointenergy.com) has now completed the sale of some natural gas infrastructure assets in Saskatchewan. The total… Read More