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:

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

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Mining Stocks Library Archives

Mining Stocks

Hecla sells off its Quebec gold mine to focus on silver

Hecla explores for, mines and processes silver and gold in the U.S., Canada and Mexico. Most of its silver output comes from three sites: the Greens Creek mine in Alaska; the Lucky Friday project in Idaho; and the Keno Hill mine in the Yukon. It also owns the Casa Berardi gold mine in Quebec.

HECLA MINING, $22.02, is a buy. The company (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares outstanding: 670.1 million; Market cap: $14.8 billion; Dividend yield: 0.1%) has now agreed to sell its Hecla Quebec unit to Orezone Gold (symbol ORE on Toronto) for upfront and deferred consideration totalling $593.0 million.

1 min read

Pat McKeough

Mining Stocks

Lower costs spur Nutrien

NUTRIEN LTD. $99 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 483.3 million; Market cap: $47.8 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.0%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers. It also sells seeds, fertilizers and agricultural products to farmers.

1 min read

Pat McKeough

Mining Stocks

Teck cancels exploration deal

TECK RESOURCES LTD. $82 remains a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 488.2 million; Market cap: $40.0 billion; Price-to-sales ratio: 3.8; Dividend yield: 0.6%; TSINetwork Rating: Extra Risk; www.teck.com) has ended its alliance with Arras Minerals Corp. (Toronto Venture symbol ARK), which is exploring for copper in the Pavlodar region of Kazakhstan. Since 2023, Teck has contributed $5 million U.S. to these efforts.

1 min read

Pat McKeough

Mining Stocks

Newmont gains 160% for us

NEWMONT CORP., $116.85, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 1.1 billion; Market cap: $123.2 billion; TSINetwork Rating: Average; Dividend yield: 0.9%; www.newmont.com) is the world’s largest gold miner. It also produces copper, silver, lead and zinc.

1 min read

Pat McKeough

Mining Stocks

Major Drilling climbs on rising demand

MAJOR DRILLING, $14.74, is a Power Buy for aggressive investors. This large contract driller (Toronto symbol MDI; TSINetwork: Speculative) (majordrilling.com; Shares o/s: 82.1 million; Market cap: $1.2 billion; No dividends paid) mainly serves the mining industry.

2 min read

Pat McKeough

Mining Stocks

Our updates for safety-conscious investors

NEWMONT CORP., $108.01, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 1.1 billion; Market cap: $117.9 billion; TSINetwork Rating: Average; Dividend yield: 0.9%; www.newmont.com) is the world’s largest gold mining company. It also produces copper, silver, lead and zinc.

2 min read

Pat McKeough

Mining Stocks

Here are updates on two of your buys

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:

AMERIGO RESOURCES, $4.26, is a buy for aggressive investors. The stock (Toronto symbol ARG; TSINetwork Rating: Speculative) (www.amerigoresources.com; Shares outstanding: 164.5 million; Market cap: $943.6 million; Dividend yield: 4.6%) keeps soaring and is now hitting record highs.

1 min read

Pat McKeough

Mining Stocks

Barrick considers an IPO for its North Amercian mines

Barrick Mining is looking at selling a minority stake in its North American gold assets, separating them from the miner’s gold and copper mines in riskier parts of the world such as in regions of Africa, the Middle East, Asia and South America.

BARRICK MINING, $60.00 is a buy. The miner (Toronto symbol ABX; TSINetwork Rating: Average) (barrick.com; Shares o/s: 1.7 billion; Market cap: $99.6 billion; Yield: 1.6%) will now explore an initial public offering of a new company to house its North American operations. Those include the Nevada Gold Mines venture

1 min read

Pat McKeough

Mining Stocks

Focus on high-quality producers

Despite the current volatility caused by tariffs, we continue to advise all investors to maintain some exposure to the resources industry. To cut your risk, stick with high-quality producers such as these two.

2 min read

Pat McKeough

Mining Stocks

Teck’s big merger should reward investors

The shareholders of Teck and Anglo American have now voted in favour of the plan to merge the two firms. The combined company will be one of the world’s top five producers of copper, with major operations in politically stable countries such as Canada, the U.S., South Africa and Chile. The merger will also generate substantial cost savings that will set the new firm up for many years of growth.

2 min read

Pat McKeough

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Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.