Mining Stocks
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
NEWMONT CORP., $81.63, 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: $94.9 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.newmont.com) is the world’s largest gold miner. It also produces copper, silver, lead and zinc.
Whatever the outlook for gold from here—and it’s currently hitting all-time highs—we think top-quality gold stocks like Alamos and Lundin—both near all-time highs—remain buys. That’s in part because of their prospects for increased production and cash flow—regardless of precious metal prices.
ALAMOS GOLD INC., $44.53, is a buy. The gold miner (Toronto symbol AGI; TSINetwork Rating: Average) (www.alamosgold.com; Shares outstanding: 420.4 million; Market cap: $20.0 billion; Dividend yield: 0.3%) last year acquired Argonaut Gold (symbol AR on Toronto) and its troubled Magino mine in northern Ontario in an all-stock deal valued at $325 million U.S. With the purchase, Alamos became Canada’s third-largest gold producer.
ALAMOS GOLD INC., $44.53, is a buy. The gold miner (Toronto symbol AGI; TSINetwork Rating: Average) (www.alamosgold.com; Shares outstanding: 420.4 million; Market cap: $20.0 billion; Dividend yield: 0.3%) last year acquired Argonaut Gold (symbol AR on Toronto) and its troubled Magino mine in northern Ontario in an all-stock deal valued at $325 million U.S. With the purchase, Alamos became Canada’s third-largest gold producer.
Like most silver stocks, Hecla Mining is heavily influenced by silver prices—and with silver hitting all-time highs, the stock is also at new peaks for our subscribers!
We think the direction of silver prices—and for Hecla shares—is still upward. Demand for silver continues to rise, partly as a flight to safety amid a falling U.S. dollar and global political and economic uncertainty. What’s more, worldwide demand remains high for silver used in a range of industrial and manufacturing ways. Those include solar panels, electric vehicles, water purification, medicine and electronics. This long-time pick is a Power Buy.
We think the direction of silver prices—and for Hecla shares—is still upward. Demand for silver continues to rise, partly as a flight to safety amid a falling U.S. dollar and global political and economic uncertainty. What’s more, worldwide demand remains high for silver used in a range of industrial and manufacturing ways. Those include solar panels, electric vehicles, water purification, medicine and electronics. This long-time pick is a Power Buy.
NUTRIEN LTD. $84 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 485.9 million; Market cap: $40.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.6%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It also sells seeds, fertilizers and agricultural products to farmers through some 1,900 stores spread across the Western Hemisphere and Australia.
NEWMONT CORP., $85.95, 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: $94.5 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.newmont.com) is the world’s largest gold miner, with major mines in North America, South America, Australia, and Africa. In addition to gold, the company produces copper, silver, lead and zinc.
Newmont has now sold its entire 13% ownership stake in gold miner Orla Mining (symbol OLA on Toronto) for $439 million.
Newmont has now sold its entire 13% ownership stake in gold miner Orla Mining (symbol OLA on Toronto) for $439 million.
BHP GROUP LTD. (ADR) $54 is a buy. This Australian company (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.6 billion; Market cap: $140.4 billion; Price-to-sales ratio: 2.6; Dividend yield: 4.1%; TSINetwork Rating: Average; www.bhp.com) is a major producer of iron ore, copper, nickel and coal.
BHP is now selling its Carajas copper mines in Brazil for up to $465 million. These projects account for less than 1% of the company’s total copper production.
BHP is now selling its Carajas copper mines in Brazil for up to $465 million. These projects account for less than 1% of the company’s total copper production.
NEWMONT CORP. $83 is a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 1.1 billion; Market cap: $91.3 billion; Price-to-sales ratio: 4.7; Dividend yield: 1.2%; TSINetwork Rating: Average; www.newmont.com) is the world’s largest gold mining company. It also produces copper, silver, lead and zinc.
Barrick Mining is now selling its Hemlo gold mine. The divestiture ends the company’s long history of gold production in Canada.
BARRICK MINING, $40.63 is a buy. The miner (Toronto symbol ABX; TSINetwork Rating: Average) (barrick.com; Shares o/s: 1.7 billion; Market cap: $69.3 billion; Yield: 2.0%) is now selling its last producing Canadian gold mine, Hemlo, to Carcetti Capital for up to $1.09 billion. The deal includes $875 million in cash, $50 million in shares of the renamed Hemlo Mining Corp., and up to $165 million in contingent payments linked to output and gold prices starting in 2027.
BARRICK MINING, $40.63 is a buy. The miner (Toronto symbol ABX; TSINetwork Rating: Average) (barrick.com; Shares o/s: 1.7 billion; Market cap: $69.3 billion; Yield: 2.0%) is now selling its last producing Canadian gold mine, Hemlo, to Carcetti Capital for up to $1.09 billion. The deal includes $875 million in cash, $50 million in shares of the renamed Hemlo Mining Corp., and up to $165 million in contingent payments linked to output and gold prices starting in 2027.
TECK RESOURCES LTD. $56 remains a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 488.9 million; Market cap: $27.4 billion; Price-to-sales ratio: 2.8; Dividend yield: 0.9%; TSINetwork Rating: Extra Risk; www.teck.com) has agreed to merge with U.K.-based mining company Anglo American PLC (Over-the-counter symbol AAUKF) in an all-stock deal.
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: