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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TALON METALS, $5.90, is a buy. The company (Toronto symbol TLO; TSINetwork Rating: Speculative) (talonmetals; Shares o/s: 153.9 million; Market cap: $950.1 million; No divd.) completed its buy of the producing Eagle mine and the associated Humboldt mill in Michigan from Lundin Mining (Toronto symbol LUN) in January 2026.
Note that Amerigo shares are also up a whopping 231.2% over the last year for our subscribers!
However, the company stands to gain from the U.S. Department of Agriculture’s plan to invest $500 million U.S. to increase fertilizer production in that country.
Investors will also benefit from Teck’s upcoming all-stock merger with Anglo American PLC (Over-the-counter symbol AAUKF). Teck shareholders will own 37.6% of the combined company (called Anglo Teck), with Anglo investors holding the remaining 62.4%.
AMERIGO RESOURCES, $7.13, (Toronto symbol ARG; TSINetwork Rating: Extra Risk) (amerigoresources.com; Shares outstanding: 161.8 million; Market cap: $1.2 billion; Yield: 4.1%) now pays a quarterly dividend of $0.04, up 33.0% from $0.03. The stock yields 4.1%.
NUTRIEN LTD. $104 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 481.1 million; Market cap: $50.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.9%; TSINetwork Rating: Average; www.nutrien.com) took its current form on January 1, 2018, through the merger of fertilizer producer Agrium (old symbol AGU) and its rival Potash Corp. of Saskatchewan (old symbol POT). Today, it’s the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It ships about 27.5 million tonnes annually.