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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Barrick has moved up recently—along with gold prices. The gains were likely spurred by the growing belief among investors that interest-rate increases have started to slow as inflation eases. That should push up investor demand for gold as the appeal of interest-bearing investment and the U.S....
TECK RESOURCES LTD. $54 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 512.3 million; Market cap: $27.7 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.9%; TSINetwork Rating: Extra Risk; www.teck.com) explores for and develops various types of minerals, including copper, gold, zinc and metallurgical coal (used for making steel).
Teck recently agreed to sell its 21.3% stake in the Fort Hills oil sands project of northern Alberta to Suncor Energy Inc....
An easy way for investors to gain international exposure is with well-established foreign firms whose shares trade as American Depositary Receipts on the New York exchange. Here are updates on three of our favourite ADR stocks (including Diageo, see box).
ABB LTD....
In May 2022, Yamana received an offer from prospective buyer South African-based Gold Field. However, it recently got a higher joint takeover offer from Pan American Silver Corp. (symbol PAAS on Toronto) and Agnico Eagle Mines Ltd. (symbol AEM on Toronto).
YAMANA GOLD, $6.69, (Toronto symbol YRI; Rating: Speculative) (yamana.com; Shares o/s: 961.0 million; Market cap: $6.4 billion; Yield: 1.8%) is a hold. Under that second, $4.8 billion U.S....
Whatever the near-term outlook for gold and silver prices, we think top-quality gold/silver stocks like Alamos and Hecla remain buys. That’s in part because of their prospects for increased production and cash flow—regardless of precious metal prices.
HECLA MINING, $4.99, is a buy. The company (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares o/s: 606.3 million; Market cap: $3.1 billion; Divd yield: 0.3%) explores for, mines and processes silver and gold in the U.S., Canada and Mexico.
Most of Hecla’s silver output comes from three sites: the Greens Creek mine in Alaska; the Lucky Friday project in Idaho; and the San Sebastian mine in Mexico....
TECK RESOURCES LTD....