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:

  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
YAMANA GOLD, $6.37, is a buy. The company (Toronto symbol YRI; Rating: Speculative) (yamana.com; Shares o/s: 961.0 million; Market cap: $6.2 billion; Yield: 2.4%) now plans to seek better terms from its lenders....
NEWMONT CORP. $73.39, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 793.7 million; Market cap: $57.3 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.newmont.com) now expects to spend $2.3 billion on its existing mines and new projects for all of 2022.


That should raise this year’s gold production by 4% to 6.2 million ounces....
Gold prices are up about 5% since the start of 2022 due to rising inflation and uncertainty caused by the war in Ukraine. We feel the best way to profit from higher gold prices is to buy high-quality producers like Newmont. Most of its mines are in politically stable countries, and its dividend is linked to the price of gold.


NEWMONT CORP....
China currently dominates rare-earth production due in part to higher labour costs and tighter environmental restrictions in the U.S. However, politicians and government officials in the U.S. are now trying to promote production in the U.S. MP Materials should benefit from that effort....
On November 1, 2016, Arconic spun off its bulk aluminum business as Alcoa. Investors received one Alcoa share for every three Arconic shares they owned.


Alcoa is now up over 300% since the split, thanks largely to rising aluminum demand and prices as the global economy recovers from the COVID-19 pandemic....
HECLA MINING, $6.61, is a buy. The company (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares o/s: 538.4 million; Market cap: $3.6 billion; Divd yield: 0.2%) produced 3.2 million ounces of silver in the quarter ended December 31, 2021—down 3.7% from 3.5 million a year earlier....
Barrick Gold offers you a great way to prosper from any rise in gold prices because of the war in Ukraine and the ongoing COVID-19 pandemic. If inflation keeps rising these next few years (a clear possibility), gold stocks will attract new interest to keep pushing up their prices....
INNERGEX RENEWABLE ENERGY, $18.39, is a buy. The power generator (Toronto symbol INE; Shares ooutstanding: 192.8 million; Market cap: $3.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.9%; www.innergex.com) operates 40 hydroelectric plants, 32 wind farms and seven solar power fields....
Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to brighten prospects for investors. Here are two buys that stand out this month:


ALAMOS GOLD, $9.35, is a buy. Through the shares (Toronto symbol AGI; TSINetwork Rating: Speculative)(www.alamosgold.com; Shares outstanding: 392.0 million; Market cap: $3.6 billion; Dividend yield: 1.4%) investors tap into the company’s Mulatos mine in Mexico, and the Young-Davidson and Island mines in northern Ontario.


In 2021, Alamos’ gold production rose 7.1%, to 457,200 ounces from 426,800 in 2020....
Activist investors make their money by targeting underperforming firms they feel would benefit from better management or assets sales. Here’s a look at how IAMGold is responding to its new activist pressure.


IAMGOLD, $3.91, is a buy. The miner (Toronto symbol IMG; TSINetwork Rating: Speculative) (www.iamgold.com; Shares outstanding: 476.9 million; Market cap: $1.8 billion; No dividends paid) is now the target of U.S....