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
Barrick Gold and Hecla Mining offer you great ways to prosper from higher prices for precious metals during the pandemic and beyond. Today’s economic volatility should significantly boost demand for gold and silver as an investment, especially if huge goverment stimulus spending across the world spurs inflation....
Teck shares have recovered strongly since dropping to $8.15 in March 2020. That’s because the rollout of new COVID-19 vaccines should help world economies rebound and push up commodity prices. Teck will also benefit from its plan to expand its copper operations....
NEWMONT CORP. $59.73, remains a buy for long-term growth and as a hedge against inflation. The stock (New York symbol NEM; Shares outstanding: 803.4 million; Market cap: $48.1 billion; TSINetwork Rating: Average; Dividend yield: 2.7%; www.newmont.com) continues to expand its production following COVID-19 disruptions and restrictions in the early part of 2020.


As a result, it expects to produce 6.5 million ounces of gold in 2021, up 8.3% from 6.0 million ounces this year.


Newmont also expects its annual gold output will rise to between 6.2 million and 6.7 million ounces for both 2022 and 2023....
MAJOR DRILLING $7.57 (Toronto symbol MDI; TSINetwork Rating: Speculative) (www.majordrilling.com; Shares outstanding: 80.6 million; Market cap: $627.4 million; No dividends paid) is a large contract driller that mainly serves the mining industry.


Demand for Major’s specialized drilling services, especially from senior gold producers, is beginning to recover....
TECK RESOURCES LTD. $19 is a still buy. The stock (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares o/s: 547.3 million; Market cap: $6.0 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.8%; TSINetwork Rating: Extra Risk; www.teck.com) has more than doubled since falling to $8.15 in March 2020....

NEWMONT CORP. $63.45, remains a buy. The stock (New York symbol NEM; Shares outstanding: 803.1 million; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 1.6%; www.newmont.com) is now selling 11 more royalty streams to Vancouver-based Maverix Metals Inc....
Long-time readers know that we keep you informed on important news about the stocks we cover. That means spotlighting developments that promise to brighten their outlook. Here are two that stand out as buys this month:


CALIAN GROUP $62.75 is a buy. The Ottawa-based company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (www.calian.com; Shares outstanding: 9.7 million; Market cap: $621.9 million; Dividend yield: 1.8%) provides engineering and tech support mostly to government....
YAMANA GOLD $8.29 (Toronto symbol YRI; TSINetwork Rating: Speculative) (www. yamana.com; Shares o/s: 951.7 million; Market cap: $7.9 billion; Dividend yield: 1.1%) lets you tap its five gold mines, in Canada, Brazil, Chile and Argentina.


Yamana has announced that it is in the advanced stages of applying to list its shares on the London exchange’s Main Market.


The stock is already listed on the New York exchange, as well as Toronto.


Yamana believes that listing on the LSE, too, will improve its trading liquidity, as well as let it tap European investors if it wants to raise funds in a share issue....
BARRICK GOLD $39.49 (Toronto symbol ABX; TSINetwork Rating: Average) (www.barrick.com; Shares o/s: 1.8 billion; Market cap: $70.3 billion; Yield: 1.1%) now counts Warren Buffett’s Berkshire Hathaway (symbol BRK.B on New York) as its 11th largest investor....
BCE INC. $57 (www.bce.ca) is a buy. The company recently launch its new ultrafast 5G wireless service in Montreal, Toronto, Calgary, Edmonton, and Vancouver. The telecom plans to expand to other cities starting in late 2020 and into 2021....