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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Newmont has now sold its entire 13% ownership stake in gold miner Orla Mining (symbol OLA on Toronto) for $439 million.
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.
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.
Potash sales volumes in the three months ended June 30, 2025, rose 12.0% to 3.99 million tonnes. That’s due to stronger demand in North America. Selling prices also improved 17.0%.