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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IAMGOLD $4.51 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 450.7 million; Market cap: $2.0 billion; No dividends paid) holds 92.5% of the Cote gold project in Ontario. Construction had been expected to start early this year, with production beginning in late 2020....
MAJOR DRILLING $4.65 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866-264-3986; www.majordrilling.com; Shares outstanding: 80.3 million; Market cap: $373.4 million; No dividends paid) is a large contract driller that mainly serves the mining industry.
Major believes that mining activity continues to deplete the world’s more easily accessible mineral reserves....
TECK RESOURCES LTD. $31 (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 574.9 million; Market cap: $17.8 billion; Price-to sales ratio: 1.4; Dividend yield: 0.6%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steel making....
NEWMONT MINING $33.71 (New York symbol NEM; Shares outstanding: 532.7 million; Market cap: $18.0 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; www.newmont.com) has agreed to a buy Vancouver-based Goldcorp Inc. (Toronto symbol G) for $9.1 billion....
Amerigo has other deals to process material at the nearby Colihues and Cauquenes tailings ponds—and it has now officially completed the development of the Cauquenes project.
On December 6, 2018, Chile’s President Sebastián Piñera attended a ceremony at the site to celebrate the start-up of the Cauquenes plant....
The company lowered the expected production for the mine by about 100,000 ounces mid-way through last year....
IAMGold also holds 92.5% of the Cote gold project in Ontario....
Teck’s new growth projects should fuel its earnings in 2019 and beyond....
The company also has a number of development projects in Turkey, Mexico and Canada....