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
ALAMOS GOLD $5.84 (Toronto symbol AGI; TSINetwork Rating: Speculative) (604-681-2802; www.alamosgold.com; Shares outstanding: 266.3 million; Market cap: $2.3 billion; Dividend yield: 0.4%) owns the Mulatos and El Chanate mines in Mexico, and the Young-Davidson and Island mines in northern Ontario.


The company has now received the final permit required for the development of its Kirazli gold project in Turkey....
YAMANA GOLD $3.74 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www. yamana.com; Shares outstanding: 948.9 million; Market cap: $3.6 billion; Dividend yield: 0.7%) has started up production at its sixth mine—the Cerro Moro gold/silver mine in Argentina....
ALCOA CORP. $45 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 185.0 million; Market cap: $8.3 billion; Price-to-sales ratio: 0.7; No dividends paid; TSINetwork Rating: Average; www.alcoa.com) is down 18% since the start of the year despite new tariffs on aluminum imports to the U.S.


The decline is because roughly 70% of Alcoa’s overall aluminum production comes from its facilities outside the U.S....

MAJOR DRILLING $6.95 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866-264-3986; www.majordrilling.com; Shares outstanding: 80.3 million; Market cap: $566.9 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....
CAMECO CORP. $14.71 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 395.8 million; Market cap: $5.8 billion; Dividend yield 0.5%) continues to move higher on reports that Russia is prepared to ban all trade between state-owned nuclear company Rosatom and U.S....
AMERIGO RESOURCES $1.06 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 176.7 million; Market cap: $188.1 million; No dividends paid) processes copper and molybdenum from the waste rock of the El Teniente mine in Chile.


In the quarter ended December 31, 2017, Amerigo’s copper production rose 15.0%, to 15.63 million pounds....
ALAMOS GOLD $7.20 (Toronto symbol AGI; TSINetwork Rating: Speculative) (604-681-2802; www.alamosgold.com; Shares outstanding: 266.3 million; Market cap: $2.8 billion; Dividend yield: 0.4%) owns the Mulatos and El Chanate mines in Mexico, and the Young-Davidson mine in northern Ontario.


The company also has a number of development projects in Turkey, the U.S., Mexico and Canada....
HECLA MINING $3.56 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769-4100; www.hecla-mining.com; Shares outstanding: 399.4 million; Market cap: $1.4 billion; Dividend yield: 0.3%) explores for, mines and processes both silver and gold in the U.S., Canada and Mexico.


The company has now bought Klondex Mines (symbol KDX on Toronto) for $462 million U.S., in cash and Hecla shares.


Klondex will first spin off its Canadian assets to its current shareholders....
NEW GOLD $3.16 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 575.5 million; Market cap: $1.8 billion; No dividends paid) has four mines: the Mesquite project in the U.S.; Cerro San Pedro in Mexico; Rainy River in Ontario; and the New Afton operation in B.C.


The company has agreed to sell its Peak mine located in Cobar, New South Wales, Australia, for $58 million U.S....
TECK RESOURCES LTD. $35 (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares o/s: 573.5 million; Market cap: $20.1 billion; Price-to-sales ratio: 3.2; Divd. yield: 0.6%; TSINetwork Rating: Extra Risk; www.teck.com) is a major producer of metallurgical coal, a key ingredient in steelmaking, and zinc and copper.

In January 2018, an explosion at its Elkview coal mine in B.C....