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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Nutrien’s shares are down over 50% from their April 2022 peak following Russia’s invasion of Ukraine, which caused a big spike in potash prices. However, potash supplies and prices later declined. Even so, the company’s stands to gain from a rising global population and the need for more and better food....
ALAMOS GOLD INC., $27.46, is a buy. Through the shares (Toronto symbol AGI; TSINetwork Rating: Extra Risk) (www.alamosgold.com; Shares outstanding: 419.7 million; Market cap: $11.5 billion; Dividend yield: 0.5%) investors tap into the company’s Mulatos mine in Mexico as well as its Young-Davidson and Island mines in northern Ontario.
As well, the gold miner recently completed the acquisition of Argonaut Gold and its Magino mine in northern Ontario for $325 million U.S....
NEWMONT CORP., $54.00, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 1.1 billion; Market cap: $59.4 billion; TSINetwork Rating: Average; Dividend yield: 1.9%; www.newmont.com) is the world’s largest gold miner, with major operations in North America, South America, Australia, and Africa....
APA CORP....
The expansion aims to transform the mine into a long-life, high-yield operation, placing it among the top 25 global copper producers....
The company is using the cash from the sale to pay down debt and reward investors. More importantly, the sale leaves Teck to focus on its copper and zinc operations....