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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Barrick Gold aims to keep adding to its gold production—but at the same time, it plans to keep acquiring what it sees as world-class copper assets to expand its output. We see the stock as a Power Buy.
BARRICK GOLD, $22.66, is a buy. The miner (Toronto symbol ABX; TSINetwork Rating: Average) (www.barrick.com; Shares o/s: 1.8 billion; Market cap: $40.8 billion; Dividend yield: 2.7%) is the second-largest gold producer in the world after Newmont Corp....
The company cancelled a proposal to spin off the coal operations earlier this year due to shareholder opposition....
NEWMONT CORP., $40.66, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 794.7 million; Market cap: $33.2 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.newmont.com) is the world’s largest gold miner, with major mines in North America, South America, Australia, and Africa....
NEWMONT CORP....