Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.
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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HECLA MINING, $6.61, is a buy. The company (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares o/s: 538.4 million; Market cap: $3.6 billion; Divd yield: 0.2%) produced 3.2 million ounces of silver in the quarter ended December 31, 2021—down 3.7% from 3.5 million a year earlier… Read More
Barrick Gold offers you a great way to prosper from any rise in gold prices because of the war in Ukraine and the ongoing COVID-19 pandemic. If inflation keeps rising these next few years (a clear possibility), gold stocks will attract new interest to keep… Read More
INNERGEX RENEWABLE ENERGY, $18.39, is a buy. The power generator (Toronto symbol INE; Shares ooutstanding: 192.8 million; Market cap: $3.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.9%; www.innergex.com) operates 40 hydroelectric plants, 32 wind farms and seven solar power fields. They’re spread across Canada, the U.S., France and… Read More
Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to brighten prospects for investors. Here are two buys that stand out this month:
ALAMOS GOLD, $9.35, is a buy. Through the shares… Read More
Activist investors make their money by targeting underperforming firms they feel would benefit from better management or assets sales. Here’s a look at how IAMGold is responding to its new activist pressure.
IAMGOLD, $3.91, is a buy. The miner (Toronto symbol IMG; TSINetwork Rating: Speculative) (www.iamgold.com; Shares outstanding: 476.9… Read More
Teck Resources continues to recover since dropping to $8.15 at the onset of the pandemic in March 2020. Those share price gains reflect re-opening of the global economy, which has spurred both demand and prices for the company’s main commodities. While COVID-19 continues to increase… Read More
NEWMONT CORP. $62.11, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 797.4 million; Market cap: $48.9 billion; TSINetwork Rating: Average; Dividend yield: 3.5%; www.newmont.com) became the world’s largest gold producer in 2019 when it… Read More
Commodity prices continue to improve with the global economy. Still, we continue to recommend investors cap their Resources holdings at 15% of their total portfolio or less. As always, we also prefer high-quality producers like these two.
ALCOA CORP. $61 is a buy. The company (New York symbol… Read More
Yamana Gold and IAMGold offer you ways to prosper from rising precious metal prices—amid ongoing coronavirus uncertainty but also well beyond it. Today’s economic volatility should significantly boost demand for gold as an investment, especially if huge government stimulus spending spurs inflation and sends investors… Read More
NEWMONT CORP., $60.33, remains a buy. The company (New York symbol NEM; Shares o/s: 797.4 million; Market cap: $48.2 billion; TSINetwork Rating: Average; Dividend yield: 3.7%; www.newmont.com) recently announced a strategic alliance with Caterpillar Inc. to work towards mining with net-zero emissions.
Newmont will provide an initial investment of… Read More
Gold prices drifted down in 2021 as the pandemic lessened and the direction of inflation remained uncertain. Still, for many investors, gold will continue to represent a safe harbour in turbulent times. What’s more, if inflation rises over the next few years—driven by the trillions… Read More
Demand for Major Drilling’s specialized drilling services, especially from senior gold producers, including Australia’s largest mining companies, is recovering. That has pushed your shares up 317.3% since they plunged to a low of $2.26 in March 2020. We think there are still gains ahead for… Read More
TECK RESOURCES LTD. $35 (www.teck.com) remains a buy for the Resources portion of your portfolio. The company is a leading producer of metallurgical coal, a key ingredient in steelmaking. It also produces copper and zinc, and owns 21.31% of the Fort Hills oil sands project in northern Alberta… Read More
AMERIGO RESOURCES, $1.35, is a buy for aggressive investors. The company (Toronto symbol ARG; TSINetwork Rating: Speculative) (www.amerigoresources.com; Shares outstanding: 182.0 million; Market cap: $245.7 million; Divided yield: 5.9%) processes copper and molybdenum from the waste rock of the giant El Teniente mine in Chile.
That country… Read More
Alcoa’s shares have shot up over 350% in the past year as automakers and other industrial users buy more aluminum. That follows last year’s COVID-19 shutdowns. Aluminum prices will probably remain elevated, particularly now that China, which relies on coal-fired power, is cutting its aluminum… Read More
Demand for gold as an investment looks attractive right now, especially if the huge government stimulus spending across the world spurs inflation. That’s likely to send more investors looking for the “safe harbour” of gold. Barrick Gold is a buy.
BARRICK GOLD, $23.92, is a buy. The stock… Read More
Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments or strategies that promise to brighten your prospects. Here are two buys that stand out this month:
MAJOR DRILLING, $9.40, is a buy. This large contract driller… Read More
TECK RESOURCES LTD. $31 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $16.5 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of copper, gold, zinc and metallurgical coal (which… Read More
HECLA MINING $6.16 (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares ooutstanding: 537.0 million; Market cap: $3.3 billion; Dividend yield: 0.2%) produced 3.5 million ounces of silver in the quarter ended June 30, 2021. That was up 3.6% from 3.4 million a year… Read More
Amerigo Resources’ shares have skyrocketed 915.4% since March 2020. However, we feel the prospects for the company, and copper prices, remain very positive.
AMERIGO RESOURCES $1.32, is a buy for aggressive investors. The company (Toronto symbol ARG; TSINetwork Rating: Speculative) (www.amerigoresources.com; Shares outstanding: 181.8 million; Market… Read More
