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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NEWMONT CORP. $63.45, remains a buy. The stock (New York symbol NEM; Shares outstanding: 803.1 million; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 1.6%; www.newmont.com) is now selling 11 more royalty streams to Vancouver-based Maverix Metals Inc. (Toronto symbol MMX).
In 2018, Newmont transferred to Maverix the… Read More
Long-time readers know that we keep you informed on important news about the stocks we cover. That means spotlighting developments that promise to brighten their outlook. Here are two that stand out as buys this month:
CALIAN GROUP $62.75 is a buy. The Ottawa-based company (Toronto symbol CGY;… Read More
YAMANA GOLD $8.29 (Toronto symbol YRI; TSINetwork Rating: Speculative) (www. yamana.com; Shares o/s: 951.7 million; Market cap: $7.9 billion; Dividend yield: 1.1%) lets you tap its five gold mines, in Canada, Brazil, Chile and Argentina.
Yamana has announced that it is in the advanced stages of applying to list… Read More
BARRICK GOLD $39.49 (Toronto symbol ABX; TSINetwork Rating: Average) (www.barrick.com; Shares o/s: 1.8 billion; Market cap: $70.3 billion; Yield: 1.1%) now counts Warren Buffett’s Berkshire Hathaway (symbol BRK.B on New York) as its 11th largest investor. That’s after Berkshire bought 20.9 million shares of Barrick for $563.5 million… Read More
BCE INC. $57 (www.bce.ca) is a buy. The company recently launch its new ultrafast 5G wireless service in Montreal, Toronto, Calgary, Edmonton, and Vancouver. The telecom plans to expand to other cities starting in late 2020 and into 2021. 5G should help the company attract new subscribers, as… Read More
BHP GROUP LTD. (ADR) $55 is a buy. This company (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.5 billion; Market cap: $137.5 billion; Price-to-sales ratio: 3.2; Dividend yield: 4.0%; TSINetwork Rating: Average; www.bhp.com) is a leading producer of iron ore (which supplies 50% of… Read More
Long-time readers know that we continually evaluate the stocks we recommend to see if they should remain in thePower Growth Investor newsletter. Here’s a look at two we now see as sells.
CAMECO CORP. $14.00, is a sell. The company (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (www.cameco.com;… Read More
WALT DISNEY CO. $127.77 (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares outstanding: 1.8 billion; Market cap: $230.9 billion; No current dividend) continues to draw new users to its streaming service during the pandemic—even as COVID-19 lockdowns ease. There are now 60.5 million subscribers worldwide (as… Read More
Alamos Gold is up 209.4% since its March 2020 low, and we think the outlook for gold—and the stock—is still strong. Meanwhile, Amerigo Resources’ shares have skyrocketed 408.3% since March, and we feel the prospects for the company, and copper prices, remain very positive.Here’s a.. Read More
NEWMONT CORP. $70.25, remains a buy. The stock (New York symbol NEM; Shares outstanding: 802.6 million; Market cap: $56.4 billion; TSINetwork Rating: Average; Dividend yield: 1.4%; www.newmont.com) gives investors exposure to the world’s largest gold miner following its purchase of Vancouver-based Goldcorp Inc. last year for $10 billion.
Newmont… Read More
MCKESSON CORP. $156 is a buy for aggressive investors. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 191.8 million; Market cap: $29.9 billion; Price-to-sales ratio: 0.1; Dividend yield 1.1%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S…. Read More
HECLA MINING $5.33 (New York symbol HL; TSINetwork Rating: Extra Risk) (www.hecla-mining.com; Shares o/s: 526.1 million; Market cap: $2.6 billion; Dividend yield: 0.2%) explores for, mines and processes silver and gold in the U.S., Canada and Mexico.
The company’s shares continue to rise along with silver prices. At $22.56… Read More
ALCOA CORP. $11 is still a buy. The company (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares o/s: 185.9 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.2; No dividends paid; TSINetwork Rating: Extra Risk; www.alcoa.com) is a leading producer of bauxite ore. It also operates refineries… Read More
CANADIAN TIRE CORP. $122 (www.canadiantire.ca) is a buy. The stock fell to $67.15 on March 18, 2020, as governments ordered non-essential retailers to close in response to the COVID-19 pandemic. Now that the company has re-opened most of its stores, the stock is up 82% from that low… Read More
NEWMONT CORP. $56.02, remains a buy. The company (New York symbol NEM; Shares outstanding: 802.6 million; Market cap: $45.0 billion; TSINetwork Rating: Average; Dividend yield: 1.8%; www.newmont.com) gives investors exposure to the world’s largest gold miner now that Newmont has acquired Vancouver-based Goldcorp Inc. for $10… Read More
Our subscribers have seen most of our precious-metal stock picks—including Barrick Gold, one of our #1 Power Buys for 2020—soar over the last several months. Those gains reflect investor fears about many things, including volatile stock markets in the wake of COVID-19, and the length… Read More
In response to the COVID-19 shutdowns, central banks are increasing the money supply to help maintain liquidity.
That could spark a new round of inflation over the next few years. As gold is the traditional hedge against inflation, the likelihood of rising gold prices should benefit… Read More
When we made Intact Financial one of our three 2020 #1 picks, we were looking for it to build on the 41% gain it handed our subscribers in 2019. This year, we still expect it to add to that stellar 2019 performance as it pushes… Read More
TELUS CORP. $23 is a buy. The stock (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.3 billion; Market cap: $29.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.telus.com) lets you tap Canada’s third-largest wireless carrier after Rogers Communications (No… Read More
Even gold, and gold stocks, have been hurt by the COVID-19 outbreak—albeit less than other stocks, generally.
Investors in gold and gold-mining shares have sold at times in recent days, but most likely to raise cash in order to cover losses suffered in the stock market… Read More
