Mining is a risky, capital-intensive venture and has no profitability in the modern stock market, right? Absolutely wrong.
While on the surface level, this statement seems plausible, the stats defy it. The market cap for only the TSX registered mining firms amounts to a substantial $521 billion. No one could claim that this sector worth half a trillion is non-profitable; since it would have long fallen out of business if that were the case.
It won’t be an exaggeration to suggest that our society runs on mining since mining provides industrial raw materials, a plethora of minerals, and daily life fuels. But, again, it goes back to that old adage, “If it isn’t grown, it has to be mined.”
An additional benefit that the mining industry provides is a solid annual dividend – nearly all of the mining stocks we list below offer a decent dividend yield. This makes mining stocks a must-have in your portfolio, especially if you want steady income with low-risk, non-volatile stocks. Even if you’re going to dabble in the broader mining companies rather than picking individual equities, there are several mining-related ETFs and mutual funds to choose from.
5 Canadian Mining Stocks You Should Invest In
Here are five mining stocks with the most promising growth prospects for Canadian investors who want to get ahead of the game.
Lithium Americas Corp. (TSX:LAC)
Lithium Americas focuses on lithium production from its projects in Argentina and the United States (North America). Lithium Americas is working on three lithium production assets (mining assets): two brine resources in northern Argentina and a clay resource in Nevada, United States.
While the company currently has no lithium output, Cauchari-Olaroz, Argentina’s first lithium prospect, is anticipated to begin production in late 2022 and is presently 85% complete in terms of infrastructure. In addition, Thacker Pass, a Nevada project, is expected to start production in the middle of the 2020s, while Pastos Grandes, a second brine deposit, is expected to start production in the late 2020s.
The company expanded its strategic stake in Arena Minerals Inc. to about 17.4%, worth $10 million in November 2021. In addition, for a total consideration of approximately $390 million, the company finalized the acquisition of Millennial Lithium Corp. and the 100 percent owned Pastos Grandes in January 2022. Trading at $41.19 as of March 28, 2022 (12:01 PM), this Canadian company has promising direct investment potential. In addition, the company has a market capitalization of 5,521,420,439 with a trading volume of 505,602, certainly making it a stable and profitable stock.
Barrick Gold Corporation (TSX:ABX)
Barrick Gold Corp. is primarily a gold and copper producer. It employs 22,600 people and operates mines in North America, South America, Australia, and Africa, making it one of the world’s major gold producers. The company owns nine gold mines, including Carlin, Cortez, Turquoise Ridge, Pueblo Viejo, Loulo-Gounkoto, Kibali, Veladero, North Mara, and Bulyanhulu. The Carlin mine division delivers the most revenue. Geographically, the United States accounts for the majority of its revenue.
When the Randgold acquisition was announced in September 2018, Barrick had a net debt of more than $4 billion. However, it has not only gone into a net cash position since then, but it has also returned $2.5 billion to shareholders, including a record $1.4 billion payment last year.
Trading at $30.42 as of March 28, 2022 (12:26 PM), the company’s stocks are expected to grow further in the upcoming months. It holds a market capitalization of 54,127,250,146 and pays a quarterly dividend of 0.10 USD per share, ensuring a dividend yield of 1.664%. The P/E ratio of 21.40 also speaks for this stock’s stability.
Kinross Gold Corporation (TSX:K)
Kinross Gold is a gold mining industry encompassing gold production, acquisition, exploration, and development companies. Its expected production stood at 2.4 million equivalent ounces of gold in 2020. At the end of 2020, the business had proved probable gold reserves of 30 million ounces and silver reserves of 59 million ounces. Its varied portfolio of mines and projects throughout the United States, Brazil, Chile, Ghana, Mauritania, and Russia produce gold and silver. The company has 8,951 employees, and its recent acquisitions have helped the company’s expansion into new territories and output growth.
Kinross Gold Corporation announced a 4,014,404 CAD finance and strategic investment in Allegiant Gold Ltd. on March 14, 2022, which will expedite research and mining activities at the Eastside site in Nevada. Kinross will possess 9.9% of Allegiant’s issued shares at the time of closing. On March 7, 2022, Kinross Gold Corporation received a fresh US$1.0 billion term loan. The three-year term loan has no forced amortization payments and a customizable payback schedule. It will mature on March 7, 2025.
Trading at $7.00 as of March 28, 2022 (12:48 PM), this stock holds immense growth potential. The market cap for this company is 9,065,618,492, and the quarterly dividend of 0.03 USD per share paid by the company further makes it profitable.
Agnico Eagle Mines Limited (TSX:AEM)
Agnico Eagle Mines is a Canadian gold miner which operates in Mexico and Finland. It also owns half of the Malartic mine in Canada. Agnico only had one mine, LaRonde, until 2008, when it began bringing its other mines online in rapid succession over the next few years. In 2020, the corporation generated over 1.7 million ounces of gold. Agnico Eagle is concentrating its efforts on growing gold production in lower-risk areas.
Agnico Eagle’s payable gold production for the FY 2021 was 2,030,176 ounces at $835 per ounce in production costs, $761 in total capital expenditures, and $1,038 in all-in sustaining costs. In addition, the company promises a dividend yield of 2.636%, paying quarterly dividends of 0.40 USD per share.
Trading at $75.86 as of March 28, 2022 (1:03 PM), this Canadian mining operations firm has a bright future ahead of it. Furthermore, the market capitalization for Agnico Eagle is 34,501,128,000, and the current trading volume is 335,765. The P/E value of 27.80 and EPS of 2.78 confirm that this stock is profitable.
Nutrien Ltd. (TSX:NTR)
Nutrien Ltd was formed in 2018 when PotashCorp and Agrium merged to form Nutrien. Nutrien is the world’s largest supplier of crop inputs and services and assists farms in sustainably increasing food production. Nutrien manufactures all three major agricultural nutrients—nitrogen, potash, and phosphate— and distributes around 27 million tonnes of potash, nitrogen, and phosphate products globally, with potash making up 20% of the global installed capacity. The corporation is also the country’s largest agricultural retailer, offering fertilizers, crop chemicals, seeds, and services to farmers directly through its physical storefronts and online platforms. Nutrien’s integrated portfolio’s size and diversification provide a secure earnings base, diverse growth opportunities, and the ability to return cash to shareholders.
In response to the speculation surrounding potash supply from Eastern Europe, Nutrien Ltd. expects to raise potash production capacity to around 15 million tonnes in 2022, an increase of approximately 1 million tonnes over prior projections. Presently, it promises a dividend yield of 1.804%.
Trading at $133.50 as of March 28, 2022 (1:15 PM), it is one of the biggest mining companies in Canada, with a market capitalization of 73,808,098,542. Nutrien pays a quarterly dividend of 0.48 USD, while its EPS and P/E ratio stand at 6.93 and 19.50, respectively. It is a very profitable stock in the mining industry, and now is the best time to invest in it.
Why You Should Invest in Mining Stocks in Canada
Canada has significant mineral reserves, and the development, extraction, and production of those resources is an essential element of the Canadian economy. Uranium, zinc, nickel, potash, asbestos, sulphur, cadmium, and titanium are all produced by Canadian mining corporations. In addition, iron ore, coal, petroleum, gold, copper, silver, lead, and other ferroalloys are also produced in substantial quantities. In other words, Canada is a true mining nation.
Since about August 2021, 1129 companies of various sizes and phases of development operate on the TSX or TSXV, offering potential returns – the top 50 Mining TSX Stocks had a 520 percent stock value shift in 2021.
Several beneficial factors contribute to the TSX’s status as a worldwide investment centre for mining companies and Canadian mining companies; in particular, The TSX has a mining market value of $521 billion thanks to tax benefits, regulatory consistency, government assistance, and capital finance. Several corporations in the natural resource sector have surpassed industry benchmarks, despite unpredictable commodity prices and cyclical changes. You can include these equities in a well-balanced portfolio.
The Bottom Line
The demand for mining products grew astronomically during the industrial revolution. And we see that during this age’s technological revolution, the world is again in dire need of mineral and natural resources. Potash (for fertilizers and other crop products), lithium (for lithium-ion batteries, electric vehicles, and other technical equipment), iron (for all the metallic structures around us), coal (for energy and cement production), and bauxite (a key component of metal aluminum) are some of the most important products and are all produced through mining.
Analysts predict that the current spike in mineral usage will render the mining companies highly profitable, with the stock prices skyrocketing in the coming years. Therefore, it is only a wise decision to invest in senior and junior mining companies to enjoy the fruits of this booming industry in the near future.
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Canadian Mining Stocks
Canadian mining start-ups make up the largest group of penny shares traded in the United States on the over-the-counter market and the Canadian Stock Exchange. In Canada, venture exchange startups and mining groups are being developed as feeder exchanges for junior mining companies and partnerships to raise capital and boost investor confidence. These companies seek operating capital by distributing shares to the public and forecasting future gold, copper, silver and other valuable metals.
One of the most exciting mining stock trends for 2022 will be lithium mining companies.
On November 5th, 2020, Livent, a lithium hydroxide supplier for Tesla, announced that it had acquired the business and certain Quebec-based Nemaska Lithium Inc assets. In addition, several other Canadian companies are mining scarce battery minerals that US companies want to buy. For example, Barrick Gold expected gold production from 4.4 million to 4.7 million ounces in 2021.
Bloomberg reported that the mining company has a market capitalization of $18.93 billion on the Toronto Stock Exchange. Its success is reflected in its ability to pay an annual dividend since 1983. First Quantum Minerals Ltd is a Vancouver-based mineral exploration and mining company whose main product is copper.
Here you can explore gold miners, gold mining stocks and silver mining stocks in Canada. Canada is a country with enormous natural resources, and the development of the mining industry that supports them is an integral part of the Canadian economy. In addition, the electric vehicle sector will explode over the next ten years as the US attempts to create supply chains in Canada.
Mineral exploration companies invest in discovering new deposits and advancing mineral development projects. Her work focuses on traditional minerals and metals such as gold, copper and nickel. More than 700 exploration and mineral development companies based in British Columbia s deep pool of experts, services and equipment suppliers, including environmental consultants, community consultants, and drillers.
In Quebec, you will see Canada’s most diversified mining industry, including iron ore, zinc, gold and diamonds. In Saskatchewan, you enter the world’s leading potash and uranium mining areas, while in Alberta, metallurgical coal is produced, an irreplaceable element in steel production. Ontario, Canada’s largest mineral metal producer, counts gold, copper and nickel among its significant commodities, while Manitoba is the leading Canadian zinc producer.
Teck Resources is one of the world’s largest producers of mined zinc, with two mines in the United States and Peru and one of the world’s largest integrated zinc and lead smelting and refining plants in Canada. The company is also a major copper producer in North and South America, with four mines in Canada, Chile and Peru and copper development projects in North and South America. Teck is also the world’s second-largest exporter of steel coal by sea, with five sites in western Canada.
Canada’s largest diversified mining company, Vancouver-based Teck Resources, is a resource company in Canada’s mining and mineral exploration industries, the United States, Peru, and Chile. Its businesses include copper, zinc, energy, steel and coal and are among the largest producers in North America. Agnico Eagle Mines, based in Toronto, was founded in 1957 and is a gold producer with mining activities in northwest Quebec, Nunavut, Canada, northern Mexico and Finland, and exploration activities in Sweden, Latin America and the United States.
Fortune Minerals is currently developing its Nico cobalt, gold and bismuth copper projects in Canada’s Northwest Territories. Fortune will deliver the planned bulk concentrate from these projects to a planned metalworking plant in Saskatchewan. As a result, Toronto-based Agnico Eagle Mines ranked 24th in the PCWs Top 40 Mining Companies in 2019, two higher than the previous year.
Fortune Minerals can become a Canadian producer of battery-powered cobalt, chemicals, gold and bismuth by-products. Battery Minerals has a resource-controlled land parcel of 1,100 square kilometres hosting several high-grade targets in the Ontario Cobalt Belt. The largest cobalt deposits are in the copper, silver and gold deposits of Sue Dianne and other exploration projects in the Canada Northwest Territories.
Lundin Mining produces copper, nickel and zinc s geospatial segments across Europe, Asia, South America, and North America. Jervois Mining, TSXV and ASX listed, is focused on cobalt while maintaining nickel and copper exposure. Idaho’s current flagship cobalt production facility is located in Idaho, USA.
It also owns the Candelaria and Ojos del Salado mining complexes in Candelarias, Chile. Lundin Mining also operates facilities such as the Eagle Mine in the United States, the Neve Corvo Mine in Portugal and the Zinkgruvan Mine in Sweden. In addition, Barrick Gold is engaged in exploring and developing mining operations and projects in North America, South America, Africa, Papua – – New Guinea, and Saudi Arabia.
Kinross Gold is a gold mining company engaged in the production, acquisition, exploration and development of gold reserves. Teck Resources is a diversified resource company involved in mining and mineral resource development.
Kinross Gold produces gold and silver from its comprehensive portfolio of mines and projects in the United States, Brazil, Chile, Ghana, Mauritania and Russia. Kinross Gold shares are traded on the US NYSE under the ticker symbol KGC. Northern Miner is a good source for researching and learning about gold mining, silver mining, and other metals for miners. This publication is the oldest mining magazine in Canada and worldwide.