Motley Fool Premium
  1. Category
    2. /
  2. Investing
    3. /
  3. Metals and Mining Stocks
    4. /

Metals and Mining Stocks

What are mining and mineral stocks?

Mining and mineral stocks represent partial ownership in companies that find, extract, and process minerals and materials. The materials sector makes up a large portion of Canadian stocks, with the TSX having more mining stocks than any other market in the world. Here are some minerals these companies extract: 

  • Precious metals: gold, silver, platinum, palladium 
  • Industrial metals: iron, ore, zinc, cobalt, lithium, nickel, copper, aluminum 
  • Construction materials: sand, crushed stone, limestone
  • Energy materials: coal, oil sands, uranium
  • Fertilizers: boron, potash, phosphate 

How can you find good mining stocks?

1. Know the mining industry 

The mining industry is fairly complex. Not only do mining companies operate in a manner distinct from any other sector — they literally dig into the ground, not sit in swivel chairs — but also the vocabulary and industry terms can be complex, too. 

From the mining process to machinery to the minerals themselves, mining investors will do well to know exactly what a mining company does before buying its stocks. 

2. Analyze its financial strength 

Investors should find mining companies that can withstand economic downturns and recessions. Two factors that will help you assess a mining company’s finances are production costs and balance sheets. 

In general, a mining company shouldn’t be dishing out too much of its revenues to cover production. If it does, it might not remain profitable during tough economic times. The lower its operation costs, the more value mining companies can return to its investors. 

Similarly, a good mining company won’t take out enormous amounts of debt to cover expansion or production. It has a strong balance sheet, meaning it has cash on hand, as well as a capacity to borrow if it needs to. With strong finances, a good mining company will have more flexibility and strength to withstand downturns. 

3. Check here for more updates 

Finally, to help you stay up-to-date on the mining and mineral industry, check the links below for our writers’ stock analyses .With the mining industry changing as much as it has, our writers will help you choose carefully, as well as teach you how to think about stocks. 

[KevelPitch adtype=151]

Top Articles

Metals and Mining Stocks

B2Gold Stock: How High Could it Go in 2023?  

| Daniel Da Costa

After struggling through 2022 while gold stocks were out of favour, B2Gold has some significant upside in 2023 as interest…

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

3 Mining Stocks That Are Too Cheap to Ignore

| Chris MacDonald

These three mining stocks are great ways for long-term investors to gain exposure to gold as well as hedge against…

Read more »

Dividend Stocks

TFSA Investors: Why You Should Invest Your Room ASAP With These 3 Stocks

| Adam Othman

Choosing the right TFSA stocks for your portfolio might take some time. But with the right choices, you can stick…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

These 2 Stocks Have a Lot of Risk But Their Upside Could be Huge

| Demetris Afxentiou

Looking for an alternative option for your portfolio? These two stocks have a lot of risk now, but their long-term…

Read more »

Metals and Mining Stocks

Better Buy: Newmont or Barrick Gold Stock?

| Kay Ng

If you think better days are ahead for gold miners, consider exploring gold stocks Newmont and Barrick Gold.

Read more »

Metals and Mining Stocks

Should You Invest in TSX Mining Stocks Right Now?

| Brian Paradza, CFA

A key TSX mining index has gained 16% so far this quarter. Newmont stock (TSX:NGT) could be a rewarding bet…

Read more »

Metals and Mining Stocks

Could Investing in Teck Stock Help Make You a Millionaire?

| Amy Legate-Wolfe

On the surface, Teck (TSX:TECK.B) stock doesn't look all that exciting. But you're going to change your tune after what…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Recent Metals and Mining Stocks News

Dividend Stocks

Worried About Inflation? Hedge Your Portfolio with Commodities

| Chris MacDonald

Here's why Nutrien (TSX:NTR)(NYSE:NTR) remains one of the top commodities plays on the market today.

Read more »

Dividend Stocks

3 Top Defensive TSX Commodity Plays for Cautious Investors

| Chris MacDonald

Those looking to become more defensive with their portfolio picks have come to the right place -- these three top…

Read more »

Tech Stocks

3 Top Canadian Stock Ideas for June 2021

| Daniel Da Costa

As we head into the summer months, these are three of the best Canadian stock ideas for June to position…

Read more »

Dividend Stocks

Canadian Investors: Here’s Where to Find Value Stocks on the TSX Today

| Daniel Da Costa

After a year of recovery, it isn't easy to find high-quality value stocks on the TSX today. So, here are…

Read more »

Dividend Stocks

2 UNDERVALUED TSX Stocks to Buy in a Frothy Market

| Vineet Kulkarni

Few Canadian stocks are currently trading at a discounted valuation, which indicates strong upside potential. Here are two TSX stocks…

Read more »

Energy Stocks

4 Value Stocks to Buy Amid Rising Inflation

| Rajiv Nanjapla

Amid the inflationary environment, these four Canadian value stocks could deliver superior returns.

Read more »

Metals and Mining Stocks

Millionaire-Maker Stock: Could This Uranium Bull Market Give You 20x Your Money?

| Kay Ng

Early investors of the last uranium bull market were able to get 20 times their money. There are signs of…

Read more »

Metals and Mining Stocks

Are We in the Midst of a Massive Bubble? What Happens When it Pops?

| Chris MacDonald

For those concerned about the potential for a bubble in the market today, consider stocks like Kirkland Lake Gold (TSX:KL)(NYSE:KL).

Read more »

Energy Stocks

2 Top Stocks for Long-Term Value Investors to Buy Right Now

| Chris MacDonald

Here's why Suncor Energy (TSX:SU)(NYSE:SU) and Kirkland Lake Gold (TSX:KL)(NYSE:KL) could be seriously undervalued right now.

Read more »

Metals and Mining Stocks

Looking for Value in This Overvalued Market? Look No Further

| Chris MacDonald

Here's why Kirkland Lake Gold (TSX:KL)(NYSE:KL) continues to make my list of top picks in this current market today.

Read more »

analyze data
Energy Stocks

RRSP Investors: 2 Top Canadian Stocks to Buy in June

| Andrew Walker

RRSP investors can still find cheap stocks to add to their self-directed portfolios.

Read more »

Metals and Mining Stocks

1 Precious Metals Value Stock Focused on Undervalued Projects

| Nikhil Kumar

Excellon Resources Inc. (TSX:EXN) aims to continue capitalizing on current market conditions by acquiring undervalued projects.

Read more »

Dividend Stocks

Millennials: 3 Must-Own TSX Stocks

| Ambrose O'Callaghan

A rebounding economy should spur millennials to add exciting TSX stocks like Lightspeed POS Inc. (TSX:LSPD)(NYSE:LSPD) and others today.

Read more »

Dividend Stocks

Avoid Bitcoin: 2 TSX Stocks to Buy for Safer Growth

| Adam Othman

Bitcoin’s volatility is usually too much for the risk tolerance of a conservative investor, and for them, it’s better to…

Read more »

Dividend Stocks

Time to Buy These 2 Top TSX Stocks Before They Soar

| Chris MacDonald

Here's why Kirkland Lake Gold (TSX:KL)(NYSE:KL) and BlackBerry (TSX:BB)(NYSE:BB) are two stocks long-term growth investors should consider today.

Read more »

Metals and Mining Stocks

Value Stocks: This Hidden Asset Could Be Very Undervalued

| Nikhil Kumar

Troilus Gold Corp. (TSX:TLG) could be the owner of a very valuable asset that's possibly not fully appreciated by the…

Read more »

Metals and Mining Stocks

Value Investors: 1 Safe Stock That Stores Gold

| Nikhil Kumar

Goldmoney Inc. (TSX:XAU) uses quantitative metrics to optimize the cost per acquisition of a client compared to the estimated client…

Read more »

Metals and Mining Stocks

2 Top TSX Value Stocks to Consider Buying Right Now

| Chris MacDonald

Here's why Kirkland Lake Gold (TSX:KL)(NYSE:KL) and Maple Leaf Foods (TSX:MFI) continue to be among my top value picks today.

Read more »

Metals and Mining Stocks

Is There a Bubble Brewing in Commodities Today?

| Chris MacDonald

Should investors buy commodity-heavy plays like Teck Resources (TSX:TECK.B)(NYSE:TECK) or avoid this sector due to bubble concerns?

Read more »

Tech Stocks

4 Cheap (Under-$20) TSX Stocks to Buy in June 2021

| Sneha Nahata

These TSX stocks are trading cheap and offer strong growth in the long term.

Read more »

Dividend Stocks

2 Affordable TSX Stocks With Decent Growth Potential

| Adam Othman

The top growth stocks are rarely, if ever, available at an affordable price, but if you lower your growth expectations…

Read more »

Metals and Mining Stocks

Betting on Gold? Consider This Top TSX Gold Play Today

| Chris MacDonald

Here's why investors of all stripes ought to consider gold miner Equinox Gold (TSX:EQX) in this current market environment today.

Read more »

Dividend Stocks

3 Stocks Still at a Discount! Buy Before the Sale Is Over

| Adam Othman

No matter how bullish the market is and how consistently it has been growing, you will still be able to…

Read more »

Metals and Mining Stocks

3 Skyrocketing Canadian Gold Stocks to Buy in June 2021

| Jitendra Parashar

Here are three of my favourite Canadian gold stocks to buy right now that could help you get solid returns…

Read more »

Dividend Stocks

3 Top Canadian Stocks for June 2021

| Chris MacDonald

Here are three of my top picks that I think long-term investors need to give a hard look in this…

Read more »

Dividend Stocks

These 2 Undervalued Gems Are Ready to Take Off

| Chris MacDonald

Here's why I think Alimentation Couche-Tard (TSX:ATD.B) and Kirkland Lake Gold (TSX:KL)(NYSE:KL) are too cheap to ignore right now.

Read more »

Dividend Stocks

Got $1,000? 3 Top TSX Stocks to Buy in June 2021

| Vineet Kulkarni

While markets continue to make new highs, some TSX stocks are still trading way lower than their record levels. Here…

Read more »

Dividend Stocks

2 TSX Stocks to Rally on High Inflation Through 2021

| Kay Ng

Seize the opportunity by taking a position in these two TSX stocks that look poised for more upside in the…

Read more »

Metals and Mining Stocks

1 Top Gold Pick to Add for Diversification

| Chris MacDonald

Here's why under-the-radar Equinox Gold (TSX:EQX) could be a great defensive pick for investors looking to add diversification today.

Read more »

Dividend Stocks

3 Great Stocks to Buy Right Now in Canada

| Adam Othman

Great stocks, especially great growth stocks, tend to trade at a higher valuation than most value investors are comfortable with,…

Read more »

Dividend Stocks

Cheap Canadian Dividend Stocks to Buy for Reliable Income

| Andrew Walker

Retirees and other income investors might want to snap up these cheap dividend stocks while they're still undervalued.

Read more »

Dividend Stocks

Forget Bitcoin! This TSX Gold Stock Has a Superior Store of Value

| Christopher Liew, CFA

The significant price crash in May 2021 showed once more the volatile nature of Bitcoin. Investors should forget the crypto…

Read more »

Dividend Stocks

2 Top Value Stocks to Add for Defensiveness Today

| Chris MacDonald

Here's why Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) and Barrick Gold (TSX:ABX)(NYSE:GOLD) are among my top picks today.

Read more »

Dividend Stocks

Protect Your Portfolio With These 2 Defensive Gems Today

| Chris MacDonald

Here's why Kirkland Lake Gold (TSX:KL)(NYSE:KL) and Rogers Communications (TSX:RCI.B)(NYSE:RCI) are two great defensive options today.

Read more »

Metals and Mining Stocks

High-Growth Stocks: 1 Precious Metals Value Stock to Buy Today

| Nikhil Kumar

I-80 Gold Corp. (TSX:IAU) plans to continue to advance an extensive project pipeline through continued exploration.

Read more »

Energy Stocks

2 Top Canadian ETFs to Buy if Inflation Continues to Climb

| Daniel Da Costa

With inflation rising rapidly recently and causing a lot of uncertainty in markets, these two top Canadian ETFs are some…

Read more »

calculate and analyze stock
Metals and Mining Stocks

Should You Buy Barrick Gold or Teck Resources Stock Now?

| Andrew Walker

Barrick Gold (TSX:ABX)(NYSE:GOLD) and Teck Resources (TSX:TECK.B)(NYSE:TECK) appear undervalued. Is one stock a better buy right now?

Read more »

Dividend Stocks

4 Cheap (Under-$20), High-Growth Canadian Stocks to Buy Today

| Sneha Nahata

There are plenty of stocks listed on the TSX Index that are trading cheap and have solid fundamentals to back…

Read more »

Energy Stocks

3 Top Canadian Stocks to Buy Amid Rising Inflation

| Rajiv Nanjapla

These three Canadian stocks can outperform in this inflationary environment.

Read more »

Dividend Stocks

Got $1,000? Buy These 3 Undervalued Gems Today

| Chris MacDonald

Here are three of my top picks for investors seeking value right now.

Read more »

Frequently Asked Questions

Mining and mineral stocks do pose some risks investors should be aware of. 

First off, the industry is highly cyclical, meaning it rises and falls with the overall economy. When the economy is doing fairly well, the market demands more minerals: buildings are going up, consumers are buying more gold, construction is consistent. When the economy falls, however, demand for minerals tends to fall with it. The cyclical nature of energy stocks makes them more volatile than, say, utilities and consumer staples. 

Another risk investors should take note of is expansion. Building mines is very expensive, much more expensive than building a new corporate headquarters. In the past, mines have expanded their enterprises during strong periods of economic growth, only to launch when the economy begins to sink. 

For both these reasons, it’s vital to analyze a mining company’s finances. If the company is saddled with debt, that could be an indicator it’s overextending itself, despite supposed growth. 

Mining stocks can be a great investment, however, there are some things to keep in mind before investing.

Mining stocks can be very volatile depending on economic conditions. That being said, the best Canadian mining companies have been able to generate good profit regardless of economic conditions.