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

Metals and Mining Stocks

Got $2,000? Shove All Your Chips Into the Pot With These 2 Stocks

| Chris MacDonald

ETFs can be a great way to go; I recommendiShares Core MSCI All Country World Ex Canada Index ETF (TSX:XAW)…

Read more »

Energy Stocks

2 Bear Market Stocks to Buy Right Now

| Ryan Vanzo

Another bear market is coming. Make sure you own stocks like Hydro One Limited (TSX:H) and Kirkland Lake Gold Ltd.…

Read more »

Stocks for Beginners

Coronavirus Market Crash Round 2: Get Ready

| Joey Frenette

Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) seems like a prudent bet amid coronavirus uncertainties, but there is a better way to prep…

Read more »

Coronavirus

Put $3,000 Into This Gold Stock and Sleep Easy

| Ryan Vanzo

My favourite gold stock right now is Kirkland Lake Gold Ltd (TSX:KL)(NYSE:KL). If you want to protect your portfolio, this should…

Read more »

Energy Stocks

This Stock Is up 18%: Is it a Perfect Time to Sell?

| Demetris Afxentiou

While most stocks have dropped in 2020, this one stock is up by double digits, after years of decline, making…

Read more »

Coronavirus

Buy TSX Gold Stocks Now Before it’s Too Late

| Daniel Da Costa

Gold prices continue to tick up in this current environment, making TSX gold stocks one of the best investments you…

Read more »

Dividend Stocks

Copper Rally: 1 Canadian Stock to Ride the Next Boom in Base Metals Prices

| Andrew Walker

Is a copper rally about to begin? Here is one top Canadian stock that produces base metals.

Read more »

Stocks for Beginners

Got $5,000? Buy This Bulletproof Stock Before a 2nd Market Crash

| Joey Frenette

Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) is a promising portfolio hedge for those not positioned for a second market crash induced by…

Read more »

Metals and Mining Stocks

Investing $5,000 in Gold Stocks Is a Smart Move This Summer

| Ambrose O'Callaghan

Canadian investors should continue to bet on gold stocks like Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) in this shaky economic climate.

Read more »

Metals and Mining Stocks

Great Bear Resources (TSXV:GBR): Why the Stock Is up 300%

| Mat Litalien, MBA

Great Bear Resources (TSXV:GBR) stock is up by more than 300% over the past year. Can this gold junior exploration…

Read more »

Coronavirus

Will the Market Crash After Rising Case Counts in the United States?

| Daniel Da Costa

Coronavirus cases have started to make a resurgence across the United States. Here's what to do if the market crashes…

Read more »

Metals and Mining Stocks

Forget Metal Tariffs and Buy This 1 Stock on the Pullback

| Victoria Hetherington

Russel Metals (TSX:RUS) is a key name to snap up if cross-border metals trade becomes disrupted again.

Read more »

Energy Stocks

3 TSX Stocks Under $5 That Could Double Your Money

| Vineet Kulkarni

Despite the recent rally, some TSX stocks are still trading way below their fair values. Consider these names if you…

Read more »

Dividend Stocks

How to Prepare Your Money for Future Market Crashes

| Adam Othman

While diversification is not an “ultimate shield” against market crashes, it’s an effective tool to mitigate your losses.

Read more »

Energy Stocks

Why These 3 TSX Stocks Rallied on Thursday

| Jitendra Parashar

Parex Resources (TSX:PXT), First Quantum (TSX:FM), and Cenovus Energy (TSX:CVE)(NYSE:CVE) are among the top TSX gainers on Thursday. Let’s find…

Read more »

Coronavirus

Contrarian Investors: 1 Cheap Stock With Huge Upside Potential in 2021

| Andrew Walker

This top commodity stock carries risk, but the upside potential could be significant through the end of next year.

Read more »

Coronavirus

Why These 3 TSX Stocks Rallied on Wednesday

| Jitendra Parashar

Let’s take a look at why the shares of Torex Gold Resources’ (TSX:TXG), Aurora Cannabis (TSX:ACB)(NYSE:ACB), and B2Gold (TSX:BTO) rallied…

Read more »

Dividend Stocks

2 Venture Capital Growth Stocks for Your TFSA

| Adam Othman

Many low-cap venture capital stocks tend to slip through investor “filters” for amazing companies, but some of them may be…

Read more »

Metals and Mining Stocks

Wallbridge Mining (TSX:WM): 3 Takeways From the AGM

| Mat Litalien, MBA

Wallbridge Mining (TSX:WM) is one of the best-performing junior gold stocks on the TSX. Is the company a buy despite…

Read more »

Coronavirus

$3,000 Invested in These 2 Small-Cap TSX Stocks Could Make You Rich

| Vineet Kulkarni

These small-cap TSX stocks have seen notable growth in recent times. Read why they might continue their upward climb going…

Read more »

Dividend Stocks

Income Investing: Weekly Dividend Raises

| Mat Litalien, MBA

B2Gold (TSX:BTO)(NYSE:BTG) and Empire Company (TSX:EMP.A) recently announced dividend increases. Are these two income stocks buys today?

Read more »

Metals and Mining Stocks

2 Growth Stocks to Buy Now for +85% Upside

| Victoria Hetherington

Here’s why Norbord (TSX:OSB)(NYSE:OSB) could be an overlooked growth stock, plus one big mining name with the potential for 100%…

Read more »

Metals and Mining Stocks

Recession 2020: 2 Gold Stocks to Grow Your Wealth

| Kris Knutson

Massive amounts of money printing and a move away from globalization might create an inflation issue in the coming years.…

Read more »

Coronavirus

Barrick Gold (TSX:ABX): Is the Recent Weakness an Opportunity?

| Vineet Kulkarni

Barrick Gold (TSX:ABX)(NYSE:GOLD) stock has fallen almost 20% from its record highs in April. Is it an opportunity for long-term…

Read more »

Metals and Mining Stocks

Where I’d Invest $5,000 Right Now

| Victoria Hetherington

Here’s why an investment in stocks like Lundin Mining (TSX:LUN) could bring in huge returns in the long-term.

Read more »

Dividend Stocks

Will the Stock Market Crash Again?

| Kay Ng

A stock market crash may be looming on the horizon. Here’s how you can prepare by selling three types of…

Read more »

Dividend Stocks

CERB Isn’t Enough? Buy Dividend Stocks to Get More Passive Income

| Stephanie Bedard-Chateauneuf, MBA

The CERB might not be enough to cover your expenses since its only $2,000 per month and it's taxable. Buying…

Read more »

Dividend Stocks

Revealed: Why This Is the Only Mining Stock I Own

| Nelson Smith

You won't believe the massive dividends paid by Labrador Iron Ore Royalty Corp (TSX:LIF), the only mining stock in my…

Read more »

Coronavirus

This Industry Is About to Explode

| Amy Legate-Wolfe

It's no secret that the gold industry is going through a period of growth, but if you thinking of investing,…

Read more »

Energy Stocks

Value Investors: Could These 2 Stocks Soar 100% by 2022?

| Andrew Walker

Deals are still available in the market today. Are these two stocks two cheap to ignore?

Read more »

Metals and Mining Stocks

Gold Rally: Is Barrick Gold (TSX:ABX) Stock Cheap Today?

| Andrew Walker

Barrick Gold (TSX:ABX) (NYSE:GOLD) is off the 2020 highs. Is this the right time to buy the stock?

Read more »

Metals and Mining Stocks

Got $1,000? Buy This Colombian Gold Stock Today

| Matt Smith

Gran Colombia Gold Corp. (TSX:GCM) is very attractively valued and poised to soar as gold rallies higher making now the…

Read more »

Metals and Mining Stocks

The Rise of Renewables and Demise of Cameco (TSX:CCO)

| Matt Smith

Cameco Corp's (TSX:CCO)(NYSE:CCJ) latest rally appears overdone with plenty of headwinds ahead for nuclear energy stocks.

Read more »

Metals and Mining Stocks

Why You Should Buy These 5 Top TSX Metals Stocks in 2020

| Victoria Hetherington

North American Palladium Ltd. (TSX:PDL) and four other stocks are good value for money and could see steep growth.

Read more »

Dividend Stocks

Yes, Another Stock Market Crash Is Coming: How to Be Ready

| Kay Ng

A market selloff might have already started last week. Here's how you can prepare your stock portfolio over this weekend.

Read more »

Stocks for Beginners

3 Top Growth Thematics for New Stock Investors

| Victoria Hetherington

Northland Power Inc. (TSX:NPI) is a key stock in a high-growth sector. Find out what other stocks to buy for…

Read more »

Metals and Mining Stocks

2 Gold Stocks I’d Consider Adding Today

| Kris Knutson

Gold stocks have had an incredible run over the past year. At these levels, should you buy shares of great…

Read more »

Dividend Stocks

3 Growth Stocks for a Millionaire-Maker Portfolio

| Adam Othman

Small to medium cap growth stocks sometimes come with more risk than many investors have the tolerance for. Still, there…

Read more »

Metals and Mining Stocks

TSX Gold Stocks: Buy Them While They’re Still Cheap

| Daniel Da Costa

TSX gold stocks have been pulling back recently, offering investors an excellent opportunity to gain exposure to the safe-haven asset…

Read more »

Dividend Stocks

Stock Market Rally: Buy, Hold, or Sell Stocks?

| Kay Ng

The TSX stock market rallied 33% from the low in March. What comes next? Should you buy, hold, or sell…

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.