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

Play Defence With These 3 Companies

| Chris MacDonald

My top three defensive picks to ride out the economic storm are: Nutrien (TSX:NTR)(NYSE:NTR), Northland Power (TSX:NPI), and Barrick Gold…

Read more »

Coronavirus

The Golden Rule: Should You Buy Gold Mining Stocks Today?

| Kris Knutson

Gold mining stocks had a great run so far this year, but there are still potholes in the economy. Owning…

Read more »

Dividend Stocks

Is Now a Good Time to Buy TSX Stocks?

| Daniel Da Costa

The current economic environment is extremely complex. So although economies are starting to open back up, is now really a…

Read more »

Metals and Mining Stocks

Buy These 4 TSX Metals Stocks With Massive Upside

| Victoria Hetherington

Lundin Mining (TSX:LUN) matches steep growth potential in a booming sector with passive income. Find out why stocks like this…

Read more »

Coronavirus

TSX Stocks: Will Gold Keep Glowing for the Rest of 2020?

| Vineet Kulkarni

TSX gold stocks have surged more than 60% so far this year, notably beating the broader markets. But will they…

Read more »

Metals and Mining Stocks

Here’s What’s Next for Gold Stocks

| Daniel Da Costa

The entire gold producing industry is likely to see big gains in the near-term. However, some gold stocks are in…

Read more »

Coronavirus

Recession Alert: This Billionaire Investor Says you Should Buy Gold!

| Andrew Button

If you're looking for a recession-resistant investment, you could consider gold stocks like Barrick Gold (TSX:ABX).

Read more »

Dividend Stocks

Why the Stock Market Rally Won’t Last

| Daniel Da Costa

The market rally could end soon as we'll likely see another pullback. However, this one TSX industry is still worth…

Read more »

Coronavirus

Global Recession: Is It Time to Look at Gold Stocks?

| Andrew Button

If the global recession gets worse, gold stocks like Kirkland Lake Gold (TSX:KL)(NYSE:KL) could be good buys.

Read more »

Coronavirus

After a Solid Q1, Top TSX Gold Stocks Look Set for New Peaks

| Vineet Kulkarni

Strong quarterly earnings along with higher physical gold prices could push TSX gold miner stocks further higher. Should you buy?

Read more »

Stocks for Beginners

Buying Stocks in a Recession? Think Super Long Term

| Victoria Hetherington

Investors eyeing the frothiness of the markets should buy stocks for the long-term. Here’s why growth names like Shopify Inc.…

Read more »

Metals and Mining Stocks

Market Rally: Why Did Barrick Gold (TSX:ABX) Stock Rise 85%?

| Ryan Vanzo

The market rally has pushed gold stocks to new heights, but why did Barrick Gold Corp (TSX:ABX)(NYSE:GOLD) rise so quickly?

Read more »

Coronavirus

Billionaire Ray Dalio Warns Against 1 Market Rally Mistake

| Amy Legate-Wolfe

Billionaire Ray Dalio says "cash is trash," so where should you invest instead during today's market rally?

Read more »

Energy Stocks

4 Top “Green Economy” Stocks for Energy Investors

| Victoria Hetherington

Energy investors viewing a frothy sector should get ready to buy names with extra upside, such as Lithium Americas Corp.…

Read more »

Metals and Mining Stocks

Gold Price: Should Investors Buy Gold Stocks on the Dip?

| Andrew Walker

Gold stocks pulled back from multi-year highs in recent days. Is the gold bull run over, or simply taking a…

Read more »

Dividend Stocks

Top Growth Stocks on the TSX Index

| Mat Litalien, MBA

Top growth stocks like goeasy (TSX:GSY) are strong buy candidates, as they are also trading at big discounts to historical…

Read more »

Coronavirus

Why This Canadian Value Stock Is a Screaming Buy

| Victoria Hetherington

Going long on beaten-up stocks? Try Cameco Corp. (TSX:CCO)(NYSE:CCJ) on for size. Here’s why this name is a buy for…

Read more »

Metals and Mining Stocks

Buy This 1 Top TSX Stock for “Green Economy” Upside

| Victoria Hetherington

Lundin Mining Corp. (TSX:LUN) is a top stock to buy for copper upside. But there are other reasons to get…

Read more »

Metals and Mining Stocks

2 TSX Stocks That Could Soar in 2020

| Daniel Da Costa

These two TSX mining stocks are seeing favourable economic conditions form in their industries, suggesting they could skyrocket soon.

Read more »

Coronavirus

Market Uncertainty: Hedge Your Gains With This ETF

| Kris Knutson

Stocks have started rising, but uncertainty and the possibility of money-printed inflation remain. Buy a precious metals ETF like XGD…

Read more »

Metals and Mining Stocks

Barrick Gold (TSX:ABX): What You Should Do After its Steep Surge

| Vineet Kulkarni

Barrick Gold (TSX:ABX)(NYSE:GOLD) stock has surged 50% so far this year. Rallying gold prices might keep driving the stock higher.

Read more »

Metals and Mining Stocks

Gold Alert: Is Franco Nevada (TSX:FNV) a “Goldilocks” Stock to Buy and Hold?

| Alex Busson

As stocks continue to wobble, gold is on a tear. Franco Nevada (TSX:FNV)(NYSE:FNV) offers a unique way to take advantage.

Read more »

Metals and Mining Stocks

2 TSX Gold Stocks That Have Crushed the Coronavirus Bear Market

| Aditya Raghunath

Here's why bearish investors can look to invest in gold stocks such as Barrick Gold and Franco-Nevada.

Read more »

Metals and Mining Stocks

Why Streamers Are Safe Investments

| Demetris Afxentiou

Investors looking for a safe investment option with growth and income potential should consider a precious metal streamer.

Read more »

Metals and Mining Stocks

Will Gold Reach $3,000 an Ounce in 2020?

| Matt Smith

The improving outlook for gold prices bodes well for gold miners like Kirkland Lake Gold (TSX:KL)(NYSE:KL) which have failed to…

Read more »

Dividend Stocks

$3,000 Gold? Buy These Stocks

| Mat Litalien, MBA

Investors will want to be invested in stocks such as Franco-Nevada (TSX:FNV) if $3,000 gold becomes a reality over the…

Read more »

Metals and Mining Stocks

Gold Bumps and Oil Dumps: Is Barrick Gold (TSX:ABX) a Screaming Buy?

| Alex Busson

Can you believe what’s happening? While Central Banks print trillions of new dollars, oil prices recently turned negative. It could…

Read more »

Metals and Mining Stocks

1 Top Canadian Gold Miner to Buy Today and Profit From Gold’s Next Leg-Up

| Matt Smith

Gold is poised to rally higher making now the time to buy Kirkland Lake Gold Ltd. (TSX:KL)(NYSE:KL).

Read more »

Coronavirus

Why This TSX Stock Surged 70% Amid the COVID-19 Crash

| Vineet Kulkarni

While investors kept switching to defensive stocks amid the COVID-19 crash, this top TSX stock surged 70% in just a…

Read more »

Energy Stocks

How to Profit From Uranium Going Nuclear

| Alex Busson

Uranium Participation (TSX:U) offers a relatively safe way to profit from this opportunity.

Read more »

Metals and Mining Stocks

Alert: Gold Price Could Surge 80% in 2020

| Vishesh Raisinghani

Gold prices tend to rise of stay stable during crises. Add this metal to your portfolio if you're feeling squeamish…

Read more »

Coronavirus

$3000 Gold Prices? This Bank Thinks So

| Daniel Da Costa

The current environment is creating the perfect storm for gold prices to rise rapidly, making TSX gold stocks one of…

Read more »

Dividend Stocks

4 Top Canadian Gold Stocks to Buy for the Dividends

| Victoria Hetherington

Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) and three other big names in gold production can bring safety — and some passive income…

Read more »

Metals and Mining Stocks

3 Top Gold Stocks to Buy Right Now

| Karen Thomas, MSc, CFA

Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) ia among gold stocks to buy that are rallying, as investors flock to the safe haven…

Read more »

Tech Stocks

2 TSX Stocks That Seem to Have Just Started to Rally

| Vineet Kulkarni

These TSX stocks have substantial room for growth ahead as highlighted by their attractive valuations and strong fundamentals.

Read more »

Stocks for Beginners

Market Volatility: 2 Cash Alternatives for Uncertain Markets

| Kris Knutson

There are risks with all assets, even including cash. It can be a wise idea to invest in cash alternatives…

Read more »

Dividend Stocks

Buy This 1 TSX Metals Stock for Income Portfolio Safety

| Victoria Hetherington

Lundin Mining Corp. (TSX:LUN) satisfies a broad range of investment strategies. Here’s why this diversified metals stock is a buy.

Read more »

Metals and Mining Stocks

Top Gold Stocks With No Debt to Buy

| Mat Litalien, MBA

Gold stocks with strong balance sheets and no debt are well poised to perform well in the event the price…

Read more »

Metals and Mining Stocks

3 Winning Strategies to Invest in Gold During This Market Crash

| Chris MacDonald

Gold is the traditional hedge during tumultuous times. My top three strategies for investing in gold are Barrick Gold (TSX:ABX)(NYSE:GOLD),…

Read more »

Metals and Mining Stocks

TSX Gold Stocks: The Best Investment in 2020

| Daniel Da Costa

As governments around the world work to minimize the economic damage of COVID-19, TSX gold stocks are becoming increasingly attractive.

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.