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

Here’s Why Ero Copper Corp (TSX:ERO) Stock Could Triple Again

| Ryan Vanzo

Ero Copper Corp (TSX:ERO) is entering a perfect market for copper, with long-term prices expected to increase. Should you be…

Read more »

Metals and Mining Stocks

This Underappreciated Stock Is the Top Precious Metals Streamer to Buy for 2019

| Matt Smith

Growing production, higher earnings, and firmer gold will give Sandstorm Gold Ltd's (TSX:SSL)(NYSE:SAND) stock a solid boost.

Read more »

The Motley Fool
Dividend Stocks

Bargain Stock Round-Up: Are These 3 Previous Steals Still Undervalued?

| Victoria Hetherington

Are STEP Energy Services Ltd. (TSX:STEP) and two other Canadian stocks still undervalued?

Read more »

Dividend Stocks

Revealed: 3 Top TSX Stocks I’ll Never Buy

| Nelson Smith

Why I'm avoiding Barrick Gold Corp (TSX:ABX)(NYSE:GOLD), Bombardier Inc. (TSX:BBD.B) and Hudson's Bay Company (TSX:HBC) forever.

Read more »

Metals and Mining Stocks

Invest in These 2 Top Gold Stocks for TFSA Portfolio Diversification

| Karen Thomas, MSc, CFA

Kirkland Lake Mining Ltd. (TSX:KL) (NYSE:KL) and SSR Mining Inc. (TSX:SSRM) (NASDAQ:SSRM) have rallied on strengthening financials and top notch…

Read more »

Metals and Mining Stocks

Is This Intermediate Gold Miner a Worthwhile Investment?

| Matt Smith

2019 is shaping up as the year where Leagold Mining Corp. (TSX:LMC) will soar.

Read more »

The Motley Fool
Metals and Mining Stocks

Is This Junior Silver Miner a Risky Investment?

| Matt Smith

Get ready for MAG Silver Corp. (TSX:MAG)(NYSE:MAG) to soar higher because of improved project economics.

Read more »

The Motley Fool
Metals and Mining Stocks

Time to Buy This Intermediate Gold Miner?

| Matt Smith

Despite concerns over asset quality, McEwen Mining Inc. (TSX:MUX)(NYSE:MUX) is an attractively valued play on higher gold.

Read more »

Metals and Mining Stocks

Did Insider Trading Cause This Junior Gold Miner to Gain 25% in a Week?

| Matt Smith

Beaten down junior gold miner Continental Gold Inc. (TSX:CNL) saw its stock soar in the lead-up to the release of…

Read more »

Metals and Mining Stocks

Why Did This Junior Silver Miner Soar by 29% in a Month?

| Matt Smith

Even after its latest solid rally, SilverCrest Metals Inc. (TSXV:SIL)(NYSE:SILV) is poised to make further gains.

Read more »

Dividend Stocks

Which Royalty Company Is the Best Income Stock?

| Kris Knutson

Get exposure to the commodity sector while minimizing operational and geopolitical risk by purchasing Franco-Nevada Corp. (TSX:FNV)(NYSE:FNV).

Read more »

Dividend Stocks

Here’s the Best Way to Invest in Gold

| Kris Knutson

If there’s anything good that has come from the uncertainty the market has been experiencing lately, it’s the fact that…

Read more »

Metals and Mining Stocks

1 Intriguing Canadian Gold Miner to Buy Right Now

| Matt Smith

Harte Gold Corp. (TSX:HRT) is poised to soar higher in coming weeks.

Read more »

Metals and Mining Stocks

Get Ready for Gold’s Next Leg Up by Investing in Pretium Resources Inc. (TSX:PVG)

| Matt Smith

Despite its volatility, Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) is an attractively valued stock to play higher gold.

Read more »

Metals and Mining Stocks

Could Gold Surge Another 50%?

| Andrew Walker

Barrick Gold Corp (TSX:ABX)(NYSE:GOLD) and its peers could be in for a windfall if the current gold rally really takes…

Read more »

Metals and Mining Stocks

This Gold Junior Is a Top Play on Higher Gold

| Matt Smith

Latest news from Lundin Gold Inc. (TSX:LUG) indicates that the miner is on track for first gold in 2019.

Read more »

Metals and Mining Stocks

1 Canadian Gold Stock to Rule Them All … But Which Is it?

| Victoria Hetherington

Does Goldcorp Inc. (TSX:G)(NYSE:GG) offer Canadian investors the best source of upside in the precious metals sector?

Read more »

a copper mine in Sweden
Metals and Mining Stocks

Should You Buy This Mining Mega-Merger?

| Ryan Vanzo

Pan American Silver Corp. (TSX:PAAS)(NYSE:PAAS) agreed to buy Tahoe Resources Inc (TSX:THO)(NYSE:TAHO) for $1.07 billion, but major risks are appearing.

Read more »

Metals and Mining Stocks

How Risky Is an Investment in This Junior Gold Miner?

| Matt Smith

Continental Gold Inc. (TSX:CNL) is attractively valued and will soar once commercial production commences.

Read more »

Metals and Mining Stocks

Is It Time to Buy This Beaten-Down Silver Miner?

| Matt Smith

Get ready for Great Panther Silver Ltd. (TSX:GPR)(NYSEMKT:GPL) to soar.

Read more »

Metals and Mining Stocks

Forget About Weak Silver and Buy This Miner

| Matt Smith

There are signs that Maya Gold and Silver Inc. (TSX:MAYA) will soar now that commercial production has commenced at its…

Read more »

The Motley Fool
Metals and Mining Stocks

Now Is the Time to Buy Pan American Silver Corp. (TSX:PAAS)

| Matt Smith

Regardless of the poor outlook for silver, Pan American Silver Corp. (TSX:PAAS)(NASDAQ:PAAS) is poised to soar.

Read more »

Energy Stocks

Buy Alert! 3 Fresh Bay Street Upgrades You Need to Know About Right Now

| Brian Pacampara, CFA

Need juicy ideas? This trio of recently upgraded stocks, including MEG Energy (TSX:MEG), might provide the opportunities you're looking for.

Read more »

Metals and Mining Stocks

Gold Tops US$1,300: Should You Buy Barrick Gold Corp. (TSX:ABX) Stock?

| Andrew Walker

Gold continues to move higher, and some of the major players, including Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD), are starting to look…

Read more »

Metals and Mining Stocks

Why Eldorado Gold Corp. (TSX:ELD) Is a Risky Investment

| Matt Smith

Despite being attractively valued Eldorado Gold Corp. (TSX:ELD)(NYSE:EGO) is facing a range of headwinds which are preventing the miner from…

Read more »

Metals and Mining Stocks

Make a Contrarian Bet on Firmer Silver by Investing in this Miner

| Matt Smith

Ignore the poor outlook for silver and buy Sierra Metals Inc. (TSX:SMT)(NYSE:SMTS).

Read more »

Dividend Stocks

Are Any of These Bargain Basement TSX Stocks Worth Buying?

| Victoria Hetherington

Are Transcontinental Inc. (TSX:TCL.A) or two other undervalued Canadian stocks worth taking a chance on?

Read more »

Dividend Stocks

2 Dividend Stocks That TFSA Investors Should Buy Now

| Amy Legate-Wolfe

Every portfolio should include some dividend stocks, and it's never been a better time to include strong stocks like Enbridge…

Read more »

Dividend Stocks

Fit Tickers: 3 Big Name Canadian Stocks With Healthy Balance Sheets

| Victoria Hetherington

West Fraser Timber (TSX:WFT) and two other Canadian stocks have healthy balance sheets – but is that enough for a…

Read more »

Metals and Mining Stocks

Get Ready for This Silver Miner to Soar Despite the Poor Outlook for Silver

| Matt Smith

Fortuna Silver Mines Inc. (TSX:FVI)(NYSE:FSM) will rally significantly once its Lindero mine commences production in 2019.

Read more »

Dividend Stocks

Is Gold a Good Addition to Your Portfolio?

| Kay Ng

Don’t buy gold. Buy Franco-Nevada Corp. (TSX:FNV)(NYSE:FNV) instead!

Read more »

Metals and Mining Stocks

3 Reasons Cameco Corp (TSX:CCO) Could Make You Filthy Rich

| Amy Legate-Wolfe

It's not secret that Cameco Corp. (TSX:CCO)(NYSE:CCO) is undervalued, but investing now could make you tens of thousands of dollars.

Read more »

Stocks for Beginners

3 High-Growth Canadian Stocks for Capital Gains Investors

| Victoria Hetherington

Are growth stocks like CannTrust Holdings Inc (TSX:TRST) too volatile for the average long-term investor?

Read more »

The Motley Fool
Dividend Stocks

3 Top TSX Stocks Investors May Overlook for Defensive Dividends

| Victoria Hetherington

Park Lawn Corp. (TSX:PLC) and two other stocks offer dividends to investors looking for a defensive position.

Read more »

Dividend Stocks

TFSA Investors: 3 Dividend Stocks to Buy on Sale

| Stephanie Bedard-Chateauneuf, MBA

Are you looking for cheap dividend stocks for your TFSA? NFI Group (TSX:NFI) is one of the 3 stocks I…

Read more »

Metals and Mining Stocks

The Best of the Rest: 4 Canadian Growth Stocks With High Valuation Ratios

| Victoria Hetherington

Stocks like CannTrust Holdings Inc (TSX:TRST) have considerable growth ahead of them, but are they good buys?

Read more »

Dividend Stocks

Is it Time to Back Up the Truck on Gold Stocks?

| Karen Thomas, MSc, CFA

Gold stocks such as Agnico-Eagle Mines Ltd. (TSX:AEM) (NYSE:AEM) provide investors with a safe haven in times of economic uncertainty.

Read more »

Metals and Mining Stocks

Could a Lithium Growth Play Deliver Positive Returns in 2019?

| Brian Paradza, CFA

Could this year be any better for lithium mining stocks like Lithium Americas Corp (TSX:LAC)(NYSE:LAC) after a bad 2018?

Read more »

Dividend Stocks

These Are the 4 Healthiest High-Growth Stocks on the TSX Right Now

| Victoria Hetherington

Power Corporation of Canada (TSX:POW) and three other Canadian stocks represent the best of high growth at the moment.

Read more »

Metals and Mining Stocks

This Newly Emerged Intermediate Gold Miner Is Poised to Soar in 2019

| Matt Smith

Cash in on higher gold by investing in Equinox Gold Corp. (TSXV:EQX).

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.