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

The Latest News Is a Boon for Teck Resources Ltd. (TSX:TECK.B)

| Matt Smith

Don't be deterred by a weaker global economic outlook and add Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK) to your portfolio.

Read more »

Dividend Stocks

Which 2 Things Will Cause a Rally in This Silver Stock?

| Kay Ng

How much upside does Pan American Silver Corp. (TSX:PAAS)(NASDAQ:PAAS) have and what will trigger a rally?

Read more »

Metals and Mining Stocks

3 Gold Stocks With Big Upside As Gold Rallies

| Karen Thomas, MSc, CFA

Agnico-Eagle Mines Ltd. (TSX:AEM) (NYSE:AEM) is one stock that is benefitting from strong production growth, lower costs, and greater efficiencies.

Read more »

Metals and Mining Stocks

Should You Buy Barrick Gold Corp. (TSX:ABX) Today?

| Andrew Walker

Barrick Gold (TSX:ABX) (NYSE:ABX) is up 30% in the past two months. Are more gains on the way?

Read more »

Metals and Mining Stocks

This Small-cap Gold Miner Is Poised to Soar

| Matt Smith

Don't be deterred by weaker gold, add Dundee Precious Metals Inc. (TSX:DPM) to your portfolio.

Read more »

Metals and Mining Stocks

Ignore Weak Silver and Buy This Silver Miner

| Matt Smith

Fortuna Silver Mines Inc. (TSX:FVI)(NYSE:FSM) latest sell-off has created an opportunity for risk tolerant contrarian investors.

Read more »

Dividend Stocks

Why Has Franco-Nevada Corp. (TSX:FNV) Outperformed Wheaton Precious Metals Corp. (TSX:WPM) Lately?

| Kay Ng

Will you buy Franco-Nevada Corp. (TSX:FNV)(NYSE:FNV) or Wheaton Precious Metals Corp. (TSX:WPM)(NYSE:WPM) today?

Read more »

Metals and Mining Stocks

Now Is the Time to Buy This Intermediate Gold Miner

| Matt Smith

Get ready for gold's next leg-up by investing in OceanaGold Corp. (TSX:OGC).

Read more »

Dividend Stocks

Should Suncor Inc. (TSX:SU) or Nutrien Ltd. (TSX: NTR) Stock be in Your RRSP?

| Andrew Walker

Suncor (TSX:SU) (NYSE:SU) and Nutrien (TSX:NTR) (NYSE:NTR) have pulled back from their 2018 highs. Is one a buy for your…

Read more »

Metals and Mining Stocks

Ignore the Stagnant Outlook for Silver and Buy Pan American Silver (TSX:PAAS)

| Matt Smith

The latest news indicates that now is the time to acquire Pan American Silver Corp. (TSX:PAAS)(NASDAQ:PAAS).

Read more »

Dividend Stocks

3 Mining Stocks With Plenty of Upside/Downside Risk

| Chris MacDonald

Discussion of 3 very interesting mining options for long-term investors: Hudbay Minerals Inc. (TSX:HBM)(NYSE:HBM), Barrick Gold Corporation (TSX:ABX)(NYSE:ABX), and Goldcorp Inc. (TSX:G)(NYSE:GG).

Read more »

Energy Stocks

Oil, the Loonie and What Happens Next

| Demetris Afxentiou

The current oil crisis in Alberta has exposed an opportunity for investment in a number of different companies, across different…

Read more »

Dividend Stocks

Is It Time to Buy This Stock With a 6% Yield?

| Kris Knutson

After selling off and hitting its 52-week low, Russel Metals Inc. (TSX:RUS) has a low valuation and 6% yield that…

Read more »

Metals and Mining Stocks

Opportunity: Precious Metals Stocks Are Not As Bad As Perceived!

| Demetris Afxentiou

Wheaton Precious Metals Corp. (TSX:WPM)(NYSE:WPM) announced weaker-than-expected results this month but does that weakness translate into a buying opportunity or…

Read more »

Metals and Mining Stocks

Is This Small-Cap Stock a Golden Opportunity?

| Kay Ng

GoldMining Inc. (TSX:GOLD) stock was a seven-bagger at one point. Should you invest in it now?

Read more »

Metals and Mining Stocks

Why Did This Gold Miner Soar by Over 15% During the Last Six Months?

| Matt Smith

Latest results indicate that Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) is poised to soar.

Read more »

Metals and Mining Stocks

Could Barrick Gold Corp (TSX:ABX) Double in 2019?

| Andrew Walker

Barrick Gold Corp. (TSX:ABX) (NYSE:ABX) has reduced debt significantly and is about to get much larger. Is it time to…

Read more »

Metals and Mining Stocks

The Good and Bad Investment That Is Cameco Corp. (TSX:CCO)

| Demetris Afxentiou

Will positive earning results and an improving uranium market finally make Cameco Corp. (TSX:CCO)(NYSE:CCJ) a viable investment option?

Read more »

Metals and Mining Stocks

Opportunity? The Changing Face of Barrick Gold Corp. (TSX:ABX)

| Demetris Afxentiou

A mixed set of quarterly results and uncertainty over future growth prospects has some investors questioning whether Barrick Gold Corp.…

Read more »

Metals and Mining Stocks

Royal Nickel’s (TSX:RNX) Stock Jumped 575%: Time to Sell?

| Mat Litalien, MBA

RNC Minerals' (TSX:RNX) stock jumped 575% over the past few months. Formerly Royal Nickel Corp, is this penny stock worth…

Read more »

Metals and Mining Stocks

Why RNC Minerals (TSX:RNX) Stock Popped a Whopping 575% in Just 3 Months!

| Neha Chamaria

Can RNC Minerals (TSX:RNX), formerly Royal Nickel, stock continue to rally?

Read more »

The Motley Fool
Dividend Stocks

These 2 All-Weather Dividend Stocks Are for Buying and Holding

| Kay Ng

Buy Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and another outperforming dividend stock now and watch your investments grow over a very long time.

Read more »

Metals and Mining Stocks

Things Are Beginning to Look Up for This Badly Beaten Down Gold Miner

| Jason Phillips

Find out what's been happening at Eldorado Gold (TSX:ELD)(NYSE:EGO) trading at under $1 and a market cap of under $650M.

Read more »

Dividend Stocks

3 Reasons Why Precious Metals Streamers Are Better Investments Than Miners

| Matt Smith

Wheaton Precious Metals Corp. (TSX:WPM)(NYSE:WPM) is an attractively valued play on gold and silver.

Read more »

Dividend Stocks

Buy These 2 Companies Now to Protect Your Portfolio

| Kris Knutson

When the market is in chaos, buying dividend-paying, precious metals companies like Franco Nevada Corp. (TSX:FNV)(NYSE:FNV) can help to protect…

Read more »

Metals and Mining Stocks

Time to Double Down on This Junior Gold Miner

| Matt Smith

Continental Gold Inc. (TSX:CNL) appears oversold and attractively valued.

Read more »

Metals and Mining Stocks

Massive Mover Alert: This Silver Stock Just Jumped 46% This Morning!

| Neha Chamaria

Here’s why Tahoe Resources Inc. (TSX:THO)(NYSE:TAHO) is flying like greased lightning today.

Read more »

Metals and Mining Stocks

Gold’s Latest Pullback Makes Now the Perfect Time to Buy This Gold Miner

| Matt Smith

Get ready for Lundin Gold Inc. (TSX:LUG) to soar once commercial production at Fruta del Norte commences.

Read more »

Dividend Stocks

TFSA Investors: 2 Top Canadian Stocks to Own for 25 Years

| Andrew Walker

Here's why Nutrien (TSX:NTR) (NYSE:NTR) and another top Canadian stock should be attractive buy-and-hold picks today.

Read more »

Metals and Mining Stocks

2 Dirt Cheap TSX Index Stocks Trading at Less Than a Toonie per Share!

| Jason Phillips

For those investors willing to bear the risk of heightened volatility, an investment in VIVO Cannabis Inc (TSXV:VIVO) and another…

Read more »

Metals and Mining Stocks

The Best Gold Stock to Weatherproof Your Portfolio Against the Next Crisis

| Matt Smith

Hedge against the next geopolitical or economic crisis by investing in Kirkland Lake Gold Ltd. (TSX:KL)(NYSE:KL).

Read more »

The Motley Fool
Metals and Mining Stocks

Latest Results Show Improvements in First Majestic Silver Corp.’s (TSX:FR) Operations

| Matt Smith

Despite improved results, First Majestic Silver Corp. (TSX:FR)(NYSE:AG) remains an unappealing investment.

Read more »

Dividend Stocks

Here’s The 1 Best Gold Stock for Portfolio Diversification

| Karen Thomas, MSc, CFA

Agnico-Eagle Mines Ltd. (TSX:AEM) (NYSE:AEM) is benefitting from strong operational performance, and a strong balance sheet, putting the stock in…

Read more »

Stocks for Beginners

A Rising TSX Index Stock for Your TFSA in 2019

| Andrew Walker

Nutrien Ltd. (TSX:NTR)(NYSE:NTR) is soaring after the Q3 earnings report. Are more gains on the way?

Read more »

Metals and Mining Stocks

2 Reasons Yamana Gold Inc. (TSX:YRI) and Kinross Gold Corporation (TSX:K) Stock Will Shine in 2019

| Ambrose O'Callaghan

There is reason for optimism at Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) and Kinross Gold Corporation (TSX:K)(NYSE:KGC) heading into 2019.

Read more »

a pile of gold bars
Dividend Stocks

Is This Really the Best Gold Stock on the TSX Index?

| Victoria Hetherington

How is Barrick Gold Corp. (TSX:ABX)(NYSE:ABX) looking in terms of value, quality, and momentum, and is it a buy today?

Read more »

Metals and Mining Stocks

Latest Results Indicate That Now Is the Time to Buy This Precious Metals Miner

| Matt Smith

Get ready for North American Palladium Ltd. (TSX:PDL) to rally further.

Read more »

Energy Stocks

TFSA Investors: 3 TSX Index Stocks That Could Rally Through the End of 2018

| Andrew Walker

Barrick Gold Corp. (TSX:ABX)(NYSE:ABX) is one of a handful of TSX Index industry leaders that could take off in 2019.

Read more »

Metals and Mining Stocks

Despite Poor Results, This Silver Miner Is an Attractive Contrarian Play on Precious Metals

| Matt Smith

Great Panther Silver Ltd.'s (TSX:GPR)(NYSE:GPL) latest results indicate that it is a risky investment.

Read more »

time is money compounding
Dividend Stocks

Canadian Investors: It’s Time to Check Out These FANG Stocks

| Nelson Smith

A new group of Canadian FANG stocks -- like Fairfax Financial Holdings Ltd. (TSX:FFH) and National Bank of Canada (TSX:NA)…

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.