3 Top Mining Stocks to Buy After Earnings

Canadians should consider snatching up promising mining stocks like Ivanhoe Mines Ltd. (TSX:IVN) ahead of the New Year.

| More on:
A miner down a mine shaft

Image source: Getty Images.

Canadian mining stocks have put together a solid performance in 2021. The commodity boom has given base metals a big boost, while precious metals have continued to lag. Today, I want to look at three mining stocks that are on a roll in the year-to-date period. Are these stocks worth snatching up after earnings? Let’s jump in.

The lithium mining space has regained momentum in the early 2020s

The lithium space suffered from oversaturation in late 2010, as investors rushed to take advantage of the electric vehicle (EV) boom. Lithium mining stocks have regained momentum in the early part of this decade. Lithium Americas (TSX:LAC)(NYSE:LAC) is a Vancouver-based miner that is engaged in lithium development projects. Shares of this mining stock have shot up 168% in 2021 as of early afternoon trading on November 25.

Back in August, I’d discussed why the stock had delivered big gains in the year-to-date period. In Q3 2021, the company stated that it targeted first production at its Cauchari-Olaroz site by the middle of 2022. Meanwhile, it is still conducting feasibility studies at its promising Thacker Pass site.

This mining stock has big growth potential over the course of this decade. It is pricey but a worthy gamble considering the future for lithium production.

Here’s a silver mining stock to snatch up after earnings

MAG Silver (TSX:MAG)(NYSE:MAG) is another Vancouver-based company engaged in the exploration and development of silver mining properties. Silver prices benefited from a COVID-19 pandemic bump, but that growth has mostly stalled over the past year. Shares of this mining stock have plunged 22% in 2021. The stock has dropped 10% month over month.

The company released its third-quarter 2021 earnings on November 15. Net income before tax was reported at $9.69 million in Q3 2021 — up from $8.08 million in the previous year. Meanwhile, gross profit from mineralized development material climbed to $11.2 million compared to $7.99 million in the third quarter of 2020.

Silver mining stocks are still a promising target, as the precious metals space has historically performed well during inflationary periods. High inflation is projected to press forward in North America going into 2022. MAG Silver boasts an immaculate balance sheet and exciting growth potential.

Target this base-metals stock as commodities surge

Earlier this week, I’d discussed the price surge for a small-cap Canadian nickel mining stock. Base metals like nickel and copper have soared during the 2021 commodities bull market. Ivanhoe Mines (TSX:IVN) is a Toronto-based company engaged in the exploration, development, and recovery of minerals and precious metals in Africa. Shares of this mining stock have climbed 36% in the year-to-date period.

In Q3 2021, Ivanhoe Mines delivered record profits of $85.4 million. Meanwhile, it delivered copper production of 77,500 tonnes so far this year. It bolstered its guidance for the full year.

This mining stock is trading in favourable value territory in comparison to its industry peers. Ivanhoe is worth snatching up, as base metals have gained huge momentum in 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

stock analysis
Investing

Buy the Dip: 2 Stocks to Buy Today and Hold for the Next 5 Years

These Canadian stocks are trading at discounted valuations, providing an opportunity for buying the dip.

Read more »

bulb idea thinking
Investing

Safety in Size? 2 of the Bluest Blue-Chip Stocks I’d Buy Now

TC Energy (TSX:TRP) and another cash cow have huge dividend yields for safe investors.

Read more »

A cannabis plant grows.
Cannabis Stocks

Can Aurora Cannabis Stock Recover in 2024?

Aurora Cannabis stock is down 99% from all-time highs but remains a high-risk bet, despite its cheap valuation.

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

Brookfield Infrastructure Partners (TSX:BIP.UN) kicked off 2024 with a bang. Where will it be in five years?

Read more »

TFSA and coins
Investing

TFSA Investors: 3 Incredible Stocks for 2024

Are you looking for stocks to buy and hold for years for your TFSA? These three stocks could deliver exceptional…

Read more »

A person looks at data on a screen
Stocks for Beginners

3 Warren Buffett Stocks to Hold Forever

Warren Buffett sold some shares in Apple (NASDAQ:AAPL), and the market had questions.

Read more »

Retirement
Dividend Stocks

Golden Years Gain: Your CPP Benefits at Age 70

CPP users delaying pension payments until 70 will receive substantial monthly income streams in the golden years.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Dividend Stocks You Can Safely Hold for Decades

Top TSX dividend stocks are on sale.

Read more »