3 Top Mining Stocks in Canada to Buy in December 2022

Three mining stocks are top picks this December for growth investors searching for potential winners and multi-baggers in 2023.

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Super sized rock trucks take a load of platinum rich rock into the crusher.

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Growth investing is virtually absent in 2022 due to high inflation and rising interest rates. The once prolific technology sector suffered a sharp selloff, although many anticipate a rebound when the aggressive rate-hike cycle ends. However, tech stocks are just one of the options for growth investors looking for potential multi-baggers.

Three mining stocks are exciting prospects this month if you’re chasing massive gains in 2023. Filo Mining (TSX:FIL) continues to fly high like an energy stock, while TSX30 winners Aura Minerals (TSX:ORA) and K92 Mining (TSX:KNT) could deliver outsized returns.

Outperforming mineral explorer

At $22.58 per share, Filo Mining is up 76.82% year to date. Had you bought $6,000 worth of shares at year-end 2021 and held the stock in your Tax-Free Savings Account (TFSA), you would have earned $4,609.24 in tax-free income. Also, this mining stock has gained 1,088.42% in 3.01 years, or a compound annual growth rate (CAGR) of 127.86%).

The $2.77 billion mining company develops the Filo Del Sol Copper-Gold-Silver Project in South America. It also owns and controls 100% of this key project in the borders between Region III in Chile and San Juan Province, Argentina. Filo Mining wants to advance the project, a high-sulphidation epithermal copper-gold-silver deposit associated with an extensive porphyry copper-gold system.

Management said the project intersects long intervals of copper, gold, and silver mineralization, and it sees a significant exploration potential. However, Filo Mining will start to generate operating profits only until it develops a commercially viable mineral deposit. Expect the share price to more than triple when it happens.

Top-ranked growth stocks

Aura Minerals ranked number one on the TSX30 List in the last two years. TSX’s top growth stock beat Shopify for top honours in 2021, then bested Obsidian Energy in 2022. The total return in 3.01 years is 502.13% (81.73% CAGR). While current investors are down 24.78% year to date, they enjoy a 4.75% dividend.  

The profitability, operating cash flows, and financial position of this $558 million mid-tier gold and copper production company are closely related to gold and copper prices. Management is confident that the short- to medium-term economic environment will support commodity prices, notwithstanding the continued volatility.

K92 Mining placed 11th in this year’s edition of the flagship program for the top 30 Canadian growth stocks. At $8.10 per share, it outperforms the broader market year to date at +12.66% versus -5.67%. The $1.88 billion gold, copper, and silver producer, operates the Kainantu Gold Mine in Papua New Guinea.

In the third quarter of 2022, management reported strong production (32,995 ounce gold equivalent), net income (US$3.1 million), and record cash position (US$106.7 million). Its chief executive officer and director John Lewins said Kainantu delivered one of K92’s most complete quarters to date. He is very excited about the exploration activities and plans to increase them progressively next year.

Winning investments

The basic materials sector delivered positive gains in 2020 (19.5%) and 2021 (2.3%). However, individual names have outperformed, as evidenced by the growing number of mining stocks joining the TSX30 List. Filo Mining, Aura Minerals, and K92 Mining aren’t mediocre investments but winners.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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