3 Top Mining Stocks in Canada to Buy in February 2023

Three Canadian mining stocks are attractive prospects for growth investors in February 2023.

| More on:
People walk into a dark underground mine.

Source: Getty Images

Mining stocks are attractive prospects, especially for growth investors. Aura Minerals (TSX:ORA) and Capstone Copper (TSX:CS) are two of my top three picks in February 2023. The former ranked number one on the 2021 and 2022 TSX30 Lists, while the latter placed fifth and fourth on the same lists.

Besides the TSX30 winners, a large-cap mining stock is also a screaming buy. Newmont (TSX:NGT) made a non-binding proposal to acquire 100% of another senior gold producer. If successful, the all-share deal would be the largest mining takeover and create the biggest gold company on Earth.

Back-to-back winner 

The back-to-back wins of Aura Minerals are incredible, given the market headwinds in recent years. In 3.01 years, the total return of this winning stock is 295.16%, or a compound annual growth rate (CAGR) of 57.83%. Besides the 3.52% dividend yield, at $10.52 per share, current investors are up 32.66% year to date.

Based on market analysts’ forecasts, ORA has an average return potential of 73.5% ($18.25) in one year. The $757.51 million multinational mining company owns and operates gold and copper mines in Brazil, Colombia, Honduras, and Mexico. Management focuses only on high-quality assets and projects for sustainable growth.

In the fourth quarter (Q4) of 2022, total gold production increased 16% to 67,633 gold equivalent ounces (GEO) versus Q4 2021. Its president and chief executive officer (CEO) Rodrigo Barbosa said, “Last quarter, we had the second-highest production in Aura’s history, which demonstrates consistency in our growth plans. We are now set up for an even stronger 2023 with a continued focus on growth while returning capital to our shareholders.”

Catalyst-rich year

Capstone Copper trades at only $5.69 per share but has rewarded investors with a 679.45% overall return in 3.01 years (+97.78%). As of this writing, the stock outperforms the broader market year to date at 15.18% vs. 6.33%. This $3.93 billion miner boasts long-life copper operations in the Americas.

According to management, Capstone has a clear path for permitted transformational growth and is well positioned to create near-term growth. The full-year 2022 results aren’t out yet, although its president and CEO John MacKenzie said Capstone had a strong finish last year, and 2023 should be a catalyst-rich year.

Gold superpower

A merger between two top senior gold producers is on the horizon following the bid of Newmont to acquire Newcrest Mining Limited. The former is the world’s largest gold producer by market cap, while the latter is Australia’s top gold mining company.

The proposed US$16.9 billion transaction would produce a global gold superpower. Newmont’s president and CEO Tom Palmer said, “We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate.”

BMO analyst Jackie Przybylowski said Newcrest’s assets fit well into the Denver-based gold giant’s existing portfolio. The deal will also expand Newmont’s copper footprint. Meanwhile, rival Barrick Gold said it would not offer a counterbid for Newcrest. NGT currently trades at $64.03 per share (+0.31%) and pays an attractive 4.67% dividend.

Likely breakouts

The 11 primary sectors, including the basic materials sector (+3.52% year to date), are in positive territory thus far in 2023. However, Aura Minerals and Capstone Copper could break out and outpace the TSX by year end.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »