The mining and materials stocks make up a large portion of the Canadian equities market. As the TSX Composite Index witnessed a spectacular recovery in November, many quality mining stocks also rallied sharply. This recent recovery in mining stocks could be an opportunity for long-term investors to position themselves to benefit from the market’s upward trajectory. In addition, most well-established mining companies in Canada also reward their investors with regular dividend payments, which can help them create a reliable source of passive income.
In this article, I’ll highlight two of the best mining stocks you can buy in December 2023.
Wheaton Precious Metals stock
Wheaton Precious Metals (TSX: WPM) is a Vancouver-based precious metal streaming firm with a strong portfolio of long-life, low-cost assets. It currently has a market cap of $30 billion as its stock trades at $66.35 per share after rallying by 35.4% in 2023 so far. In November itself, this Canadian mining stock rose more than 13%. At this market price, it offers a 1.2% annualized dividend yield.
The recent rally in WPM stock could be attributed to its strong fundamental outlook and improving financials. In the third quarter of 2023, Wheaton’s total revenue rose nearly 2% YoY (year over year) to US$223.1 million with the help of a strong 16% jump in realized commodity prices, despite slightly lower sales volume. More importantly, the company’s adjusted earnings rose 28.9% YoY during the quarter to US$0.27 per share, beating Street analysts’ expectations.
As it continues to focus on new quality acquisitions amid expected improvements in the macroeconomic environment, Wheaton’s financial growth could accelerate further in the next year, which should help its share prices soar.
Kinross Gold stock
Kinross Gold (TSX: K) is another top Canadian mining stock you can consider buying in December 2023. This Toronto-headquartered gold miner has a geographically well-diversified business, with large portions of its revenue coming from the United States, Brazil, Mauritania, and Chile. It currently has a market cap of $9.8 billion, as its stock trades at $8 per share after rallying by 45% year to date. At the current market price, Kinross has a 2% annualized dividend yield.
Even as labour challenges and other macroeconomic factors continue to affect businesses globally, Kinross Gold’s financial growth trends have remained strong of late. In the first three quarters of 2023, the Canadian gold miner’s revenue rose 27.7% YoY to US$3.1 billion. Besides higher commodity prices, an increase in gold equivalent ounces sold drove its adjusted earnings by around 136% in these nine months to US$0.33 per share.
To boost its financial growth further in the long run, Kinross continues to focus on accelerating its project pipeline, including some large projects like the Great Bear, Manh Choh, and Round Mountain projects. In addition, the strengthening macroeconomic outlook could help the company reduce its costs further, which should ultimately result in higher profitability. Given all these positive factors, I expect this top Canadian mining stock to outperform the broader market by a wide margin in the long run.
