Mining stocks are one of the best ways to expose investors’ portfolios to different commodities like metals, minerals, and energy resources. These companies’ products are always in demand across various industrial sectors, ensuring that the mining companies keep generating sustainable profits.
However, investing in mining stocks is a precarious thing. Many go bankrupt, and the wild boom-and-bust nature of the space means that consolidation is often the key to survival.
That said, picking miners that have scale, strong financials, and long-term growth prospects can produce excellent results. Here are three of my favourite mining stocks that investors can consider buying in December 2023.
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Agnico Eagle Mines
Agnico Eagle Mines (TSX: AEM) is a Canadian international mining and exploration company dealing with gold and other precious metals. Agnico Eagle recently reported solid financial results in the third quarter (Q3) of 2023, and remains among my top picks in the gold mining sector for good reason.
More on those fundamentals. The company brought in adjusted net income worth US$0.44 per share, beating Zack Investment Research’s estimate of US$0.43 per share. The company’s payable gold production came in at 850,429 ounces with all-in sustaining costs of US$1,210 per ounce. This strong performance was also a result of increasing production by the Meadowbank and Malartic complexes, along with the company’s Kittila mine.
Additionally, Angico declared a dividend payment of $0.55 per share for the ongoing quarter. It will be disbursed on Dec. 15 and available to shareholders of record on Nov. 30. Currently, AEM stock provides investors with a dividend yield just above 3%, which is slightly higher than the 1.9% sectorial average, indicating the stock’s market-beating potential.
Newmont
Newmont (TSX: NGT) is a multinational mining organization that deals with the exploration of gold, silver, copper, lead, and zinc. Notably, the company has successfully acquired Newcrest Mining, suggesting Newmont will continue to acquire its way toward size, scale, and profitability over time.
This move will make Newmont a global leader in the gold mining segment, with access to half of the world’s tier-one mining assets. Unsurprisingly, the addition of these companies to its portfolio has led to a strong performance in Q3 2023.
Newmont produced 1.3 million attributable ounces of gold and 58,000 GEOs (gold equivalent ounces) from its copper assets. The company also generated cash from continuing operations worth US$1 billion and had a free cash flow of US$397 million.
Furthermore, the company declared a dividend payment of US$0.40 per share for the ongoing quarter. It will be payable on Dec. 22. The stock’s current dividend yield sits right around 4%, which is certainly one of the best in the sector, making Newmont an excellent pick for dividend investors.
Barrick Gold
Barrick Gold (TSX: ABX) is a multinational mining company dealing with gold and copper production. In early November, the company entered a US$23.4 million agreement with Hercules Silver Corp to subscribe to 21,265,370 of its units.
This move will allow Barrick Gold to increase its hold on the latter’s assets and expose its portfolio to the silver exploration market. The company has reported excellent Q3 2023 results, with its profits reaching US$3.7 billion (US$0.021 per share).
Furthermore, Barrick Gold declared dividend payments worth $0.14 per common share for the current quarter. Barrick’s dividend yield is slightly lower at around 2.3%, but investors get some of the best fundamentals of the three in owning this name.
