Canadian Mining Stocks: Buy, Sell or Hold?

Canadian mining stocks have seemed like such a strong investment, but with shares down significantly this year, what should we do now?

| More on:
A miner down a mine shaft

Image source: Getty Images.

The Canadian mining sector hasn’t exactly been doing well lately. These stocks had a rough year in 2023, with a strong start only to lose all their gains, falling into negative territory as of writing. Prices of commodities and natural resources soared in the beginning due to war in Ukraine, with a 27% gain in Canadian mining stocks. However, by mid-April, higher interest rates were put into action to combat inflation. This weighed heavily on a sector reliant on debt. Now, Canadian mining stocks have fallen significantly.

But does this mean you should get out, or get in on a deal? Let’s look at reasons to buy, sell, or hold this sector.


Canadian mining stocks do offer diversification for your portfolio. They can help diversify holdings and reduce overall risk by introducing assets that may not always move in sync with the broader market. It also provides exposure to different and rising commodity prices. This can provide leverage exposure as the price of minerals increases, with profits and potentially stock prices moving upwards as well.

What’s more, Canadian mining stocks often offer dividend payouts, creating a regular stream of income while you wait on more mineral production. This can be attractive for those seeking income during periods of higher interest rates.

And then of course comes the big reason: growth. The mining sector offers high-growth potential, particularly for those exploring and developing new mines. This comes with risk as well, but also the chance for huge rewards in a recovering market.


If you’re considering selling the sector, there are reasons to do this as well. Short-term market conditions have created a negative impact on Canadian mining stocks. If this persists, investors may see even more losses rather than the gains they hoped for.

The economic slowdown doesn’t help, as a depression in commodity prices impacts the profitability of these mining companies. This has led to the stock price decline, which likely won’t be lifted until rate hikes come to an end, and indeed reverse.

Plus, both investors and analysts have viewed the area as volatile. This has put selling pressure on the sector, driving down share prices.


If you’re already in Canadian mining stocks, it might be best to hold at this point. The long-term demand for minerals remains strong. These minerals are used for technology, infrastructure, and clean energy, with the entire area forecast to grow. Especially as population and urbanization increases, this should help create long-term profitability.

Right now also looks like a good time considering many stocks, though down, are undervalued. Lower stock prices provide a good buying opportunity for investors banking on a rebound. Though further analysis is needed. You could therefore seek out stocks with strong fundamentals, diverse operations, and a focus on responsible mining practices.

One to consider in this case is Teck Resources (TSX:TECK.B). The company focuses on copper, zinc, and steelmaking coal. This last part, however, is being sold off into its own company, providing even more opportunities for investors. Earnings have grown significantly over the last five years, with revenue up 8.2% on average per year. 

Shares are now down 5% in the last year, but up 13% since bottoming out in November. So now could be the time to get in on a rebound. Especially with a dividend yield at 0.94% and trading at 11.6 times earnings. So if you’re looking for a stock that hits all the targets, I would consider Tech stock above other Canadian mining stocks at this level.

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 Amy Legate-Wolfe 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 Stocks for Beginners

edit Person using calculator next to charts and graphs
Stocks for Beginners

Where to Invest $7,000 in April 2024

Are you wondering how to deploy the $7,000 TFSA contribution increase in 2024? Here are four high-quality stocks for earning…

Read more »

investment research
Stocks for Beginners

New Investors: 5 Top Canadian Stocks for 2024

Here are five Canadian stocks that might be ideal for a beginner investment portfolio.

Read more »

Dots over the earth connecting the world
Tech Stocks

Hot Takeaway: Concentration in 1 Stock Can Be Just Fine

Concentration in one stock can be alright under the right circumstances, and far better than buying a bunch of poor-performing…

Read more »

tech and analysis
Stocks for Beginners

If You Invested $1,000 in WELL Health in 2019, Here is What It’s Worth Now

WELL stock (TSX:WELL) has fallen pretty dramatically from all-time highs, but what if you bought just before the rise? Should…

Read more »

investment research
Dividend Stocks

5 Easy Ways to Make Extra Money in Canada

These easy methods can help Canadians make money in 2024, and keep it growing throughout the years to come.

Read more »

Solar panels and windmills
Top TSX Stocks

1 High-Yield Dividend Stock You Can Buy and Hold Forever

There are some stocks you can buy and hold forever. Here's one top pick that won't disappoint investors anytime soon.

Read more »

clock time
Stocks for Beginners

This ETF Is Up 16% and Could Be the Best Investment Around

Get access to the global market with the click of a button. This ETF is one of the best ways…

Read more »

ETF chart stocks
Stocks for Beginners

3 Best-Performing Equity ETFs in 2024 Thus Far

If you want big winners from big sectors, consider these three ETFs currently surging already in 2024.

Read more »