Canada is blessed with an abundance of resources that have been the backbone of the economy. This year, the Canadian mining sector is an area that is on fire.
That provides plenty of options for long-term growth and income opportunities. A key component of that growth comes from the Canadian mining sector.
In fact, the Canadian mining sector has been outperforming the market this year, and for good reason, too.
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What’s driving that growth?
One of the primary drivers behind the surge in the Canadian mining sector is the rise in precious metals, which have experienced significant growth this year.
As of the time of writing, gold trades at just over US$4,060 per ounce, up over 50% year to date. When gold prices increase, it directly benefits gold miners, who generally have fixed production costs.
That rise is attributed to a few key factors.
Inflation and the growing risk of an economic pullback push investors away from volatile investments into the perceived safety of precious metals like gold. That uncertainty leads to rising demand and, by extension, a surge in prices.
Weakness in the economy leads central banks to stock up on gold. That causes a supply crunch, which again pushes prices up. Those prices also pushed up the weakening U.S. dollar.
The result is a combination of factors that are driving gold higher and improving the prospects for the Canadian mining sector. That includes the following mining stocks.
Consider Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) is a large-cap producer with mines both in Canada and abroad. That international portfolio includes mines in more stable markets such as Finland and Mexico to make this a well-diversified pick for investors.
Another key factor is Agnico’s all-in sustaining costs, which came in at $1,373 in the most recent quarter. This means that Agnico can produce metals from its mines at a lower cost, given the surge in precious metal prices.
That ultimately translates over into higher profits. In the most recent quarter, the miner posted net income of $1,055 million, or $2.10 per share. By way of comparison, in the same period last year, Agnico posted net income of $567 million, or $1.13 per share.
That bump in performance is evident in Agnico’s stock price. Year to date, the miner’s stock price has surged by over 100%.
Finally, prospective investors considering Agnico as part of their portfolio from the Canadian mining sector should note that the miner offers investors a quarterly dividend with a yield of 1%.
How about another miner with international exposure?
Another great option for investors looking at the Canadian mining sector is NGex Minerals (TSX:NGEX).
Unlike more senior miners that are focused on sustaining costs and paying dividends, NGex is a growth-first miner.
NGex’s portfolio is focused on high-quality South American mines, particularly in Argentina and Chile. That unique niche is furthered by NGex’s primary production focus—specifically, copper and gold.
Apart from the well-known appeal of gold mining, copper mining represents a unique opportunity for investors. That comes thanks to its growing demand for copper in a variety of applications, from wiring and electronics to renewables.
Global copper demand is projected to rise 3–4% annually through 2030, giving NGEX long-term tailwinds.
In terms of performance, gold may be rising, but NGex has been trading down over the past month by nearly 10%.
Year to date, the miner is up an impressive 72%. This means that prospective investors looking for exposure to the Canadian mining sector can still grab shares of NGex at a temporary discount.
Canadian mining sector: Are you investing?
With gold trading at historic highs and demand showing no signs of slowing, Canadian miners are positioned for outsized gains.
Agnico Eagle Mines offers scale, diversification, and a dividend, while NGEx gives investors leveraged exposure to copper and gold exploration.
Together, they highlight the breadth of opportunity in the Canadian mining sector, from defensive income to speculative upside.
For investors looking to ride the momentum, it’s not just gangbusters today; it’s a chance to lock in long‑term growth while the sector shines.
