Canada’s Mineral and Mining Sector Takes the Global Stage: Here Are a Few of My Favourite Stock Plays

Gold near record highs and a trade war over critical minerals are putting Canadian mining stocks in focus. Here are two TSX mining stocks to buy.

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Key Points
  • Gold near record highs, a trade war-driven push for critical minerals, and accelerating consolidation are putting Canadian mining stocks squarely in the spotlight this fall.
  • Agnico Eagle is the steadier, lower-volatility option, backed by record free cash flow and a management team with a strong track record of hitting guidance.
  • Kinross Gold offers more upside potential at a lower valuation, though its stock tends to move more sharply in both directions with the gold price.

Canadian miners are attracting global investor attention amid an uncertain, volatile macro environment.

Record bullion prices, a scramble for critical minerals, and a wave of billion-dollar takeovers have acted as tailwinds for Canadian mining stocks in recent months.

It is also why two gold heavyweights, Agnico Eagle Mines (TSX: AEM) and Kinross Gold (TSX: K), belong on your watch list right now.

nugget gold

Source: Getty Images

Why Canadian mining stocks are back in the spotlight

A few forces are colliding this fall, pushing Canadian mining stocks back into the spotlight.

Gold spent much of the summer testing the US$4,700 level before pulling back toward the US$4,350 range as U.S. Treasury yields are rising.

Even after the ongoing pullback, prices remain historically high, and Canadian producers are getting rewarded for operating in stable, low-risk jurisdictions.

Deal-making is accelerating too. Nine takeovers worth more than US$1 billion involving Canadian gold miners have occurred since the start of 2025 alone.

Canada’s production mix is shifting as well. Gold output has pushed the country into fourth place globally among producers, even as copper and nickel output has slipped over the past decade.

The mining sector is attracting fresh investment and exploration capital as it grapples with a skilled labour shortage. In fact, industry estimates suggest that the mining sector could require 246,000 new hires through 2035, which could impact near-term production numbers.

How the trade war and critical minerals push are fueling demand

Ottawa’s recently launched Defence Industrial Strategy aims to strengthen domestic supply chains for the metals used in defence, energy, and advanced manufacturing.

The policy push comes as a global trade war has made Western governments far less comfortable relying on any single foreign supplier for copper, nickel, and rare earths.

Add in tariff uncertainty between Canada and the United States, and gold’s role as a hedge against underlying volatility makes it even more attractive to investors.

A rare combination of higher prices, strategic rationale from government, and deal-making momentum should drive revenue and profit margins higher.

Two TSX mining stocks worth watching now

Agnico Eagle has long been considered the gold standard among Canadian senior gold producers, and its second quarter results back that up.

The company posted record free cash flow of more than US$1.3 billion in the quarter and delivered US$625 million to shareholders through dividends and buybacks, even after a rock movement at its Barnat pit in Quebec.

President and CEO Ammar Al Joundi summed up the environment well on the company’s Q2 2026 earnings call: “We’re in a gold price environment where with strong operating performance and with good cost control, we’re able to do it all.”

A mix of discipline and opportunity is a big reason Agnico shares are up close to 30% over the past year, even after cooling off from a 52-week high above $349.

Kinross Gold mines span Canada, the United States, Brazil, Mauritania, and Chile, giving it more “torque” to swings in the gold price and a cheaper entry point.

The stock swung within a 52-week range of roughly $30 to $53, but Kinross still trades at a modest multiple of cash flow, generated US$727 million in free cash flow last quarter, and carries a moderate buy consensus with meaningful upside built into current price targets.

Canada’s mining sector benefits from a rare convergence of record commodity prices, a national security case for critical minerals, and deal-making that shows no signs of slowing.

Agnico Eagle and Kinross Gold offer two different ways to play that theme: one as a lower-volatility quality compounder and the other as a higher-beta value name with more room to re-rate.

As always, size any position according to your own risk tolerance, and remember that even the best-run gold miners will move with the price of the underlying metal.

Fool contributor Aditya Raghunath 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.

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