Motley Fool Premium
  1. Category
    2. /
  2. Investing
    3. /
  3. Metals and Mining Stocks
    4. /

Metals and Mining Stocks

What are mining and mineral stocks?

Mining and mineral stocks represent partial ownership in companies that find, extract, and process minerals and materials. The materials sector makes up a large portion of Canadian stocks, with the TSX having more mining stocks than any other market in the world. Here are some minerals these companies extract: 

  • Precious metals: gold, silver, platinum, palladium 
  • Industrial metals: iron, ore, zinc, cobalt, lithium, nickel, copper, aluminum 
  • Construction materials: sand, crushed stone, limestone
  • Energy materials: coal, oil sands, uranium
  • Fertilizers: boron, potash, phosphate 

How can you find good mining stocks?

1. Know the mining industry 

The mining industry is fairly complex. Not only do mining companies operate in a manner distinct from any other sector — they literally dig into the ground, not sit in swivel chairs — but also the vocabulary and industry terms can be complex, too. 

From the mining process to machinery to the minerals themselves, mining investors will do well to know exactly what a mining company does before buying its stocks. 

2. Analyze its financial strength 

Investors should find mining companies that can withstand economic downturns and recessions. Two factors that will help you assess a mining company’s finances are production costs and balance sheets. 

In general, a mining company shouldn’t be dishing out too much of its revenues to cover production. If it does, it might not remain profitable during tough economic times. The lower its operation costs, the more value mining companies can return to its investors. 

Similarly, a good mining company won’t take out enormous amounts of debt to cover expansion or production. It has a strong balance sheet, meaning it has cash on hand, as well as a capacity to borrow if it needs to. With strong finances, a good mining company will have more flexibility and strength to withstand downturns. 

3. Check here for more updates 

Finally, to help you stay up-to-date on the mining and mineral industry, check the links below for our writers’ stock analyses .With the mining industry changing as much as it has, our writers will help you choose carefully, as well as teach you how to think about stocks. 

[KevelPitch adtype=151]

Top Articles

Metals and Mining Stocks

B2Gold Stock: How High Could it Go in 2023?  

| Daniel Da Costa

After struggling through 2022 while gold stocks were out of favour, B2Gold has some significant upside in 2023 as interest…

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

3 Mining Stocks That Are Too Cheap to Ignore

| Chris MacDonald

These three mining stocks are great ways for long-term investors to gain exposure to gold as well as hedge against…

Read more »

Dividend Stocks

TFSA Investors: Why You Should Invest Your Room ASAP With These 3 Stocks

| Adam Othman

Choosing the right TFSA stocks for your portfolio might take some time. But with the right choices, you can stick…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

These 2 Stocks Have a Lot of Risk But Their Upside Could be Huge

| Demetris Afxentiou

Looking for an alternative option for your portfolio? These two stocks have a lot of risk now, but their long-term…

Read more »

Metals and Mining Stocks

Better Buy: Newmont or Barrick Gold Stock?

| Kay Ng

If you think better days are ahead for gold miners, consider exploring gold stocks Newmont and Barrick Gold.

Read more »

Metals and Mining Stocks

Should You Invest in TSX Mining Stocks Right Now?

| Brian Paradza, CFA

A key TSX mining index has gained 16% so far this quarter. Newmont stock (TSX:NGT) could be a rewarding bet…

Read more »

Metals and Mining Stocks

Could Investing in Teck Stock Help Make You a Millionaire?

| Amy Legate-Wolfe

On the surface, Teck (TSX:TECK.B) stock doesn't look all that exciting. But you're going to change your tune after what…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Recent Metals and Mining Stocks News

Bank Stocks

TFSA Investors: 2 Top TSX Index Stocks That Could Deliver Big Gains in 2020

| Andrew Walker

Investors can still find cheap stocks in the TSX Index today.

Read more »

Metals and Mining Stocks

3 Canadian Stocks Ready to Rise in 2020

| Ryan Vanzo

If you want exposure to high-upside Canadian stocks in 2020, take a close look at Canada Goose Holdings Inc (TSX:GOOS)(NYSE:GOOS)…

Read more »

Dividend Stocks

2 Great Canadian Mining Stocks to Buy on the TSX

| Debra Ray

Canadian savers can buy shares in debt-free mining stocks like Largo Resources Ltd (TSX:LGO) for as low as $99 on…

Read more »

Dividend Stocks

2010-2019 TSX Growth Kings: 3 Stocks That Had Over 1,000% Returns

| Christopher Liew, CFA

The past decade’s success stories — Kirkland Lake stock, CargoJet stock, and Enghouse Systems stock — are likely to soar…

Read more »

Dividend Stocks

TFSA Investors: 3 Top Growth Stocks to Buy in 2020

| Stephanie Bedard-Chateauneuf, MBA

Aritzia Inc. (TSX:ATZ) and two other stocks are poised for strong growth in 2020.

Read more »

Metals and Mining Stocks

2 Gold Stocks to Protect Your Portfolio in Times of Trouble

| Daniel Da Costa

The recent scare out of Iran is just another reminder why all investors should have some exposure to gold, such…

Read more »

Dividend Stocks

4 Top Stocks for Meat-Free Market Growth

| Victoria Hetherington

Buying shares in Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) could help investors create wealth from the boom in alternative protein.

Read more »

Dividend Stocks

Revealed: The Top 3 Ways to Buy Gold

| Daniel Da Costa

The role gold can play in your portfolio during times of market distress can't be overstated, but are buy gold…

Read more »

Stocks for Beginners

Warren Buffett Hates Gold, But Should You Still Buy It?

| Joey Frenette

Why gold and gold miners like Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) are not the answer for investors who want to do…

Read more »

Dividend Stocks

Is It Time to Buy Gold Dividend Stocks?

| Victoria Hetherington

Gold has been choppy this week, but Barrick Gold Corp. (TSX:ABX)(NYSE:GOLD) is a solid long-term play for compounding passive income.

Read more »

Dividend Stocks

Despite Weaker Gold, Buy This Gold Miner Today

| Matt Smith

Kirkland Lake Gold Ltd. (TSX:KL)(NYSE:KL) is poised to soar even if gold softens.

Read more »

Dividend Stocks

2 Top TSX Stocks to Buy Now and Beat the Market

| Victoria Hetherington

Nutrien Ltd. (TSX:NTR)(NYSE:NTR) and a major North American auto stock are market leaders – but are they a buy?

Read more »

Metals and Mining Stocks

3 Reasons to Go Into Gold Stocks Today

| Ambrose O'Callaghan

Gold has surged to start 2020, and there are several developments that could send it higher.

Read more »

Dividend Stocks

Here’s How Stock Investors Are Viewing the Global Tensions

| Victoria Hetherington

Oil stocks such as Vermilion Energy Inc. (TSX:VET)(NYSE:VET) could stand to gain if tensions continue to flare in the Middle…

Read more »

Metals and Mining Stocks

TFSA Pension Investors: A Top Canadian Stock That Could Soar in 2020

| Andrew Walker

This could be the year that gold miners lead the way in the TSX Index. Here's why.

Read more »

Energy Stocks

3 Major Investor Takeaways as Uncertainty Dominates the Markets

| Victoria Hetherington

Gold is a buy as risk ramps up, with stocks like Wesdome Gold Mines Ltd. (TSX:WDO) looking attractive.

Read more »

Stocks for Beginners

1 Way to Reduce Risk if You Want to Buy Cannabis Stocks

| Victoria Hetherington

Speculative investors betting on cannabis could counterbalance their portfolios with safe-haven stocks like Newmont Goldcorp Corp. (TSX:NGT)(NYSE:NEM).

Read more »

Metals and Mining Stocks

Investors: Is This Gold Stock a Buy on Takeover Rumours?

| Mat Litalien, MBA

Pretium Resources (TSX:PVG)(NYSE:PVG) stock is among the most talked about names in the industry.

Read more »

Dividend Stocks

This Major Canadian Gold Stock Is Set for a Big Rally in January 2020

| Daniel Da Costa

The gold mining sector has seen a major rally begin over the past couple weeks, but one major company that's…

Read more »

Metals and Mining Stocks

This Tiny Gold Stock Looks Like the Hottest Turnaround Story of 2020

| Ryan Vanzo

Learn why Guyana Goldfields Inc. (TSX:GUY) stock could make risk-tolerant shareholders rich next year.

Read more »

Stocks for Beginners

Gold Stocks Are Already Hitting 52-Week Highs in 2020

| Victoria Hetherington

Newmont Goldcorp Corp. (TSX:NGT)(NYSE:NEM) is proving a popular stock at the start of the new year. Here’s what else is…

Read more »

Tech Stocks

3 Ways to Gain As Much As 106% in 2020 (While Avoiding the CRA)

| Brian Pacampara, CFA

Tired of declines? This trio of momentum stocks, including Yamana Gold (TSX:YRI)(NYSE:AUY), might have the rocket fuel you need.

Read more »

Dividend Stocks

No Appetite for Risk in the New Year? Buy These Defensive Stocks

| Victoria Hetherington

Stack shares in Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) alongside one major gold miner for defensive income.

Read more »

Metals and Mining Stocks

Why Barrick Gold (TSX:ABX) Stock Could Double in 2020

| Daniel Da Costa

Barrick Gold Corp (TSX:ABX)(NYSE:GOLD) has already proven to be highly profitable at current gold prices, so as prices rise over…

Read more »

Metals and Mining Stocks

Buy This Miner Today and Profit From Higher Gold in 2020

| Matt Smith

Eldorado Gold Corp. (TSX:ELD)(NYSE:EGO) is poised to unlock considerable value for investors.

Read more »

Stocks for Beginners

#1 Gold Stock to Buy for the 2020 New Year

| Debra Ray

Why B2Gold Corp (TSX:BTO)(NYSEMKT:BTG) is leading the way as the #1 top gold stock in Canada on the Toronto Stock Exchange for New…

Read more »

Metals and Mining Stocks

Double Your Money: This 1 Stock Has the Best Chance to Gain 100% or More in 2020

| Daniel Da Costa

All signs point to a rally building in the silver market due to strong fundamentals and increasing demand, so take…

Read more »

Metals and Mining Stocks

2 Small-Cap Gold Stocks That Could Double in 2020

| Daniel Da Costa

Small-cap gold stocks offer investors major opportunities for capital gains, especially with a stock like Roxgold Inc (TSX:ROXG) that can…

Read more »

Metals and Mining Stocks

RRSP Investors: Should You Own Gold Stocks in 2020?

| Andrew Walker

Gold could outperform in the next 12 months. Here's why.

Read more »

Metals and Mining Stocks

Buy Kinross Gold (TSX:K) Today and Profit in 2020

| Matt Smith

Cash in on higher gold and buy Kinross Gold Corp. (TSX:K)(NYSE:KGC) today.

Read more »

Metals and Mining Stocks

Will Another Financial Crisis Occur in 2020?

| Matt Smith

Base metal miners such as First Quantum Minerals Ltd. (TSX:FM) are increasingly vulnerable to a global economic downturn.

Read more »

Metals and Mining Stocks

Double Your Money: 1 High-Potential Stock That Could Return 100% or More in 2020

| Daniel Da Costa

Going into 2020, with a slowing economy and a heightened chance of a recession, it's likely that the top-performing stock…

Read more »

Metals and Mining Stocks

Gold or Silver? Which One Holds the Best Value?

| Renée Gendron

Rénee Gendron compares Detour Gold Corporation (TSX:DGC) and Wheaton Precious Metals Corp (TSX:WPM).

Read more »

Metals and Mining Stocks

Is 2020 the Beginning of the End for Cameco (TSX:CCO)?

| Matt Smith

The outlook for Cameco Corp. (TSX:CCO)(NYSE:CCJ) remains poor, making it a stock to avoid in 2020.

Read more »

Metals and Mining Stocks

Get Ready for This Junior Gold Miner to Soar in 2020

| Matt Smith

Lundin Gold Inc. (TSX:LUG) will rally significantly once commercial production commences.

Read more »

Metals and Mining Stocks

Canada Revenue Agency: 1 Major TFSA Mistake Could Cost You Thousands

| Christopher Liew, CFA

The Alacer Gold and Bellus Health stocks are showing strong earnings potential.

Read more »

Metals and Mining Stocks

Start Growing Your Wealth With 3 Powerful Stocks

| Adam Othman

Silvercorp Metals stock, goeasy stock, and Equitable Group stock can propel your investments upward at an explosive rate.

Read more »

Dividend Stocks

Canada Revenue Agency: Retire Early With These 5 Promising Stocks

| Kay Ng

Are you ready to jump-start your retirement plan for decades?! If yes, read this.

Read more »

Dividend Stocks

2020 Will Be a Strong Year for Canadian Metal and Oil Stocks

| Victoria Hetherington

Here’s why stocks such as Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) could richly reward investors in the new year.

Read more »

Metals and Mining Stocks

2019 Year in Review: The Top 3 TSX Stocks

| Christopher Liew, CFA

The Real Matters stock, Alacer Gold stock, and Silvercorp stock are not the most popular names on the TSX. All…

Read more »

Frequently Asked Questions

Mining and mineral stocks do pose some risks investors should be aware of. 

First off, the industry is highly cyclical, meaning it rises and falls with the overall economy. When the economy is doing fairly well, the market demands more minerals: buildings are going up, consumers are buying more gold, construction is consistent. When the economy falls, however, demand for minerals tends to fall with it. The cyclical nature of energy stocks makes them more volatile than, say, utilities and consumer staples. 

Another risk investors should take note of is expansion. Building mines is very expensive, much more expensive than building a new corporate headquarters. In the past, mines have expanded their enterprises during strong periods of economic growth, only to launch when the economy begins to sink. 

For both these reasons, it’s vital to analyze a mining company’s finances. If the company is saddled with debt, that could be an indicator it’s overextending itself, despite supposed growth. 

Mining stocks can be a great investment, however, there are some things to keep in mind before investing.

Mining stocks can be very volatile depending on economic conditions. That being said, the best Canadian mining companies have been able to generate good profit regardless of economic conditions.