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10 Top Canadian Mining Stocks To Buy in February 2023

Adding mining stocks to your portfolio as a Canadian investor provides many benefits. These include stability as a hedge against inflation, strong cash flow from operations, and often a dividend payout to shareholders.

As a country rich in natural resources, it should come as no surprise that both the Canadian-based TSX and TSX-Venture are full of mining stocks.

In fact, 43% of all publicly traded mining companies are listed on the TSX or TSX-V.

In this article, I’ll discuss 10 of the best Canadian mining stocks to buy for 2023.

Best Mining Stocks To Buy in Canada

Here is my list of 10 of the best mining stocks for Canadian investors in February 2023:

  • Barrick Gold Corp (TSE:ABX)
  • Teck Resources (TSE:TECK.B)
  • Nutrien, Ltd (TSE:NTR)
  • Agnico Eagle Mines (TSE:AEM)
  • First Quantum Minerals (TSE:FM)
  • Kinross Gold (TSE:K)
  • Lundin Mining (TSE:LUN)
  • B2Gold (TSE:BTO)
  • Centerra Gold (TSE:CG)
  • Ero Copper Corp (TSE:ERO)

Barrick Gold (TSE:ABX)

Barrick Gold is a Toronto-based gold mining company that was established in 1983. It is one of the largest gold mining companies in the world.

The stock is dual-listed on both the TSX and the NYSE. It is also a component of the S&P/TSX 60 index.

Here are some key facts for ABX:

  • Market Cap: $35.6 billion
  • PE Ratio: 14.59
  • 52-week trading range: $19.02 – $33.50
  • Dividend yield: 2.53%
  • Industry: Gold Mining
  • 5-year average return: -4.00%

Currently, Barrick has ten gold mining operations and three copper mining operations located across markets like Canada, the US, Africa, and Saudi Arabia.

It has the industry’s largest portfolio of Tier One gold assets and copper mines, with several more projects in development.

In 2021, Barrick returned over $1.4 billion dollars to shareholders in the form of a quarterly dividend.

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Teck Resources (TSE:TECK.B)

Here are some key facts for TECK.B:

  • Market Cap: $18.9 billion
  • PE Ratio: 3.69
  • 52-week trading range: $24.84 – $57.50
  • Dividend yield: 1.33%
  • Industry: Mining and Mineral Development
  • 5-year average return: 33.23%

Teck Resources is a Vancouver-based mining company that was originally formed way back in 1906. The stock is dual-listed on both the TSX and the NYSE. It is also a component of the S&P/TSX 60 index.

This company is a diversified natural resources firm that operates in several different industries, including coal, zinc, and copper.

It operates more than thirteen project sites across Canada, the US, Chile, and Peru.

Teck is even getting into the renewable energy business with solar energy parks and providing the components for wind energy turbines.

Nutrien, Ltd (TSE:NTR)

Here are some key facts for NTR:

  • Market Cap: $58.9 billion
  • PE Ratio: 11.0
  • 52-week trading range: $72.10 – $147.93
  • Dividend yield: 2.26%
  • Industry: Fertilizers
  • 5-year average return: 58.57%

Nutrien is a Saskatoon-based fertilizer producer established in 2018 following the merger between PotashCorp and Agrium.

The stock is dual-listed on the NYSE and the TSX and is a component of the S&P/TSX 60 index.

It produces over 27 million tons of potash, nitrogen, and phosphate products. These are critical resources for the agricultural and industrial feed industries.

Products from Nutrien are sold at over 2,000 retail locations across North America, South America, and Australia.

Nutrien is introducing technology to the industry, including autonomous mining and next-generation precision agriculture. International expansion is also on its roadmap.

Agnico Eagle Mines Ltd (TSE:AEM)

Here are some key facts for AEM:

  • Market Cap: $24.5 billion
  • PE Ratio: 24.31
  • 52-week trading range: $48.88 – $84.66
  • Dividend yield: 3.72%
  • Industry: Gold mining
  • 5-year average return: -2.76%

Agnico Eagle is a Canadian gold mining company based out of Toronto and was established in 1953.

The stock is dual-listed on the TSX and the NYSE, and Agnico is a component of the S&P/TSX 60 index.

It is a well-diversified stock with cash-flow-heavy operations out of Canada, Finland, Mexico, and Australia.

This company operates 11 projects with a 2022 gold production forecast of between 3.2 to 3.4 million ounces, with similar projections for the next couple of years.

Text that reads “Top Canadian mining stocks” below an image of a mine cart

First Quantum Minerals (TSE:FM)

Here are some key facts for FM:

  • Market Cap: $14.7 billion
  • PE Ratio: 9.34
  • 52-week trading range: $18.68 – $45.38
  • Dividend yield: 0.73%
  • Industry: Copper Mining
  • 5-year average return: 74.37%

First Quantum Minerals is a Toronto-based mining and exploration company founded in 1983.

The stock for First Quantum Minerals trades solely on the Toronto Stock Exchange and is a component of the S&P/TSX 60 index.

This company primarily mines and produces copper, which accounts for about 80% of First Quantum’s annual revenues. It also produces metals like nickel, gold, cobalt, and zinc.

It currently operates eight mining projects worldwide, with several more currently being developed.

FM pays out an annualized dividend yield of 0.73 that is paid out quarterly.

Kinross Gold (TSE:K)

Here are some key facts for K:

  • Market Cap: $5.61
  • PE Ratio: 19.17
  • 52-week trading range: $3.92 – $8.94
  • Dividend yield: 3.50%
  • Industry: Gold Mining
  • 5-year average return: -17.01%

Kinross Gold is a Toronto-based gold mining company that was founded in 1993. The stock is dual-listed on the TSX and the NYSE, under the ticker symbols K and KGC, respectively.

The company operates several gold mines located across the US, South America, and Africa.

It has a 2022 guidance of 2.15 million ounces of gold from all of its mines, with a forecast of 2.3 million ounces for 2023.

This stock pays out an annualized dividend yield of 3.5%, which is paid to shareholders quarterly.

Lundin Mining Corp (TSE:LUN)

Here are some key facts for LUN:

  • Market Cap: $5.4 billion
  • PE Ratio: 5.98
  • 52-week trading range: $6.73 – $14.00
  • Dividend yield: 5.38%
  • Industry: Copper Mining
  • 5-year average return: -20.48%

Lundin Mining is a Toronto-based mining company that was established in 1994. It is dual-listed on the TSX and the NASDAQ Stockholm exchange in Sweden.

This company is a well-diversified mining company with operations in gold, copper, zinc, nickel, and lead.

It operates mines in several different regions of the world, including the US, Sweden, Chile, and Brazil.

LUN pays a generous annualized dividend yield of 5.38% as of August 2022.

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B2Gold Corp (TSE:BTO)

Here are some key facts for BTO:

  • Market Cap: $4.7 billion
  • PE Ratio: 9.19
  • 52-week trading range: $4.06 – $6.39
  • Dividend yield: 4.60%
  • Industry: Gold Mining
  • 5-year average return: 48.52%

B2Gold is a Vancouver-based gold mining company that was established in 2007. It is dual-listed on the TSX and the NYSEAMERICAN exchange.

This company has three current mines in operation in the Philippines, Mali, and Namibia. It is also exploring new project sites in Finland, Colombia, and Uzbekistan.

It has an estimated annual gold revenue of $1.76 billion for 2022 and strong annual cash flows of $625 million.

This cash flow allows B2Gold to pay out an annualized dividend yield of 4.60% to shareholders.

Centerra Gold (TSE:CG)

Here are some key facts for CG:

  • Market Cap: $2.49 billion
  • PE Ratio: 4.56
  • 52-week trading range: $7.33 – $13.52
  • Dividend yield: 3.37%
  • Industry: Gold Mining
  • 5-year average return: 21.88%

Centerra Gold is a Toronto-based gold mining company that was established in 2002. The stock is dual-listed on the TSX and the NYSE.

The company operates two gold mines: the Mount Milligan mine in British Columbia and the Oksut mine in Turkey.

CG pays out an annualized dividend yield of 3.37%, which is paid out every quarter to shareholders.

Ero Copper Corp (TSE:ERO)

Here are some key facts for ERO:

  • Market Cap: $994 million
  • PE Ratio: 3.90
  • 52-week trading range: $10.54 – $25.83
  • Dividend yield: N/A
  • Industry: Copper Mining
  • 5-year average return: 144.90%

Ero Copper is a Vancouver-based copper mining company that was established in 2016. Its stock is solely listed on the TSX.

This company operates primarily out of several sites in resource-rich Brazil, which is fast becoming a global leader in renewable energies.

ERO has provided shareholders with immense growth over the past few years, which offsets the fact that the stock does not pay a dividend to shareholders.

What are Mining Stocks?

Mining stocks are companies involved in the various stages of mining natural resources from the Earth. These include exploration, extraction, and processing of these materials.

These companies operate in the mining of critical resources like precious metals like gold or silver, or industrial metals like nickel or lithium.

Sectors like lithium mining have seen a recent surge due to their importance in the production of things like batteries and electric vehicles.

Despite a rise in demand, the mining industry is still very much a cyclical one. This means that the success of these companies is largely correlated to the strength of the economy.

While mining stocks generally act as a hedge against inflation, they can also struggle during recessionary times.

How To Buy The Best Mining Stocks in Canada

Mining stocks are a staple on the TSX and, therefore, at many Canadian brokerages. Personally, I like to use discount brokerages to save on trading fees, which can put a dent in your profits over the long term.

Here are two of my favourites.

Questrade

This is the largest independent discount brokerage in Canada. It offers plenty of investment vehicles like stocks, ETFs, precious metals, and even options trading.

Questrade provides lower fees than big banks, with commissions starting at $0.01 per share. ETF purchases are free, and the platform includes advanced trading tools.

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Wealthsimple Trade

Wealthsimple has become a popular financial site for younger Canadian investors. It is owned by the Power Corporation of Canada and was founded in 2014.

The Wealthsimple Trade platform offers investors zero-commission stock and ETF trading directly on the desktop or mobile app. For real-time data, you can subscribe to a monthly paid service, Trade Plus.

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Are Mining Stocks a Good Investment?

Mining stocks in Canada can provide excellent stability for your portfolio while also paying a healthy dividend yield.

These stocks also provide a nice hedge against inflation as the value of commodities like precious metals can increase.

With that being said, the profitability of these companies is tied to the value of the underlying commodity prices.

Before investing in Canadian mining stocks, you should always do your own research into the companies. This article is not meant to be used as financial advice but is more of an introduction to the mining sector.

Downsides of Investing in Mining Stocks

The prices of mining stocks will be directly affected by the prices of commodities.

For example, gold mining stocks do better when the price of gold rises and vice versa.

Mining stocks also generally do not provide long-term capital growth opportunities. This can be offset by a higher dividend yield.

What are the Best Mining ETFs?

If you’re having trouble narrowing in on a mining stock to buy, then why not buy a basket of them? ETFs are a great way to add exposure to the entire mining industry. Here are a few of my favourites:

  • BMO Equal Weight Global Gold Index ETF (ZGD)
  • iShares S&P/TSX Global Gold Index ETF (XGD)
  • Horizons Copper Producers Index ETF (COPP)
  • iShares S&P/TSX Global Base Metals Index ETF (XBM)

Conclusion

Canada is a country that is rich in natural resources and has a wide range of mining companies that trade publicly on the TSX.

Mining stocks add excellent stability, diversification, and often a strong dividend yield for added cash flow.

The best Canadian mining stocks can easily be bought at discount brokerages like Wealthsimple Trade and Questrade.

FAQs

What is the biggest mining company in Canada?

While it might not be the first company you think of when you hear the word mining, the fertilizer giant Nutrien Ltd is the largest mining company in Canada by market capitalization.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch is passionate about helping others win with their finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, and many other personal finance publications. You can learn more about him on the About Page.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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