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 be no surprise that 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.
This article discusses 10 of the best Canadian mining stocks to buy for 2023.
Here is my list of 10 of the best mining stocks for Canadian investors in December 2023:
- Barrick Gold Corp (TSE: ABX)
- Teck Resources (TSE: TECK.B)
- Newmont Corporation (TSE: NGT)
- Agnico Eagle Mines (TSE: AEM)
- First Quantum Minerals (TSE: FM)
- Kinross Gold (TSE: K)
- Lundin Mining (TSE: LUN)
- First Majestic Silver (TSE: FR)
- Centerra Gold (TSE: CG)
- Cameco Corp (TSE: CCO)
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 as of March 2023:
- Market Cap: $41 billion
- PE Ratio: 69.17
- 52-week trading range: $17.88 – $32.78
- Dividend yield: 2.33%
- Industry: Gold Mining
- 5-year average return: +44.64%
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 2022, Barrick returned a record $1.6 billion to shareholders in the form of a quarterly dividend.
Teck Resources (TSE:TECK.B)
Here are some key facts for TECK.B as of March 2023:
- Market Cap: $25.85 billion
- PE Ratio: 6.53
- 52-week trading range: $32.68 – $62.38
- Dividend yield: 1.00%
- Industry: Mining and Mineral Development
- 5-year average return: 38.60%
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 over 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.
Newmont Corporation (TSE: NGT)
Here are some key facts for NGT as of March 2023:
- Market Cap: $35.62 billion
- PE Ratio: 44.28
- 52-week trading range: $51.44 – $108.98
- Dividend yield: 3.58%
- Industry: Gold Mining
- 5-year average return: 45.24%
Newmont is an American gold-mining company based out of Colorado and was established in 1921.
The stock is dual-listed on the NYSE and the TSX, and the American listing is a component of the S&P 500 index.
This mining giant produces gold, copper, silver, zinc, and lead in mines across four different continents.
Newmont was ranked the #1 most transparent company in the S&P 500 as per the Bloomberg ESG Disclosure Score. It also received an A- rating for its CDO Climate score.
Here are some key facts for AEM:
- Market Cap: $29.85 billion
- PE Ratio: 30.94
- 52-week trading range: $48.88 – $84.66
- Dividend yield: 3.34%
- Industry: Gold mining
- 5-year average return: 26.52%
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 and produced a record of 3.28 million oz of gold in 2022, with similar projections for the next few years.
Here are some key facts for FM:
- Market Cap: $18.8 billion
- PE Ratio: 13.16
- 52-week trading range: $18.68 – $45.38
- Dividend yield: 1.07%
- Industry: Copper Mining
- 5-year average return: 28.17%
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 operates eight mining projects worldwide, with several more being developed.
FM pays out an annualized dividend yield of 1.07% that is paid out quarterly to shareholders.
Here are some key facts for K:
- Market Cap: $6.56 billion
- PE Ratio: 155.40
- 52-week trading range: $3.92 – $7.99
- Dividend yield: 3.16%
- Industry: Gold Mining
- 5-year average return: 9.89%
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 2023 guidance of 2.3 million ounces of gold from all of its mines.
This stock pays out an annualized dividend yield of 3.16%, which is paid to shareholders quarterly. In 2022, Kinross paid out a total of $455 million in dividends.
Here are some key facts for LUN:
- Market Cap: $6.2 billion
- PE Ratio: 10.40
- 52-week trading range: $6.24 – $14.00
- Dividend yield: 4.48%
- Industry: Copper Mining
- 5-year average return: -9.56%
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.
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 4.48% that is paid out to shareholders every quarter.
First Majestic Silver Corp. (TSE: FR)
Here are some key facts for FR as of March 2023:
- Market Cap: $2.51 billion
- PE Ratio: N/A
- 52-week trading range: $8.04 – $18.41
- Dividend yield: 0.31%
- Industry: Silver Mining
- 5-year average return: 21.99%
First Majestic is a Vancouver-based silver mining company that was established in 2002.
The stock is dual-listed on the TSX and the New York Stock Exchange, the latter of which trades under the symbol NYSE: AG.
It operates four silver mining projects across North America, with four more projects in development.
First Majestic has a goal of annualized silver production of 45 million AGEq oz by 2024.
Here are some key facts for CG:
- Market Cap: $1.89 billion
- PE Ratio: 3.20
- 52-week trading range: $5.18 – $13.29
- Dividend yield: 3.24%
- Industry: Gold Mining
- 5-year average return: 18.82%
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 3.24%, which is paid out every quarter to shareholders.
Cameco Corporation (TSE: CCO)
Here are some key facts for CCO as of March 2023:
- Market Cap: $15.08 billion
- PE Ratio: 158.79
- 52-week trading range: $26.15 – $41.05
- Dividend yield: 0.34%
- Industry: Uranium Mining
- 5-year average return: 183.65%
Cameco Corporation is a uranium miner and producer based out of Saskatoon, Saskatchewan and was established in 1988.
It is the world’s largest publicly traded uranium company and accounts for nearly 20% of the world’s total production.
The company operates several uranium mines across North America and in Kazhakstan, and in 2022, mined a record 80 million pounds of uranium.
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.
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.
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 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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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.
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.
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.TO)
- iShares S&P/TSX Global Gold Index ETF (XGD.TO)
- Horizons BetaPro Canadian Gold Miners 2x Daily Bull ETF (HGU.TO)
- iShares S&P/TSX Global Base Metals Index ETF (XBM.TO)
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.
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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.