Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
Companies that produce raw materials are the basis of all economic activity. However, despite the presence of materials in all sectors, stocks in the materials sector are not universally defensive. Instead, materials stocks tend to be cyclical.
And one of the big challenges investors face in 2025 is that Trump’s tariff policies could create greater volatility in the commodities market, which in turn would make it more difficult to invest in materials stocks.
As changes in commodity prices are critical to the profitability of companies in related sectors. Investors better consider stocks of producers whose commodity prices are in an upward phase, the following stocks are expected to continue to deliver returns to investors in 2025.
Wheaton Precious Metals (TSX:WPM) is a C$43.95 billion market capitalisation precious metals streaming company and one of the largest in the world. The company acquires rights through agreements to purchase some or all of the precious metals and cobalt from high quality mines at discounted prices, and sells the metals at market prices for revenue once they are delivered by the mines. Wheaton has defensive appeal to investors as it has always been focusing on low-cost, long-life assets.
In the third quarter of fiscal 2024, the company reported revenues of more than C$300 million and operating cash flow of more than C$250 million. Wheaton has a robust balance sheet for future expansion. As of the close of trading on Tuesday (11 February), it was trading at C$96.87 on the Toronto Stock Exchange with a dividend yield of 0.89%. However, Wheaton’s unique business model increases the safety of investing in this mining stock compared to traditional metal producers.
Pan American Silver (TSX:PAAS) is a C$13.13 billion market cap mining company focused on exploring and developing silver mines around the world. The company operates primarily in South and Central America and also benefits from the sale of by-products from its silver mining operations, including gold, copper, lead and zinc.
In the third quarter of fiscal 2024, the company achieved record revenues of C$716.1 million. The strong performance reflects operational efficiencies and how favourable market conditions are helping to improve the financial position.
Pan American Silver shares are trading at C$36.03 per share, with a dividend yield of 1.56%. As the price of gold continues to hit record highs, more investors and analysts are joining the silver bull camp, which is a big plus for silver producers like Pan American Silver.
First Quantum Minerals (TSX:FM) is a stock that has shown resilience in tough times. In the third quarter of fiscal year 2024, the company reported gross profit of C$456 million and net profit attributable to shareholders of C$0.13 per share. Despite disruptions at the Cobre Panamá mine in the fourth quarter, the company’s proactive approach to these challenges reflects its robust operational strategy.
First Quantum Minerals is aggressively moving forward with several plans for 2024 to maintain a solid financial position and create value for shareholders. When evaluating materials stocks, investors typically consider a combination of factors, including financial health, production efficiency, commodity prices and geopolitical stability. And First Quantum Minerals excels on all of these fronts, making it a great choice for investors.
