3 TSX Mining Stocks to Focus in April 2024

Lithium Americas股价大涨
Published on: Mar 28, 2024
Author: Caroline Kong

Shares of leading uranium producer and supplier Cameco (TSX:CCO) have been performing well recently, buoyed by soaring uranium spot prices and strong operating results. However, the growth potential for Cameco stock may be greater the next decade. And actually Cameco isn’t the only commodity stock on the TSX with long-term growth potential.

Cameco Stock

Cameco stock was chased by investors amid Western sanctions against Russia for its invasion of Ukraine. For investors who are bullish on the long-term prospects for nuclear power, the case for buying this stock now remains strong.

That’s because Cameco is one of the world’s largest uranium producers and the world’s largest publicly traded uranium company, and uranium is undoubtedly in a bull market right now, and prices are expected to remain firm for a much longer period of time.

On top of that, investing in Cameco stock is a great way to diversify away from oil and gas investments and invest in the future of renewable energy. The company already has long-term uranium supply contracts with several utility companies. So with shares up 66% over the last year, this stock could rise even higher in 2024.

Teck Stock

Teck Resources (TSX:TECK.B) is another stock that offers diversified investment opportunities. The company provides basic materials obtained through mining, including copper, zinc, coal, and energy, and has operations in the Americas, Asia Pacific, and Europe, avoiding the shock of geopolitical instability in a particular country or region. On top of that, Teck has been increasing production of tight products such as copper, zinc and steelmaking coal, and it has spun off another steelmaking coal business.

The long-term growth of Teck’s stock comes from the financial stability that comes from a streamlined business and strong cash flow. It’s thanks to a strong business and growth opportunities that Teck stock is up 22% over the last year. And it’s likely that this stock will continue to post steady gains for years to come.

Lundin Mining Stock

In the mining space, Lundin Mining (TSX:LUN) is also a stock to watch. About 63% of the company’s operations are focused on copper production, and demand for copper is expected to continue to grow. Copper is widely used to power renewable energy assets, pipelines and electronics. As a conductor of electricity, copper is also an important part of the digital revolution.

The company produced record volumes last year and is able to continue to increase production. Lundin also offers more diversified assets such as zinc and nickel, but copper should be the main driver of long-term growth. Management has a long history of focusing on operational excellence and cost management in the mining business, which will help the company to grow further in the coming years. Lundin shares are up 57% over the last year, but given the potential for longer-term growth and expectations of stronger copper prices, this mining stock is still worth considering to buy nowadays.

If you’re interested in investing in mining stocks, you might want to keep an eye on this company: Silver Storm Mining Ltd. (TSXV:SVRS). Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Golden Tag recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd mill as well as five underground mines and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico.

Disclaimer: Investing involves risk, and individuals should conduct thorough research and seek professional advice before making financial decisions. NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.

Base Metals Coal Copper Value Stocks