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Canada is home to vast mineral resources, and mining and production of these resources play a critical role in its economy. Resources like uranium, zinc, nickel, iron ore, gold, copper, cadmium, and more are being produced by Canadian companies.Highlights
- Agnico Eagle’s joint venture project found a 1-metre intercept, grading 10.10 g/t gold in one of the Avan expansion holes.
- In the fourth quarter of 2022, Barrick improved its production by 13 per cent from the prior quarter.
- Teck Resources (TSX:TECKa) Limited sold one of its coal mines for a cash price of C$ 120 million.
The commodities Canada produces tend to provide value as inflation barriers, which has somewhat shadowed the Canadian mining industry from inflationary pressures and concerns about recession. At the same time, gold witnessed strong momentum against the US dollar in the last quarter of 2022.
Keeping the above in mind, let’s look at three TSX-listed mining companies and their recent developments:
Agnico Eagle Mines Limited (TSX: TSX:AEM) Founded in 1957, Agnico Eagle Mines Limited is a Canadian gold mining company that produces precious metals across Canada, Australia, Mexico, and Finland. With existing exploration projects, the company hopes to branch out in the US and Colombia.
Agnico Eagle has been delivering cash dividends to its shareholders since 1983; the recent quarterly dividend was equivalent to C$ 0.40 per share. On the other hand, the annual dividend yield was 2.968 per cent alongside a 44.05 per cent dividend growth rate on a 3-year term.
Earlier this week, Agnico Eagle received an operational update regarding its joint venture, Barsele Gold-VMS Project. The company has 55 per cent ownership in the project, while Barsele Minerals Corp. (TSXV: BME) owns the remaining.
As part of its environment, social, and governance initiatives, the company has recently released it first climate action report. As per the report, Agnico Eagle has committed to achieve net-zero Scope 1 and Scope 2 carbon emissions by the year 2050.
Image Source: © 2023 Krish Capital Pty. Ltd.
Barrick Gold (NYSE:GOLD) Corporation (TSX: ABX) Barrick Gold Corporation falls under the world’s largest gold producers list with mines in South and North America, Australia, and Africa. This Canadian mining company’s annual dividend yield was 3.276 per cent, with earnings per share (EPS) of C$ 1.27.
Barrick Gold Corporation mentioned increasing its production numbers by 13 per cent compared to Q3’22 in the fourth quarter of fiscal 2022. The company sold 1.11 million ounces of gold alongside 99 million pounds of copper in Q4’22 on average market prices of US$ 1,726 per ounce and US$ 3.62 per pound, respectively.
While Barrick’s gold production in the fourth quarter was the highest for 2022, copper production lowered due to increased waste stripping.
Besides its existing exploration projects, Barrick plans to add Balochistan’s copper-gold mine Reko Diq. The company recently announced that it had completed all legal processes and definitive transaction agreements for Reko Diq to start production by 2028. Barrick owns 50 per cent of the project, followed by Balochistan with 25 per cent and three Pakistani businesses with the remaining 25 per cent.
Teck Resources Limited (TSX: TECK.A) Teck Resources Limited operates as a diversified Canadian miner, with metallurgical coal and copper being its primary revenue-generating commodities. The company is heading towards a low-carbon portfolio; therefore, Teck is establishing a copper mine in Chile to accelerate its copper production by about 80 per cent.
With an annual dividend yield of 0.909 per cent, the company has paid its stockholders a quarterly cash dividend of C$ 0.125 per share.
Teck reported that sales of steelmaking coal in Q4’22 fell short of the previously stated guidance of 5-5.4 million tonnes to 4.3 million tonnes due to extreme cold weather in western Canada. Another piece of news for Teck shareholders came in the fourth quarter of 2022; the company sold Quintette Steelmaking, one of its coal mines, to Conuma Resources Limited for C$ 120 million in cash and a 25 per cent net profits interest royalty.
Bottom Line Recessionary concerns still remains and it is difficult to predict what’s in store for the equities markets. Therefore, research is crucial before investing your hard-earned money in mining or any other stocks.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
