Want to invest in gold? What about Lithium, which powers the batteries of electric cars and is a sustainable new energy? Then you need to follow Canadian stock news. A quoted 47% of the world's public mining companies list on the combined Toronto Stock Exchange (TSX) or Toronto Stock Venture Exchange (TSXV), and the Canadian exchange facilitated over 50% of all global mining-sector stock financing since 2016. Despite competition from countries in Africa and Asia, the TSX capital markets remain the primary location for mining sector stocks and operations, offering investment opportunities for listed companies and potential investors alike.
Plus, Canada is the world-leader in mining finance. We break down the TSX and TSXV's power in the market as well as 4 Canadian stocks to watch including gold operations.
The TSX and mining stocks
The TSX owns a unique position within global markets. While it holds a lower total valuation than titans such as the New York Stock Exchange or the Nasdaq, its wealth of mining company listings have made it the centre for natural resource financing. As of August 2021, 1129 businesses of different sizes and stages of growth now trade on the TSX or TSXV, presenting potential gains — a 520% share price change occurred in 2021 across the top 50 Mining TSX Stocks.
Several favorable conditions help place the TSX as a global hub for mining company investment. Tax incentives, policy stability, governmental support, and capital financing help the TSX grow a mining market capitalization of $521 billion. Several companies in the natural resource sector, a sector known for volatile commodity prices and cyclical fluctuations, have outperformed industry benchmarks. These stocks can feature in your own diversified portfolio.
Mining companies earned the top spots in the TSX’s 2021 performance rankings, and each of those companies deserves a detailed look. Read on to learn more about the top 4 Mining TSXV stocks.
The top 4 mining companies for 2021
The exchange announced its best-performing Mining TSX stocks for 2021 based on market capitalization growth, share price appreciation, and overall trade volume. Let's look into the Top 5 Mining Companies of 2021.
American Lithium (LI:TSXV)
American Lithium is a Canadian-based company with a focus on early-stage exploration and mining development of Lithium. Lithium is hard to process and involves an immense amount of infrastructure, and American Lithium provides those services with mines across North and Latin America. Lithium demand has begun to return as Ion batteries in electric vehicles require the mineral, coinciding with American Lithium's push for sustainable new energy.
American Lithium enjoyed an 876% share price change due to reports of increased lithium extractions, 97.4% with the use of sulfuric acid leach. Key partnerships with governments for new drilling sites also suggest rapid growth, and the CEO Simon Clarke recently met with President Pedro Castille to discuss how American Lithium can develop Peru’s lithium and uranium deposits. Improvements in salt roast extractions and a pipeline of mergers and acquisitions, Plateau and Crescent Dunes Project, show healthy business operations.
Cabral Gold (CBR: TSXV)
Cabral Gold maintains a strong presence in Brazil, where it conducts the explorations and development of gold and copper. It is a junior resources company that maintains a 100% interest in the development of the Cuiú Cuiú project within the Tapajos region.
The company quotes indicated resources of 48.6mt of gold, and it operates six drills (they added two new rigs the past year). News throughout the summer spoke of the expanded gold-in-oxide blanket in the region as the company continues to increase its scope. The blanket speaks to a yet unidentified gold location in addition to the current deposits.
Several public offerings helped the company raise further capital through the TSX. While thoughts of dilution persist, the aggressive growth of the company speaks to the exploration and development of its gold deposits, leading to a 492% share price increase.
Sterling Metals (SAG:TSXV)
Sterling Metals seeks out Canadian deposits of silver and other base metals. In particular, it operates the Sail Pond project in Newfoundland, a location with high-grade silver, copper, quartz, lead, and zinc. The company made financial investments for the option of 100% project earnings, and the location is accessible via roads and an airport.
16 drill holes have already begun to capture the found silver targets, and it completed the private placement of units to raise funds for site preparation. Investors warmly received the news of the new 13,500 Ha site, leading to a 580% share price jump.
Prime Mining Company (PRYM:TSXV)
Prime Mining Company bills itself as a mix of capital marketing mining executives and local operators. The company is a gold producer in the Mexican Los Reyes project, and they recently found more gold and silver zones at Las Primas, Noche Buena, and Guadalupe East (which speaks to the historical upside of the Los Reyes location).
Exercised warrants helped support the company's cash flow as they took on active drilling and further exploration within the mineral-rich area. Private placements, insider purchases of $4.2 million, and a doubling in its land position speak to a bright future despite losses in the fourth quarter. Still, Prime Mining earned the fifth-place spot in the TSX top 50, enjoying a share price increase of 519%.
The TSX offers investors the ability to locate and engage with attractive mining companies. The exchange functions as a global mining hub, and its financing opportunities and government support help create conditions favorable to the growth of both junior and major commodity players. The top five listings of the TSX 2021 top performers are all mining stocks, and each company experienced meteoric gains the past year. Consider diversifying your portfolio with TSX from the energy sector primed for continued expansion.