Yahoo Finance 3 Canadian Mining Stocks Realizing Major Tailwinds in This Environment
Written by Daniel Da Costa at The Motley Fool Canada
With several different factors impacting the stock market and economy, there’s a lot for investors to keep track of. One thing’s for sure, though, Canadian mining stocks are some of the best to buy now as they realize significant tailwinds in the current environment.
Already many commodities prices were seeing major booms due to sky-high inflation at levels we haven’t seen in decades. And now, the war in Ukraine is having a significant impact.
There are significant sanctions being placed both on Russia and Belarus. And these almost certainly won’t be short-term sanctions. So the production of key commodities will need to be sourced elsewhere, leading many Canadian stocks to have a tonne of short to medium-term potential.
Therefore, if you’re looking to gain exposure and buy some of the best Canadian mining stocks, here are three you may want to buy, as they are realizing significant tailwinds today.
Gold stocks are some of the best to buy now
Anytime that uncertainty picks up, gold prices typically gain. So if you’re looking to add protection to your portfolio, or are just looking to increase your exposure to the yellow metal, B2Gold (TSX:BTO)(NYSEMKT:BTG) is one of the best Canadian stocks to buy now.
Gold stocks have always offered investors a great way to gain exposure to the gold price. However, they never really made great long-term growth stocks due to how volatile they were and how they would perform when they were out of favour.
With B2Gold, you don’t have to worry about that. It’s one of the lowest-cost producers in the industry, giving it several advantages. Furthermore, it has a net cash position, so its balance sheet is extremely strong. And most importantly, because it’s a low-cost operator, B2Gold pays a dividend, one of the most attractive of any gold stock you can buy.
So if you’re looking for Canadian mining stocks to buy in this environment, I’d consider B2Gold soon. Since the war broke out, the stock has already gained roughly 15%.
One of the best Canadian stocks to buy and hold for years
One of the most popular stocks lately and easily one of the best Canadian stocks to buy and hold for decades is Nutrien (TSX:NTR)(NYSE:NTR).
Nutrien is the largest producer of potash in the world. The company is a massive fertilizer producer that is rapidly increasing production to help offset the shortages created by recent sanctions.
But while Nutrien is realizing a significant tailwind today, it’s more than just a mining company and has always been a high-quality investment and one of the best Canadian stocks you can buy.
One of the most important reasons Nutrien is such a high-quality investment is that it’s vertically integrated. The company is not just a major producer, it also owns and operates processing facilities, and it has a massive retail segment.
Plus, on top of this vertical integration, it operates in the agriculture industry, which is essential and will continue to grow long term, making Nutrien the perfect core portfolio stock.
There’s no question, though, that almost all of its recent growth is due to external tailwinds. With that being said, without Nutrien being a high-quality company that dominates its industry, it wouldn’t be able to take full advantage of the situation as it is now.
So if you’re looking for top Canadian mining stocks to buy, Nutrien has always been one of the best there is.
Plus, even other industries and commodities, such as uranium, are seeing a significant tailwind. That’s why another stock seeing a significant boost lately is Cameco. The producer is up roughly 33% since the war started as the price of uranium is up by nearly 50%.
So if you’re looking for high-quality Canadian stocks to buy now, top-notch mining stocks are some of the best to consider.
The post 3 Canadian Mining Stocks Realizing Major Tailwinds in This Environment appeared first on The Motley Fool Canada.
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Fool contributor Daniel Da Costa owns B2GOLD CORP. and Nutrien Ltd. The Motley Fool recommends B2Gold and Nutrien Ltd.
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