Canada has a wealth of natural resources, including a lot of materials and metals. Canadian mining companies have struck gold (literally), and have continued to mine for other metals that are in demand internationally. Canadian mining companies have the unique advantage of a safe and secure business atmosphere and governmental support to increase metal production.
As for investors, Canadian mining stocks promise great returns and tend to be more affordable than big mining companies located south of the border. In this article, I shall discuss three Canadian mining stocks with market values that are equal to or less than $30.
This gold mining stock pays great dividends
Agnico-Eagle Mines Limited (USA) (NYSE:AEM) is a Toronto-based gold producer that operates in Mexico and Finland, along with Canada. As of 2010, it had paid cash dividends for 29 consecutive years, making it one of the most attractive mining stocks to own. It has a “no forward gold sales” policy and is considered one of the most transparent gold mining companies in the world.
In Canada, the company operates in LaRonde, Goldex and Lapa, all of which are located in Quebec. Meadowbank, an open pit mine, is located in Nunavut. Other than these, Agnico-Eagle Mines Limited (USA) (NYSE:AEM) also has mines in Kittilä in Northern Finland, and Pinos Altos in Mexico.
With exploration and development projects in the U.S., Agnico-Eagle is one of the most promising Canadian gold-mining stocks. Agnico-Eagle’s assets across business-friendly destinations such as Finland, Mexico and of course, Canada make the company a long-term buy. Finland and Canada have the least security-related problems while Mexico’s security problems do not affect mining companies. Precisely for its stability and security, I give a thumbs-up to Agnico-Eagle Mines Limited (USA) (NYSE:AEM).
It currently trades at $30 and has a market cap of $5.2 billion. With a profit margin of 14% and an operating margin of 24%, it is one of the most profitable gold mining companies I have come across, almost giving larger and more glamorous gold mining stocks a run for their money.
Alamos Gold is a little known gold mining stock
Alamos Gold Inc (NYSE:AGI) is one of the best kept secrets among the mining community. This Toronto-based company owns a group of concessions in Sonora, Mexico and Agi Dago and Kirazli gold projects in northwestern Turkey. Both the mining concessions are located in business friendly countries and Alamos Gold does not have much to risk in terms of geopolitics.
The mining concessions hold vast reserves of gold and considering the demand for gold internationally, Alamos Gold Inc (NYSE:AGI) has a wide and far-reaching market for its products.
Moreover, thanks to a favorable business environment in Canada, we can expect Alamos Gold Inc (NYSE:AGI) to be a good long-term option. The company has a staggering 33% profit margin and a 49% operating margin, suggesting immense potential for profitability. With a return on assets of 14% and a return on equity of 17%, Alamos Gold is managed effectively. At $14, Alamos Gold is one of the more affordable gold mining stocks to purchase.