Canada: Mining Industry Buzzing After Justin Trudeau Election: Stocks To Watch

The election of Justin Trudeau is a welcome for the Canadian mining industry going by the congratulatory messages the president continues to receive. The Mining Association of Canada and the Prospectors and Developers have already echoed their belief and commitment of working together with the liberal government to spearhead growth in the mining industry.

Canada Mining Sector                                     

In return, the two associations are pushing the federal government to provide a competitive investment and friendly environment to spur the industry. Mining is a key sector in Canada, employing more than 600,000 workers. The sector contributes more than 5% of the country’s gross domestic product making it one of the critical drivers of the economy.

The Liberal government has so far been friendly to the mining industry having already committed to resource sector electrification as well as infrastructure investments and indigenous reconciliation. The sector is consequently looking forward to working with the government to tap tremendous opportunities, this time in the North where there are tremendous mining opportunities.

While the mining sector is also pushing for friendly regulatory frameworks, the sector is also seeking firm commitments related to infrastructure and innovation investments. Increased investments in this frontier should allow Canada to remain competitive amidst growing global forces.

For that reason, the two mining associations are looking forward to working with the government on high priority matters that have the potential to influence the industry. Some of the issues that need to be sorted out include responsible access to land for mining purposes.

The mining associations are also pushing for regulatory certainty at a time when mining operations have come under immense scrutiny amidst growing concerns about their impact on environmental pollution. Regulatory certainty, in this case, should allow the country to improve discovery rates of minerals and metals most of which are essential to the everyday life while also supporting a low carbon future.

Amidst a push for closer working ties between the federal government and the mining sector, a number of mining companies are already providing exciting investment opportunities.

Canadian Mining Stocks To Watch

North American Palladium (TSX:PDL) is one of the mining stocks that stands out for investors looking to generate returns on stock appreciation and dividends. The palladium producer stands out in part because of its growing free cash flow as well as growing dividend. Growing demand for palladium in the manufacturing of electronic and industrial products means the company is on its way to generating significant revenues.

Wheaton Precious Metals (TSX:WPM) on the other hand, is an ideal investment pick for investors looking to gain exposure to precious metals whose prices continue to inch higher. Unlike traditional mining companies, Wheaton does not engage in mining but instead provides upfront mining capital in exchange for some of the precious metals extracted at a discounted price. The company currently pays $400 for an ounce of gold, which is currently trading at more than $1400 in the market.

Wesdome Gold Mines (TSX: WDO) is a gold mining company for investors cautious about cross border issues. The company is entirely focused on Canadian assets with high returns of as much as 60%. The stock is an ideal pick for defensive growth investors looking to gain exposure to gold mining at a time when prices are skyrocketing. The company boasts of a capacity of over 200,000 ounces at two gold mines in Quebec and Ontario.

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This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.


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