The coronavirus pandemic has triggered one of the biggest correction in the stock market. While most stocks are already in the bearish territory, some Canadian mining stocks are already providing exciting investment opportunities. Barrick Gold Corp (TSE: ABX) Kirkland Lake Gold Ltd (TSE: KL) and Largo Resources Ltd (TSE: LGO) are some of the stocks worth paying attention to even as the COVID-19 pandemic continues to cause havoc.
Kirkland For A Growing Portfolio
For years, Gold has always acted as a safe haven. Similarly, mining companies producing gold are showing signs of bouncing back after the recent correction. Kirkland Lake Gold Ltd (TSE: KL) is an ideal pick for investors looking to bet on the Canadian mining industry. In addition, KL is an ideal stock for protecting and growing a portfolio during the market crash triggered by the COVID-19 pandemic.
Kirkland has continued to expand rapidly in the mining industry thanks to cost-saving initiatives. In addition, rising sales and falling costs have seen #KL free cash flow rise to new heights. For income-focused investors, this is an ideal pick as management has opted to raise dividends and carry out buybacks as a way of returning value to shareholders.
After a recent pullback lower, $KL has once again started rallying. The bounce-back presents an opportunity to buy the stock at a discount as Kirkland remains well-positioned to benefit a great deal on rising gold prices.
Barrick Gold Competitive Edge
Shares of Barrick Gold Corp (TSE: ABX) were on an impressive run in 2019, rallying by more than 40%. However, they have pulled lower in 2020 at the backdrop of a market correction triggered by the coronavirus pandemic. While the stock has pulled lower, its fundamentals remain solid more than ever, affirming prospects as a long-term play.
Barrick gold stands out as one of the best mining companies in Canada, given its solid balance sheet. Unlike other players in the industry, #ABX is well-positioned to navigate the challenges triggered by the COVID-19 pandemic.
Being one of the biggest gold producers in the world, the company should be able to generate significant returns at the backdrop of current god, prices. With gold prices finding support above the $1500 level, Barrick mining operation should generate more value than in the past. In addition, $ABX is a defensive dividend stock ideal for income-focused investors.
Largo For Diversification
Largo Resources Ltd (TSE: LGO), on the other hand, is an ideal pick for investors looking to diversify their exposure in the Canadian mining industry beyond gold stocks. The company stands out from the pack on the fact that it operates a diversified portfolio of mines with Vanadium, iron, tungsten as well as Molybdenum prospects.
The exploration and mining company maintains operations in Canada and Brazil. The vast portfolio of natural resources, as well as mines, means #LGO will be a key player in fuelling industrial activities once everything bounces back to normalcy.
While the small-cap stock has taken a significant hit in recent months, it is once again showing signs of rising from the dead. A diversified portfolio of asset mines means $LGO has what it takes to bounce back once the COVID-9 pandemic subsides.
