Investors in the TSX mining and metals stocks on our list are being paid while they wait for capital gains
SmallCapPower | January 25, 2017: President Trump has made numerous statements regarding making America great again and rebuilding its roads, bridges, rail systems, airports, etc. Recently, U.S. Democrats unveiled a proposal to spend $1 trillion over the next 10 years to build new and repair old infrastructure. The market reacted favourably to the news, and the future seems bright for iron, steel, copper and other metal producers. Today, we have identified four TSX mining and metals stocks that currently pay a 5%+ dividend yield while investors wait for potential capital gains.
Russel Metals Inc. (TSX: RUS) – $26.81
Iron & Steel
Russel Metals Inc. is a metals distribution company. Its segments include metals service centers, energy products and steel distributors. The metals service centers segment provides processing and distribution services to a base of end users. Its Energy Products segment distributes oil country tubular goods (OCTG), line pipe, valves and fittings to the energy industry. The Steel distributors segment distributes, sells steel to other steel service centers and equipment manufacturers. Its metals service centers provide a line of products in various sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel and aluminum.
- Market Cap: $1,655 million
- Total Revenue (LTM): $2,598 million
- Dividend yield: 5.7%
- 52-week Price PCT Change: +66.7%
Mandalay Resources Corp. (TSX: MND) – $0.88
Mandalay Resources Corporation is a Canada-based mining company that is engaged in the business of exploration, development and mining of natural resource properties. It holds interest in properties, such as Costerfield, Australia; Cerro Bayo, Chile, and Bjorkdal, Sweden. In addition, the Company owns and develops Challacollo, which is a silver-gold project located in Region I (Tarapaca) of Chile, approximately 130 kilometers southeast of the port city of Iquique. Its Cerro Bayo is a producer of silver (Ag) and gold (Au), located in the Cerro Bayo district, Region XI, Chile. Its Bjorkdal project is a gold mine located in northern Sweden. Its Costerfield is a gold-antimony mine, located approximately 100 kilometers northwest of Melbourne, Victoria.
- Market Cap: $397 million
- Total Revenue (LTM): $260 million
- Dividend yield: 5.5%
- 52-week Price PCT Change: +23.9%
Labrador Iron Ore Royalty Corp. (TSX: LIF) – $18.76
Iron & Steel
Labrador Iron Ore Royalty Corporation (LIORC) is a Canada-based company, which owns interests in Iron Ore Company of Canada (IOC) that operates an iron mine near Labrador City, Newfoundland and Labrador on lands leased from LIORC. The Company, through its subsidiary, Hollinger-Hanna Limited (Hollinger-Hanna), holds approximately 15.10% equity interest in IOC. The Company operates through the segment of its investment in IOC and its IOC royalty and commission interests. LIORC holds certain mining leases and mining licenses covering approximately 18,200 hectares of land near Labrador City. IOC is an iron ore producer, operating a mine, concentrator and pellet plant, and is a producer of iron ore pellets across the world. IOC has the capacity to extract approximately 50 million tons of crude ore annually.
- Market Cap: $1,201 million
- Total Revenue (LTM): $98 million
- Dividend yield: 5.3%
- 52-week Price PCT Change: +122.0%
Nevsun Resources Ltd. (TSX: NSU) – $4.19
Specialty Mining & Metals
Nevsun Resources Ltd is a Canada-based base metals mining company engaged in the acquisition, exploration, development and operation of mineral property interests. Its principal property is the Bisha Property, which hosts a gold, copper and zinc deposit, and includes satellite volcanogenic massive sulfides (VMS) deposits at Harena, Northwest, Hambok, Aderat and Asheli. The Company’s principal mining operation is the Bisha Mine, an open pit copper-zinc mine. The Company also develops the Timok copper and gold project, which is located in Serbia.
- Market Cap: $1,261 million
- Total Revenue (LTM): $343 million
- Dividend yield: 5.2%
- 52-week Price PCT Change: +16.4%