Investing in the mining sector can be highly rewarding but also comes with its fair share of risks. However, for those who are willing to take on the challenge, the potential for substantial gains can be quite enticing. In the Canadian market, several mining companies have recently demonstrated significant weekly gains, catching the attention of investors. Here, we take a closer look at the top five Canadian mining stocks that performed exceptionally well in the past week.
1. Canuc Resources (TSXV:CDA)
Canuc Resources experienced a remarkable weekly gain of 46.15 percent. The company currently boasts a market capitalization of C$15.32 million, with its share price standing at C$0.19. Canuc Resources operates the San Javier silver-gold project in Sonora, Mexico, and also generates income from the producing MidTex natural gas project in Texas, US.
The company successfully completed a series of private placement financings in 2023, with the latest one taking place in June. These funds are intended to be used for the 2023 exploration program at the San Javier project. Though there was no significant news release from Canuc Resources last week, the stock price reached C$0.15 on both Thursday (July 20) and Friday (July 21), indicating a promising upward trend.
2. Eskay Mining (TSXV:ESK)
Eskay Mining is another standout performer with a weekly gain of 28.41 percent. With a market cap of C$183.62 million and a current share price of C$1.13, Eskay Mining is focused on exploring its consolidated Eskay property. The property, located in the Golden Triangle region of British Columbia, Canada, hosts various precious and base metals prospects.
While Eskay Mining didn’t release any significant news last week, its share price steadily climbed throughout the week, reaching its peak on Friday. The company shared its exploration plans for the Eskay property in May, setting a positive trajectory for its future prospects.
3. Tincorp Metals (TSXV:TIN)
Tincorp Metals registered a weekly gain of 25 percent and currently holds a market cap of C$26.62 million, with its share price at C$0.40. The company’s portfolio includes both tin and gold projects. In Bolivia, Tincorp has the option to acquire up to a 100 percent interest in two tin projects: Porvenir and SF Tin. Additionally, Tincorp owns the 100 percent owned Skukum gold project in Yukon, Canada.
In May, Tincorp Metals commenced its 2023 exploration at the Porvenir tin project. Although the company’s latest news dates back to June, its share price surged from C$0.32 to C$0.40 on Tuesday (July 18), indicating heightened investor interest.
4. Nicola Mining (TSXV:NIM)
Nicola Mining witnessed a weekly gain of 21.43 percent and currently possesses a market cap of C$51.1 million, with its share price standing at C$0.17. The company owns and operates a mill and tailings facility in British Columbia, where it processes gold and silver feed for other companies. Nicola Mining also holds the New Craigmont copper property and Treasure Mountain silver project in the province.
On July 5, Nicola Mining announced that it has begun shipping gold concentrate produced with Osisko Development and has completed the first four holes of its 2023 diamond drilling campaign at the New Craigmont property. Although there have been no further news releases, the company’s share price began rising on Monday (July 17) and peaked at C$0.175 on Friday.
5. Grid Metals (TSXV:GRDM)
Grid Metals secured a weekly gain of 20.69 percent, boasting a market cap of C$29.45 million and a share price of C$0.175. As a battery metals company, Grid Metals is primarily focused on lithium, nickel, and copper exploration in Manitoba, Canada. The company’s two lithium properties, Donner Lake and Falcon West, host high-grade pegmatites. Additionally, Grid Metals is developing its Makwa Mayville nickel-copper project.
Last Tuesday, Grid Metals released a maiden resource estimate for Donner Lake, reporting an inferred resource of 6.81 million metric tons grading 1.39 percent lithium oxide. In the same release, Grid Metals revealed that it has signed a binding lease agreement with 1911 Gold to use the True North mill, which will be reconfigured for lithium spodumene concentrate production.
While investing in mining stocks carries inherent risks due to commodity price fluctuations and operational challenges, the recent weekly gains of these Canadian mining companies have undoubtedly piqued the interest of investors. Each company has its unique set of projects and exploration plans, which could pave the way for potential growth and further success. Investors should exercise due diligence and conduct thorough research before considering any investment in these or other mining stocks. As always, it is advisable to consult with a financial advisor to align investment strategies with individual risk profiles and financial goals.