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Highlights
- The S&P/TSX Global Base Metals Index surged by 56.55 per cent year-over-year on Friday, October 22.
- A metal stock mentioned below soared by about 545 per cent over the past year.
- One of the mining companies here posted a return on equity (ROE) of 6.14 per cent.
Investors are always seeking healthy options to invest their money in for long-term returns. At the moment, base metals seems to be among the sectors that are gaining momentum in the Canadian market.
On Friday, October 22, the S&P/TSX Global Base Metals Index noted a year-over-year (YoY) return of 56.55 per cent and a year-to-date (YTD) return of 19.75 per cent.
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On that note, let us glance through some of the metals stocks listed on the TSX that could be profitable in future.
1. First Quantum Minerals Inc (TSX: FM)
A base metal explorer and producer, First Quantum Minerals Inc witnessed its stock price rise by 0.377 per cent to close at C$ 29.32 on October 22.
At this level, its stock had fallen by over 16 per cent from its one-year high price of C$ 35.07 (May 10, 2021).
However, stocks of the Toronto-based diversified metal company have increased by more than 106 per cent on a year-over-year (YoY) basis and noted a year-to-date (YTD) growth of more than 28 per cent.
It also jumped up by about 25 per cent in the previous nine months as well as expanded by some 30 per cent in the past 30 days.
The C$ 20.25-billion market cap miner posted a price-to-earnings (P/E) ratio of 49.40, and a return on equity (ROE) of 3.38 per cent on Monday, October 25.
Additionally, it held a dividend yield of 0.034 per cent and a price-to-book (P/B) ratio of 1.782.
- Filo Mining Corp (TSX: FIL)
Stocks of Filo Mining Corp posted a day high of C$ 12.09 during the trading session on October 22.
However, at market close, the metal scrip dropped by nearly four per cent to C$ 11.61 apiece, which still weighed up by 2.291 per cent from the previous close.
Its stock soared by about 545 per cent over the past year and climbed by nearly 502 per cent on YTD. It also scaled up by almost 263 per cent in the previous six months and gained nearly 38 per cent in the last 30 days.
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The base metals and precious metals company held a market capitalization of C$ 1.32 billion and a P/B ratio of 38.7, as on October 22.
3. Neo Performance Materials Inc (TSX: NEO)
A rare earth elements (REE)-focused integrated mining firm, Neo Performance Materials Inc noted its stock rise by 9.949 per cent to C$ 21.77 per share at market close on October 22. During this session, the scrip had hit an all-time high price of C$ 21.89.
The metal stock rose by almost 80 per cent in the last one year, and gained about 58 per cent on a YTD basis.
It also surged by about 28 per cent in the past three months and jumped by approximately 23 per cent in the last 30 days.
Neo recorded an ROE of 6.14 per cent and a dividend yield of 1.837 per cent on October 25.
Bottom line
The rise reflecting in the base metal sector at the moment could be an option to explore for higher returns in the long run.
However, investors should bear in mind the demand and supply factors of the respective commodities before venturing into commodity stocks, in addition to their own investment preferences and risk capacity.
