Canada derives much of its wealth from its plentiful natural resources and as a result has some of the largest mining companies in the world. Investors seeking exposure to the Canadian mining sector may want to consider some of the options. The following is a rundown of the five largest Canadian mining companies by market capitalization.
Barrick Gold Corporation
The company operates mines in North America, South America, the Middle East, Africa, and Australia. Barrick produced more than 4.53 million ounces of gold in 2018. The company holds a number of large and undeveloped gold deposits. Barrick had a market cap of $31 billion at the start of 2020.
In 2019, Barrick and Newmont Goldcorp established Nevada Gold Mines LLC. The company is owned 61.5% by Barrick and 38.5% by Newmont. This joint venture is one of the largest gold producing complexes in the world, which includes three of the Top 10 Tier One gold assets.
Nutrien (NTR) is a fertilizer company and the largest producer of potash in the world. It is also one of the largest producers of nitrogen fertilizer. Nutrien was born in 2016 through a merger between Potash Corp. and Agrium Inc., with the deal closing in 2018. The merger combined the fertilizer mines of Potash and the direct to farmer retail network of Agrium. Nutrien has a $27 billion market cap as of Jan. 2020.
In early 2020, Nutrien announced that it will be purchasing Agrosema, a Brazilian Ags retailer. This is inline with Nutrien's strategy to grow its presence in the Brazilian agriculture market.
Agnico Eagle Mines Ltd.
Agnico Eagle Mines (AEM), founded in 1957, produces precious metals with mines in Finland, Mexico, and Canada. It also runs exploration activities in these countries as well as the United States and Sweden.
With a market cap of $18.6 billion, Agnico Eagle has paid out an annual dividend since 1983, making it an attractive investment choice. In 2018, the firm's gold production totaled 1,626,669 ounces, beating its targets, which it has now done for its seventh consecutive year.
Teck Resources Ltd.
Teck Resources (TECK) is a diversified natural resources company engaging in mining and mineral development with an ownership interest in mines in Canada, the United States, Chile, and Peru. The company had a market cap of $8.9 billion at the start of 2020. Teck has business units in copper, steelmaking coal, zinc, and energy. It is the largest producer of steelmaking coal in North America and the world's second-largest exporter of seaborne steelmaking coal. The company also mines specialty minerals including germanium and indium.
Founded in 1951, Teck has been voted one of the most sustainable mining companies in the world. Most recently, it entered into an expanded relationship with Ridley Terminals Inc, which doubles its capacity of metallurgical coal from British Columbia. Teck also recently purchased SunMine, a solar generating facility, for $2 million. The purpose is to potentially implement solar power at its operations and advance renewable energy.
Kirkland Lake Gold Ltd.
Kirkland Lake Gold (KL) is a gold mining company with operations in Canada and Australia. In 2019 the firm produced 974,615 ounces of gold with a market cap of $9.4 billion in Jan. 2020. Kirkland is a much smaller company when compared with some of its peers, but it has seen incredible growth in its mining capabilities. Its production grew 34.7% from the prior year.
Kirkland will be purchasing Detour Gold Corp., for approximately $3.7 billion. The acquisition will add a large Canadian mine to Kirkland's asset holdings and allow for exploration within the area.