Some of the largest mining companies in the world are headquartered in Canada. The country's wealth includes a significant amount of natural resources. Investors seeking exposure to the Canadian mining sector may want to consider some different options. The following is a rundown on the five largest Canadian mining companies by market capitalization.
Potash Corp. of Saskatchewan, Inc.
Potash Corp. of Saskatchewan, Inc. (NYSE: POT) is the largest Canadian mining company, with a market capitalization of $30 billion in 2015. Potash produces crop nutrients, including potash, phosphate and nitrogen. It also manufactures products such as fertilizer, feed, industrial products, purified acid and metal finishing.
The phosphate is mined from mineral deposits in prehistoric evaporated seas. This phosphate is mixed with acid for its products. The nitrogen is used to help increase the speed at which plants grow and supports greater crop yield. The company was originally founded by the government of Saskatchewan in 1975. It went public in 1989, after which the government liquidated its ownership interest.
Agrium, Inc. (NYSE: AGU) is headquartered in Calgary. It is a supplier of retail agricultural products and services in North America, South America and Australia. The company produces nitrogen-based fertilizers, sulfate and phosphate fertilizers. Agrium operates a number of potash mines in Canada to obtain the raw materials for the fertilizers. The company had gross revenues of $16.2 billion in 2013, with a market cap of around $14.22 billion. It has a significant number of retail operations around the world.
Goldcorp, Inc. (NYSE: GG) is engaged in the exploration of gold and other minerals. It has major mineral properties in Canada, the United States, Mexico, and Central and South America. The company is headquartered in Vancouver and employs more than 18,00 people worldwide. It produced 2.087 million ounces of gold at a cost of around $949 per ounce in 2014. It also had a large market cap of around $14 billion, as of 2015. The company seeks to deliver long-term value with superior returns for its shareholders. However, lower gold prices have hurt its revenues.
Barrick Gold Corporation
Barrick Gold Corporation (ABX) is the largest gold mining company in the world with regard to the amount of gold produced. Headquartered in Toronto, the company was originally an oil and gas company but evolved into a mining company.
The company operates mines in North America, South America, the Middle East, Africa and Australia. Barrick produced more than 6.25 million ounces of gold in 2014. Around 60% of its gold production is from five major mines in North America. The company further holds a number of large and undeveloped gold deposits. Barrick had a market cap of around $8 billion as of 2015. It has seen its share price go lower with prices for gold and other commodities under pressure.
Teck Resources, Ltd.
Teck Resources, Ltd. (NYSE: TCK) is a diversified natural resources company engaging in mining and mineral development with ownership interest in 15 mines in Canada, the United States, Chile and Peru. The company had a market cap of $5.32 billion, with gross revenues of $8.6 billion in 2014. Teck has business units in copper, steel-making coal, zinc and energy. It is the second-largest exporter of coal for steel making and is a top-10 copper producer in North America.
The company also mines specialty minerals including germanium and indium. It was founded in 1951 and is headquartered in Vancouver. It has been voted one of the most sustainable mining companies in the world. Teck lists its objectives as building shareholder value, safety, sustainability and creating beneficial relationships with partners and stakeholders.