Top Zinc Stocks on the TSX

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Zinc prices have been at the mercy of smelters and treatment and refinement charges for the past few years. However, zinc was one of the best-performing metals in 2020.

Prices for zinc started out the year at US$2,297 per tonne on the London Metal Exchange. After a COVID-19-induced drop to a low of US$1,773.50 in the spring, the base metal rebounded steadily throughout the summer and forged on to new heights for the year in the last quarter.

Positive price movement in the zinc market has also been good for some zinc-mining stocks, and with that in mind the Investing News Network has put together a list of the three top zinc stocks on the TSX in 2020. Data was gathered on December 14, 2020, using TradingView’s stock screener, and only companies with market caps greater than C$50 million at that time were considered.

1. Titan Mining (TSX:TI)

Share price: C$0.77; year-to-date gain: 165.52 percent

Titan Mining is an exploration and development company that owns the Empire State mine, a group of wholly owned high-grade zinc mines located in St. Lawrence County, New York.

In late August, Titan signed an option agreement on the Mineral Ridge gold property in Esmeralda County, Nevada, with Scorpio Gold (TSXV:SGN,OTC Pink:SRCRF) through its US affiliates. The company believes it has “tremendous upside potential,” and its share price jumped 83.05 percent that week to end the period at C$0.54. Titan raised C$8 million in a private placement the next month.

In early October, Titan announced that underground drilling at the Empire State mine intersected high-grade zinc mineralization that will add to its resource and ultimately enhance the mine’s production profile. The news helped to elevate Titan’s share price to a year high of C$1.11 on October 15.

2. Lundin Mining (TSX:LUN)

Share price: C$9.86; year-to-date gain: 27.35 percent

Lundin Mining is a mining company operating in the US, Sweden, Portugal, Brazil and Chile; it is based in Toronto, Ontario. Its zinc operations include the Zinkgruvan mine in Sweden and the Neves-Corvo mine in Portugal. In addition to zinc, the company also focuses on copper and nickel projects.

As of mid-year, on a consolidated and attributable basis Lundin Mining’s properties held proven and probable reserves of 5,518 kilotonnes of copper, 3,123 kilotonnes of zinc, 100 kilotonnes of nickel, 936 kilotonnes of lead and 6.9 million ounces of gold.

Lundin Mining recently released its production guidance for the three year period of 2021 through 2023. The company’s zinc production is forecast to increase 30 percent in 2022 compared to 2021, in large part due to a ramp up of operations at Neves-Corvo in the first half of 2022.

3. Teck Resources (TSX:TECK.A,TSX:TECK.B)

Share price: C$26.75; year-to-date gain: 18 percent

Teck Resources is a diversified mining and mineral development company with major business units in copper, steelmaking coal and zinc, in addition to investments in energy assets. Teck is one of the world’s largest zinc producers, and its Red Dog zinc mine in Alaska is one of the world’s largest zinc mines.

In late October, Teck released its production guidance for the second half of 2020, including 315,000 to 345,000 tonnes of zinc, and 155,000 to 165,000 tonnes of refined zinc. Shares of Teck reached a year high of C$30 on December 7, gaining C$10 in less than a month.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.