Should Canadians investors chase the TSX's best mining stocks after a 2,502% run?

And the gains are hard to ignore. If an investor bought $1,000 of stock in Montage Gold roughly three years ago, by June 2026 that investment would’ve been worth roughly $26,000.

Turns out Montage Gold is one of a few mining companies sitting at the top of a crowded list — with these publicly traded companies posting triple- and quadruple-digit returns.

It would be easy to assume that mining — and in particular Montage Gold along with other leaders, such as Avino (TSX:ASM) and Discovery (TSX:DSV) — are now a solid investment bet. But the astronomical returns of the last few years only tells part of the tale — where these stocks have been, not where they’re headed. More recently, precious metals that were in demand, and powered much of this mining rally, have been sliding.

The question investors need to ask: Is it worth it to chase the returns of mining companies?

Why investors are paying attention to the mining sector

Every year, the Toronto Stock Exchange (TSX) ranks its 30 best-performing companies by three-year, dividend-adjusted share price gains, ending June 30. The report, known as the TSX30 is released in early September. This year the 2026 TSX30 was released Sept. 9 by TMX Group, the operator of the TSX and the TSX Venture Exchange (TSXV).

This year’s report was clear: Mining dominated. Miners took 18 of 30 spots, or 60%, which is the most in the ranking’s history. Montage Gold, a Vancouver-based company developing a gold project in Côte d’Ivoire, placed second with a 2,502% gain. Only AI data-centre supplier Celestica did better, at 2,590%. Avino Silver & Gold Mines, Discovery Mining and AbraSilver Resource (TSX:ABRA) each topped 900%.

Turns out 7 of the 30 companies listed in the 2026 TSX30 are headquartered in British Columbia, according to Business in Vancouver — second only to Ontario’s 15. Eleven of the 18 miners started out on the TSXV, the junior exchange where early-stage explorers raise money.

On average, this year’s list returned 785% over three years, nearly double the 431% posted by last year’s group.

Why is a winners list a risky shopping list for investors?

To be clear, this TSX30 report is a backwards looking snapshot. Anyone buying now pays today’s price, not the price from three years ago — which means replicating the success is impossibly difficult.

To illustrate this point, it’s important to recognize that gold, the main engine behind many of these returns, has already turned. Spot gold fell to about US$4,095 an ounce on Oct. 14. That’s roughly 27% below its late-January record.

Investors also need to consider the volatility and risk associated with the mining and resource sector — where gains and losses are amplified.

For instance, a mining company’s profit margins will move with the metal price, so a drop in gold can reduce profits by an even bigger percentage. That’s why gold-stock shares have historically been more volatile than gold itself.

Then there’s the way these businesses raise funds. Junior miners often fund exploration and construction by issuing new shares, which dilutes each existing shareholder’s slice of the company — and the earnings. Through July 2026, mining companies raised CA$10.1 billion of the CA$20.5 billion in equity raised across both exchanges, according to The Northern Miner.