2 Canadian Stocks That Could Seriously Damage a $100,000 Portfolio - Be Careful

2026-04-08 20:00:00 ET

Not every fast-growing stock is a safe bet. Some companies seem to have big upside potential, but they also carry risks that can quickly hurt your portfolio if things don’t go as planned. For conservative investors managing a sizeable amount like $100,000, even a few wrong picks can make a noticeable impact.

In this article, I’ll highlight two Canadian stocks that investors should approach with caution right now. These stocks are Ivanhoe Mines ( TSX:IVN ) and Capstone Copper ( TSX:CS ). Both operate in the high-demand copper space and have strong long-term projects, but recent volatility and their operational challenges highlight the risks involved. Let me explain why.

Ivanhoe Mines stock

Ivanhoe Mines is from the Canadian mining sector , which focuses on critical minerals such as copper, zinc, nickel, palladium, platinum, and rhodium. Its key projects include the Kamoa-Kakula Copper Complex and the Kipushi mine in the Democratic Republic of the Congo, along with the Platreef project in South Africa.

After falling by nearly 20% over the last year and losing nearly 33% value so far in 2026, IVN stock currently trades at $10.44 per share with a market cap of $14.9 billion. The company does not pay dividends, which means investors rely entirely on its share price gains.

In its latest results, Ivanhoe posted a profit after tax of US$228 million for 2025, up from US$193 million in 2024. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at US$578 million. However, production challenges at the Kamoa-Kakula project since May led to lower sales and weaker revenue momentum.

Ivanhoe’s costs have also been a concern as it reported a cash cost of US$2.16 per pound of payable copper, which met revised guidance but still came in higher than many investors expected.

While the company has strong long-term potential, including plans to ramp up Kamoa-Kakula production to over 500,000 tonnes annually by 2028 and expand Platreef output significantly by late 2027, these benefits are still years away. In the meantime, IVN stock could remain volatile .

Capstone Copper stock

Capstone Copper operates across the United States, Mexico, and Chile, with assets including the Pinto Valley, Cozamin, Mantos Blancos, and Mantoverde mines. After declining by nearly 44% over the last year, CS stock now trades at $10.99 per share with a market cap of $8.4 billion. Like Ivanhoe, Capstone doesn’t pay dividends .

On the surface, Capstone’s recent performance looks strong as it posted record adjusted EBITDA of US$308 million in the fourth quarter of 2025, up sharply from US$171.9 million a year earlier. However, despite these positives, CS stock remains sensitive to copper price swings and execution risks tied to large-scale projects. Its future growth still depends heavily on developments like the Mantoverde Optimized project, which is expected to drive more meaningful production gains in 2027 rather than immediately.

Recently, the company has also reduced some funding pressure through its Orion joint venture tied to the Santo Domingo project, but that arrangement also means sharing future upside. At the same time, Capstone ended 2025 with net debt of US$780.1 million, while its operational issues, like mill repairs at Mantoverde and water constraints at Pinto Valley, show that project and site-level risks remain real.

Foolish takeaway

While Ivanhoe Mines and Capstone Copper both have strong long-term stories, they also come with meaningful risks. Their reliance on commodity prices, capital-intensive projects, and operational execution makes them less predictable in the short term.

For investors with a $100,000 portfolio, heavy exposure to such volatile stocks could lead to sharp swings in value. That doesn’t mean these companies should be avoided entirely, but position sizing and risk tolerance matter a lot here. So, being selective and maintaining diversification can go a long way in protecting your portfolio from unexpected downside.

The post 2 Canadian Stocks That Could Seriously Damage a $100,000 Portfolio – Be Careful appeared first on The Motley Fool Canada .

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

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