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Highlights
- The S&P/TSX Global Gold Index shot up by nearly 15 per cent quarter-to-date (QTD) on Thursday, November 18.
- A gold firm mentioned here posted a return on equity of 37.6 per cent.
- A pure-play gold stock listed below soared by more than 82 per cent in the past nine months.
Inflation-worried investors are looking for healthy investment options that could help in fetching returns and tackle higher prices for nearly everything. Gold stocks could be one of the safest ways to invest money and fetch returns in the future.
Although there are other stocks in technology, energy, real estate, etc. where investors could park their money, market experts advise that holding gold stocks might help people to diversify portfolio risk and might deliver noteworthy returns in the long term.
In addition, the S&P/TSX Global Gold Index shot up by nearly 15 per cent quarter-to-date (QTD) on Thursday, November 18. The index soared by more than 22 per cent over the past three years.
Also read: 3 TSX gold stocks to buy amid inflation
On that note, let us explore two gold stocks listed on the TSX.
1. Argonaut Gold Inc (TSX:AR)
Argonaut Gold Inc is a Toronto-based pure-play gold company with exploration and development assets across Mexico and North America.
Stocks of Argonaut increased by roughly 25 per cent in the last month. Its stock swelled by nearly 45 per cent year-to-date (YTD) and soared by more than 82 per cent in the past nine months.
Image source: © 2021 Kalkine Media Inc
The AR stock hit a day high of C$ 3.96 on November 18 and at market close was priced at C$ 3.96, down by roughly 0.5 per cent.
The company saw its revenue surge by 15 per cent year-over-year (YoY) to US$ 108.6 million in the third quarter of fiscal 2021. Its net income grew by 12 per cent YoY to US$ 15.0 million in this quarter.
2 Canadian gold stocks to buy under $15 amid high inflation
Reportedly, the Canadian gold company acquired key mineral concessions around the San Agustin mine in Mexico for a transactional amount of US$ 5.75 million, which enhanced mineral tenures in the district by more than four times.
On the valuation front, Argonaut had a market capitalization of C$ 1.2 billion and a return on equity (ROE) of 10.02 per cent at the time of writing.
2. Wesdome Gold Mines Ltd (TSX:WDO)
Wesdome Gold Mines Ltd is a Canadian gold miner that operates two underground mines, Eagle River Underground and Mishi, in Ontario. The company is also focused on advancing the Kiena Complex, which reported pre-commercial production of 5,511 ounces in Q3 FY2021. Wesdome produced 23,833 ounces of gold from the Eagle River Complex (including the Mishi mine) in this quarter.
The gold miner posted a YoY growth of 23 per cent in its revenue to C$ 67.5 million in the third quarter of FY2021. Its net income was C$ 15.3 million in the latest quarter, up from C$ 14.6 million a year ago.
At the time of writing this, it held an ROE of 37.6 per cent and a return on assets (ROA) of 26.84 per cent. The stock closed at C$13.45 November 18.
Bottom line
Canadian gold firms like Argonaut Gold Inc and Wesdome Gold Mines Ltd are expanding their mining footprints and commercial production capabilities. These developments may enhance their revenue earnings, which might draw investors’ attention.
Also read: Top 5 Canadian gold stocks to buy at low prices & hold long term
