2 top TSX gold stocks to buy in June: ABX and FNV

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2 top TSX gold stocks to buy in June: ABX and FNV

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2 top TSX gold stocks to buy in June: ABX and FNV
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Highlights

  • Yamana Gold (TSX: YRI) stocks rose after the announcement of an acquisition agreement with Gold Fields (NYSE: GFI, GFI: US).
  • This tie-up has triggered talks among investors about more such consolidations in the gold industry.
  • It could be prudent to watch major TSX gold players like Barrick (TSX: ABX) and Franco-Nevada (TSX: FNV).

Yamana Gold Inc (TSX: YRI) stocks have risen since Gold Fields (NYSE: GFI, GFI: US) announced its plans to acquire the Canadian company in an all-stock transaction worth US$ 6.7 billion. According to the company's official statement, the Yamana-Gold Field deal aims to maximize 'future growth potential and 'shareholders returns' for the combined entity.

This latest tie-up has triggered talks among investors about more such consolidations in the gold industry. Hence, it could be prudent to closely watch some of the major TSX gold players like Barrick Gold (TSX: ABX) and Franco-Nevada (TSX: FNV).

Barrick Gold Corporation (TSX: ABX)

Barrick Gold produced 990,000 gold ounces in the first three months of FY2022, less than 1.2 million and 1.1 million ounces produced in Q4 2021 and Q1 2021, respectively. The large-cap gold producer said that it realized US$ 1,876 per ounce in Q1 2022, exceeding US$ 1,793 in the previous quarter and US$ 1,777 in Q1 2021.

The Canadian precious metal recorded a net profit of US$ 438 million in the latest quarter. The miner also raised its quarterly dividend to C$ 0.20 per share (earlier C$ 0.20), underpinned by a 'strong' cash position (net cash of US$ 743 million at the end of Q1 2022).

ABX stock spiked by almost eight per cent so far this year. As per Refinitiv, the gold stock's Relative Strength Index (RSI) of 35.13 on May 31 was marginally above the oversold position of 30.

Also read: ABX, FNV, BTO, YRI & BAU :5 Canadian gold stocks if you fear recession

2 top TSX gold stocks to buy in June: ABX and FNV

Franco-Nevada Corporation (TSX: FNV)

Franco-Nevada is a diversified company engaged in mining precious metals and other resources, including iron ore, oil and natural gas. The company has mining operations in numerous countries: South America, Central America, Mexico, the U.S., Canada and others.

The C$ 34 billion market cap gold company has zero debt as of March 31, 2022. The company declared a quarterly dividend of US$ 0.32, payable on June 30. The mining company said that its revenue jumped by 10 per cent and net profit expanded by six per cent in Q1 2022 compared to Q1 2021.

FNV stock zoomed by over two per cent in 2022. The precious metal stock held an RSI value of 39.01 on May 31, according to Refinitiv data.

Also read: 2 top TSX crypto stocks for June as Bitcoin surges: HUT and BITF

Bottomline

Barrick Gold and Franco-Nevada are among the top Canadian gold producers, which hold the largest market capitalization. These TSX stocks can provide exposure to the yellow metal (generally considered a safe haven) and pay quarterly dividends. However, investors ought to closely track the performance of the underlying assets as it could impact these stocks too.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

Yamana Gold Inc (TSX: YRI) stocks have risen since Gold Fields (NYSE: GFI, GFI: US) announced its plans to acquire the Canadian company in an all-stock transaction worth US$ 6.7 billion. According to the company's official statement, the Yamana-Gold Field deal aims to maximize 'future growth potential and 'shareholders returns' for the combined entity.

This latest tie-up has triggered talks among investors about more such consolidations in the gold industry. Hence, it could be prudent to closely watch some of the major TSX gold players like Barrick Gold (TSX: ABX) and Franco-Nevada (TSX: FNV).

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