3 TSX gold stocks to buy amid inflation

Highlights

• Investment in gold stocks has traditionally been considered one of the safest ways to keep aside your money.
• A stock discussed below posted a return on equity of 39.46 per cent.
• A gold producer mentioned here recorded a 43 per cent year-over-year (YoY) rise in gold production in Q3 FY2021.

Investment in gold stocks has traditionally been considered one of the safest ways to keep aside your money. Some market experts also believe that investing in the yellow metal can help hedge against portfolio risk, especially amid inflation.

On that note, let us discuss three gold stocks listed on the TSX and their recent stock performances.

Also read: Top 5 Canadian gold stocks to buy at low prices & hold long term

1.    Kinross Gold Corporation (TSX: K)

Canadian gold explorer and producer Kinross Gold Corporation saw its stock close at C$ 8.06 per share, up by 3.732 per cent, on Wednesday, November 10. During this session, it hit a day high of C$ 8.19 per share.

Kinross stock has climbed by approximately eight per cent over the past week and soared by nearly 14 per cent in the past month. On a quarter-to-date (QTD) basis, it has gained by almost 19 per cent.

3 TSX gold stocks to buy amid inflation

Kinross was among the most actively traded firms on the TSX on November 10, with nearly six million shares having exchanged hands.

In the third quarter of fiscal 2021, Kinross recorded adjusted operating cash flow of US$ 190.5 million. In addition, it posted adjusted net earnings of US$ 90.2 million, or US$ 0.07 per share, in its latest quarter.

Furthermore, the company said that it is set to restart the Tasiast mill, which is expected to achieve a throughput of 21,000 tonnes per day by the end of the first quarter of 2022.

With a market cap of C$ 10.1 billion, Kinross held a return on equity of (ROE) of 19.95 per cent and a return on assets (ROA) of 11.85 per cent.

2.    Endeavour Mining plc (TSX: EDV)

Gold firm Endeavour Mining operates gold projects in Burkina Faso, Cote d'Ivoire and Senegal. It also considered to be the largest gold producer in West Africa, with assets in the highly potential Birimian Greenstone Belt.

Endeavour Mining saw its stock close at C$ 33.97 apiece on November 10, up by 1.342 per cent. It clocked a day high of C$ 34.11 during the trading session.

On a year-to-date (YTD) basis, EDV stock has jumped by roughly 15 per cent. It has delivered a return of almost 12 per cent in the last 12 months and surged by nearly 31 per cent in the last six months.

Endeavour Mining posted an ROE of 12.05 per cent and an ROA of 6.35 per cent on November 10, with a market capitalization of C$ 8.4 billion.

3.    Wesdome Gold Mines Ltd (TSX: WDO)

Canadian gold player Wesdome Gold Mines Ltd saw its scrip close at a price of C$ 12.97 apiece on November 10, up by 2.287 per cent.

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WDO stock has swelled by almost 17 per cent in the last week and spiked by more than 40 per cent in the past six months. It has also grown by nearly 28 per cent QTD.

Wesdome saw its gold production surge by 43 per cent year-over-year (YoY) to 29,344 ounces in the third quarter of fiscal 2021, including the Kiena pre-commercial production of 5,511 ounces. Its revenue, on the other hand, grew by 23 per cent YoY to C$ 67.5 million in the latest quarter.

Wesdome recorded an ROE of 39.46 per cent and a price-to-earnings (P/E) ratio of 15.1 on Thursday, November 11.

Also read: 9 junior gold stocks to buy to glam up your portfolio

Bottom line

Before making any investment decisions, investors should note that despite their reputation of being a ‘safe haven’, some amount of risk and uncertainty is attached to gold stocks as well.

It is generally essential to measure and evaluate the financial and operational health of a company before investing in it.