5 TSX yellow metal stocks as gold prices jump: IVN, FM, IMG, HBM, OGC

Highlights

• Gold prices reportedly reached US$ 1746.09, up by 9.96, at 3:02 AM EST on Thursday, July 28
• OGC stock shot up by over 26 per cent in six months
• FM stock gained by over six per cent on July 27

Gold prices edged higher as the US Federal Reserve hiked interest by 0.75 basis points on Wednesday, July 27, which seems to have spurred interest toward TSX yellow metal stocks like Ivanhoe (TSX: IVN), First Quantum (TSX: FM), IAMGOLD (TSX: IMG) etc.

Gold prices reportedly reached US$ 1746.09, up by 9.96, at 3:02 AM EST on Thursday, July 28.

Investors could explore quality TSX gold stocks to extend their exposure to gold prices and hedge against inflationary pressure. So, let us discuss five TSX gold stocks that one can consider right now. 

1.     Ivanhoe Mines Ltd (TSX: IVN)

Ivanhoe Mines is a midcap company mining a wide array of precious metals, including gold. The metal miner recorded a debt-to-equity (D/E) ratio of 0.20, which reflects a low financial risk.

Stocks of Ivanhoe soared by nearly nine per cent on July 27. This precious metal stock grew by over 17 per cent from a 52-week low of C$ 6.41 (July 15). According to Refinitiv, IVN stocks held a Relative Strength Index (RSI) value of 49.85 on July 27, with 1.6 million shares exchanging hands, which indicates a moderate trend.

2.     First Quantum Minerals Ltd (TSX: FM)

First Quantum reported gold production of 74,959 ounces in Q2 2022, higher than 70,357 in Q1 2022. The large-cap metal miner saw its net earnings climb to US$ 419 million in the latest quarter, up from US$ 385 million in Q1 2022.

The FM stock gained by over six per cent on July 27 and was up by nearly nine per cent from a 52-week low of C$ 18.675 (July 21). As per Refinitiv, FM stocks noted an RSI value of 36.97 on July 27, above the oversold territory, supported by a trading volume of 5.79 million.

©Kalkine Media®; ©Garis Studio via Canva.com

3.     IAMGOLD Corporation (TSX: IMG)

IAMGOLD is a smallcap gold firm with mining operations in North America, South America and West Africa. The D/E ratio of IAMGOLD was 0.23 (less than one), which generally indicates less financial risk.

IMG stocks spiked by over eight per cent from a 52-week low of 8.14 per cent (July 25). As per Refinitiv findings, this smallcap stock had an RSI value of 37.66 on July 27, indicating a low-to-moderate momentum.

4.     Hudbay Minerals Inc (TSX: HBM)

Hudbay Minerals is a precious metal miner in Canada with a market capitalization of C$ 1.16 billion. In addition to gold, the company also mines copper concentrate. The HBM stock climbed roughly 10 per cent from a 52-week low of C$ 4.07 (July 15). According to Refinitiv data, HBM stocks saw an RSI value of 37.34 on July 27, with a trading volume of 1.19 million.

5.     OceanaGold Corporation (TSX: OGC)

OceanaGold saw its stock rise by nearly four per cent on July 27, ahead of its Q2 2022 financial results to be released on July 28. The OGC stock shot up by over 26 per cent in six months. According to Refinitiv information, OGC stocks held an RSI of 46.09 on July 27, representing a moderate momentum in the market.

Bottomline

Though the TSX materials index lost over 13 per cent year-to-date (YTD), the index rose by 1.41 per cent on July 27 as gold price moved higher. Some of the Canadian gold stocks mentioned here could also widen one’s exposure to other metals like silver, copper, zinc etc.

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.