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Highlights
- Rising tensions between Ukraine and Russia have sparked high volatility on the stock and commodity markets worldwide.
- Rising inflation and uncertainty around rate hikes have also added to investors’ concerns, which can go on to push them towards safe havens like gold and gold stocks.
- A Toronto-based gold miner saw its net earnings more than double to in Q4 FY2021.
Rising tensions between Ukraine and Russia have sparked high volatility on the stock and commodity markets worldwide. Rising inflation and uncertainty around rate hikes have also added to investors’ concerns, which can go on to push them towards safe havens like gold and gold stocks.
Which TSX gold stocks could be an option to explore amid such market scenarios? Let’s find out.
Barrick Gold Corporation (TSX: ABX)
Barrick Gold reported its fourth-quarter earnings for the fiscal year of 2021 on Wednesday, February 16, where it posted significantly increased net earnings.
The Toronto-based gold miner saw its net earnings more than double to US$ 726 million in Q4 FY2021, as compared to US$ 347 million in Q3 FY2021.
The US$ 48-billion market cap company posted a free cash flow (FCF) of US$ 718 million in Q4 FY2021, which was notably up from US$ 481 million in Q3 FY2021.
Image source: © 2022 Kalkine Media®
Data source: Barrick Gold Corporation
Stocks of Barrick Gold have increased by about 20 per cent in the past month. The gold stock shot up by over seven per cent and closed at C$ 26.33 apiece on Wednesday, with 8.3 million shares exchanging hands.
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Franco-Nevada Corporation (TSX: FNV)
Last month, on January 27, Franco-Nevada Corporation announced a 6.7 per cent hike in its quarterly dividend, which now amounts to US$ 0.32 apiece and is payable on March 31 this year.
The gold company saw its revenue jump up by 13 per cent year-over-year (YoY) to US$ 316.3 million in Q3 FY2021. Its third-quarter net income also grew by eight per cent YoY to US$ 166 million in fiscal 2021.
Franco-Nevada stock swelled by almost 22 per cent in the past 12 months. FNV stock closed at C$ 184.41 apiece on Wednesday.
Bottomline
Market volatility is known to usually send investors to relatively safer investment options like gold. However, investors should ideally be aware of investment science, which can help them time the market and capture healthy opportunities in most scenarios.
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