- The TSX Material Index spiked by over four per cent quarter-to-date.
- Barrick reported a double-digit growth of 17 per cent in net profit in Q2 2022.
- First Quantum Minerals will disburse an increased quarterly dividend of C$ 0.16 on September 20.
Risk-averse investors seeking long-term value could explore large-cap mining stocks like Barrick Gold (TSX: ABX) to strengthen their equity portfolio amid soaring inflationary pressure and market volatility.
Gold prices crossed 1800 levels and were reportedly trading at US$1,807.45 at 4:30 AM EST on Tuesday, August 9, while copper and silver prices also increased to US$3.60 and US$20.62.
However, the TSX Material Index spiked by over four per cent quarter-to-date (QTD) despite prevailing market uncertainties.
Hence, Kalkine Media® has selected the following TSX large-cap mining stocks that low-risk investors with a long-term approach can consider for quality returns.
So, let us briefly discuss these Canadian miners:
1. Barrick Gold Corporation (TSX: ABX)
Barrick Gold is among the largest precious metals miners in Canada by market capitalization, which is currently C$ 36.9 billion. Barrick produced 1.043 million ounces of gold in the second quarter of 2022, comparatively higher than the 990,000 ounces produced in Q1 2022. The Canadian miner also increased its copper production to 120 million pounds in the latest quarter relative to 101 million pounds recorded in Q1 2022.
In its income statement, Barrick reported a double-digit growth of 17 per cent in net profit to US$ 0.27 per share in Q2 2022 compared to US$ 0.23 per share posted a year ago. The gold miner is also slated to deliver a quarterly dividend of US$ 0.2 on September 15.
The ABX stock plunged by over 13 per cent year-to-date (YTD). According to Refinitiv, Barrick stocks held a Relative Strength Index (RSI) value of 46.63 (reflecting a moderate trend), with approximately 10.24 million shares switching hands on August 8, 2022.
2. Franco-Nevada Corporation (TSX: FNV)
Franco-Nevada holds a market capitalization of C$ 32.22 billion. The large-cap company reported revenue of US$ 338.8 million in Q1 2022, a year-over-year (YoY) rise of 10 per cent. The Toronto-headquartered miner posted a surge in net profit of six per cent to US$ 182 million in the latest quarter relative to Q1 2021.
Stocks of Franco-Nevada dipped by almost 15 per cent in the past year. As per Refinitiv findings, FNV stocks held an RSI value of 52.22 on August 8, 2022, which generally points to a moderate momentum.
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3. Agnico Eagle Mines Limited (TSX: AEM)
Agnico Eagle significantly increased its cash and cash equivalents to US$ 1.006 billion at the end of Q2 2022, higher than US$ 185.78 million recorded on December 31 last year. Agnico said its revenue from mining operations grew significantly to US$ 1.58 billion in the latest quarter, up from US$ 984.65 million in Q2 2021. The pure-play gold miner also saw its net profit jump to US$ 275.84 million in the second quarter of this fiscal year compared to US$ 196.39 million in the same period a year ago.
Stocks of Agnico Eagle zoomed by over five per cent so far in August. As per Refinitiv, AEM stocks had an RSI value of 53.92, with a trading volume of 2.35 million on August 8, 2022.
4. Wheaton Precious Metals Corp (TSX: WPM)
Wheaton Precious Metals mines gold, silver, palladium, and cobalt. Wheaton posted a revenue of US$ 307.24 million in Q1 2022, lower than US$ 324.11 million in the first quarter a year ago. The mining company stated that this annual change was mainly due to a four per cent decline in the number of GEOs sold. Net profit in Q1 2022 amounted to US$ 157.46 million compared to US$ 162 million in the same quarter of 2021.
The WPM stock plummeted by almost 19 per cent this year. On August 8, 2022, WPM stocks held a moderate RSI value of 47.66, according to Refinitiv data.
5. First Quantum Minerals Ltd (TSX: FM)
First Quantum Minerals said it will disburse an increased quarterly dividend of C$ 0.16 on September 20, this year. It reported sales revenues of US$ 1.9 billion in Q2 2022 compared to US$ 1.78 billion in Q2 2021. The diversified miner saw its net income climb to US$ 419 million in the latest quarter, compared to US$ 140 million a year ago.
First Quantum also reduced its net debt to US$ 5.33 billion at the end of Q2 2022 compared to US$ 6.75 billion a year ago. The FM stock tanked by over 11 per cent in 12 months. According to Refinitiv, FM stocks held an RSI value of 51.41 on August 8, 2022, underpinned by approximately 3.18 million shares exchanging hands.
6. Ivanhoe Mines Ltd (TSX: IVN)
Ivanhoe Mines holds a market capitalization of C$ 10.38 billion. Ivanhoe is focused on exploring and developing resource properties containing platinum, gold, silver, copper, chrome, iron, etc. IVN stock galloped by nearly 16 per cent QTD. As per Refinitiv, IVN stocks held an RSI value of 63.18 (indicating a moderate-to-high trend) on August 6, 2022, with a volume of 1.54 million shares.
Investors looking for long-term exposure to commodities can consider the TSX stocks discussed above. Apart from widening exposure to commodities, some of these companies also dole out dividends, thereby boosting portfolio income. As gold has been deemed as a safe haven from early times, investors looking to hedge against inflation can explore these stocks.
Please note, that 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.