PAAS, LAC, KNT, OSK, SIL: Are these 5 TSX mining stocks worth a buy?

Canada’s main stock index edged higher by 0.22 per cent to 19,062.85 for the fifth day consecutively on Thursday, July 21, largely supported by the rally in TSX mining stocks. 

Pan American Silver (TSX:PAAS), Lithium Americas (TSX:LAC), and K92 Mining (TSX: KNT) were among the top gainers, and the list also included Osisko Mining (TSX:OSK) and Silvercrest (TSX:SIL).

As rate hike pressure prevails with inflation reaching 8.1 per cent in June (as per Statistics Canada), precious metal and mining stocks could garner some interest among investors. So, let us discuss these five mining stocks in detail and assess their financial and stock performance.

1.     Pan American Silver Corp (TSX: PAAS)

Pan American Silver announced drilling results on July 21, indicating high-grade silver and base metal mineralization from its 22 infill and exploration drill holes at the La Colorada Skarn site.

In the wake of these results, PAAS stock rose by over five per cent to close at C$ 24.47 on July 21. According to Refinitiv, Pan American stocks recorded a Relative Strength Index (RSI) of 42.98 on July 21. The RSI between 30 and 70 generally indicates a moderate market situation for stocks.

2.     Lithium Americas Corp (TSX: LAC)

Lithium Americas introduced Lithium Technical Development Center, a lithium process testing facility spanning 30,000 feet in Reno, Nevada, designed to integrate with its Thacker Pass project.

The LAC stock galloped by over 15 per cent week-to-date (WTD). The midcap stock rocketed by about 71 per cent year-over-year (YoY). As per Refinitiv, stocks of Lithium Americas noted a growing RSI value of 61.08 on July 21, indicating a moderate-to-high momentum in the market.

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3.     K92 Mining Inc (TSX: KNT)

K92 recently released its Q2 2022 production results for the Kainantu mine in Papua New Guinea. The smallcap gold company said its plant throughput climbed 44 per cent YoY to 108,853 tonnes during Q2 2022.

KNT stocks surged by almost five per cent in nine months. Refinitiv data says this yellow metal stock recorded an RSI of 41.52 on July 21.

4.     Osisko Mining Inc(TSX: OSK)

Precious metal miner Osisko holds a market capitalization of C$ 943.53 million. The metal firm recorded a debt-to-equity (D/E) ratio of 0.14, which generally points to low financial risk.

The OSK stock shot up by over 10 per cent from a 52-week low of C$ 77.89 clocked on July 14. According to Refinitiv, this gold stock seems to be heading upward, with an RSI of 56.54 on July 21.

5. Silvercrest Metals Inc (TSX: SIL)

Silvercrest is a C$ 1.1-billion market cap company focused on mining precious metals, particularly silver. As the D/E ratio of this mining stock was 0.33 (less than 1), it seems to involve low financial risk.

The SIL stock gained over five per cent in the last week. As per Refinitiv, this smallcap stock had an RSI of 43.6 on July 21.

Bottom line

The TSX Capped Materials Index dropped by almost 14 per cent year-to-date (YTD). However, investors searching for mining stocks to take advantage of different market cycles could explore these TSX mining stocks. However, one should keep risk levels in mind before venturing into such stocks.

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.