TSX golds stocks to buy amid rising inflation: KNT, YRI & G

 Gold prices normally increase in inflationary settings. Thus, gold stocks could perform well in comparison to other sectors. On Wednesday, the latest report by Statistics Canada revealed that the annual inflation rate spiked to 7.7 per cent in May, marking the fastest rate of rising consumer prices in over four decades.

Highlights

  • Amid rising volatility, gold could act as a suitable inflation hedge.
  • The average Canadian’s life is becoming more expensive due to rising inflation.
  • Statistics Canada revealed that the annual inflation rate spiked to 7.7 per cent in May.

Gold prices normally increase in inflationary settings. Thus, Gold stocks could perform well in comparison to other sectors. On Wednesday, the latest report by Statistics Canada revealed that the annual inflation rate spiked to 7.7 per cent in May, marking the fastest rate of rising consumer prices in over four decades.

The average Canadian’s life is becoming more expensive due to the rising gas, food, and travel prices. Since January 1983, the cost of goods and services in Canada has not increased as swiftly. This has increased pressure on the Bank of Canada to increase interest rates in the coming weeks to control inflation.

Amid rising macroeconomic volatility, gold continues to be favoured as a suitable inflation hedge by some analysts due to its long-term association with equities markets. There is a great chance that an investment won’t be enough to support an investor’s retirement years if it cannot produce returns that outperform inflation.

As inflationary circumstances continue to intensify, we’ll explore the following gold stocks that you might want to add to your portfolio.

K92 Mining Inc. (TSX:KNT)

At the time of writing, the KNT stock had returned 27.4 per cent to shareholders since the start of 2022. Meanwhile, the KNT stock surged five per cent in the past week.

In Q1 2022, K92 posted record financial results regarding cash balance and monthly throughput. The company achieved a record cash position of US$ 79.9 million and strengthened its balance sheet.

Meanwhile, K92 achieved strong quarterly gold equivalent production of 28,188 oz in Q1 2022. For the three months ended March 31, the company’s throughput averaged 1,219 tonnes per day, a record for K92.

Net income for the gold mining company was US$ 14.1 million in the first quarter of this year.

Yamana Gold Inc. (TSX:YRI)

It is one of Canada’s largest precious metals companies and operates in various countries like Brazil and Argentina. On May 31, Gold Fields Limited announced that it would acquire Yamana at a valuation of US$ 6.7 billion.

Yamana’s first-quarter net earnings stood at US$ 57.8 million, and adjusted net earnings were US$ 83.6 million. Meanwhile, the cash flow from operating activities was US$ 151.7 million.

The company said its gold equivalent ounces production in Q1 2022 was in line with the expectations. Meanwhile, the gold production of 210,533 ounces exceeded the plan.

In the last six months, the YRI stock has soared 26.4 per cent and 25 per cent YTD.

Augusta Gold Corp. (TSX:G)

Augusta Gold’s main activities include buying and exploring gold assets. The company’s business operations are in Las Vegas, Nevada and on June 14, it announced that it had closed the acquisition of the Reward Project. Meanwhile, Augusta Gold acquired a low-cost Heap Leach Gold Project near its project in Nevada in April. The G stock commenced trading on the Toronto Stock Exchange in March 2021. Augusta Gold stock has returned around 44 per cent to shareholders quarter-to-date (QTD) and 49 per cent in the last six months.

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