The spot price of gold has held below the US$1,800 mark as of this writing in September. When this year started, I’d discussed why Canadians may want to pile into gold stocks. Loose monetary policy and an uncertain economic situation is still bullish for precious metals. These conditions are unlikely to shift in any meaningful way, as policymakers still wrestle with the realities of rising cases. Today, I want to look at the best TSX stocks to snag in this environment.
Here’s the first TSX stock I’d snag in this space
Kinross (TSX: K)(NYSE: KGC) is a Toronto-based gold producer. Its shares have plunged 28% in 2021 as of early afternoon trading on September 10. The TSX stock is down 37% in the year-over-year period.
The company released its second-quarter 2021 results in late July. It announced that it was on track to meet its earlier production guidance. Metal sales reached $1.98 billion in the first six months of 2021 — up from $1.88 billion for the same stretch in 2020. Meanwhile, adjusted net earnings were reported at $349 million in the year-to-date period compared to $321 million last year.
Shares of this gold-producing TSX stock last had an attractive price-to-earnings (P/E) ratio of 5.6. The stock still offers a quarterly dividend of $0.03 per share. That represents a 2% yield.
Don’t sleep on silver stocks in September
Silver failed to gain the kind of momentum the yellow metal did during the beginnings of the COVID-19 pandemic. However, that means that it has potential as an even better value bet at this stage. Silvercorp Metals (TSX: SVM)(NYSE:SVM) is one of my favourite TSX stocks that produces silver. Its shares have dropped 41% in the year-to-date period.
In Q1 FY2022, the company posted a middling performance for its silver production at its major China-based mines. Silvercorp still expects to reach its production guidance for the full year. It managed to reach a two-month contract extension at the Ying Mining District.
Shares of this silver-producing TSX stock possess a favourable P/E ratio of 17 at the time of this writing. It also offers a quarterly distribution of $0.013 per share. This represents a very modest 0.5% yield.
One more top TSX stock to snatch up
New Gold (TSX: NGD)(NYSE:NGD) is the last gold-producing TSX stock I want to zero in on today. This Toronto-based mining company also produces silver and copper. Its shares have plunged 49% in 2021. The company released its second-quarter 2021 results on August 11.
Revenue was reported at $198 million — up from $128 million in the second quarter of 2020. Meanwhile, adjusted net earnings per share rose to $0.05 per share for the first six months of 2021. This is up from a loss of $0.03 in the first six months of the previous year. New Gold boasts a strong liquidity position as of the end of this quarter.
Shares of New Gold last had an RSI of 42. This puts the TSX stock outside technically oversold territory. However, I’m still looking to snatch up this gold stock as we head into the middle of September.
