Sticky inflation tends to reward businesses that can either benefit from higher commodity prices or hold their value when money buys a little less. That often leads investors towards precious metals, especially gold and silver miners with strong margins, improving production, and enough balance-sheet strength to keep growing without scrambling for cash. If inflation stays stubborn, Canadian investors may want stocks that offer real operating leverage to metal prices, not just a defensive label.
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WDO
Wesdome Gold Mines (TSX: WDO) looks like a strong fit for that kind of market. It’s a Canadian-focused gold producer with two high-grade underground mines: Eagle River in Ontario and Kiena in Québec. Gold usually gets more attention when inflation hangs around, and Wesdome gives investors direct exposure without stepping into a giant global miner. Over the last year, the story improved as operations got steadier, exploration kept adding upside, and the gold stock leaned on a much stronger balance sheet.
The earnings were hard to ignore. Wesdome posted record 2025 revenue of $914 million, up 64% year over year, and record net income of $349 million, or $2.32 per share. Earnings before interest, taxes, depreciation and amortization (EBITDA) nearly doubled to $602 million, while free cash flow hit $265 million for the year. Gold production rose 8% to 185,576 ounces, which helped offset higher costs and made the margin story look a lot stronger.
The forward outlook still looks solid. In April, Wesdome reported first-quarter 2026 production of 45,303 ounces and said results remained on track for the full year, with Kiena expected to deliver 60% of its annual production in the second half as more mining areas ramp up. It also said it had about $430 million in cash at quarter-end after repurchasing 2.1 million shares year to date. The gold stock still looks reasonably valued with this kind of momentum. The risk is that mine sequencing and grades can still cause a bumpy quarter here and there.
PAAS
Pan American Silver (TSX: PAAS) gives investors a broader precious-metals option, and that can work well when inflation refuses to cool. It produces both silver and gold, which gives it two different ways to benefit if investors start leaning harder into hard assets. Over the last year, the silver stock kept tightening its story with stronger production, rising shareholder returns, and fresh attention on its La Colorada Skarn project, which could become a major long-term silver growth engine.
Its latest results were excellent. Pan American reported record 2025 revenue of $3.6 billion and record net earnings of $980 million, or $2.56 per share. Cash flow from operations reached $1.3 billion, while attributable free cash flow came in at $1.15 billion. Silver production beat updated guidance at 22.8 million ounces, and gold production reached 742,200 ounces, right within guidance. On top of that, the silver stock exited 2025 with $1.319 billion in cash and short-term investments, excluding its share of Juanicipio cash.
The valuation is not as cheap as it was, but it still has a case. In fact, the silver stock renewed its share buyback plan in March and updated the La Colorada Skarn preliminary economic assessment, which lowered initial capital and improved project economics. If inflation stays sticky and silver keeps catching investor interest, Pan American could keep doing well. The main catch is that silver stocks can swing hard, even when the long-term setup looks attractive.
Bottom line
If inflation stays sticky, these two Canadian stocks have a lot going for them. Wesdome offers focused gold exposure with improving operations and a fair-looking valuation, while Pan American brings bigger scale, strong cash generation, and silver upside on top of gold exposure. Neither stock is risk-free, but both look built for a market where hard assets may keep getting a little more attention.
