Pasofino Gold Limited (TSXV: VEIN)
Re-defining the Dugbe Gold Project
When market volatility increases and the risk of recession rises, investors typically react in two ways: looking for cover or looking for opportunities. For the latter, a phased pullback in the Toronto Stock Exchange (TSX) could be a window of time for a strategic allocation.
With consumer confidence softening and Canadian inflation remains high, this could be timing to buy and hold some recession-proof stocks, grabbing those with stable cash flows, essential services or assets that tend to outperform in downturns.
Gold has been a safe haven in times of economic uncertainty for a long time. When everything else is depreciating, gold tends to hold its value. When gold prices climb, gold miners benefit, especially well-run ones like Lundin Gold (TSX:LUG). The company operates the Fruta del Norte gold mine in Ecuador, one of the highest-grade gold mines in the world.
In Q1 2025, Lundin reported production of 117,313 ounces of gold, generating strong free cash flow supported by higher gold prices and good operational management. The Canadian company announced a regular quarterly dividend of C$0.30 per share and new variable dividend policy. Shareholders can now receive additional dividends based on how much free cash flow they generate each quarter. It’s a flexible approach that rewards investors in good times, but doesn’t overextend the company in hard times.
Lundin’s share price has risen nearly 40 per cent in the past six months, driven by the momentum of the gold price and a strong business. But many analysts still see more upside, especially if the risk of recession becomes a reality and safe-haven demand for gold continues to rise. For investors seeking a hedge against the risk of economic turmoil, Lundin fits the bill.
Brookfield Renewable Partners (TSX:BEP.UN), as Canada’s premier clean energy company with a complete green energy investment platform comprised of hydroelectric, wind, solar, and storage solutions, has demonstrated a unique cash-flow defensiveness in the current environment of heightened market uncertainty. Most importantly, with a current price-to-earnings ratio of just 7x and a dividend yield of 5.2%, the company has significant value investment appeal.
The company’s most recent earnings report showed Brookfield Renewable reported revenues of $907 million versus analysts’ expectations of $835 million, with EPS of $0.35 in line with expectations. Adjusted funds from operations, or FFO, an alternative measure of free cash flow, grew 15% year over year, with unit FFO growing at a double-digit rate for multiple quarters.
Brookfield Renewable could almost be considered an exchange-traded fund. Further more, the current valuation combined with the company’s long-term revenues and strong development pipeline leave a lot of growth potential ahead.
