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Summary
- After surging highs of 2020 amid the pandemic, gold prices have recorded much fluctuation this year.
- The pullback was likely fueled by more than one factor, including the ramped-up vaccine rollout, increasing Bitcoin demand, rise in treasury yields in the United States.
- On Monday, March 15, however, gold futures were marginally up by 0.5 per cent to US$ 1,730.65 at the time of writing this (5.50AM EST).
After surging to new highs in 2020 amid the pandemic, gold prices have been fluctuating this year. Most recently, it sank below US$ 1,700 per ounce on February 24. The pullback was likely fueled by more than one factor, including the ramped-up vaccine rollout, increasing Bitcoin demand, rise in treasury yields in the United States.
On Monday, March 15, however, gold futures were marginally up by 0.5 per cent to US$ 1,730.65 at the time of writing this (5.50AM EST).
Since gold price can have substantial impact on the price of gold mining stocks, how are the yellow metal scrips doing? Let’s explore three top Toronto Stock Exchange-listed gold stocks to find out – Kirkland Lake Gold Ltd (TSX:KL), Barrick Gold Corporation and B2Gold Corp (TSX:BTO).
Kirkland Lake Gold Ltd (TSX:KL)
Kirkland Lake Gold stocks post a year-to-date (YTD) decline of over 20 per cent. But month-to-date, the gold stock has recorded a slow climb of over three per cent.
In the last one year too, Kirkland shares have expanded by over 24 per cent.
On the financial front, Kirkland Lake Gold saw a 23 per cent year-over-year (YoY) increase in its adjusted net earnings of US$ 923 million in 2020. In the same period, its annual free cash flow jumped 58 per cent YoY to US$733 million while its reported annual gold production stood at a record 1.37 million ounces.
Kirkland Lake Gold said that its performance was boosted by increased revenue and gold sales.
Source: Pixabay
Barrick Gold Corporation (TSX:ABX)
Stocks of Barrick Gold Corporation shrunk by over 14 per cent this year. But if you see the performance of the past one year, the stock grew by nearly nine per cent.
In March, Barrick stocks are up nearly six per cent.
The Toronto-based gold producer pays a quarterly dividend of US$ 0.09, which holds a dividend yield* of 1.803 per cent at the moment. Barrick Gold also has a history of seeing its dividends grow by 27.99 per cent in the last three years and by 18.33 per cent in the past five years.
Despite the pandemic crisis, Barrick reported meeting all its production targets of 2020 and ending the year with zero net debt in its latest financial results. Its adjusted net earnings per share (EPS) zoomed by 125 per cent YoY to US$ 1.15 for 2020, while its annual free cash flow inflated by 197 per cent YoY to a record US$ 3.4 billion.
B2Gold Corp (TSX:BTO)
The trending stocks of B2Gold Corp have expanded by about 32 per cent in the last one year. While the scrip, like most gold stocks, reflects a YTD decline of over 22 per cent, it holds a return on equity* of 26.51 per cent and a return on assets* of 19.99.
Like Barrick, B2Gold also pays a quarterly dividend of 0.04 per cent to its shareholders. Its current dividend yield is 3.566 per cent.
Reporting its latest financial results late last month, B2Gold said that it secured a net income of US$ 672 million in 2020. It also saw a record annual gold production of 1.04 million ounces.
B2Gold’s annual consolidated cash flow grew a whopping 93 per cent YoY in 2020 to stand at US$ 951 million.
