3 TSX Gold Stocks To Explore In Feb 2021

Summary

• Jaguar Mining stock returned 392 per cent in the last one year.
• B2Gold Corp, recorded a net income of $277 million, compared to $66 million for the same quarter of 2019.
• Kirkland Lake pays quarterly dividend of C$ 0.188 and yields almost 2%.

Canadian gold stocks such as Jaguar Mining Inc (TSX:JAG), Kirkland Lake Gold Ltd (TSX:KL) and B2Gold Corp (TSX:BTO) continue to make a mark on the Toronto Stock Exchange (TSX). On the other hand, the S&P/TSX Global Gold Index, while still recording a 1.5 per cent year-to-date decline, grew by 2.31 per cent in February so far.

Canada’s gold production took a hit last year as a result of COVID-19 pandemic. It reportedly produced 170 tonnes of gold in 2020, a reduction of five ton from 2019. [i]In a pre-COVID scenario, Canada’s gold production was estimated to increase by a compound annual growth rate (CAGR) of 2.7 per cent between 2019 and 2023 to reach 7.6 million ounces (Moz).   

However, Canada currently has many gold mining projects in the pipeline. Depending on their permit approvals, the country could see a growth in its gold production.

Some market analysts also estimate that gold, which reached an all-time high in August last year, could likely reach a new high of US$ 3,000 per ounce by the end of 2021.

It will be interesting to take a brief look at the stocks of Jaguar Mining Inc, Kirkland Lake Gold Ltd and B2Gold Corp.

Jaguar Mining Inc (TSX:JAG)

A junior gold mining, development and exploration company operating in Brazil, Canadian-listed Jaguar Mining’s stock price has given a return of over 390 per cent in the last one year.

According to the company’s latest financial data, Jaguar Mining recorded a revenue of U$43.5 million in Q3 2020, as compared to U$23 million in Q3 2019. The quarterly increase in revenue was attributed to the 32 per cent increase in gold sales.

Its gross profit for the third quarter ending 30 September 2020 was US$25.8 million, as compared to US$5.7 million in Q3 2019. Jaguar’s adjusted EBITDA stood at US$26.1 million in the latest quarter, as against US$5.6 million a year ago.

With a return on equity of 34.22 per cent (as per TMX) and the last three-month return of 34 per cent, Jaguar Mining stocks are showing promising signs.  

Kirkland Lake Gold Ltd (TSX:KL)

Kirkland Lake Gold, which operates gold mines in Ontario and Australia, reported producing 1.36 million ounces of gold in the fiscal year of 2020, up by 41 per cent year-over-year (YoY). It currently holds a market cap of C$13 billion.

Kirkland stocks are up nearly 17 per cent in the last 11 months (since the March 2020 lows).

However, the shares reflect a negative return of 16 per cent in the last three months.

Kirkland shareholders received a total amount of US$847.6 million via share repurchases and dividend payments in 2020.

The gold producer pays a quarterly dividend of C$ 0.188, which currently yields 1.954 per cent (as per TMX).

B2Gold Corp (TSX:BTO)

Vancouver-headquartered B2Gold Corp ranks among the most active TSX stocks for the past 10 days, with an average 10-day trading volume of 3.7 million. It has a return on equity of 30.02 per cent (as per TMX).

The low-cost gold mining and exploration company has operation across a vast area in the Philippines, Namibia, Mali and Columbia.

B2Gold stock yielded a return of 13 per cent in the last one year and a negative 18 per cent in the last three months. 

The company’s consolidated gold revenue in Q3 2020 was US$487 million, as compared to US$311 million during the same period of 2019. 

Consolation gold production in the third quarter ending 30 September 2020 was recorded at 248,733 ounces, a significant increase of 17 per cent YoY in the third quarter of 2019.

B2Gold recorded a net income of US$277 million in Q3 2020, compared to US$66 million for the same quarter of 2019.

From here the company expects to capitalize its solid performance and forecast a bright future riding high on performance— says the according to company official data.