5 best gold stocks to buy while they are cheap

Summary 

• Gold is commonly considered a safe haven investment option.
• As the economy recovers, many investors are turning away from gold to look for other improved growth opportunities.
• This could be considered a fitting entrypoint for investing in some gold-oriented stocks.

Gold is commonly considered a safe haven investment option. When stock markets are largely hit, mainly during a financial crisis, investors often look for alternative asset classes to invest in. For this reason, gold prices touched record highs amid the pandemic last year.

But as the economy recovers amid ramped-up vaccination drives, many investors are turning away from gold to look for other improved growth opportunities, leading to lowered gold prices.

This could be considered a fitting entrypoint for investing in some gold-oriented stocks, as it is likely that the precious metal will not remain this cheap forever.

On that notes, let us look at some gold stocks on the TSX that you could add to your portfolio.

1. Barrick Gold Corporation (TSX:ABX)

 The Toronto-based company is said to be one of the top gold producers globally.

Barrick Gold’s stock closed at C$ 26.28 on Friday, July 16, having climbed about two per cent in the last one month. In the past one year, it decreased by nearly 29 per cent.

The gold stock was trading nearly 36 per cent below its 52-week high of C$ 40.85 (August 19, 2020) and nearly 12 per cent above its 52-week low of C$ 23.49 (February 26, 2021).

Barrick Gold reported in July that its preliminary gold sales for Q2 2021 stood at 1.07 million ounces while that for copper was 96 million pounds. The company asserted that it was on track to complete its 2021 guidance.

Barrick paid a quarterly dividend of US$ 0.09 apiece on June 15, 2021, posting a five-year dividend growth rate of 24.37 per cent, as per TMX.

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2. Kirkland Lake Gold Ltd (TSX:KL)

Kirkland stock closed at C$ 51.47 apiece on July 16, trading nearly 33 per cent below its 52-week high of C$ 76.43 (August 05, 2020). The stock grew about nine per cent in the last three months and fell nearly 14 per cent over the past year.

The company posted revenues of US$ 551.8 million in Q1 2021, down from that of US$ 554.7 million in the same quarter last year. Its net earnings in Q1 2021 was US$ 161.2 million, down from that of US$ 202.9 million in Q1 2020.

Kirkland paid a quarterly dividend of US$ 0.188 on July 14. Its three-year dividend growth has been 96.04 per cent.

3. Victoria Gold Corp. (TSX:VGCX)

The gold scrip closed at C$ 17.52 on July 16, posting a growth of over 36 per cent for the past six months.

Victoria Gold stock also spiked by over 15 per cent in the last one year and accelerated by nearly 44 per cent on a year-to-date (YTD) basis.

Victoria Golad’s revenue stood at C$ 62.75 million in Q1 2021, with an average realized price of C$ 2,274 per ounce and sale of 27,538 ounces. Its net income stood at C$ 31.8 million in Q1 2021.

This quarter also witnessed a total mine production of 1.6 million tonnes and gold production of 26,759 ounces.

4. Kinross Gold Corp (TSX:K)

Kinross Gold debuted on the TSX way back in May 1905, following an initial public offering (IPO). On July 16, its scrip closed at a value of C$ 7.82 apiece, trading over 42 per cent below its 52-week high of C$ 13.59 (September 18, 2020).

The Canadian gold stock has also fallen by nearly 24 per cent in the past one year and over 16 per cent YTD.

Kinross’ Q1 earnings statement posted a revenue of US$ 986.5 million, noting an increase of 12 per cent year-over-year (YOY). Its cash and cash equivalents stood at US$ 1,056.1 million in the latest quarter.

Kinross paid a quarterly dividend of US$ 0.03 apiece on June 17.

5. B2Gold (TSX:BTO)

B2Gold is a gold mining company based in Vancouver, Canada, with three major mines located in Mali, the Philippines, and Namibia. It got listed on the TSX in December 2007 and presently has a market cap of about C$ 5.2 billion.

B2Gold stock closed at C$ 5 on July 16, trading marginally above its 52-week low of C$ 4.96 (July 08, 2021). It was nearly 50 per cent below its 52-week high of C$ 9.9 (August 05, 2020).

The scrip dwindled by over 38 per cent in the past year and decreased nearly 30 per cent on a year-to-date (YTD) basis.

In Q1 2021, B2Gold recorded consolidated gold revenue of US$ 362 million, down five per cent YOY due to a decrease in the sale of gold. Its net income for Q1 2021 was US$ 99 million, up against that of US$ 83 million in Q1 2020.

B2Gold paid a quarterly dividend of US$ 0.04 on June 30.