Barrick (ABX) and New Found (NFG): 2 Canadian gold stocks to buy

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Barrick (ABX) and New Found (NFG): 2 Canadian gold stocks to buy

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Barrick (ABX) and New Found (NFG): 2 Canadian gold stocks to buy
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Highlights

  • Gold stocks triggered interest among investors after Barrick Gold (TSX: ABX) announced that it is set to reconstitute the Reko Diq project.
  • The gold firm said that it has reached an agreement with the governments of Pakistan and Balochistan to look into this project.
  • Stocks of Barrick Gold gained by over 26 per cent in the past three months.

Gold stocks triggered interest among investors after Barrick Gold Corporation (TSX: ABX) announced on Sunday, March 20, that it is set to reconstitute the Reko Diq project.

The gold firm said that it has reached an agreement with the governments of Pakistan and Balochistan to look into this project, which is said to house one of the biggest underdeveloped copper-gold open pits. 

Having regained access to this project, which was shelved in 2011 amid a legal dispute, Barrick could increase its copper-gold output significantly. It could also expand its exploration and mineral discoveries to the Tethyan Metallogenic Belt.

Given this new development and the current market environment, let us talk about two Canadian gold stocks.

 

Barrick Gold Corporation (TSX: ABX)

Barrick Gold will be granted a mining lease, required licenses and rights and own a 50 per cent stake to operate the Reko Diq project, said the statement released on March 20. Pakistan stakeholders will hold the remaining 50 per cent stake in the project.

Stocks of Barrick Gold gained by over 26 per cent in the past three months and closed at C$ 30 apiece on Friday, March 18.

The Toronto-based gold miner reported a net profit of US$ 726 million in the quarter ended on December 31, 2021, compared to US$ 685 million a year ago.

Barrick Gold Corporation (TSX: ABX) Q4 FY2021 results

 

Also read: Barrick (ABX), CSU & WCN: Should you buy these TSX dividend stocks?

 

New Found Gold Corp (TSXV: NFG)

New Found Gold, on March 9, announced ‘positive’ assay results from 51 drill holes as part of the ongoing 400,000 meters diamond drill program at Queensway site and JBP Fault Zone in Newfoundland.

The junior gold firm said it intercepted 31.88 g/t gold over 2.05 meters and 25.40 g/t gold over 2.25 meters.

New Found added that it is planning to expand operating rigs, currently 11, to 14 rigs by the end of the first quarter of fiscal 2022.

Stocks of New Found Gold have grown roughly 61 per cent year-over-year (YoY) and closed at C$ 7.50 apiece on Friday.

 

 

Bottomline

The existing market dynamics, including high inflation rate, rate hikes, and geopolitical worries, have sparked interest in gold stocks. Plus, such new developments could increase the company’s asset holdings and enhance gold production.

Also read: DIDI Global (DIDI) rose 35% this week. A Chinese tech stock to buy?

 

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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