Barrick Gold, B2Gold and New Gold Inc: 3 Trending Gold Stocks for September

Summary

• Gold stocks is recognized as a safe haven by worldwide financial experts.
• Stocks of mining companies like Barrick Gold, B2Gold and New Gold Inc have performed well at the TSX amid the pandemic.
• Asgold continues to rally in the stock market, we take a detailed look at the performance of these three stocks.

The coronavirus pandemic has made investors turn towards stocks that have weathered the tumultuous times and come out strong. Ranging over the top of this line have been the stocks of gold mining companies, such as Barrick Gold, B2Gold and New Gold Inc. Gold stocks have been performing well at the stock market amid the pandemic and reporting healthy financial results.

Investors seeking a safe haven during these uncertain times took refuge with gold stocks in great levels, leading to bullion prices reporting a record high price of US$ 2,073 per ounce in August 2020.

Barrick Gold Corporation (TSX:ABX)
Current Share Price: C$ 40.11

Despite the pandemic, which has wreaked havoc on the stock market in general, Barrick Gold Corporation’s stocks have seen a 47 per cent rise in share value in the last six months. The Toronto-based mining company recently released itssecond quarter resultsof 2020, showing a year-to-date gold production of 2.4 million ounces and an operating cash flow of over US$1 billion for the quarter.It posted a significant surge of 840 per cent year-over-yearin free cash flow, amounting to US$ 522 million.

Its adjusted net earnings are up by 44 per cent from its first quarter. It also saw a substantial reduction of nearly 25 per cent in net debt of cash, down to US$ 1.4 billion from the end of Q1. The report also added that the quarter’s sturdy performance has placed Barrick wellwithin its yearly production guidance, despite the challenges of the pandemic.

Barrick’s impressive balance sheet, low debt and a market cap of C$ 71.3 billion are not the only factors contributing to its demand at the stock market. In August, American investor Warren Buffett’sBerkshire Hathaway bought a 20.9 million-share stake in the Canadian gold miner. This purchase caused a 12 per cent jump in Barrick’s stock price the day the news broke (August 17), triggering a gold rally at the Toronto Stock Exchange (TSX).

As per its Q2 2020 report, Barrick’s quarterly dividend has more than doubled since the company announced its merger with Randgold in September 2018.

B2Gold Corp (TSX:BTO)
Current Share Price: C$ 8.77

Stocks of B2Gold Corp have been one of the most highly traded stocks on the TSX in the last 10 days, showing a 10-day average volume of over 4 million. Even through the challenging times of the pandemic,B2Gold’s share price has seen a rise of 55 percent in six months and nearly 26 percent in the last three months.

B2Gold Corp hasreported a record US$ 442 million in consolidated gold revenue in its second quarter of 2020. This is a whopping 65 per cent increase from that of the second quarter of 2019. Its quarterly consolidated cash flow is also up by 156 per cent in Q2 2020 (amounting to US$ 238 million) from Q2 2019.

This Canadian gold mining company, which owns and runs mines in Mali, the Philippines and Namibia, saw a dip in its stock price recently due to the ongoingpolitical turmoil in Mali. However, B2Gold has announced that the operations its Fekola Mine based in Mali have not been impacted by the unrest.

B2Gold, which is headquartered in Vancouver, has a market cap of C$ 9.1 billion. Its current dividend yield is 1.24 per cent.

New Gold Inc (TSX:NGD)
Current Share Price: C$ 2.48

Amid the coronavirus pandemic, the stock price of New Gold Inc has soared in the last six months, up by 140 per cent. It recently closed a C$ 300 million partnership deal with Ontario Teachers' Pension Plan and sold off its Blackwater Project in British Columbia.

New Gold Inc’s second quarter financial results of 2020 showed a total revenue of C$ 129 million, a dropfrom its first quarter’s C$ 142 million. Its operating expense for the quarter also saw a dip, falling to C$ 5.1 million from C$ 6.5 million in first quarter.Despite these financial results, New Gold Inc has been trading high on the TSX, recording a 10-day average trade volume of nearly 2.3 million.

One factor that had a likely impact on New Gold Inc’s performance was the divestment of its Blackwater Project. Vancouver-based Artemis Gold acquired the project in British Columbia for C$ 190 million in cash and an initial 8 per cent gold stream of the gold produced from the Blackwater Project. The deal also got New Gold Inc 7.4 million common shares of Artemis Gold.

New Gold Inc currently has a market cap of C$ 1.6 billion and a P/B ratio of 1.53.