Barrick (TSX:ABX), Kinross (TSX:KGC) & New Gold (TSX:NGD): 3 Gold Stocks to Watch Out

  • October 09, 2020 02:50 PM EDT
  • Team Kalkine
Barrick (TSX:ABX), Kinross (TSX:KGC) & New Gold (TSX:NGD): 3 Gold Stocks to Watch Out

Summary

  • Barrick Gold Corporation (TSX:ABX) acquired 12.4 per cent stake mining exploration company Skeena Resources.
  • Kinross Gold plans to acquire 70 per cent stake in the Peak Gold project in Alaska from Royal Gold and Contango for C$ 93.7 million.
  • New Gold’s (TSX:NGD) New Afton Mine in British Columbia contributes approximately 50 per cent of its revenue.

 

With stock markets tumbling across the world due to the COVID-19 pandemic, investors took shelter in ‘safe haven’ gold stocks. The precious metal surged to its all-time high in August this year, crossing US$ 2000-mark. The yellow metal’s rally continues with many analysts forecasting it may hit new records ahead of the impending US elections. Stocks of gold companies listed on the Toronto Stock Exchange such as Barrick Gold Corporation (TSX:ABX), Kinross Gold Corporation (TSX:KGC), and New Gold Inc (TSX:NGD) have performed well in these circumstances.

According to the World Gold Council, the yellow metal has significantly outperformed all other major asset classes after investors embraced it as a “key portfolio hedging strategy” in the first half of 2020. Gold prices gained 16.8 per cent in US-dollar terms in H12020, it added.

Let us delve into the stock performances of the trending TSX gold stocks:

 

Barrick Gold Corporation (TSX: ABX)

 

Sector: Basic Materials

Industry:  Metals & Mining

Barrick Gold is a Toronto-based gold and copper mining corporation. It is one of the world's largest gold producers, operating mines in the four continents (North America, South America, Australia, and Africa).

The company recently acquired 12.4 per cent stake mining exploration company Skeena Resources. Under the deal, Barrick will have full ownership of Eskay Creek gold-silver project in British Columbia.

 

Barrick’s Key Stats

Barrick’s current market cap stands at C$ 63.58 billion. The company has a dividend yield of 1.198 per cent. Barrick increased the quarterly dividend by 14 per cent to US$ 0.08 per share. Its operating cash flow was US$ 1.0 billion for the second quarter ended on 30 June 2020, a 16 per cent increase year-over-year. Barrick’s net debt was down almost 25 per cent to US$ 1.4 billion with no significant maturities until 2033.

Barrick stocks are up nearly 50 per cent year-to-date and currently trading at C$ 36.02 apiece.

 

Kinross Gold Corporation (TSX:K / NYSE: KGC)

 

Sector: Basic Materials

Industry: Metals & Mining

 

Kinross Gold is a Canada-based senior gold mining company which has mine operations and focuses on greenfield and brownfield exploration in the United States, West Africa, and Russia.

The company recently announced its plans to buy a 70 per cent interest in the Peak Gold project in Alaska from Royal Gold and Contango ORE for total cash consideration of C$ 93.7 million. Kinross will have broad approval to build and operate the Peak Gold project, with Contango retaining a 30 per cent non-operating minority interest.

 

Kinross’ Financial Numbers

Kinross has a current market cap of C$ 14.10 billion. The company has a current dividend yield of 1.408 per cent. Kinross paid out US$ 0.03 quarterly dividends to its shareholders. Adjusted operating cash flow was C$ 417 million for the second quarter ended on 30 June 2020, a 45 per cent increase from Q2 2019. Adjusted net earnings more than doubled to C$ 194 million, or C$ 0.15 per share, compared with the second quarter in 2019.

The stock is currently trading at C$ 11.38 a pop.

 

New Gold Inc. (TSX: NGD)

 

Sector: Basic Materials

Industry: Metals & Mining

 

New Gold Inc is a gold mining company with operations across the world. The company has invested in New Afton Mine in Canada, Mesquite Mine in North America, and Cerro San Pedro Mine in Mexico, to produce more assets. Moreover, New Gold owns 100 per cent of the Rainy River and Blackwater projects in Canada, along with a minority stake in the gold stream on the El Morro operation in Chile. The New Afton Mine in British Columbia is the largest section, contributing approximately 50 per cent of group revenue.

New Gold stock is ranked highly on the following TSX stocklists:

  • Top Volume: Among the most actively traded stocks across the TSX and TSXV over the last 10 days.
  • Top Metals: A list of TSX and TSXV stocks from metals sector that are outperforming their peers.
  • Top Basic Materials: A list of 50 top ranking stocks from Basic Materials sector across TSX and TSXV that are outperforming their peers.

 

New Gold Financial Earnings

The company’s revenue for the second quarter of 2020 was C$ 129 million, down 16.78 per cent year-over-year. New Gold’s net loss for Q2 2020 was C$ 46 million (C$0.07 per share).

The stocks are up over 122 per cent YTD and currently trading at C$ 2.60 apiece.

 


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