With cryptocurrency Bitcoin registering high demand at the moment, some experts have commented that gold may soon lose its glitter in comparison. Others, however, argue that the precious metal will continue to have its own value as a safe haven asset.
Amid the coronavirus pandemic, investors rushed to the safety of gold as most major companies saw their stock prices plummet. With the yellow metal being a physical asset, its value will also not dip to zero, which makes it a safe bid for most investors.
Let us take a look at two trending TSX gold stocks and their recent performances: First Quantum (TSX:FM) & Barrick Gold (TSX:ABX).
First Quantum Minerals Ltd (TSX: FM)
Current Stock Price: C$ 24.24
Defying the COVID-19 crisis, First Quantum Minerals stocks climbed over 100 per cent in the last three months and nearly 85 per cent in the last one year. Currently trending high on the TSX among top metal and basic material stocks, the gold mining company currently records a 10-day average trading volume of 2.4 million.
First Quantum’s stock has a price-to-book (P/B) ratio of 1.439, a price-to-cashflow (P/CF) of 9.20, and a debt-to-equity (D/E) ratio stands at 0.93, as per the TMX website.
The company distributes a semi-annual dividend of C$ 0.005 per share, with current dividend yield of 0.041 per cent, according to TMX data.
In the third quarter of 2020, First Quantum Minerals reported sales revenues of US$ 1,402 million, up 42 per cent year-over-year (YoY). The company generated US$ 452 million of cash flows from its operating activities in Q3 2020.
Barrick Gold Corporation (TSX: ABX)
Current Stock Price: C$ 29.95
Barrick Gold Corporation’s one-year stock return indicates over 32 per cent growth. The stock increased by three per cent in the last one month, and currently record a 10-day average trading volume of about five million.
Barrick Gold currently ranks high among TMX’s top trending metal companies. The stock has a P/E ratio of 13.40, a P/CF ratio of 9, and delivers a double-digit return on equity, according to TMX data. Its present earnings per share (EPS) stands at C$ 2.24.
The mining company pays a quarterly dividend of US$ 0.09 per share, which currently has dividend yield of 1.578 per cent, as per TMX.
Barrick Gold posted an operating cash flow of US$ 1.9 billion in the third quarter of 2020, a massive jump of 80 per cent quarter-on-quarter (QoQ). Its debt slipped by 71 per cent to US$ 417 million in Q3 2020.