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Highlights
- In Q3 2022, Wheaton Precious Metals’ net earnings were US$ 196.4 million.
- Barrick Gold’s cash and cash equivalents in Q3 2022 was US$ 5,240 million.
- In Q3 2022, Franco-Nevada’s net income was US$ 157.1 million.
Making investments in gold stocks is generally considered a hedge against inflation, however, the dynamics of the stock markets have changed this year and complete reliance on past performances can be avoided to reduce the risk of an investment portfolio.
Many things have changed in recent times. Post-pandemic, many investors are entering the market with a changed mindset. The companies that were seen making profits pre-pandemic have now succumbed to the market and vice versa. Hence, investors must only indulge in investing after thorough research and market knowledge. Let us explore three gold stocks with their financial performances:
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Wheaton Precious Metals Corp. (TSX:WPM)
Wheaton Precious is into precious metal streaming. The company is engaged in the purchase of precious metals and cobalt.
In Q3 2022, Wheaton Precious Metals’ net earnings were US$ 196.4 million compared to US$ 134.9 million in Q3 2021. The revenue declined to US$ 218.8 million from US$ 268.9 million. The company distributes a quarterly dividend of US$ 0.15 per share with an EPS (earnings per share) of 2.28.
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Barrick Gold Corporation (TSX:ABX)
Barrick Gold Corp is a gold producer with nine gold mines in Africa, Australia, North America, and South America.
In Q3 2022, the company's net earnings witnessed a decline and were noted at US$ 241 million from US$ 488 million in Q3 2021. The adjusted EBITDA also decreased to US$ 1,155 million from US$ 1,669 million for the same comparison period.
Barrick Gold’s cash and cash equivalents grew to US$ 5,240 million from US$ 5,043 million. The three-year dividend growth of the company is at 36.91 per cent. The dividend yield was noted at 4.19 per cent and it distributed a quarterly dividend of US$ 0.15 apiece.
The total market capitalization of WPM, ABX and FNV:
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Franco-Nevada Corporation (TSX:FNV)
Franco-Nevada Corp is a precious-metals company with a focus on investment and royalty. The company majorly earns its revenue from platinum, gold and silver and has a diversified portfolio of royalty streams and precious metals. The company's operations are primarily located in Australia, Canada, and the US.
In Q3 2022, the company’s net income fell to US$ 157.1 million from US$ 166 million in Q3 2021. The adjusted EBITDA also decreased to US$ 256.7 million from US$ 269.8 million.
The revenue fell to US$ 304.2 million from US$ 316.3 million. Meanwhile, the cash and cash equivalents rose to US$ 1,057.4 million from US$ 539.3 million.
Bottom Line
While making investment decisions, do not just go with the stocks' reputation. Look for the growth prospects along with the potential risk factors. Uncertainty is attached to every stock, including gold stocks. Choose your side carefully and opt for safe returns in the long run.
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.
