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Summary
- OceanaGold stocks have swelled over 38 per cent in the last one month, guided by the gold price rally.
- The yellow metal scrips have actively traded across the market (TSX & TSXV) with a 10-day average volume of 3.26 million units.
- The gold stocks made it to TMX’s top metals and top basic material, led by the last one-month stock performance.
Investors are once again leaning on gold stocks as stock market crash fears re-emerge amid the new COVID-19 mutant strain. As we witness another wave of lockdowns, global indices’ trends look quite uncertain this week. Under these circumstances, prices of gold stocks such as OceanaGold (TSX:OGC) are once again on the rise. It is mostly a wait and watch scenario for the precious metal investors.
Earlier this year, gold prices soared to an all-time high, breaching the US$ 2000-mark in August. Gold contributed nearly 20 per cent to the Canadian commodities by value production in 2018.
Let us take a look at OceanaGold to gauge the latest trends:
OceanaGold Corporation (TSX:OGC)
Melbourne-based OceanaGold Corp operates in the exploration and development of gold and other minerals. The yellow metal company owns gold mines in New Zealand, the Philippines, and the US.
The golds stocks have rebounded by 92.5 per cent from its COVID-led market slump in March. It has surged over 38 per cent in the last one month. The company has a current market cap of approximately C$ 1.6 million.
The stock has a price-to-book (P/B) ratio of 0.899 and price-to-cash flow (P/CF) ratio of 4.90. Its debt-to-equity (D/E) ratio stands at 0.22, according to TMX data. The precious metal stock is actively trading on the TSX with a 10-day average volume of 3.26 million units, making it to TMX’s top volume performers.
OceanaGold's one-month stock performance chart. (Source: EODHD/Others, Thomson Reuters)
In the last 30-days, the gold corporation scrips have surpassed its peers with the highest price gains across the TSX and the TSXV. The stock also ranks among TMX’s top basic materials and top metals stocklists.
The gold company reported revenues of US$ 331.9 million year-to-date (YTD) in the third quarter of 2020, a decline from US$ 499.1 million in the prior-year period due to limited sales. However, its revenue improved marginally quarter-over-quarter basis due to higher sales volume from Macraes' operations and higher average gold prices collected in the quarter.
The company is expected to deliver a robust fourth quarter of operational and financial earnings, driven by better production from Macraes and Haile mines also a year-end batch from Waihi operations to be processed.
The stock is currently trading at C$ 2.40.
