Metal and mining stocks to watch out for in this quarter

May 02, 2023 09:30 PM AEST | By Akanksha Vashisht

Metal and mining stocks to watch out for in this quarter — Image source: Pexels

Summary

The strength of metal and mining stocks is determined largely by the assets held by the companies.

Agnico Eagle Mines is engaged in gold mining and conducts its main mining operations at the LaRonde mine.

One of the world’s largest gold miners, Barrick Gold, reported total revenue of US$ 2.774 billion during the December 2022 quarter.

The metal and mining category includes a wide range of companies with a unique appeal depending on which metal they operate on. The asset base held by these companies largely depicts the strength of these stocks.

The major risk source for mining corporations is the possibility of their exploration efforts going in vain if they cannot derive the expected quantity of a resource. However, some of the largest companies worldwide are involved in metal and mining exploration.

Investors may examine two such metal and mining companies during this quarter.

Agnico Eagle Mines Limited (TSX:AEM)

Agnico Eagle’s primary mining operations include gold mining. Its main mining operations occur in LaRonde, which was AEM’s only operational mine up until 2008, after which the company started operating in other mines too.

The company merged with Kirkland Lake Gold in 2022, acquiring the Detour Lake and Macassa mines in Canada and the high-grade, low-cost Fosterville mine in Australia. In 2022, the company produced over 3.1 million old ounces and had 15 years of gold reserves.

Agnico started the new year on a strong financial front, with a reported quarterly net income of US$ 3.87 per share during Q1 2023. This translates to a net income of US$1.816 billion during the quarter. The company also declared a quarterly dividend of US$ 0.40 per share.

Barrick Gold Corporation (TSX:BC)

Barrick Gold is a giant in the gold mining segment with a potential future in copper exploration as well. The mining giant held two decades’ worth of gold reserves by 2022 end. During the same year, Barrick Gold produced about 4.1 million ounces of gold and around 440 million pounds of copper.

During the December 2022 quarter, the company generated a total revenue of US$ 2.774 billion and an EBITDA of negative US$ 194 million. Barrick Gold’s operating cash flow during the period was US$ 795 million. The company confirmed that it is on track to achieve its 2023 targets as it reported preliminary Q1 sales of 0.95 million ounces of gold with an average market price of US$ 1,890 per ounce during the period.

The company also reported preliminary Q1 production of 88 million pounds of copper, for which the average market price was US$ 4.05 per pound during the quarter.

The company will release its financial results for the first quarter of 2023 on May 3, 2023.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.