3 Golden Picks from Our Shining Metal Sector

Summary

  • 2020 proved a golden year for the gold stocks, with precious metal making new high.
  • Correlation between the state of economy and gold is just the opposite of each other.

2020 was a tremendous year for gold and its asset class, where the precious metal made its new high of around $2075 per ounce in August. Though, soon after making all time high, gold started correcting on account of the strengthening US dollar and the upside in the equity market.

Recently, our considered safe heaven, Gold, has once again started outperforming the equity market due to a rise in the inflationary pressure. So, probably its once again the time to catch the bus, if someone missed the last rally, if one is considering it as an investment option. On LSE, numerous Gold miners are listed and most of them have performed exceptionally well in the recent times.                        

                                                   

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Here we are going to discuss 3 stocks from the heat up sector based on their strong prospects and financials. The stocks discussed are for reference purpose, and any investment decision should be taken after considering all the prospects of the stock or with expert advice. 

Oriole Resources PLC (LON: ORR)

Oriole Resources PLC operates in Africa and Europe and is an AIM-listed gold exploration company. The company bagged eight new licences in Central Cameroon, encompassing a contiguous land package of 3,592km. The company is planning to take its Bibemi stake to 90% from current 51%.

Recently, IAMGOLD Corp. a partner of Oriole reported the beginning of a new exploration plan in Senegal at the Senala gold project. The company has a market capitalisation of £14.08 million.

The stocks of the company were trading at GBX 0.85 on 21 May 2021, as of 14:40 PM GMT +1, down by 5.56 per cent.

Polymetal International PLC (LON: POLY)

An Anglo-Russian precious metals mining company, Polymetal International PLC is a constituent of FTSE 100. In Q1 of 2021, company’s Gold equivalent (GE) production grew by 3% year over year and stood at 375 Koz. With the surge in gold & silver prices, company reported 20% year over year revenue for the quarter to US$ 593 million. 

Despite seasonal inventory accumulation, Polymetal was able to generate free cash flow, which ultimately led to a reduction in the net debt of the company during the quarter to US$ 1.32 billion. The company is on the track of maintaining its full-year cost guidance for AISC in a range of US$ 925 to 975/GE oz and for TCC in a range of US$ 700 to 750/GE oz. 

On 21 May 2021, the stocks of the company were trading at GBX 1718.50 as of 14:41 PM GMT +1, up by 0.12 per cent.

Also Read: Operational Review of Two Mining Stocks Listed on the LSE: Anglo American & Polymetal International

Centamin PLC (LON: CEY)

Centamin is an FTSE 250 listed gold miner having one operating mine in Egypt. The company successfully generated over US$1.2bn returns for its stakeholders in the last six years. A debt free company is in alignment with its guidance and produced 104,047 ounces Gold from the Sukari Gold Mine in Q1 of 2021. The company reported revenue of US$190 million from gold sales of 106,573 oz.

The market capitalisation of the company is £1,366.92 million. As of 31 March 2021, the Company hold net cash and liquid assets of US$330.7 million.

On 21 May 2021, the stocks of the company were trading at GBX 121.40 as of 14:43 PM GMT +1, up by 2.66 per cent.


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