Top gold stocks to watch in October as mining gains pace

Highlights

  • Barrick Gold (NYSE: GOLD) announced a US$0.09 quarterly dividend for Q2, 2021.

  • Newmont Corp (NYSE: NEM) logged a net income of US$640 million in Q2, 2021.

  • Royal Gold, Inc. (Nasdaq: RGLD) reported revenue of US$168 million in Q4, 2021.

Gold is typically considered a safe investment. However, while some people prefer to buy yellow metal, others invest in the equities of various gold mining companies. Today, there are different types of companies that are operating in the sector. For instance, junior gold companies are new companies that explore gold mines in untested fields.

Here we explore the top five gold stocks in the market.

Barrick Gold Corporation (NYSE: GOLD)

GOLD is a Toronto-based company and explores gold and copper in 13 countries.

Its stock traded at US$17.66 at 8.50 am ET on September 30.

Its market cap is US$31 billion. The P/E ratio is 12.38, and the forward P/E one year is 14.18. The earnings per share (EPS) is US$1.42, and the annual dividend is US$0.36. The highest and lowest stock prices of GOLD for the last 52 weeks were US$29.60 and US$17.56, respectively.

The company announced a US$0.09 quarterly dividend for Q2, 2021. The net earnings in Q2, 2021, were US$411 million as compared to US$357 million in Q2, 2020. The net earnings per share were US$0.23 against US$0.20 per share in Q2, 2020.

Also read: Five Gold & Silver Stocks To Watch In June

Newmont Corporation (NYSE: NEM)

NEM is a Colorado-based mining company and owns gold mines in the US, Canada, and Mexico. The stock traded at US$54.02 at 9.03 am ET on September 30.

The market capitalization of NEM is US$42 billion. The P/E ratio is 15.04, and the forward P/E one year is 15.39. The earnings per share (EPS) is US$3.57, and the annual dividend is US$2.20. The 52-week highest and lowest stock prices were US$75.31 and US$53.26, respectively.

The company declared a quarterly dividend of US$0.55 per share in Q2, 2021. The GAAP Net income in Q2, 2021, was US$640 million against US$412 million in Q2, 2020. The adjusted EBITDA was US$1.5 billion against US$984 million in Q2, 2020.

Top gold stocks to watch in October.

Source: Pixabay.

Royal Gold, Inc. (Nasdaq: RGLD)

RGLD is a Colorado-based gold company and owns precious metal streams, royalty companies, and similar products. The stock traded at US$96.87 at 9.17 am ET on September 30.

The market capitalization of RGLD is US$6.3 billion. The P/E ratio is 21.06, and the forward P/E one year is 24.40. The EPS is US$4.60, and the annual dividend is US$1.20. The highest and lowest stock prices of RGLD for the last 52 weeks were US$129.69 and US$96.50, respectively.

The company reported revenue of US$168 million in Q4, 2021. The net income was US$81.7 million, or US$1.24 per share in Q4, 2021. Operating cash flow was US$120.9 million.

The net income of RGLD for the fiscal year was US$302.5 million, or US$4.61 per share. It also had revenue of US$615.9 million and an operating cash flow of US$407.2 million.

Kinross Gold Corporation (NYSE: KGC)

KGC is a Canada-based gold and silver mining company. The stock traded at US$5.285 at 9.41 am ET on September 30.

The market capitalization of KGC is US$6.6 billion. The P/E ratio is 5.14, and the forward P/E one year is 12.78. The EPS is US$1.02, and the annual dividend is US$0.12. The highest and lowest stock prices of KGC for the last 52 weeks were US$9.42 and US$5.18.

The company reported net earnings of US$119.3 million, or US$0.09 per share, in Q2, 2021. The company had cash and cash equivalents of US$675.6 million after repaying US$500 million in debt in the quarter.

Coeur Mining, Inc. (NYSE: CDE)

CDE is a Chicago-based company and has gold mines in North America. The stock traded at US$6.16 at 9.53 am ET on September 30.

The market capitalization of CDE is US$1.5 billion. The P/E ratio is 20.43, and the forward P/E one year is 40.27. The EPS is US$0.30. The highest and lowest stock prices of CDE for the last 52 weeks were US$12.60 and US$5.95, respectively.

The company reported revenue of US$214.9 million in Q2, 2021. The cash flow from operating activities was US$58.1 million. The GAAP net income from continuing operations was US$32.1 million, or US$0.13 per share, against a loss of US$1.2 million or a loss of US$0.01 per share, in Q2, 2020. EBITDA was US$84.6 million against US$35.3 million in Q2, 2020.

Also read: Five iron ore stocks to watch as metal prices tumble

Barrick Gold (NYSE: GOLD) announced a US$0.09 quarterly dividend for Q2, 2021.

Source: Pixabay.

Kirkland Lake Gold Ltd. (NYSE: KL)

KL is a Canada-based gold mining, development, and exploration company. The stock traded at US$42.02 at 10.05 am ET on September 30.

The market capitalization of KL is US$11 billion. The P/E ratio is 13.54, and the forward P/E one year is 13.12. The EPS is US$3.08, and the annual dividend is US$0.75. The highest and lowest stock prices of KL for the last 52 weeks were US$51.78 and US$31.72.

The company reported net earnings of US$224.2 million or US$0.91 per share in Q2, 2021, a 67% increase from Q2, 2020. The company returned US$158.6 million to shareholders, US$100.3 million in dividends, and repurchased 1,374,100 shares for US$58.3 million.

Bottomline

Gold companies have been reporting solid earnings in the quarters. Most companies have resumed their mining activities after the government lifted pandemic restrictions in most parts of the world. Hence, analysts expect the sector to witness brisk business in the coming quarters as the pandemic situation further improves. However, analysts should analyse the companies carefully before investing in stocks.

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