Despite a turbulent second quarter, gold demand increased 12% year-over-year in the first half of the year to 2,189t. In the second quarter, the LBMA Gold price PM averaged $1,871/oz, 3% above the prior-year quarter average. Central banks continued their gold buying, with global official gold reserves growing by 180t in the second quarter.
Precious metals like gold, silver, and palladium are fighting back against the trend of falling metal prices. The global precious metals index dropped 3.8% between June and July. However, gold bullion prices began to rise on July 20.
With the Fed dishing out another massive rate hike, some experts think that precious metals like gold might be seen as insurance and an investment opportunity.
According to Jim Cramer, gold holds its value well in a recessionary situation. Hence, we think Centerra Gold Inc. (CGAU), Jaguar Mining Inc. (JAGGF), B2Gold Corp. (BTG), and Torex Gold Resources Inc. (TORXF) might be ideal buys this fall.
Centerra Gold Inc. (CGAU)
CGAU operates as a gold mining company that acquires, explores, and develops gold and copper properties in North America and globally. The company’s principal project includes the 100% owned Mount Milligan gold-copper mine in British Columbia. It is headquartered in Toronto, Canada.
On May 4, CGAU announced a quarterly dividend of CAD0.07 per common share, which was payable to shareholders on June 1. This reflects the company’s ability to pay back its shareholders.
On April 20, Kootenay Resources Inc. announced the signing of an option agreement with a CGAU subsidiary whereby the company was granted an option to earn 70% interest in the Copley property located in the Nechako Plateau of Central British Columbia. This might expand the operative capacity of the company.
For the fiscal first quarter ended March 31, CGAU’s revenue increased 30.5% year-over-year to $295.22 million. Adjusted net earnings from continuing operations and adjusted net earnings from continuing operations per common share came in at $56.40 million and $0.19, up 100% and 90% from the prior-year quarter.
The consensus revenue estimate for the fiscal year 2022 of $1.14 billion reflects a rise of 26.2% from the prior year.
The stock has gained 2.3% over the past five days and 2.1% intraday to close its last trading session at $6.31.
CGAU’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
CGAU has a Quality grade of A and a Growth and Value grade of B. In the 53-stock Miners – Gold industry, it is ranked #1. Click here to see the additional POWR Ratings for CGAU (Momentum, Stability, and Sentiment).
Jaguar Mining Inc. (JAGGF)
JAGGF is a junior gold mining company that acquires, explores, develops, and operates gold-producing properties in Brazil. The company, headquartered in Toronto, Canada, holds principal assets in the Iron Quadrangle in Minas Gerais, Brazil.
On June 10, JAGGF announced a notice for a normal course issuer bid to purchase for cancellation up to 3,623,640 common shares in the capital of the company. The company intends to enhance long-term shareholder value by purchasing and canceling common shares at a discount to their underlying value.
For the fiscal first quarter ended March 31, JAGGF’s free cash flow increased 1,245.2% year-over-year to $2.65 million. Cash generated from operating activities came in at $7.71 million, up 19.2% from the same period the prior year. Revenue stood at $30.62 million.
The consensus EPS estimate of $0.27 for the fiscal year 2023 indicates a 430% year-over-year increase. Likewise, the consensus revenue estimate for the same year of $156.13 million reflects a rise of 14.6% from the prior year.
JAGGF’s shares have gained 12.1% over the past month to close its last trading session at $2.60.
This promising prospect is reflected in JAGGF’s POWR Ratings. The stock has an overall B rating, equating to Buy in our proprietary rating system. JAGGF has a Quality grade of A and a Value and Momentum grade of B. It is ranked #3 in the Miners – Gold industry.
In addition to the POWR Rating grades we’ve stated above, one can see JAGGF ratings for Growth, Stability, and Sentiment here.
B2Gold Corp. (BTG)
BTG, based in Vancouver, Canada, is a gold producer primarily operating in three mines in Mali, the Philippines, and Namibia. The company also holds interests in Calibre Mining Corp. and BeMetals Corp.
On June 8, BTG declared a second-quarter dividend of $0.04 per common share, which was payable to shareholders on June 29. This reflects upon the company’s cash generation and shareholder return ability.
On May 26, BTG announced that it had entered into a definitive Scheme Implementation Agreement with Oklo Resources Limited to acquire 100% of the fully paid ordinary shares of Oklo. The acquisition is expected to provide BTG with landholding in greenstone belts in Mali, West Africa, which include Oklo’s flagship Dandoko Project.
BTG’s gold revenue increased 0.9% year-over-year to $365.58 million in the fiscal first quarter ended March 31. Cash and cash equivalents balance rose 26.6% from the prior-year period to $648.76 million. Net income for the period and EPS stood at $90.80 million and $0.08, respectively.
Street EPS estimate for the fiscal year 2022 of $0.37 indicates a 2.8% year-over-year improvement. Likewise, Street revenue estimate of $1.85 billion for the same year reflects a rise of 4.7% from the prior year.
BTG’s stock has gained 1.5% over the past five days to close its last trading session at $3.43.
It’s no surprise that BTG has an overall B rating, which translates to Buy in our POWR Ratings. The stock has an A grade for Quality and a B grade for Sentiment. It is ranked #4 in the Miners – Gold industry.
Click here to see the additional POWR Ratings for Growth, Value, Momentum, and Stability for BTG.
Torex Gold Resources Inc. (TORXF)
Headquartered in Toronto, Canada, TORXF operates as an intermediate gold producer in Mexico. The company primarily holds a 100% interest in the Morelos Gold property located southwest of Mexico City. It also mines for silver, copper, and carbon deposits.
On July 7, TORXF announced results from its resource expansion and exploratory drilling completed in the broader Media Luna area. Jody Kuzenko, President & CEO, stated, “A key pillar of the Torex strategy is a renewed focus on drilling and exploration, and our latest drilling results at the Media Luna Cluster reinforce our positive outlook on our ability to complement future production at Media Luna.”
TORXF’s metal sales came in at $207.70 million for the fiscal first quarter ended March 31. Net income and comprehensive stood at $40 million for the period. The company’s cash and cash equivalents balance increased 37.8% from the prior-year period to $237 million.
The consensus revenue estimate of $916.84 million for fiscal 2022 indicates a 7.3% year-over-year increase.
The stock has gained 3.1% over the past five days to close its last trading session at $7.55.
TORXF has an overall B rating, translating to Buy in our POWR Ratings system. The stock has a Value, Stability, and Quality grade of B. It is ranked #2 in the same industry.
In addition to the POWR Rating grades we’ve stated above, one can see TORXF ratings for Growth, Momentum, and Sentiment here.
CGAU shares were trading at $6.17 per share on Wednesday morning, down $0.14 (-2.22%). Year-to-date, CGAU has declined -18.68%, versus a -12.74% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
4 Precious Metal Stocks to Keep an Eye on This Fall StockNews.com
