Investin in tangible gold can be tricky, especially if you have a quantity that requires storage in a secure location. Well, bullion isn’t what’s on my mind. I’ll focus on individual gold stocks on the NYSE. Gold stocks are considered by many to be an essential part of an investor’s asset allocation, especially during periods of high inflation. With a decline in the value of the U.S. dollar and a rise in the likelihood of a recession, several mining equities have recently risen as the market’s vital signs seem to be bouncing back.
Kinross Gold Corp (KGC)
Kinross Gold Corporation (KGC) and its subsidiaries acquire, explore, and develop gold assets primarily in the United States, Brazil, Chile, Mauritania, and Ghana. KGC also extracts and processes gold-containing ores, reclaims gold mining assets, and produces and sells silver. KGC was established in 1993 and is based in Toronto, Canada.
KGC had an excellent third quarter this year and isn’t slowing down. KGC’s Q3 results missed some expectations yet improved their performance: Revenue landed at $856.5 million (+47.06%), net income at $64.9 million (+244.54%), EPS at 5 cents per share (+225%), with a profit margin of 7.58% (+198.31%) and operating income of $104.2 million (+460.22%). Until reporting again, KGC’s current quarter shows estimated sales of $1 billion and an improved EPS of 8 cents. KGC’s dividend yield is 2.74%, with an annual payout of 12 cents per share (3 quarterly). With KGC’s stock down 24.27% YTD, this has upside potential. Analysts who provide 12-month price projections have given KGC a consensus median price target of 5.48, with a high of 7.47 and a low of 3.75. This is a 24.58% increase over KGC’s current price, and analysts are consistent with its buy rating.
Alamos Gold Inc (AGI)
Alamos Gold (AGI) is a Canadian multinational gold company with three mines in North America and six more under construction. AGI owns and manages three mines: the Island Gold Mine in British Columbia, the Young-Davidson Mine in Ontario, Canada, and the Mulatos Mine in Sonora, Mexico. Hundreds of thousands of ounces of gold are successfully extracted and produced by AGI each year among the three mines. AGI has received best-in-class environmental, social, and corporate governance ratings. AGI was established on February 21st, 2003, and is based in Toronto, Canada.
AGI, although being the smallest operation of its peers, has already shown growth, and more is on the way. Year-to-date, AGI’s stock is up by 29.26%. For Q3 2022, AGI met analysts’ projections on EPS and beat revenue by 1.5%, reporting $213.6 million vs. the $209 million expected. The sales number also represents 7.88% year-over-year growth. With a market cap of nearly $4 billion and an average volume of 3,771,682, AGI appears to be proliferating. In recent news, it announced a quarterly dividend: AGI has a yield of 1.04%, with an annual payout of 10 cents per share. Keep in mind, that’s for now, and it could certainly increase. Analysts who offer 12-month pricing estimates have marked AGI with a consensus median price target of 10.00, with a high of 11.96 and a low of 8.84. AGI is performing well to end the fiscal year, and 2023 should give its buy rating some time to shine.
Barrick Gold Corp (GOLD)
Barrick Gold Corporation (GOLD) is a gold and copper property exploration, production, and mine development company. GOLD holds stakes in gold mines in Argentina, Côte d’Ivoire, the Democratic Republic of the Congo, the Dominican Republic, Mali, Tanzania, and the U.S. GOLD also has ownership stakes in copper mines in Chile, Saudi Arabia, Zambia, and many other projects in the Americas and Africa. GOLD was established in 1983 and is based in Toronto, Canada.
GOLD is down by 9.95% for the year and is considered undervalued, even with its low price. GOLD is regarded as a top-shelf gold equity, as it comes with a $38 billion market cap and one of the industry’s best management teams. In four consecutive earnings reports, GOLD has crushed analysts’ EPS and revenue projections. The current quarter for GOLD shows estimated sales of $2.8 billion, with an EPS of 18 cents per share. GOLD has a dividend yield of 3.47%, with an annual payout of 55 cents per share. The analysts that offer yearly price forecasts have given GOLD a consensus median price target of 20.20, with a high of 25.00 and a low of 15.00. This estimate shows an 18.04% increase over its last price, and all that comes to mind is “bargain!” after seeing GOLD’s uncontested buy rating.
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