For investors willing to broaden their investing horizons or to increase their existing exposure there are several opportunities which are worthy optionsthis month Barrick Gold NYSEGOLD Kirkland Lake NYSEKL and the VanEck Vectors Gold Miners ETF NYSEMKTGDX.
While Barrick Gold the second largest publicly traded gold mining company by market cap gained popularity last month when news broke that Berkshire Hathaway had built a position in the company totaling nearly 564 million its hardly the only reason why Barrick is a lustrous opportunity right now The company recently turned in strong second quarter earnings Reporting gold production of 1 15 million ounces in Q2 Barrick remains on track to achieve its old 2020 production guidance of approximately 4 8 million ounces.
In terms of its financials the soaring price of gold helped Barrick generate considerable cash flow in Q2 Operating cash flow rose 138 year over year to 1 03 billion and free cash flow skyrocketed to 522 million an 849 increase over what it reported during the same period in 2019 Managements prudent capital allocation provides another reason why Barrick should glitter brightly in investors eyes Shoring up its balance sheet Barrick reduced its total debt by 11.
Looking toward the future Barrick made progress on several projects despite the challenges of COVID 19 such as the expansion of Pueblo Viejo in the Dominican Republic and the development of the Goldrush project at Cortez in Nevada The successful development of these organic growth projects helps to ensure that the company replenishes its gold reserves without the need to acquire assets.
Lastly Barricks attention to rewarding shareholders will appeal to dividend minded investors In the second quarter Barrick raised its quarterly distribution 14 to 0 08 per share With the latest increase Barrick has more than doubled its distribution since its merger with Randgold two years ago.
Operating assets in Canada and Australia Kirkland Lake is a company that excels at generating strong cash flow representing another glittering option for investors mining the market for gold stocks Due in large part to the acquisition of Detour Lake earlier this year Kirkland Lake has generated 418 million in free cash flow through the first half of 2020 and it sees a strong back half of the year as operations ramp up at Macassa.
Often investors myself included who are familiar with mining companies will place greater emphasis on a companys cash flow generation over its earnings per share since the latter metric can be massaged through the manipulation of non cash charges Its not only the fact that Kirkland Lake succeeds at turning the gold into green something not every gold mining company can do its the fact that the company excels at it compared to its peers as measured by market cap Agnico Eagle Mines NYSEAEM Anglogold Ashanti NYSEAU Kinross Gold NYSEKGC and Gold Fields NYSEGFI.
Its not only Kirkland Lakes alluring cash flow statement that will attract investors the company also has an impressively strong balance sheet that features a cash position of 537 million and no debt.
Trading at 12 4 times operating cash flow Kirkland Lake may seem pricey considering its five year average multiple is 10 1 However choosing to eschew the stock right now due to the slight premium at which its currently trading is a bit of wisdom about as valuable as fools gold.
Jul 28 2020nbsp018332And smart investors could do a lot worse than consider gold mining stocks such as those held in the VanEck Vectors Gold Miners exchange traded fund GDX.
New Found Gold corp set out to assemble a strong portfolio of exploration stage projects in safe mining friendly jurisdictions in North America We have identified one core project in the famed Abitibi region of Ontario and our flagship project in the emerging mining district of Newfoundland Canada.
Comprehensive list of Gold companies listed in United Kingdom including company profiles charts stock quotes news and user commentary Gold Mining Companies Listed in United Kingdom This site is formed from a merger of Mining Nerds and Highgrade Review.
Aug 03 2020nbsp018332The stock has risen 59 3 so far this year outperforming the VanEck Vectors Gold Miners Exchange Traded Funds GDX by 12 6 The share price traded at 69 20 at.
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