Gold stocks are some of the most prominent investment topics in the stock market today. Several geopolitical factors such as COVID-19 and the upcoming U.S. election has meant that the market is quite volatile. When volatility is rampant, investors tend to turn toward more stable, safe havens. Historically, gold has been one of the most stable “safe havens” to watch. With the advent of new trading platforms, investing in gold stocks is easier than before.
Mining stocks have long been considered to be an investor’s safe-haven from a volatile market. Within gold mining, there is a myriad of gold stocks to choose from. Typically, some gold companies will present themselves better than others. When investing in gold stocks, investors should lookout for a few key factors.
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The first factor to consider is how much gold the company is mining. This is an obvious one and can be found online with a proper search. The second factor to look for is what type of growth the company is undergoing. This could be the opening of new mines or the exploration of current ones. Although there are a lot of gold stocks operating out of the U.S., let’s take a closer look at other gold companies in other places in the world as well.Top Gold Stocks To Watch: Freeman Gold Corp.
Freeman Gold Corp. (FMAN Stock Report) is a mining company based out of Canada. Although the company is headquartered in Canada, its primary focus right now is in the U.S. Freeman Gold has worked hard to capitalize on its Idaho-based, Lemhi Gold Project. The company has full ownership of this project and has 99 unpatented claims as well as 11 patented claims to the area. As stated before, the COVID Pandemic has meant that GDPs around the world have fallen greatly. Given that gold mining is a potentially pandemic-proof operation, many investors have begun to focus on FMAN stock.
To understand Freeman Gold, we first have to take a closer look at the Lemhi Gold Project. The project, which is aptly named after the county it resides in, sits right on the border of Idaho and Montana. For those that don’t know, Idaho has a long history in the gold mining industry. According to the Fraser Institute which ranks the attractiveness of mining locations, Idaho has come in at number 8 in the whole world.
This summer, Freeman began a 5,000-meter diamond drill program at Lemhi. This is intended to confirm historical data and allow the use of over 355 historical drill holes in a National Instrument resource estimate. Some of the historical drill hole results are detailed below in Table 1 and include results such as 1.80 grams per tonne gold over 193 metres, 3.94 gpt Au over 56 meters, and 1.81 gpt Au over 179.83 meters.
In addition to Freeman Gold’s massive mining potential, its leadership team is also second to none. Will Randall, President, and CEO of the company spent a large portion of his career as a professional geologist. Randall has more than 20 years of experience in the industry which has helped to inspire a lot of confidence amongst potential investors. In addition, Freeman Gold recently announced at the end of June that it had completed a bought deal public offering equating to around $9 million.Top Gold Stocks To Watch: B2Gold Corp.
B2Gold Corp. (BTG Stock Report) is another one of the top-performing Canadian gold stocks to watch. In the past few months, we have witnessed gold prices continue to go up due to its status as a safe haven. Although many gold stocks have shot up in value in the past few months, the most attractive ones are those that have low costs associated with mining.
Because of the nature of the business, the majority of operating costs are related to production. This is the primary part of the business model where gold stocks can begin to show potential growth. B2Gold has continued to report very low production costs when compared to other gold stocks to watch.
In its most recent second quarter, the company reported having more than doubled its free-flowing cash than its previous quarter. Specifically, quarterly consolidated cash flow provided by operating activities from B2Gold’s three operating mines of $238 million. This was an increase of $145 million (156%) over the second quarter of 2019.
Additionally, B2Gold has continued to pay out a hefty amount to investors in the form of dividends. In the aforementioned second quarter, B2Gold doubled the dividend amount that it pays investors. Although that number is still not incredibly high at around 2.5%, it is quite good for a gold stock. All of this continues to paint a picture for B2Gold having a great deal of upside potential. With this, it remains a leading gold stock in the market.Top Gold Stocks To Watch: New Gold Inc.
New Gold Inc. (NGD Stock Report) is another company to watch when it comes to gold mining. In its most recent quarter, New Gold reported a net profit of around $60 million. This is quite substantial for any stock, let alone a gold stock. The company also reported that its revenue had increased to $129 million in the same period.
Additionally, its EBITDA grew to around $60 million which creates a great deal of confidence. As of the end of August, New Gold Inc. has shown a market cap of roughly $1 billion, making it a major player in the gold mining industry.
But, New Gold inc still has a lot to work on in order to build a larger presence in the market. The company can take several steps to move in the right direction. For one, it currently has a great deal of debt on its books. When compared to equity, NGD has a debt amount of around 80% which is quite high.
But, the company has consistently worked on increasing its profitability while also decreasing its debt. This is a long term process and one that is especially drawn out in the mining industry. But, as New Gold works toward this, it could continue to be touted as one of the gold stocks to watch right now.