The unprecedented invasion of Ukraine and the rising inflationary pressures increased gold demand in the first quarter to the highest level since the fourth quarter of 2018. U.S. dollar gold prices climbed 8% in the last quarter, while demand for the yellow metal rose 34% year-over-year. The iShares Gold Trust (IAU) has gained 1.9% over the past six months versus the S&P 500’s 19.4% decline.
The U.S. inflation rose to 8.6% in May, posting a new 40-year high, which raised gold prices. As the World Bank raised the concerns that a recession might be hard to avoid for some countries, gold demand might start to attract more safe-haven asset demand. Moreover, U.K.-based precious metals research firm Metal Focus predicted that gold’s safe-haven demand could cause its prices to average at $1,830 an ounce this year, which would be a record high average price.
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, located 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 EPS estimate of $0.98 for the fiscal year 2022 indicates a 27.3% year-over-year increase. Likewise, the consensus revenue estimate for the same year of $1.18 billion reflects a rise of 30.7% from the prior year.
The stock has gained 3.1% over the past six months to close yesterday’s trading session at $7.06.
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 51-stock Miners – Gold industry, it is ranked #1.
Click here to see the additional POWR Ratings for CGAU (Momentum, Stability, and Sentiment).
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, 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.