Top 3 Gold Stocks To Watch in September as Yellow Metals Consolidates
The worldwide economic turmoil has seen the price of gold rising at a steady pace and the activities of ace investors like Warren Buffett have also added fuel to the fire. Recently, the precious metal touched a fresh all-time high of as much as $2063 an ounce as more and more investors flocked to it amidst rising economic uncertainties brought about by the coronavirus crisis. In light of such a situation, it is entirely logical for investors to consider investing in some gold stocks, and here is a quick look at three of those.
Eldorado Gold Corp (NYSE:EGO)
One of the gold stocks that could be considered by investors at this point in time is that of Eldorado Gold Corp (NYSE:EGO). The company has been in business for a quarter of a century and owns five gold mines, which produced 395000 ounces of gold last year. In the fiscal second quarter this year, Eldorado managed to clock a rise in revenues largely due to higher sales and also higher gold prices.
Additionally, the earnings per share soared to $0.26 a share from a loss of $0.02 a share in the year-ago period. Cosmos Chiu, an analyst at CIBC is impressed with Eldorado’s performance and pointed out that it has managed to stick to its projections for 2020 so far. The company expects to generate 520000 to 550000 ounces of gold this year.
Kinross Gold Corporation (NYSE:KGC)
Another gold stock that could be considered at this point in time is that of Kinross Gold Corporation (NYSE:KGC), boasts of gold reserves of as much as 24.3 million ounces to go along with silver reserves of 55.7 million ounces. In the second fiscal quarter, Kinross benefitted considerably from the rising price in gold and recorded revenues of $1 billion, which was considerably higher than the $838 million it had generated in the prior-year period.
More importantly, Kinross generated free cash flow of as much as $63.4 million, which was much higher than the $4.8 million generated in the prior-year period. In addition to that, adjusted earnings for the period soared to $194 million. Due to the generation of considerable free cash flow, the company could now be in a position to restart paying out dividends as well and that is another important factor in favor of the Kinross stock.
Alamos Gold Inc (NYSE:AGI)
The third stock that could be added to the watch list is that of Alamos Gold Inc (NYSE:AGI), which boasts of a market cap of $4 billion and operates two mines in Mexico and Canada. The coronavirus pandemic affected its business as it had to halt operations at its mines and that resulted in a 25% fall in revenues year on year.
That being said, it should be noted that the performance was in line with analysts’ estimates. Additionally, the company also announced that it was going to expand its operations and also flagged off new projects.