Something that analysts had done earlier this year was set price targets for gold. Heading into 2020, expectations for the precious metal were high. However, the March sell-off across the entire market had some questioning their original outlook. We discussed this topic earlier in the week.
Some of the top investment banks in the world have taken a bullish stance on gold. These include Citi (C stock report), Goldman Sachs (GS stock report), and Bank of America (BAC stock report). Recently Goldman raised its expectations for gold prices.
The investment bank previously estimated gold prices to reach $1,800, $1,900, and $2,000 within the next 3,6, and 12-months respectively. That has obviously come to fruition sooner than later as gold prices today are within $22 of reaching the top of that range.
HSBC Chief Precious Metals Analyst James Steele said in an interview, “The two most populous nations in Asia are also the world’s two largest gold importers and consumers. Further escalation in risks could prompt greater gold purchases. Gold may dip near term, but $1,700/oz should hold. It looks to us that there is sufficient risk to support gold as the year unfolds. We also look for silver to trek higher, aided by gold.”
HBSC also reported that the increase in unemployment and fiscal stimulus measures could result in a bigger move for gold prices. With that being said, here are three top gold stocks to watch during the COVID-19 Pandemic.
Top Gold Stocks To Buy [or sell]: Barrick Gold Stock
Shares of Barrick Gold stock (GOLD Stock Report) finally hit new 52-week highs this week. Barrick gold stock reached $30.20.
Barrick has also enjoyed a slurry of new analyst moves. Barclays raised Barrick Gold’s price target to $27 from $25. However, it kept its rating at an equal-weight for now. Barclays joined Deutsche Bank, which raised its price target in June to $35 and maintains a Buy rating for the stock.
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Earlier in July, the company reported preliminary second-quarter sales of 1.22 million ounces of gold and 123 million pounds of copper. It also reported preliminary second-quarter production of 1.15 million ounces of gold and 120 million pounds of copper. Group gold production for the first six months of 2020 was 2.4 million ounces, at the midpoint of the company’s 4.6 to 5.0 million ounce guided range for the year.
Top Gold Stocks To Buy [or sell]: Yamana Gold Stock
Shares of Yamana Gold stock (AUY Stock Report) maintained levels above $6 once again this week. The Gold producer saw AUY stock price reach new 52 week highs this week. Clocking in at $6.88 on Monday, Yamana set a new 5-year high. The gold stock hasn’t traded above this level since 2014.
At the end of Q2, Yamana Gold has more than $320 million in cash, while its net debt decreased by $100 million to less than $769 million, according to a news release. The company also said it expects to have its shares listed on the main market of the London Stock Exchange in the next few months.
Yamana announced its Q2 earnings results earlier this month. For starters, the company announced it is increasing its annual dividend by a further 12% to $0.07 per share. From its earnings, adjusted net earnings of $63.3 million or $0.07 per share basic and diluted. That’s compared to adjusted net earnings of $19.8 million or $0.02 per share basic and diluted a year earlier. Net earnings were nil or nil per share basic and diluted compared to net earnings of $14.1 million or $0.01 per share basic and diluted a year earlier.
[Read More] Where Do Gold Stocks Go From Here?
Gold production came in at 164,141 ounces and was above plan, following strong performances from Jacobina, El Peñón, Minera Florida, and Canadian Malartic. All exceeded their production plan. Silver production came in at 2,007,809 ounces and was also above plan. That was following a strong performance from El Peñón. Gold equivalent ounce – GEO – production of 183,582 ounces exceeded plan. It was also at costs better than plan, despite the GEO ratio being higher at 105.14 than that guided at 98.85 according to Yamana.
Top Gold Stocks To Buy [or sell]: B2Gold Corp.
B2Gold Corp. (BTG Stock Report) has held a leading role on watch lists this month. That’s for good reason, however. Day after day, BTG stock reaches not only new 52-week highs but new all-time highs as well. On July 31st, shares hit $6.95 and beat its previous all-time high yet again. But it is what it is and the scoreboard speaks for itself.
B2Gold stock has been a force to reckon with ofr the last month and a half. From June 18th on, BTG stock not only climbed in price but the rate of increase what much greater than it has seen in quite some time. Furthermore, since the gold sector sell-off in March, BTG has rallied by as much as 220%.
Earlier this month the company announced its gold production and gold revenue for the second quarter and first half of 2020:
- Consolidated gold production of 239,574 ounces, above budget by 3% (7,327 ounces) and a significant increase of 15% (30,684 ounces) over the second quarter of 2019 (excluding discontinued operations of El Limon and La Libertad)
- Total gold production of 241,593 ounces (including 2,019 ounces of attributable production from Calibre Mining Corp. (“Calibre”))
- Record quarterly consolidated gold revenue from the Company’s three operating mines of $442 million, a significant increase of 65% ($175 million) over the second quarter of 2019 (excluding discontinued operations)
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