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Known for its safe-haven status, the gold industry beckons with its unwavering appeal even in the current uncertain economic scenario. This should benefit gold stocks Gold Fields (GFI) and Seabridge Gold (SA), but let’s explore which is the better choice. read more.
Gold Fields Limited (GFIMore), South Africa-based Seabridge Gold Inc. (SA) is headquartered in Canada and is one of the leading companies in the gold industry. In this article, he evaluates these two stocks and decides which one is the better investment. I consider his GFI to be an excellent choice.
Gold has the ability to maintain its value and protect personal purchasing power over the long term in the face of high inflation and exchange rate fluctuations. Investing in gold can therefore be considered a viable option despite the current economic turmoil, including continued high inflation, rising interest rates and growing concerns about a potential recession. .
Furthermore, as world gold council, an unprecedented surge in mine production and increased recycling in the first quarter of this year led to a 1% increase in total gold supply. Notably, first quarter mine production hit a record high, up 2% year-over-year.
Additionally, gold recycling registered a notable 5% year-on-year increase, likely influenced by the gold price’s upward trajectory.
Additionally, it’s worth mentioning that the global hedge book saw a modest gain of 8 tonnes in Q1 due to the rising gold price. Both GFI and SA are expected to benefit from industry tailwinds.
GFI has risen 79.9% over the past nine months, while SA has risen 5% over the same period. Moreover, in the past year he has increased GFI by 28.8% while SA has decreased by 2.7%. GFI closed at $15.04 and SA at $13.89.
Here’s why I think GFI can perform better in the short term.
Latest development status
On May 2, 2023, GFI announced a partnership with Osisko Mining Inc., now known as Windfall Mining Group, to develop and mine a world-class underground Windfall project in Quebec, Canada. Under the executed and executed transaction agreement, GFI had acquired his 50% interest in his Windfall project in the feasibility stage through its wholly owned Canadian subsidiary.
On March 16, GFI announced that the company and AngloGold Ashanti have agreed the main terms of the proposed joint venture between GF Tarukwa and AngloGold Ashanti’s adjacent Idupriem mine in Ghana. bottom.
Meanwhile, SA announced on May 11 that its wholly-owned subsidiary, KSM Mining ULC, signed a royalty agreement under which Sprott Resource Streaming and Royalty Corp would pay KSMCo $150 million, and KSMCo would grant Sprott $1.20. announced that it had agreed to key terms. % of pure smelter royalties on the Company’s wholly-owned KSM project in northern British Columbia, Canada.
Recent financial results
GFI’s gold production for the first quarter of the financial year ending March 2023 was 577,000 oz. The company’s revenue for the quarter increased slightly year-on-year to $1,901 per ounce.
For the fiscal year ending December 2022, GFI’s revenue increased 2.2% year-on-year to $4.29 billion. Investment income increased by 60.2% year-on-year to $13.3 million. Net income was $721.7 million and combined EPS attributable to owners of the parent was 118 cents, up 19.2% year-on-year.
Meanwhile, SA’s net loss for the first quarter of the fiscal year ended March 31, 2023 increased 71.7% year-on-year to C$10.78 million ($7.98 million). Comprehensive loss for the period increased by 164.3% year-on-year. -Year-on-year change of CAD 16.2 million ($11.99 million). Loss per share increased 62.5% year-on-year to C$0.13.
Dividend history
GFI’s annual dividend of $0.41 represents a 3.19% yield at the current share price. The four-year average dividend yield is 2.30%. The company’s dividend has grown at his CAGR of 59.6% and 41.1% over the past three and five years respectively.
SA, on the other hand, does not pay dividends.
Analyst expectations
GFI’s EPS is expected to grow 53.5% year over year to $1.35 in fiscal 2024. However, SA EPS is expected to fall 13.9% to minus $0.27.
Profitability
GFI’s 12-month follow-on ROCE of 17.37% is higher than SA’s -1.65%. GFI last 12 months ROTC 15.32% is higher than SA’s minus 1.38%. Moreover, GFI’s last 12-month ROTA of 9.69% is higher than SA’s -1.08%.
So GFI is relatively more profitable.
power rating
GFI’s overall rating of B is equivalent to buying our own product. power rating In our system, SA has an overall rating of F and equates to a strong sell. The POWR rating is calculated by considering 118 different factors, with each factor being optimally weighted.
Our proprietary rating system also evaluates each stock based on eight different categories. The GFI quality grade is B. The company’s operating cash for the last 12 months is above the industry average of $377.45 million.
On the other hand, the quality of SA is F grade. The company’s operating cash deficit of $4.44 million over the last 12 months is below the industry average.
39 shares Minor – Gold In the industry, GFI ranks 10th, while SA ranks last.
In addition to the above, the POWR rating system rated both GFI and SA on growth, value, momentum, stability and sentiment.
Get all GFI ratings here.Also please click here Review additional POWR ratings for SA.
The gold industry is expected to expand and thrive due to the constant demand for the precious metal, and both companies are likely to take advantage of the increased demand.
However, as explained above, GFI’s recent partnerships, high earnings growth potential, solid dividend history, and low valuation make it a better buy here.
Our research shows that investing in stocks with an overall POWR rating of ‘buy’ or ‘strong buy’ increases your odds of success.click here Access top-tier stocks in the Miners Gold industry.
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GFI shares were trading at $14.83 a share Wednesday morning, down $0.21 (-1.40%). Year-to-date, GFI he rose 45.84%. In comparison, the benchmark S&P 500 Index over the same period rose 7.71% for him.
About the author: Kritika Salma
An interest in risky financial products and a passion for writing led Kritika to become an analyst and financial journalist. She has a Bachelor of Commerce degree and currently she is taking the CFA program. With her groundbreaking approach, she aims to help investors identify untapped investment opportunities.
post Gold Fields Limited (GFI) or Seabridge Gold (SA) is the best buy for Gold? first appeared in stocknews.com
