Would You like a feature Interview?
All Interviews are 100% FREE of Charge
Gold prices have hit new highs recently, and analysts expect the strength to continue through at least the second half of 2024, especially on the back of expectations for interest rate cuts from the Federal Reserve. Therefore, it would be ideal to buy promising gold stocks Centara Gold (CGAU), Dundee Precious Metals (DPMLF), and Centammin (CELTF) for potential profits. read….
recent gold price New record of over $2200, and with various countries actively buying gold, it is likely to rise further. Moreover, strong demand for physical gold is supported by its safe-haven appeal, attracting investors seeking diversification amidst the underperformance of other asset classes.
Against this backdrop, investors may consider investing in fundamentally sound gold stocks. Centerra Gold Inc. (CGAU), Dundee Precious Metals Co., Ltd. (DPMLF), Centamin plc (CELTF) has high earning potential.
Gold prices have recently reached record highs, April gold contract ends above $2,100 per ounce It’s a first, and the rally shows no signs of slowing down. Gold prices tend to be inversely correlated with interest rates, so recent price movements are largely due to potential interest rate cuts by the Federal Reserve.
Moreover, analysts expect this strength to continue through at least the second half of this year. Gold prices could soar to $2,300 an ounce in the second half of this year, said Aakash Doshi, head of North American commodity research at Citi. Macquarie strategists also expect prices to peak in the second half of the year.
meanwhile, According to UBS analystsGold is expected to reach a staggering $2,200 per ounce by the end of the year.
According to a report by Mordor Intelligence, the gold market size is expected to reach 4.42 thousand tons in 2024. The market is predicted to expand rapidly, further exceeding 6.32 thousand tons by 2029. CAGR 7.4% During the forecast period (2024-2029).
The key factors driving market growth during the forecast period include increasing demand, technological updates, and long-term savings prospects. Additionally, the China and India wedding market sectors are predicted to further flourish, adding growth opportunities to the gold market sector in the future.
As for the US market, the adoption of gold wedding rings and customization from Western European culture seems to be having an impact. demand for gold jewelry We are in a high position for market expansion.
Investors’ interest in gold stocks is driven by the Aberdeen Standard Physical Gold Stocks ETF (SGOL) up 13.2% in the past 6 months.
With these encouraging trends in mind, let’s take a look at the top three basics. Minor – Gold Stocks start from number 3.
Stock #3: Centerra Gold Inc. (CGAU)
CGAU is a gold mining company headquartered in Toronto, Canada, engaged in the acquisition, exploration, development and operation of gold and copper properties worldwide. The company’s flagship projects include his wholly-owned Mount Milligan gold-copper mine in British Columbia, Canada, and the Okusht gold mine in Turkey.
On February 22, 2024, CGAU announced a quarterly dividend of C$0.07 ($0.05) per common share, totaling approximately $11.2 million. The quarterly dividend will be paid on March 27, 2024 to stockholders of record as of the close of business on March 13, 2024.
CGAU’s annual dividend of $0.21 equates to a yield of 3.57% at the current stock price. The average dividend yield over four years is 2.58%. Furthermore, the company’s dividends have increased at a CAGR of 5.9% over the past three years.
On February 14, CGAU and its subsidiary Thompson Creek Metals Company Inc. entered into an additional agreement with RGLD Gold AG, a subsidiary of Royal Gold, Inc.RGLD), for the Mt Milligan Mine, resulting in an extension of the mine life to 2035 and also establishing favorable parameters for potential future mine life extensions.
The additional agreement with RGLD Gold AG allows for an increase in Mt Milligan’s mineral reserves and resources, with the potential for mutual benefits.
CGAU’s revenue for the fourth quarter ended December 31, 2023 was $340 million, an increase of 63.2% compared to the same period last year. The company reported profits from mining operations of $138.1 million, representing a year-on-year growth of 318.5%. Additionally, free cash flow for the quarter was $111 million.
Additionally, the company’s adjusted net income was $61.2 million, or $0.28 per share. net loss $13.7 million each, or $0.06 per share.
According to its 2024 guidance, CGAU expects full-year consolidated gold production to be between 370,000 and 410,000 ounces, an 11% increase from the midpoint of guidance compared to last year’s production, and copper production at 55 million ounces. We expect it to be around £65 million.
Analysts expect CGAU’s sales and EPS for the fiscal year ending December 2024 to be $1.14 billion and $0.40, up 4% and 697.5% from the previous year, respectively. Additionally, the company beat consensus revenue estimates in three of his four subsequent quarters.
Shares rose 13.6% over the past month and 6.8% over the past six months, closing at $5.78.
The bright outlook for CGAU is power rating. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, each weighted to the best degree.
CGAU has an ‘A’ grade for growth and a ‘B’ grade for value and quality. Ranked 3rd out of 43 stocks. Minor – Gold industry.
Check other POWR ratings on Momentum, Stability and Sentiment for CGAU: click here.
Stock #2: Dundee Precious Metals Inc. (DPMLF)
DPMLF is a gold mining company based in Toronto, Canada that acquires, develops, develops, mines and processes precious metals. We mainly explore gold, copper, and silver deposits. The company has a portfolio of projects in Bulgaria, Namibia, Serbia and Ecuador.
On March 7, 2024, DPMLF entered into a final agreement with a subsidiary of Sinomine Resource Group Co. Ltd. to sell its interest in the Tsumeb refinery in Namibia through the disposal of all outstanding shares held indirectly in Dundee. A stock purchase agreement was concluded. Precious metals Tsumeb Holding (Pty) Ltd. as consideration for $49 million in cash.
Following the sale, DPMLF will focus on restructuring and simplifying its portfolio, allowing it to concentrate on its gold mining assets.
On December 18, 2023, DPMLF and Osino Resources Corp. entered into a definitive agreement under which DPMLF acquired all of Osino’s outstanding common stock. The transaction adds Osino’s high-quality, long-life Twin Hills open-pit gold project and extensive exploration portfolio in Namibia to DPMLF’s existing asset portfolio.
This acquisition strengthens DPMLF’s core and unique capabilities, adds near-term production assets, and positions DPMLF as a leading intermediate gold producer with superior assets and growth profile. .
DPMLF’s revenue for the fourth quarter ended December 31, 2023 was $139.3 million, an increase of 23.3% year over year. The company’s adjusted net income increased 66.7% and 72.2% from the same period last year to $55.5 million, or $0.31 per share. Adjusted EBITDA was $79.6 million, an increase of 36.5% year over year.
Additionally, the company’s free cash flow increased 55.5% year-on-year to $51.8 million.
Analysts expect DPMLF’s fiscal year (ending December 2025) revenue to be $525.45 million, up 5.2% from a year ago. Additionally, DPMLF stock price has increased by 12.3% over the past month and 19.9% over the past 6 months, closing its last trade at $7.60.
DPMLF’s POWR rating reflects its solid outlook. The stock has an overall rating of A, which equates to a “Strong Buy” according to our proprietary rating system.
DPMLF quality is A grade. The value is also B grade. It ranks 2nd out of 43 stocks in its industry.
See other ratings for DPMLF on Sentiment, Growth, Momentum and Stability: click here.
Stock #1: Centamin plc (CELTF)
CELTF is a company based in St Helier, Jersey, that explores for, mines and develops precious metals in Egypt, Burkina Faso, Ivory Coast, Jersey, the United Kingdom and Australia. Its main asset is the Sukari gold mining project, which covers an area of approximately 160 square kilometers located in the eastern desert of Egypt.
On January 9, 2024, CELTF announced encouraging results from its first drilling program on its Eastern Desert Exploration (EDX) landholding in Egypt and provided an update on its anticipated exploration program in 2024. did.
CELTF’s EDX block consists of a 3,000 km greenfield exploration complex located within Egypt’s Nubian Shield. This geological zone is a promising geological zone that has not yet been explored using modern exploration methods. Additionally, the 2024 work plan includes delineating potential resources and further drilling targets in Egypt as part of the growth strategy.
During the 2023 financial year, CELTF achieved solid performance, clocking 9.5 million hours worked and zero lost time injuries (LTIs) at the Skari gold mine. In addition, gold production in the fourth quarter was 128,127 ounces, bringing total production in 2023 to 450,058 ounces.
CELTF’s revenue for the year ended December 31, 2023 was $891.26 million, an increase of 13% from the prior year. The company’s adjusted EBITDA increased 24.8% year over year to $398.18 million. After-tax profit attributable to parent and EPS were $92.28 million and $7.97, respectively, an increase of 27% year over year.
Additionally, the company’s adjusted free cash flow was $49 million, compared with a negative $17.55 million in the prior-year period.
CELTF expects gold production to be in the range of 470,000 ounces to 500,000 ounces per year, equally weighted H1:H2 (50:50), in line with business guidance for fiscal year 2024.
Street expects CELTF’s fiscal year 2024 revenue to increase 7.1% year over year to $947.65 million. CELTF stock rose 15.9% over the past month and 22.7% over the past six months, closing at $1.35.
The fundamentals of CELTF sound are reflected in our POWR ratings. The stock has an overall rating of ‘A’, which equates to a ‘Strong Buy’ according to our proprietary rating system.
The stock has a B grade for value, growth, quality, and stability. Within the Miners/Gold industry, CELTF ranks number one out of 43 stocks.
click here Access CELTF’s additional ratings on Momentum and Sentiment.
What’s next?
Get this special report on three low-priced companies with strong upside potential, even in today’s volatile markets.
3 stocks that will double this year >
CELTF stock was unchanged in premarket trading Thursday. Year-to-date, CELTF has gained 7.14%, compared to the benchmark S&P 500 index’s gain of 10.40% over the same period.
About the author: Mangeet Kaur Bounce
Mangeet’s keen interest in the stock market led him to become an investment researcher and financial journalist. Using a fundamental approach to analyzing stocks, Mr. Mangeet seeks to help retail investors understand the underlying factors before making investment decisions.
post 3 gold stocks with big profit potential It first appeared stocknews.com