Rua Gold Inc. (TSXV: RUA, OTC: NZAUF, WKN: H8E)
An Emerging Gold Explorer with Two Highly Prospective Land Packages in New Zealand’s historical gold fields.
The glamour of investing in gold is that it can hold its value over time, especially during periods of economic uncertainty or stock market declines. For investors looking for value in the gold market, it is the volatility of the price of gold that creates the opportunity to buy at low levels and sell at high levels for profit.
So far this year, the price of gold has risen by more than 10 per cent and has reached new all-time highs several times. However, some gold stocks on the Toronto Stock Exchange (TSX) are currently quite distant from their highs and may be undervalued. As the price of gold continues to rise, time should be running out for investors to buy these stocks at discounts.
Vancouver-based B2Gold (TSX:BTO) is a low-cost, advanced gold producer with three producing mines, two in Africa and one in Asia. The company also has a number of exploration projects in the development stage. The entire portfolio is highly diversified geographically.
The company’s 2024 gold production is expected to be in the range of 470,000 ounces – 500,000 ounces, and it is on track to start production in 2025 from its project located in The Back River Gold District in Canada.
In addition to the stability of the underlying assets themselves, B2Gold boasts virtually the lowest production costs among its peers, and that’s why it has attracted institutional investors to hold more than 60 per cent of the company, which should provide some cushion against share price volatility.
Despite this, the stock had lost more than 5 per cent of its share price in three trading sessions as the gold price pulled back recently. However, when gold prices rebound sharply, investors have the reasons to believe the upside potential of B2Gold should be huge as well. On top of that, this gold stock offers an attractive dividend yield of 5.3%.
Franco-Nevada (TSX:FNV) isn’t a traditional gold mining company, but rather has a completely different, more ‘lightweight’ business model that isn’t entirely risk-free. As the world’s largest gold royalty company, most of the gold projects in its portfolio are in the development or exploration phase. As the gold price hit new highs last week and then pulled back, the company’s share price experienced a decline in line with the gold price.
However, unlike most Canadian gold mining stocks, Franco-Nevada stock has been rising for most of 2024 and is already up 15% since the start of the year. This precious metals stock is also a proven dividend aristocrat, and although the dividend yield is relatively low at 1.1%, dividend sustainability and safety are very much assured.
