Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
When demand for precious metals increases, mining stocks often rise in value. People tend to shy away from the mining industry due to its volatility. However, gold is also seen as a safe haven in times of market turmoil. One advantage of the mining industry is that metals are needed for developing cutting-edge technologies. Additionally, the industry is becoming an attractive choice for growth-oriented investors looking to diversify their investments.
As of the writing of this article, the materials sector, to which mining stocks belong, is the third best-performing sector, with a year-to-date increase of +10.7%, compared to the overall exchange performance of +4.4%.
The Toronto Stock Exchange (TSX) offers a variety of mining stocks to choose from. Barrick Gold is one of the largest gold (and copper) producers in the world. However, if you are considering long-term investment in this industry, Kinross Gold (TSX: K) could be worth looking into.
Kinross Gold, a company with a 31-year history, operates mines in Canada, the USA, Brazil, Chile, and Mauritania. This seasoned gold miner with a market capitalization of $23.78 billion also produces silver. Partnering with high-quality junior exploration companies allows Kinross to maximize exposure to promising projects. By the end of 2023, established partnerships could yield up to 22.8 million ounces of gold reserves.
In terms of performance, mining stocks have shown remarkable results. Currently priced at $11.17 per share, Kinross Gold’s stock has increased by 40.59% year-to-date. When factoring in a modest 1.30% dividend, investors could potentially see even higher overall returns.
In the first half of 2024, metal sales and net earnings attributable to common shareholders increased by 12.14% and 24.13% compared to the same period in 2023, reaching $2.3 billion and $317.9 million respectively.
CEO J. Paul Rollinson stated, “Kinross had a strong first half of the year. Our operations performed well, delivering high-margin production, and we remain on track to achieve our 2024 annual production and cost guidance. All projects are progressing positively.” Rollinson expressed confidence in the company’s business outlook based on a strong first half performance, with promising expectations for the remainder of 2024 and beyond. The company maintains a robust production profile, an investment-grade balance sheet, and is able to generate significant cash flow.
