What is the best FTSE-listed gold stock to invest in?
The ongoing war between Russia and Ukraine has sent shockwaves through the global stock market. There was a strong sell-off in the markets, with investors rushing to protect their capital and many diverting their funds into safe-haven assets such as gold. The spot price of gold jumped above $2,000 per ounce for the first time since August 2020 on renewed investor interest.
Gold as an asset class has a negative correlation with the equity market and can also provide some diversification benefits to investors. As a result, many investors typically take bullish bets on gold and its related ancillary activities whenever there is a selloff in the global stock market.
During the recent stock market sell-off, besides spot gold, many investors showed interest in UK listed precious metals mining companies like Fresnillo Plc, Centamin Plc and many others to protect their portfolio.
Data Source: Refinitiv
Let’s take a look at a few FTSE-listed metals and mining stocks that operate in the mining and production of gold:
The FTSE100 listed company operates in the precious metals and mining segment. Its flagship project is in the Mexico region and explores the metals of gold, silver, lead and zinc. The company reported total gold production of 751,203 ounces and production of 53,095 koz of Sliver from various projects for the 12 months ended December 31, 2021.
Fresnillo’s total revenue increased 11.2% to $2,703.1 million, driven by higher silver and gold prices. As a result, its after-tax profit rose 16.8% to $438.5 million during the period.
Fresnillo Plc’s current market capitalization is £5,162 million as of March 16, 2022, while its current dividend yield is 3.9%.
The Company explores gold deposits in various regions of the world. Its flagship mining project is the Sukari gold mine located in Egypt.
Centamin also has mining operations in Jersey and Australia. For the year ended December 31, 2021, its total gold production was 415,370 ounces, which the company sold at an average realized gold price of $1,797/oz. As a result, its total revenue was $733 million, with an adjusted EBITDA of $329 million. Centamin has a positive outlook for fiscal 2022 and expects gold production of 430,000 to 460,000 ounces.
Centamin Plc’s current market capitalization is £1,135 million as of March 16, 2022, while its current dividend yield is 4.5%.
Hochschild Mining Plc (LON:HOC)
The mining and precious metals company is engaged in the exploration and production of gold and silver. Its main mining project is in South American countries such as Argentina, Mexico and Peru.
Hochschild Mining experienced an excellent business environment in FY21, with a 30% increase in total revenue to US$811.4 million, primarily due to a rebound in gold and mineral production. ‘money. Its total gold production increased by 26% to 221 koz, while silver production increased by 24% to 12,174 koz.
Hochschild Mining Plc’s current market capitalization is £643.89 million as of March 16, 2022, while its current dividend yield is 2.9%.
Endeavor Mining Plc (LON:EDV)
The FTSE250 listed company carries out its gold mining activities on the African continent. The company’s shares are listed on both the London Stock Exchange and the Toronto Stock Exchange.
Endeavor Mining reported a record 69% increase in gold production to 1,536 koz in FY21, above the full-year guidance of 1,365-1,495 koz. The company expects further improvement in gold production in FY22.
Endeavor Mining Plc’s current market capitalization stands at £4,757 million as of March 16, 2022, while its current dividend yield is 3.6%.
Note: The above content constitutes a very preliminary observation or view based on industry and market trends and is of limited scope without any in-depth fundamental evaluation or technical analysis. Any interest in stocks or sectors should be carefully assessed taking into account the associated risks.