The 3 Most Undervalued Gold Stocks to Buy in September 2023
Gold stocks and other commodities are an essential addition to a well-rounded portfolio. The overall stock market is in limbo at the moment. Commodities are a smart way to hedge your bets and gain exposure to many investments.
Gold prices remain near all-time highs and offer investors a unique opportunity to capitalize on these circumstances. Below, we explore three gold mining companies trading in the oversold range and currently undervalued, even with prices being so high.
Kinross Gold (KGC)
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Kinross Gold (NYSE:KGC) is a company that owns and operates many gold mining properties. These include five locations in the U.S., one in Canada, two in Chile, one in Brazil, and one in Africa’s Mauritania.
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Over the past year, Kinross has seen an increase in its overall share price of 35%. Their Q2 earnings report stated a 33% increase in total sales year over year (YOY). And net income was $151 million compared to Q2 of 2022, reflecting a net loss of approximately $40 million. Gold production also saw a bump YOY with a 22% increase.
Within many gold properties, the company saw above average gold production such as their Manh Choh Project in the U.S., Paracatu mine in Brazil, La Coipa mine in Chile, and Tasient mine in Mauritania. They also announced their Ontario mine will begin underground operations. This is an attempt at increasing production for one of their mines that is experiencing stagnant production results.
The company has a fairly decent valuation with a forward P/E ratio 12.08. Compared to similar gold mining companies, they are still considered undervalued, even with an increase in their share price this year.
B2Gold (BTG)
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Vancouver-based B2Gold (NYSE:BTG) is a company with a small list of operating mines. Those include its Fekola Mine in Mali, Masbate Mine in the Philippines, and Otjikoto Mine in Namibia. They have three mines in development in Canada, Mali, and Columbia, in addition to exploration operations in Finland and Uzbekistan.
Since last September, their stock price has fallen by approximately 12%. Among its gold-mining peers, they are one of the most undervalued, with a forward P/E ratio of 10.09. In early August, they released Q2 earning results, which stated total revenue increased by 23% and net income more than doubled.
This is partly due to the April acquisition of Sabina Gold & Silver and their joint venture with Calibre Mining (OTC:CXBMF). Their three operating mines all saw increases in total gold ounces sold year over year (YOY). In addition, the company projects a solid growth for the remainder of the year.
This stock is one of the better plays for an investor looking for a promising valuation. With recent acquisitions and significant financial results, BTG shows no sign of stopping, especially with the possibility of gold prices continuing to rise. This stock is one to watch.
Harmony Gold Mining (HMY)
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South African-based Harmony Gold Mining (NYSE:HMY) is a gold processing company that extracts other precious metals such as silver, copper, and uranium. In addition to South Africa, they have mining operations in Australia and Papua New Guinea.
In a recent earnings report, the company stated gold production YOY remained unchanged and their production profit rose by 25%. HMY has increased by 78% within the last year and continues trading at a decent valuation with a P/E ratio 7.04.
This company will continue to grow if gold prices increase. But, if gold prices fall soon, Harmony Gold Mining could be highly susceptible to a sharp decline in its share price.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.
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