We recently published a list of 10 Best Gold Stocks Under $30. In this article, we are going to take a look at where B2Gold Corp. (NYSE:BTG) stands against other best gold stocks under $30.
Gold mining is a global industry that operates on every continent except Antarctica, and gold is produced from mines of vastly varied forms and scales.
Gold has traditionally been used as a hedge against inflation and unstable economies. As per Joseph Cavatoni, senior market strategist of the World Gold Council, “Gold does well in moments of risk. If you look at market drawdowns or systemic events in the market, that’s when gold really shines.” Cavatoni suggested new investors choose between investments like gold-backed ETFs and real gold, which requires concerns like purity and storage. While real gold requires close attention to pricing and liquidity, exchange-traded funds (ETFs) provide accessibility and are frequently commission-free.
Gold prices have risen by more than 30% in October 2024, reaching a record-breaking high, boosted by the Federal Reserve’s recent half-point rate drop, geopolitical tensions, and economic uncertainties surrounding the US presidential election. China, India, and Turkey’s central banks have supported the price rise by lowering their reliance on the US currency, while the renowned retail giant Costco’s launch of 1-ounce gold bars has raised gold’s accessibility for individual investors.
According to David Meger, director of metals trading at High Ridge Futures, the heightened tensions between Russia and Ukraine are likely the most significant geopolitical factor influencing the gold market during the past several days.
Investors have witnessed financial gains as the global gold mining industry of the broader market has grown by 18.29% since the beginning of the year and by 31.29% in the past year. Meanwhile, the World Gold Council reports that record prices and strong investment flows helped drive a 5% year-over-year (y/y) growth in gold demand to 1,313 tonnes (t) in Q3 2024. The average LBMA gold price increased 28% yearly to a record $2,474 per ounce.
For the seventh straight quarter, OTC investment nearly quadrupled to 137 tonnes. Demand for technology-related gold increased 7% year over year to 83 tonnes, propelled by AI breakthroughs. While recycled gold volumes rose 11% year over year, mine production jumped 6% year over year to a record 990 tonnes, and no widespread distress selling was seen.
Demand was significantly increased by the recovery in ETF inflows, which reached 95 tonnes. Key drivers included portfolio diversification, geopolitical uncertainties, and declining interest rates. Despite a 9% year-over-year reduction brought on by market-specific variables, bar and coin investment stayed strong at 269 tonnes.
The projection for 2024, as per the World Gold Council, calls for healthy professional flows and consistent bar and coin investment to offset slowing central bank buying and declining consumer demand.
On the other hand, as per Bloomberg, on November 21, 2024, Samantha Dart, co-head of Global Commodities Research at Goldman Sachs, stated central bank purchases are raising the price of gold. She forecasts that the price of gold will reach $3,000 per ounce by the end of 2025.
Our Methodology
For this article, we first used a Finviz stock screener to list down all the gold stocks trading under $30 (as of the writing of this article) with over 40% institutional ownership. From the resultant dataset, we chose the 10 best gold stocks with the highest upside potential. The stocks are ranked in ascending order of their upside potential as of November 18.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
Aerial view of a gold mine in Mali, showing the scale of the mining operations.
B2Gold Corp. (NYSE:BTG)
Upside potential as of November 18: 48.74%
Share Price as of November 18: $2.770
One of the best gold stocks under $30, B2Gold Corp. (NYSE:BTG) is a senior, low-cost global gold mining company. It now operates three open-pit gold mines in Mali, Namibia, and the Philippines, as well as several exploration projects on four continents. The gold projects in Kiaka and Gramalote are further noteworthy assets.
Since a major part of the company’s revenue is generated by the production of gold, it concentrates on acquiring and growing assets in mineral properties, with a special focus on gold deposits. The fact that the gold is traded into a global market eliminates any reliance on a specific buyer.
B2Gold Corp. (NYSE:BTG)’s development projects and mining operations, including the Goose Project, Masbate, Otjikoto, Fekola, and other mineral properties, as well as corporate and other, are included in its reportable operating segments.
B2Gold Corp. (NYSE:BTG) revealed its Q3 2024 report, showing that, despite challenges at the Fekola Mine, 180,553 ounces of gold were produced overall. In this quarter, the cash grew by 39.26% YoY to $431.11 million, highlighting a strong financial position.
The Goose Project’s first gold pour is scheduled for the second quarter of 2025, with a ramp-up to commercial production to follow in the third quarter of the same year. All planned construction for 2024 has been completed thus far, and project development and construction are proceeding according to plan.
The outlook for 2025 is bullish, with Goose and Fekola projects likely to boost production, potentially resulting in a profitable year if gold prices remain high.
Overall, BTG ranks 2nd on our list of best gold stocks under $30. While we acknowledge the potential of BTG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.