ALERT: 3 Super Gold Stocks to Buy on the Dip

Canadians worried about a looming recession may want to snatch up undervalued gold stocks like B2Gold Corp. (TSX:BTO)(NYSE:BTG) in September.

| More on:
gold stocks gold mining

Image source: Getty Images

Gold had a red-hot start to this decade. The price of the yellow metal rose above a record US$2,000/ounce in the face of major market turbulence due to the onset of the COVID-19 pandemic.

Unfortunately, precious metals have been hit hard since the middle of 2020. First, investors turned away from safe havens to feast on a rebounding equities market. In 2022, central banks have moved to aggressively hike interest rates to battle inflation. That has also put downward pressure on the yellow metal.

Gold possesses a spot price of US$1,721/ounce at the time of this writing. Despite that, I’m still looking to snatch up gold stocks on the dip, as we contemplate a looming recession. Let’s jump in.

This gold stock looks deeply discounted in the late summer season

Torex Gold Resources (TSX:TXG) is a Toronto-based intermediate gold producer that operates in Mexico. Shares of this gold stock have dropped 26% in 2022 as of late-morning trading on September 7. The stock is down 30% from the previous year.

The company’s gold production is on track to meet its full-year guidance after delivering production of 123,185 ounces in the second quarter (Q2) of fiscal 2022. It reported adjusted net earnings of $57.0 million, or $0.66 per diluted share — up from $37.2 million, or $0.43 per share, in the previous year. Cash from operating activities rose to $126 million compared to $46.7 million in Q2 2021.

Shares of this gold stock possess a very favourable price-to-earnings (P/E) ratio of 4.3. Investors may want to consider snatching up Torex on the dip before the end of the summer.

Here’s a cheap gold stock that also offers a nice dividend

Centerra Gold (TSX:CG)(NYSE:CGAU) is another Toronto-based company that is engaged in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and around the world. This gold stock has plunged 43% in the year-to-date period.

In Q2 2022, the company posted an adjusted loss of $36.2 million, or $0.12 per common share. It finished the quarter with a strong balance sheet of $723 million. Shares of Centerra Gold currently possess an attractive P/E ratio of 3.5. Better yet, this gold stock offers a quarterly dividend of $0.07 per share. That represents a solid 4.6% yield.

One more high-yield stock that is dependent on the yellow metal

B2Gold (TSX:BTO)(NYSE:BTG) is a Vancouver-based company that operates as a gold producer with operating mines in Mali, the Philippines, and Namibia. This gold stock has dropped 9.5% so far in 2022. That has made up the bulk of its losses in the year-over-year period.

This company unveiled its second-quarter fiscal 2022 earnings on August 3. It reported consolidated gold revenue of $382 million on sales of 205,300 ounces. B2Gold made these sales on an average realized gold price of $1,861.

Shares of this gold stock last had a favourable P/E ratio of 9.3. That puts it in better value territory than the industry average. It currently offers a quarterly dividend of $0.04 per share, representing a 4.7% yield.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends B2Gold and CENTERRA GOLD INC.

More on Metals and Mining Stocks

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »