#7 - B2Gold Corp (NYSEAMERICAN:BTG)
If you’re an investor with a healthy risk appetite and an affinity for penny stocks, B2Gold Corp (NYSE:BTG) may fit the bill. The British Columbia-based company is a senior gold miner that operates mines in Mali, the Philippines, and Namibia among other locations.
In times of stagflation, gold tends to shine. That’s because slower economic growth combined with high inflation makes real rates (nominal rates minus inflation) trend lower. This gives gold a lower carrying cost that theoretically offers better protection against inflation.
The proof will be in the production which the miner expects to be 1.1 million ounces at the high end. That would be an increase from the 1 million ounces it produced in 2021. However, that may be offset by a higher all-in production cost which is forecast to be between $1,010 and $1,050 per ounce.
Plus, investing in a mining stock is a good way for investors to get exposure to precious metals while collecting a dividend that currently has a 3.8% dividend yield.
About B2Gold
B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp.
Read More - Current Price
- $2.49
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $3.53 (41.9% Upside)
Even if the United States is not headed for stagflation, investors need to account for two realities. First, inflation is not going away anytime soon. Even if inflation has peaked, it will take many months before Americans begin to feel relief.
And second, that inflation means investors will face a lingering period of uncertainty. Rising prices bring lower demand. Lower demand creates uncertainty in consumers' minds about their job security. This creates a spiral in which consumers spend less and economic growth continues to slow. All of which are likely to be reflected in corporate earnings in the coming quarters.
However, slower growth doesn't mean zero growth. Investors just need to know where to look. While it may be comfortable to sit on cash in the short term, that's not a long-term solution.
The stocks in this presentation are good options for investors looking for ways to boost their total return.
More Investing Slideshows:
