Canadian mining stocks are flying high this year especially gold majors thanks to high gold prices that have hit above $2000 per gold ounce. The rising gold prices have boosted profitability for most mining companies which include mid-tier and junior operators.
Centerra Gold raises dividend ion strong Q2 performance
One of the Canadian mining stocks that have benefitted from the gold frenzy is Centerra Gold Inc. (TSX:CG).In the second quarter, the company posted net earnings of $97.8 million or $0.33 per share and increased its quarterly dividend by 25%.
For the quarter ended June production was 19.1 million pounds of copper and 219,692 gold ounces. Most importantly its low-cost mine Oksut located in Turkey commenced commercial production in Q2 with $537 per ounce in all-in sustaining costs.
New Gold among Canadian Mining stocks benefiting from high gold price s
New Gold Inc. (NYSEAMERICAN:NGD) is also another mid-tier Canadian stock that has enjoyed good returns due to the high gold prices. In its latest results, the company reported FY loss of $73.5 million but the company is expected to breakeven by 2021 and start posting profits. Analysts expect the company to grow 105% YoY and will post profits of around $114 million by next year.
The company has ensured that operations at its Rainy River, Ontario silver and gold mine continues amid the pandemic. New Gold is trying a new COVID-19 test at the site that can produce results in less than an hour.
Silvercorp tops analysts’ revenue and earnings estimates in its fiscal Q1 2020
Another Canadian mining stock that has had a good run is Silvercorp Metals Inc. (NYSEAMERICAN:SVM) which reported revenue of $46.7 million and EPS of $0.09 for its firsts fiscal quarter. The results topped analysts’ estimates of EPS of $0.04 per share on revenue of $45.7 million. The company sold 1,100 gold ounces, 1.9 million silver ounces, 7 million pounds of zinc, and 20.9 million pounds of leaf in the quarter.