4 Mining Stocks To Watch In 2024: Aura, OceanaGold, Alphamin, B2Gold

Author: Stjepan Kalinic | January 02, 2024 10:41am

Several trends within the mining sector will likely make 2024 an interesting year: Gold is surging to the highest levels in years, silver is in demand and copper shortages are threatening green technologies.

Here are four mining stocks traders would be wise not to overlook in the current environment.

Aura Minerals (TSX:ORA): The company — which has operating mines in Mexico, Honduras and Brazil — showed strong double-digit revenue growth driven by higher production in Aranzazu, EPP and San Andres. It also has a feasibility study for the Borborema project, showing an internal rate of return close to 52% at a gold price of $1900/oz. Its stock trades at a discount compared to its peers based on price-to-earnings and price-to-sales ratios and pays a hefty 7.2% dividend.
OceanaGold (TSX:OGC): A mid-tier producer of gold and copper with operations in the U.S., Philippines and New Zealand. OceanaGold’s stock has trended lower in recent months due to recent poor-grade ore and lower-than-expected production. Still, the company is doing well, focusing on debt repayment and increasing operational efficiency. The management noted Brownfield exploration programs as potential growth catalysts showing better than expected grades. The stock trades at a single-digit P/E ratio, which is lower than most of its peers, boasts a double-digit net profit margin and carries little debt on its balance sheet.
Alphamin Resources (TSXV:AFM): This producer in the DR Congo currently contributes about 4% of the world’s tin supply. Management aims to increase this to 7% after the Mpama South expansion. Despite a recent drop in tin prices, Alphamin’s financial results have remained robust. Its prospects are solid given tin’s crucial role in advanced computing, renewable energy and electric vehicles. The company has a competitive valuation compared to its peers, with a healthy 17% net margin and little debt. It also pays an above-average 6.4% dividend.
B2Gold (TSX:BTO): This gold explorer operates the Fekola mine in Mali, Masbate in the Philippines, and Otjikoto in Namibia. Its projects include Back River in Nunavut, Canada. B2Gold also holds an interest in the Gramalote project in Colombia. Gold prices supported its top-line results. However, there are market concerns regarding permitting challenges in Mali, and political concerns in the Philippines, which resulted in declining share prices. Still, the company carries virtually no debt and runs under long-standing management with a track record of successful execution. B2Gold also pays an above-average 5.1% dividend at a sustainable 67% payout ratio.