Commodities & Metals

J.P. Morgan's Gold Stocks to Buy After Survey Produces Surprising Results

B2Gold Corp. (NYSE: BTG) is a small cap name rated Overweight at J.P. Morgan that could bring investors big results. The company recently announced a $570 million acquisition of Papillon Resources at a very remarkable $125 per ounce. With an African project that is expected to be in production in 2016, many on Wall Street feel that is a very bullish sign for the overall gold sector. The consensus price target is $3.70. Shares closed trading on Tuesday at $2.71.

Eldorado Gold Corp. (NYSE: EGO) is also rated Overweight at J.P. Morgan. The company engages in the exploration, development, mining and production of gold properties in Turkey, China, Greece, Brazil and Romania. The company also explores for iron, silver, lead, zinc and copper ores.

Its principal properties include Kisladag and Efemcukuru gold mines located in Turkey; Jinfeng open pit and underground gold mine situated in southern China; and the Olympias gold, silver, lead and zinc development project and the Skouries gold-copper development project located in northern Greece. Investors are paid a small 0.3% dividend. The consensus price objective is $8.65. Eldorado closed Tuesday at $7.18.

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Goldcorp Inc. (NYSE: GG) is another name rated Outperform that ranks high at RBC. The company operates as a gold producer involved in the exploration, development and acquisition of metal properties in Canada, the United States, Mexico and Central and South America. Over the past few years, Goldcorp has been altering its mine plans, cutting spending and disposing assets in order to reduce costs and focus on the most profitable production. Now those efforts have begun to pay off. Investors are paid a 2.2% dividend. The consensus price target is $31. Goldcorp closed Tuesday at $26.98.

New Gold Inc. (NYSE: NGD) is rated Overweight and is considered an intermediate gold mining company. It has a portfolio of four producing assets and three significant development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico provide the company with its current production base. In addition, New Gold owns 100% of the Blackwater and Rainy River projects, both in Canada, as well as 30% of the El Morro project located in Chile. The consensus price target is $7.06. New Gold closed Tuesday at $6.13.

Despite the fact that arguments have raged over inflation, both pro and con, the money printing has gone on unabated now for five years. One day that catches up. Combined with physical demand and a very unstable world, a small position of gold carved out in a well-rounded portfolio makes good sense now and in the future.

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