The Centamin share price just crashed 22%! It’s a gold stock I’d buy

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Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Gold stocks have been among the market’s best performers in 2020. Mid-cap miner Centamin (LSE: CEY) was among them. That was until it released an unscheduled operational update on Friday. Its shares crashed. I think the fall of 22% makes the Centamin share price highly attractive. Here’s why.Soaring gold stocksI’ve been bullish on gold miners for a few years, due to global debt and money-printing on an unprecedented scale. As a result of the responses of governments and central banks to the Covid-19 pandemic, debt and ‘magic money’ are now off the scale.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I think the impact of the debasement of paper currencies will run for years, or even decades. Gold is the ultimate ‘store of value’. As such, I’m not surprised many analysts are forecasting a long bull run for the yellow metal. In such an environment, I’d expect gold producers to thrive, and dole out years of bumper dividends.The Centamin share price crashCentamin’s operational update and share price crash have pared the FTSE 250 stock’s gains for 2020. However, it’s testament to the increasing demand for gold that, even after Friday’s 22% drop, the Centamin share price is still up for the year. Its rise of 24% compares with falls of over 20% for both the FTSE 100 and mid-cap indexes.Operational updateCentamin’s share price slumped on Friday because the company announced a suspension of open pit operations in one zone of its Sukari mine in Egypt. Its other open pit zones and underground mining are unaffected.Nevertheless, management’s estimates of reduced fourth-quarter gold production imply full-year production of 445,000-460,000 ounces, down from previous guidance of 510,000-525,000 ounces.Furthermore, the zone where operations have been suspended is a high-grade one. This will mean higher costs per ounce for the year than the company previously envisaged. But it’s by no means the end of the world, or of dividends, I reckon.Why I’d take advantage of the Centamin share price crashThe news is a setback. However, it comes from an early, sensor-detected movement in a localised area of surface waste material. Operations in the zone are only deferred. The company has already commenced a “geotechnical assessment, which is focused on developing a plan to mine the impacted area.“Furthermore, even if Centamin abandoned the zone, its 90,000 ounces of gold in situ is only a small part of the Sukari mine’s resources and reserves. As such, I think Centamin’s share price crash is overdone. It’s a good opportunity to buy the stock, in my opinion.A small portfolio of gold stocksI’ve often advised investors go for a small portfolio of gold stocks, rather than backing just a single company. This is precisely because of the kind of operational setback Centamin has just suffered, and which can hit any individual miner from time to time. I’ve also suggested geographical diversification to mitigate political risk.So which miners would I be happy to buy today alongside Egypt-focused Centamin? There are plenty to choose from on the London market, but my perennial favourites look very buyable right now.These are FTSE 100 giants Fresnillo and Polymetal, which mine in Mexico and Russia respectively, mid-cap Hochschild, whose mines are in Peru and Argentina, and FTSE AIM 50 firm Pan African, which operates in South Africa.center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The Centamin share price just crashed 22%! It’s a gold stock I’d buy Enter Your Email Address G A Chester | Monday, 5th October, 2020 | More on: CEY See all posts by G A Chesterlast_img

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