(Source: YCharts.com, Author’s Chart)

The final name on my list is a little more risky, given that none of its production comes from what I would label Tier-1 jurisdictions. These jurisdictions are defined as Canada, Australia, and the United States, and B2Gold’s production currently comes from Africa and the Philippines. However, the stock is now priced accordingly for this jurisdictional risk, trading at a valuation of barely 8x free-cash-flow and paying a juicy dividend yield of $0.16 per annum. At a share price of $4.95, this translates to one of the top-3 yields in the sector at 3.20%, just ahead of NEM.

(Source: Author’s Chart)

As shown in the chart below, BTG’s annual EPS growth is less exciting than its peers, with annual EPS that’s expected to be relatively flat in FY2021. However, this is coming after a year of double-digit annual EPS growth ($0.50 vs. $0.22), and the stock is currently trading at less than 10x FY2021 annual EPS estimates of $0.52. So, while there are risks to buying producers in less favorable jurisdictions, the stock meets my criteria here for long-term portfolios of below 13x earnings and above a 2.75% yield as well.

(Source: YCharts.com, Author’s Chart)

While there’s several miners in the GDX that I wouldn’t touch with a ten-foot pole, management at SSRM, BTG, and NEM have proven that they can navigate bear markets for the gold price and return significant value to shareholders during bull markets. This is precisely what they’ve been doing since 2016, but poor sentiment has pushed them to valuations that rarely appear outside of bear markets. So, at a time when I believe diversification is key with many equities trading at expensive valuations, I see these three names as one’s to keep at the top of one’s shopping list.

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