What is the Best Gold Company?
Gold stocks can be highly cyclical and potentially unpredictable investments; therefore, investors should conduct in-depth research before investing in these companies.
Barrick Gold boasts a vast and diversified global mining and project portfolio. Additionally, their focus in North America allows their revenues to remain less vulnerable to sudden geopolitical events that might otherwise alter them significantly.
Franco-Nevada is an established royalty company with low cost assets that boast exceptional growth potential.
Agnico Eagle is a Canadian gold producer that owns and operates LaRonde mine in Quebec, providing full exposure to higher gold prices with its policy of no forward sales. Furthermore, Agnico Eagle is looking for potential opportunities in northern Mexico.
In 1903, when Northern Ontario was still wilderness, a company was established when two timber scouts discovered something unusual about a rock formation nearby – which contained silver in an amazing amount – an astounding 4,000 ounces per ton!
Agnico Eagle Mines Limited enjoys an outstanding reputation, boasting friendly employees and supportive management. Offering competitive compensation and benefits packages, Agnico Eagle Mines limited is an outstanding place to work – with pay lagging behind other industry companies but still an outstanding choice!
This company boasts global presence and diverse mining operations. They boast strong profit growth as well as an exploration pipeline offering potential future growth.
However, Agnico Eagle needs high gold prices in order to be profitable; their AISC stands at approximately $1,033/oz with high production costs; hence it represents more of a risk than Agnico Eagle.
Goldcorp focuses its gold mining business primarily in Africa, but also has assets in Canada and Brazil. Alongside gold mining, it also mines copper, silver and pyrite mining operations that contribute significantly to cash flow. When combined with minimal debt and an attractive dividend payout plan, its stock trades at four times next year’s cash flow estimates; making it one of the cheapest major miners.
Wheaton Precious Metals
Formerly known as Silver Wheaton, this precious metals streaming and royalty company makes for an attractive investment opportunity. By paying upfront cash to miners in exchange for reduced rate purchases later, Silver Wheaton allows miners to keep more of their earnings without selling stock or debt, diluting shareholders or adding operational expenses.
The executive team at this company boasts years of experience. They understand the value of gold and silver, possess a proven track record, boast high profit margins across multiple continents, and produce millions in annual earnings.
Notably, this mining company boasts an above-industry average P/CF ratio – potentially signalling financial risk – but working with this unique mining firm more than offsets this worry.
Royal Gold is a streaming company, meaning it purchases and manages precious metal mining streams and royalties rather than operating mines themselves, and therefore less exposed to operational and capital cost risks than mine operators. Their portfolio spans 181 properties on five continents – this makes Royal Gold an attractive solution.
The dividend growth at this precious metals stock is impressive and could make it an excellent pick for dividend investors as we enter an anticipated gold bull market. Since inception, the company has raised its dividend every year!
Disclaimer: Reuben Gregg Brewer does not hold any positions in any stocks mentioned in this article, which was researched and written by Motley Fool’s team of contributing writers. To discover more about how Motley Fool’s industry-leading stock investing service can assist in creating an optimal portfolio tailored specifically to you, click here.
Franco-Nevada, as the world’s largest precious metal royalty and streaming company, provides investors with an opportunity to diversify their gold exposure without taking on operational risks associated with mining projects. Royalty and stream companies provide financing to miners in exchange for a share of future production; this capital may then be used for development costs or to shore up their balance sheets.
These companies boast high solvency ratios, which indicate their ability to meet short and long-term financial obligations without issue. Furthermore, they boast positive EPS expectations as well as increasing sales volumes.
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