Gold production is an industry more people should be buying stock in. Mining and other companies that focus on the production of gold are great to invest in because they’re not as directly affected by the price of gold as if you were to invest in gold itself. Gold saw a rocky time in price value in 2018, but quickly bounced back in the final weeks before 2019, with some gold mining companies seeing significant gains in stock. In 2019, gold mining companies have the highest potential to
The value of gold continues to rise above the cost of production for gold mining companies, allowing profits to scale up.
If you’re interested in investing in some gold mining companies, here are some you should consider.
Barrick Gold is merging with Newmont Mining, after already merging with Randgold Resources of South Africa, to create the largest gold-producing company in the world. Doing so makes them more stable in the market, and hold better-quality earnings to deliver to their investors. The stock-for-stock transaction is worth $10 billion and will be called Newmont Goldcorp, making it an exciting time to invest in Barrick Gold.
AngloGold Ashanti Ltd.
Being the third-largest gold mining company in the world, AngloGold Ashanti Ltd. is a South African company formed by the merging of AngloGold Limited and Ashanti Goldfields Company Limited in 2004. This company promises to show more significant gains than they saw for the month of January in 2018 this year and is one to keep an eye on.
If you take a look at history, Franco Nevada is one of the top performing gold stocks of all time. Since their IPO of over a decade ago, Franco Nevada has returned 400% to its investors while outperforming the price of gold. They’re a gold streaming/royalty company rather a mining company themselves, meaning they finance other companies’ mines. This company is also completely debt-free, so I’d highly recommend investing in them.
Another gold streaming/royalty company to consider is Sandstorm Gold, and while they’re not on the same level as Franco Nevada, they have more upside potential and is also debt-free, with lots of growth potential. Sandstorm Gold also has a stake in the Hot Maden gold development project in Turkey, which is expected to be one of the most profitable mines in the world. If all goes well, this could make for a substantial outsized positive impact on Sandstorm and double their cash flow.
Kinross Gold Corp.
If you’re on the lookout for a company on the come-up, Kinross Gold Corp. of Ontario, Canada is an excellent choice. They oversee mining operations in six different countries, and the company is continuously growing. Kinross expects to open multiple new mining operations to begin to produce ore in 2019.
Newmont Mining Corp.
Again, as previously mentioned, Newmont Mining Corp. is forming the world’s largest gold mining company with Barrick Gold, but it has a rich history of its own. It’s been around for almost 100 years, and it’s the only gold mining company listed in the S&P 500. Investing in this gold mining company
Kirkland Lake Gold
Although lesser-known than other gold mining companies, Kirkland Lake Gold is an underrated company you should invest in. With four gold-producing mines in Canada and Australia, Kirkland Lake Gold is a company growing at an astounding pace. The company has plans to exceed its record-high production of 596,405 ounces of gold, and their capital expenditures are expected to peak in 2019. This will allow for greater cash flow that they can give back to shareholders as higher dividends.