Along with crypto mining firms, precious metal mining companies are still doing better after the gold price has shown some jumps during the pandemic.
We have prepared the five most well known gold mining stocks that are viable to consider. Here are some quick introductions to them listed below and why they deserve to be considered some of the top gold stocks you can research.
Barrick Gold (NYSE: GOLD) has a bold vision of being the world’s most valued gold mining company. Driving that mission is its focus on operating Tier One mining assets, which Barrick defines as mines that:
- Produce more than 500,000 ounces per year
- Have at least 10 years of productive life remaining
- Deliver total cash costs per ounce in the lower half of the industry cost curve
This focus on operating large mines with significant remaining resources will enable Barrick to produce at a relatively steady pace for years. It expects that its output will average about 5 million ounces of gold per year through 2029. Meanwhile, thanks to its Tier One assets’ low-cost nature, Barrick anticipates that its all-in sustaining costs will decline in the coming years from roughly $1,000 an ounce in 2020 to less than $800 an ounce by 2024. Because of that, its profits, and therefore its stock price, should rise, even if gold prices decline modestly.
Barrick complements its top-tier gold mining portfolio with a rock-solid balance sheet. The company has focused on paying down debt over the last several years, which has reduced its interest costs. That’s giving it even more financial flexibility, which it’s using to pay a growing dividend.
Brigadier Gold Limited (OTC: BGDAF) is a Fast-Moving Precious Metals Explorer Focused on Gold and Silver Rich Mexico
$4.2 Million in Funding Raised for Drilling Operations; Robust Mineralization Reported in Latest Sampling Results
• Well-Positioned Precious Metals Explorer with Very Experienced Management.
• Promising Properties Under Development in Canada and Mexico.
• Drill Program is Fully Funded with $4.2 Million Raised Since June 2020.
• Drill Program Targeting Gold, Silver, and Copper.
• Latest Drilling & Surface Sampling Results Have Defined A Vein System Extending Over 7 Kilometres.
Brigadier Gold Limited (OTC: BGDAF) (TSXV: BRG) (FSE: B7LM), based in Vancouver, BC, was formed to leverage the next major bull market in the natural resource sector, particularly precious metals. The BGADF company mandate is to acquire undervalued and overlooked projects with demonstrable potential for rapid advancement. Led by a management team with over 100 years of collective experience in mineral exploration and capital markets development, BGADF is focused on advanced exploration opportunities in politically stable jurisdictions with current operations in Mexico and Canada.
BGADF is currently focused on a first-ever diamond drill program on its 100% controlled Picachos project in mineral-rich Mexico, targeting mineralized veins underneath and surrounding the historical high-grade San Agustin gold mine located on the property. The BGDAF diamond drill program, led by veteran geologist Michelle Robinson, is fully funded with $4.2 million raised since June of 2020.
The BGADF Picachos land package was methodically assembled by Michelle Robinson (MASc, PEng, geologist, 43-101 QP) over 10 years ago. Ms. Robinson has worked in Mexico for over 20 years with a number of major mining companies. She has authored over 20 technical reports and published several papers for the Society of Economic Geologists. Ms. Robinson and her team are executing on the company’s 5,000-metre diamond drill program — the first ever on this project.
• BGADF Intercepts 9.49 g/t Gold and 24 g/t Ag across 3 Metres at Picachos
On January 19th BGADF provided its latest diamond drill and surface sampling results from ongoing phase one exploration at its Picachos gold-silver project, Sinaloa Mexico. BGADF has completed 3085 meters of diamond drilling in 28 holes on the Picachos Project. Assays are now available for 20 holes (Table 1), and samples from the remaining holes are in-progress at SGS Laboratory in Durango.
Drilling highlights include:
• 9.49 g/t Au and 24 g/t Ag across 3 m (88 to 91 m) in DH-BRG-008
• 6.24 g/t Au and 79 g/t Ag across 3 m (122.5 to 125.5 m) in DH-BRG-009
• 7.03 g/t Au and 110 g/t Ag across 3.5 m (137.5 to 141 m) in DH-BRG-012
• 6.75 g/t Au and 44 g/t Ag across 2.5 m (108.5 to 111 m) in DH-BRG-014
The structure is persistent and strongly mineralized. Although BGADF sampling with a diamond drill is not perfect due to the challenging sub-surface conditions, it definitely indicates a robust gold-bearing vein of substantial width and strike length of over seven kilometers.
The project’s location, situated 25 kilometers equidistant from two recent bonanza grade discoveries of Vizsla Resources and GR Silver and along with the same mineralized trend, positions Picachos as a truly exciting opportunity for BGADF and its shareholders.
For more information on Brigadier Gold Limited (BGDAF) visit: https://www.brigadiergold.ca
Franco-Nevada (NYSE: FNV) is a streaming and royalty company. It has agreements covering gold, silver, the platinum metals group (PGM), and oil and gas. However, the bulk of its revenue (65% in 2019) comes from gold.
Franco-Nevada’s streaming and royalty contracts provide it with lots of cash. That gives it the financial flexibility to invest in new deals and pay a dividend, which it has grown each year since its IPO in 2008. The company also boasts a debt-free balance sheet as of the middle of 2020 — a rarity in the mining industry.
Another benefit of Franco-Nevada’s focus on royalties and streaming is that it doesn’t have exposure to capital and operating cost overruns, which have historically plagued mining companies. However, it still offers the same upside profile as a miner, given its leverage to the price of gold, exploration and expansion upside, and dividend yield. Because it combines those benefits without the sector’s negatives, Franco-Nevada’s stock has historically outperformed both gold and the mining sector, making it an ideal gold mining stock.
Kinross Gold (NYSE: KGC) Despite more than doubling from its March lows of this year, at the current price of $7 per share, we believe Kinross Gold (NYSE: KGC) is still undervalued. KGC stock has rallied from $3.47 to $7.20 off the recent bottom compared to the S&P 500 which increased 64% from its recent lows. The stock has outperformed the broader market due to the sharp rise in prices of precious metals (gold and silver) during the pandemic. With the gradual lifting of lockdowns and easing of supply constraints, production and shipments are expected to go up, while the global price outlook still remains positive despite recent volatility. We believe higher revenue and improved earnings in 2021, further augmented by the acquisition of new projects (70% in Peak project), is likely to drive another 80% rally in the stock.
With consumer demand increasing and supply constraints easing, gold and silver production and shipments are expected to go up further. Additionally, the company buying a 70% stake in the Peak project in Alaska is also expected to boost volume in 2021. As revenue and earnings growth remains strong in 2021 due to the volume and price effect, the P/S multiple will also remain high around its current levels. Thus, the company’s outperformance during the pandemic, and with investors’ focus has shifted to 2021, a continued strong performance outlook for 2021 is likely.
Newmont Mining (NYSE: NEM) increased its gold reserves by six million ounces to 94.2 million during 2020 despite facing the challenge of the COVID-19 pandemic. The company’s gold reserves have once again set the bar for the highest in the industry, replacing 80 percent of its reserved depletion, which was above target. Newmont’s 2020 reserves were slightly lower than the 95.7 million ounces recorded in 2019.
The company stated this was due to divestments of its interest in the Kalgoorlie Consolidated Gold Mines in Western Australia and Red Lake mine in Canada. The company also leads in its gold reserves per share at 117 ounces per 1000 shares. Australia holds 20 percent of Newmont’s gold reserves, with other reserves in North America (35 percent), South America (33 percent), and Africa (12 percent). Newmont President and Chief Executive Officer Tom Palmer said the company has shown resilience in the face of uncertainty. “As the world’s leading gold company, Newmont has an exceptional history of exploration success and a track record of consistently delivering on our commitments,” he said.
In 2020, NEM added six million ounces of gold reserves overcoming the challenges of an unprecedented year. Newmont’s ability to replace reserves is underpinned by our disciplined operating model and world-class portfolio which will support stable production for decades to come. Newmont has a measured & indicated gold mineral resources of 69.6 million ounces, with 31.6 million ounces of inferred gold mineral resources.
Features to Look for in a Gold Stock
- A strong balance sheet: As with stocks in general, a strong balance sheet with consistent earnings per share growth would qualify a stock for consideration. The balance sheet will also indicate the amount of cash on hand and the amount of debt outstanding. A miner needs cash flow to find more gold and to maintain the gold it holds in reserves, while more cash typically indicates lower debt.
- Location of mining operations: Most investment-grade mining companies operate multiple mines in their base country, as well as in other countries where the company owns an interest in mines and mining operations. Mines operated abroad could be at risk for a number of reasons, including geopolitical concerns, although most mining companies work with the governing bodies of the countries where their mines are located.
- Solid operating margins: In the gold mining business, the better the margins, the higher the cash flow. The margins for gold miners tend to improve as the gold price trends higher, thereby fueling further upside in the price of gold stocks.
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