For example, during periods of global uncertainty, both assets may rise as investors flock to save haven investments. Due to its finite supply, gold is seen as a hedge against inflation, while the dollar’s status as the global reserve currency makes it sought after during times of risk aversion. On Nov. 8, Yamana agreed to an arrangement under which Pan American Silver Corp. will acquire all of the company’s issued and outstanding shares. As part of the transaction, Yamana also will sell certain Canadian assets to Agnico Eagle Mines. The deal is expected to close by the first quarter of 2023. These are the gold stocks with the lowest 12-month trailing P/E ratio.
If you have the space to store gold and want to own a tangible asset, physical gold may be the better choice. However, if you’re simply looking to profit from changes in gold prices, gold stocks may be a better option. Gold stocks are public companies that extract, process, finance and trade gold.
Franco-Nevada Corp. is a gold streamer headquartered in Toronto, Canada. A streamer doesn’t mine gold, instead it buys contracts to sell other producer’s gold output. The company’s dividend yield is currently around 3.0%, but the dividend amount fluctuates each year. AngloGold pays a 2.4% dividend yield, but the dividend amount can vary drastically from year to year. Over the last decade, the stock has traded in a large range between roughly $8 and as high as $35.
That cash flow enables it to invest in new deals and pay a dividend. Barrick Gold lands in second place on this list of top gold producers. The company has been active on the M&A front in the last five years — in addition to merging its Nevada assets with Newmont in 2019, the company closed its acquisition of Randgold Resources the prior year. Regardless of how the gold price is doing in any given year, the top gold-mining companies are always making moves.
Report dated October 9, investors in the West are dumping their gold assets, while Asians see the tumbling prices as a buying opportunity and are loading up on cheap gold jewelry and bullion. In its Q4 and full-year 2022 results, Freeport-McMoRan states that long-term mine development activities are underway at Grasberg’s Kucing Liar deposit. The company anticipates that the deposit will ultimately produce more than 6 billion pounds of copper and 6 million ounces of gold (or 170.1 MT) between 2028 and the end of 2041. According to Newcrest, it has one of the largest group gold ore reserves in the world. With an estimated 52 million ounces of gold ore reserves, its reserve life is approximately 27 years.
Top 10 Gold-mining Companies (Updated
Gold streaming is the provision of upfront financing to gold miners in exchange for the option to buy finished gold bullion at a discount in the future. We also looked for companies with stable amounts of outstanding shares when possible. We have included P/E ratios relative to the five-year trend as a secondary screening criterion.
Resultantly, gold and silver are trading at extraordinarily high premiums in some Asian markets, compared to the global benchmark rates. As Asians snap up large quantities of gold when the rate weakens in the West, the global prices remain somewhat stable. Upon a rally in precious metals, gold usually makes its way back to Western countries as Asians cash out.
The vast majority of that production originates from the company’s Grasberg mine in Indonesia, which ranks as the world’s second largest gold mine by production. In 2022, Kinross produced 68.4 MT of gold, which was a 35 percent year-on-year increase from its 2021 production level. Kinross Gold has six mining operations across the Americas and East Africa . Its largest producing mines are the Tasiast gold mine in Mauritania and the Paracatu gold mine in Brazil.
Once you have decided on these factors, you can purchase the stock. The price of gold tends to be inversely correlated to the U.S. dollar, so a strong dollar could hurt your investment. You get exposure to the price of gold without having to own or store physical gold. Shares must be listed on U.S. stock exchanges, have prices of at least $5 and trade at least 200,000 shares daily.
Franco-Nevada Corporation
The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. Polyus has six operating mines located in Eastern Siberia and the Russian Far East, including Olimpiada, which ranks as the world’s third largest gold mine by production. The company expects to produce approximately 2.8 million to 2.9 million ounces (or 79.37 to 82.21 MT) of gold in 2023. Although former President Franklin D. Roosevelt removed the gold standard in 1933, the greenback still closely correlates with gold—and subsequently gold stocks—as the metal is priced in U.S. dollars.
A demonstrated history of rising sales and earnings separates the best gold stocks from the rest. With a 3.9% dividend, it is the highest on the list, but as with many gold stocks, the payment amount varies from year to year. The five gold stocks made up almost 39% of the ETF’s assets, with Newmont accounting for more than 10%. The gold stocks have market capitalizations ranging from Newmont’s $41 billion to Wheaton Precious Metals’ $22 billion. By focusing on operating large mines with significant remaining resources, Barrick can produce gold at a relatively steady pace for years. The company expects to produce an average of roughly 6.5 million ounces of gold equivalent annually through 2032.
If you’re looking to hold gold stocks in your portfolio over the long term, you should be mindful of the industry’s volatile nature. Gold is a cyclical commodity, and companies in the industry also tend to generate cyclical results. Their profits rise when gold prices are high and decline when gold is cheap. Dividend yield was not a selection factor, yet all the stocks on the list but one pay a dividend.
Consequently, top gold mining companies can often outperform the price of gold. The top-tier gold miners have low cost structures, manageable debt levels, and limited exposure to risky mining projects. List of the largest gold mining companies/stocks by market cap.
Outstanding shares have been increasing over the last several years. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Also, for those interested in ESG factors, the company said in its 2022 asset handbook that it has a goal of achieving 40% diverse representation between the board and senior management as a group by 2025. As The Motley Fool Co-Founder David Gardner says, «Invest for the world you want to see.» Osisko Gold Royalties — Strong Buy, based on 9 analyst ratings, 7 Buy, 2 Hold, and 0 Sell.
Hecla Mining Company (NYSE:HL)
The company forecasted gold production of 3.2 million to 3.4 million ounces in 2022. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. From your brokerage account, choose the stock you want to buy, the price at which you want to purchase it and how many shares of the stock you wish to own.
A gold mining company is a company that operates, owns or manages a gold mine. Only the top gold mining companies are shown in this list and gold mining companies that are not publicly traded on a stock exchange are excluded. The share prices of gold stocks do not directly track the day-to-day price of gold in commodities markets, but their revenues are correlated with the gold prices. Investors who own gold stocks aim to benefit from changes in the price of gold without having to own or store physical gold themselves. Barrick complements its top-tier gold mining portfolio with a strong balance sheet.
Gold
However, each individual investor needs to examine their own investing approach and risk tolerance before deciding which is the best gold stock for them. Whether you choose to buy physical gold or gold stocks depends upon your own goals and requirements. Gold Fields Limited is based in South Africa, and the company maintains gold mining operations in South Africa, Ghana, Australia and Peru.
Zijin Mining Group (SHA:
Read on to find out which companies produced the most gold last year. Bre-X Minerals Ltd., often referred to simply as Bre-X, was a Canadian gold mining company which infamously defrauded investors. Typically, a strong U.S. dollar means weaker gold prices as demand for the precious metal eases from buyers using foreign currencies. Conversely, demand increases when the greenback loses value, making gold cheaper for offshore buyers. Momentum investing is a factor-based investing strategy that involves investing in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks that have outperformed the market will often continue to do so because the factors that caused them to outperform will not suddenly disappear.
The company’s production guidance for 2023 is in the range of 2.25 million to 2.3 million ounces (or 63.79 to 65.2 MT). This figure excludes production from Gold Fields’ Asanko joint venture in Ghana. Polyus produced 79 MT of gold in 2022 to take fifth place among the top 10 gold-mining companies. It is the largest gold producer in Russia and holds the highest proven and probable gold reserves globally. According to the most recent US Geological Survey data, gold production increased by approximately 2 percent in 2021, and by a mere 0.32 percent in 2022. China, Australia and Russia were the top three countries to produce gold last year.