If you're looking for some gold stocks to buy, you'll need to do some research. There are lots of different options to choose from, and it's important to know what type of companies are involved in the industry before you start investing. Here are a few examples:
Gold stocks may not be a high yield, but they do offer the security of knowing you have an investment that's stable. They also provide an alternative to investing in physical gold. If you're thinking about buying gold stock, you'll need to consider how much you want to risk, how much you're willing to pay, and what type of financial advisor you trust to help you make an informed decision.
Some of the best gold stocks to buy come from royalty companies. They don't invest in capital costs like mining operations, and they don't have to deal with operational risk. Instead, they get the most out of their assets by leveraging cash flow to invest in new opportunities. A good royalty company will also have strong managers, and will likely benefit from a positive price for gold.
If you're looking for a royalty company to invest in, you might consider Franco-Nevada Corp. This Canadian-based company holds a portfolio of precious metals and other cash-flow-producing assets in the United States and Canada. Its stock has outperformed its peers.
FNV has four major projects in the works. One is the Great Bear Royalty in Canada. Another is the Cobre Panama in Panama. These two are expected to produce about 625,000 ounces of gold equivalent each year.
Although FNV is an attractive gold market play, it isn't without its downsides. The company has been impacted by the Chinese shutdown. Also, interest rates are rising. As such, if you're considering buying a royalty company, you'll want to keep your portfolio diversified.
When it comes to gold stocks, it's important to know the differences between royalties and streaming companies. To get an idea of which ones are worth investing in, check out Forbes Advisor's list of the best gold stocks to buy.
AngloGold Ashanti is one of the world's largest gold producers. It operates through a portfolio of gold and silver mines in the Americas, Africa, Australia and Brazil. Founded in 1899, AngloGold has an impressive track record of production and exploration.
The company's operations have seen significant improvement in the last year, reporting stronger production and cash flow. However, the company's growth profile has been compromised as a result of less attractive prospects for its new projects in Colombia.
In the Americas, AngloGold saw an increase in production. But it is important to note that the company is also operating at a higher cost than peers. That's partly due to higher diesel and cyanide costs and a high turnover rate for maintenance staff.
Despite those cost increases, AngloGold reported an impressive year-over-year increase in gold production. It produced 1.23 million ounces, up 3%. Aside from the Americas, the company's operations also showed a substantial increase in production in the Australian segment.
However, AngloGold's production figures are still lower than what it had planned. For example, the company's Quebradona mine has been delayed, putting a crimp in its plans for the near term.
As a result, the company expects to report all-in sustaining costs of $1,602/ounce in H2 2022. However, the company remains on track to meet its annual guidance.
Overall, production at Obuasi appears to be back on track. However, the Quebradona mine has stalled and the company has not yet made any progress at its Quebradona/Gramalote project in Colombia.
These two operations could see a significant drag on AngloGold's AISC margins in the future. This has been driven by inflationary pressures, which have forced producers to tighten their operations.
Barrick Gold is one of the world's biggest gold producers. It has operations in North America and Africa. The company has 15 copper mines, 15 gold mines, and projects in Argentina, Brazil, Cote d'Ivoire, Ghana, Mexico, Peru, Tanzania, and Vietnam.
Barrick's financial report for Q3 2022 had some good news. Specifically, revenue increased 2.5%, while earnings per share (EPS) grew 18%. This is a pretty solid indicator that Barrick is in a good position to take advantage of any potential recession.
During the past month, the stock has seen a nice run. After the company announced that it would reduce its gold production volume by about 8%, the stock was up nearly 9%.
The main reason the stock has performed so well is that gold prices have increased. In addition, gold has been a hedge against inflation. These factors are important to watch for, as they could potentially lead to further gains.
As of the end of July, Barrick's balance sheet is fairly solid. It has managed to pay off some debt over the past few years. But the company has not yet gotten out of the hole.
For example, the all-in-sustaining costs at the company's Lumwana and Jabal Sayid mines rose 22.7%. However, the all-in-sustaining cost at the company's Veladero copper mine in Guatemala increased only 3%. That is a lot better than what many analysts expected.
Other factors to consider include the company's dividend, which is a reliable and safe investment. Another factor to watch is the relative price strength of the stock. If the stock has been outperforming the market recently, others will be more willing to buy it and help lift its price.
Agnico Eagle Mines
Agnico Eagle Mines (NYSE: AEM) is a large cap gold mining company operating in Canada, Mexico, Finland, and Australia. The company has a proven management team with a history of building mines. As a result, investors may be interested in adding AEM to their portfolios.
AEM has a solid asset base and is inexpensive on a P/CF basis. In addition, its Performance Score is above the Gold industry average.
Although AEM has fallen in recent months, it still appears to be a buy. This is especially true if you are looking for a stock that has the potential to appreciate by 20-25%. It is also a great pick for a growth investor.
Investors should note that AEM has a relatively high debt to equity ratio. Its earnings are not sufficient to cover its interest payments. Therefore, it is not a good choice for a momentum investor. However, a solid return is likely to come within the next few months.
In the third quarter, Agnico reported all-in sustaining costs of $1,106 per ounce. Although this number is well below the expected range of $1,150-$1,200, few companies have been able to keep their costs flat for the past several years.
Despite its challenges, the company is managing its situation well. It has an excellent asset base and a promising pipeline of growth projects. Moreover, the company is able to offset its costs via currency and fuel hedges.
As a result, the company's Profit Margin has increased from 17.3% in the past year to 10.7%. Ultimately, this indicates that the company is a dependable mine operator. Consequently, it is a good choice for an investor with a large cash allocation.
VanEck Vectors Gold Miners ETF
The VanEck Vectors Gold Miners ETF is an exchange-traded fund that is a good choice for those who are bullish on gold. The fund is designed to mimic the NYSE Arca Gold Miners Index. This index is a market-capitalization-weighted stock market index that tracks the performance of publicly traded companies engaged in the mining of gold and silver.
GDX is a market-cap-weighted index of global gold-mining firms. Like other ETFs in this category, it is not a pure play. Instead, it includes a smattering of firms that mine other precious metals. However, unlike many ETFs, GDX is not restricted to US-listed firms.
The VanEck Vectors Gold Miners Fund has been around since 2006 and is one of the most liquid vehicles in the market. The fund's total assets are $15.1 billion. It is managed by Van Eck Associates Corporation. The fund is also licensed to use ICE Data Indices.
The NYSE Arca Gold Miners Index is a modified market-capitalization-weighted index. The fund's newest incarnation is a multi-factor composite index that incorporates market-cap-weighted, industry-capitalization-weighted, and country-cap-weighted indexes.
Of course, no single factor can account for all of the variables. For instance, the largest short-term variable is the price of gold. If the price of gold increases, the profit of a gold mining company rises. On the other hand, if the price of gold falls, the profitability of a gold mining company might decrease.
Although the most significant and obvious fact is that the VanEck Vectors Gold Miners ETF aims to replicate the NYSE Arca Gold Miners Index, it is not as simple as that. While the VanEck Vectors Gold Miners fund has a number of advantages over the index, it may not be right for everyone.