With the uncertainties surrounding the market place, investors have decided to key into the gold business as a better risk plan. This year has made the gold business more interesting as the price of gold has moved upward whereby the mining of gold has become a safe haven process. People are now concentrated towards making indirect investment in gold through having shares with the companies that deals with gold mining and other likely companies that operates gold production.
This isn’t unconnected to the fact that most of those companies may not be as directly influenced by the price of gold just like a direct investment in the precious metal particularly. In addition, these companies are liable to have access to other markets also which makes their relationship to the price of gold more monumental. As everyone would love to engage in productive business, there is increase in people that are going for gold business probably due to the fact that the metal is seen by most of them as an inflation hedge and a place to go when risk seems nearer.
Just as most of the gold mining companies are now strategizing how they can improve their production and enhance sustainability, investors are looking into how they can collaborate with one another and hence having smooth process. Earlier this year, two great companies named Barrick Gold (ABX) and Newmont Mining Corp (NEM) has arranged plans to merge together and form a company that wouldn’t only be the largest with regards gold mining but also with Tier One gold assets across the globe.
In our choice to come up with the top gold stocks that hit this year, we have carefully analyzed and study the stock market and hence draw out some of the largest gold mining and other related companies in the world. Most of the companies we choose actually have more than $4billion market capital with some of them much larger than that. Below are the companies for proper insights:
– Agnico Eagle Mines: This Company is a Canada-based and it operates around Canada, Finland and Mexico. The company has been in mining operations since 1957 and it is now in the exploration phase of potential projects in US and Sweden. This company also witnessed drop in their earning as the gold prices slumped last year. However, investors are now optimistic that the company will be back stronger as the price of the precious metal seems to be high. It is on that note expected of the company that there would be massive boost at the stock market if they are able to produce the planned 1.60million ounces per year.
– AngloGold Ashanti: When we are talking about top companies in terms of production, AngloGold Ashanti is unarguably the third largest company in the world. A South African company that has over time operates in many countries. The company came up when AngloGold Ltd and Ashanti Companies Ltd merged together in 2004 and as at 2017 the company has about 3.8million ounces of gold as their production. Over time, the company has recorded improvement and its all-in sustaining costs (AISC) improved 14% year-over-year for Q3 last year (2018). With its consistencies and modus operandi, the company is poised towards bigger gains in the nearest time.
– Kirkland Lake Gold: This Company is based in Toronto with operations covering Canada and Australia. Kirkland set a target goal of producing 670,000 ounces of gold in last year but impressively it was able to produce nearly 724,000 as at January this year. Their initial goal was planned to be achieved through delivering low-cost production, able to improve their level of exploration and other development pipelines so also by making sure they supplement their resource reserve base in order for them to make future growth. Presently, the company has continued to be consistent in their exploration process in their bid to fuel continued growth in to the future.
– Royal Gold: This Company is based at Denver and it is quite different from other companies we’ve been discussing because it is not a mining outfit. Instead, this company is focused towards acquiring/purchase of precious metals streaming and royalty interests whereby its operation covers North America, Dominican Republic and Chile. The storm that affected other mining companies last year due to the drop in price of gold also touched this company too. There was a lower income generated by this company through this business but with the increase in metal value in this year, it is expected that there will be increment to sales by investors. Therefore, the expected performance is likely dependent upon the recent release of the latest quarterly figures in early February.
– Newmont Mining Corporation: This Company is one of the oldest mining companies in the world that is dated back 100years ago. It is based in Colorado and operating around 5 countries in the world. In January, 2019, this company announced their intention to merge with Goldcorp Inc in a business deal worth $10billion. After merging, the new company – Newmont Goldcorp will be one of the mining companies that are the largest across the globe. Although, the drop in price of gold witnessed last year might make some investors not to flock to gold this year, those largest companies seems to be putting up. This is due to the fact that they tends to benefit more from this as new exploration and development would enhance its expansion and production levels grow.
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