Joey Ting
pcwong Staff answered 7 years ago
I have not done an analysis of Newmont Mining due to its higher share price vs the others which I have covered.
I would suggest you look at the stock picks for a number of gold mining companies which I have covered just so that you familarise yourself on key KPIs and the AISC (All In Sustaining Cost).
Gold and silver miners are still heavily discounted compared to their peak when gold touched US$1,900 per oz and silver at US$50 per oz. Looking at the bleak economic outlook and high global debt, it is prudent to have one or two miners in your portfolio. Also do consider owning some physical gold or silver.
Joey Ting
replied 7 years ago PC, thank you for your reply. I bought MML and EXK small amount. The rest I did not invest because I only joined recently and was under the impression that they are still overvalued? But sound like you did not think so?
pcwong Staff answered 7 years ago
The major player will be ABX (Barrick Gold). Its highest was around US$55 whereas now it is trading in the US$19 – US$20 range. So it is still below its peak. Soros just became one of the largest shareholder in ABX. ABX just reduced their AISC by about 20%. So their profit level could increase as gold price appreciates. ABX price movement is greatest among the gold miners.
When it comes to silver PAAS has greater price movement than others. It also has gold mining operations.It is still trading in the US$15s range. its peak was US$42+. So it trades well below its peak.
For junior, EXK has the potential but highly volatile. But any price increase in silver EXK will undoubtedly move up quite substantially. The other silver miner is First Majestic Silver or AG. it is purely a silver play and it is very well run.
I recommended a few junior gold miners. But do consider BTG which is trading slightly above US$2 if you can only select one. BTG is completing its Mali plant and when it is done will increase its gold production by more than 70%.
MML was doing fine until they reported that they will be reducing production in order to facilitate its mine development. So its share price remains within a tight range. It is a highly profitable operator but investors seem to be giving this stock a miss for the time being.
All miners stock should appreciate substantially in the event of a collapse in the world financial system (Module 6). We could be looking at gold price being above its previous peak. If this happens, miners could surpass their previous highs.
I do own a wide range of miners and precious metals ETFs having recently opened new positions:
ABX, PAAS, BTG, EXK, MML, GDX (miners ETF), GDXJ (junior miners ETF), AGQ (this is a highly risky ETF), PSLV (silver ETF), SLV (silver ETF), and KGC.
My recommended list have many more but because capital is limited you have to invest based on your risk appetite and your holding capacity. Never extend beyond your limit and always ensure you have cash at hand for emergency.
pcwong Staff answered 7 years ago
No IAG is not in the list but AG is. However IAG if I remember correctly, has been the target of investment by Eric Sprott a well known mines investor.
The TSX has many miners listed but for volume, nothing beats the NYSE or NASDAQ.
I will be sharing KGC in the coming webinar. It is among the top ten producers but it’s AISC is rather high compared to the other miners. So that is why its shares price remains in the US$5s range.