Gold as a product has been through the mill in recent times, from the explosive highs during the recession, to the downward turn it faced in 2012. It can be a tough commodity to get to grips with, but that doesn’t mean it is a commodity that should be avoided. In fact, gold mining stocks should never be too far from your thoughts. This article looks at the top four gold mining stocks that you should be keeping an eye out for.
Goldcorp is a gold mining company that has a low cost M.O. However, obtaining such low cost title hasn’t necessarily come easy to Goldcorp. They are ruthless when it comes to cutting off dead limbs, unprofitable mines are regularly sold off and operating plans are consistently tweaked in order to better the company’s output. Goldcorp may be cutthroat with regards to their own business processes, but this is in large part what makes them one of the lading gold mining stocks in the world.
Agnico Eagle Mines (AEM)
Operating on a mantra that is the opposite of Goldcorp’s, Agnico Eagle Mines clearly have no time for the ‘less is more’ approach. Maintaining a conservative balance sheet, AEM has worked hard to make their business bigger, by picking up small companies in the form of struggling rivals like Osisko Mining. But, like Goldcorp they have a long standing track record of turning losses in profits and with new mine acquisitions on the horizon AEM show no signs of slowing down. They have also partnered up with Yamana Gold on several new projects, which will be exciting news to those looking to acquire gold mining stocks.
Kinross Gold (KGC)
Kinross Gold was once the leader of the pack when it came to gold mining, but all good things must come to an end. Several poorly chosen acquisitions and ill-timed expansions cost the company dearly, resulting in a huge drop in stock price. Thankfully, the company is in the mist of a recovery and things are looking up. New CEO Paul Rollinson grabbed the company by its foundations, suspending the company’s dividend, cutting costs and severing ties with unprofitable mines. Through such means the company is finding its footing in the gold mining market again, making their gold mining stocks one for investors to consider.
Yamana Gold (AUY)
What can be the making of a company is how they ride out an economic downturn. Yamana Gold might be considered a mid-tier gold company, but they tackled the credit crises better than many larger firms. This meant that it didn’t need to downgrade its mines, which has definitely worked in the company’s favour as gold prices have risen again. Yamana has also moved quickly to sell their non-core mines in order to pursue mining opportunities elsewhere. They have also chosen to partner with Agnico Eagle Mining, which has been dubbed a smart move by stock market experts and analysts. Those wanting to buy gold mining stocks may want to give Yamana Gold a look.