Gold Stocks - Large market cap
In today’s video we looked at 26 of the largest market cap Gold mining stocks. All of the charts were examined in the monthly time frame.
The best-looking stocks were the royalty companies and streaming companies.
Lundin Gold Inc. (OTC: LUGDF) was by far the best overall stock in the bunch, although it is not a royalty or streaming company.
Lundin Gold has numerous positive factors going for it. The company is in production with positive cashflow and it recently paid off all its debt. On top of these accomplishments, Lundin has some outstanding drill results, an expanded drilling program, and a doubling of its quarterly dividend. The price chart definitely shows the results of all these bullish attributes.
One of the surprising discoveries from researching this set of Gold mining stocks is the actions that the Mexican government is taking towards mining in the country.
There is proposed legislation that would ban new open pit mines. The fact that legislation like this is even being discussed suggests that significant changes could be coming for mining companies operating in Mexico.
In May of 2023, Mexico passed legislation that shortens the duration of mining concessions granted within the country and restricts mining concessions to a single type of mineral.
We will do some research on the ‘single type of mineral’ legislation and report on this change in the future. It will be interesting to see how polymetallic mines (e.g., Copper-Gold, or Copper-Gold-Silver-Tin) will be treated. Does a mining company have to pick one of the metals and ignore the others? Hmmm…
All-in-all, the Gold mining stocks look better than the Silver mining stocks. On the surface that doesn’t seem surprising since Gold has added $700 to its price in the past 12 months. That’s a 38% gain in one year!
Silver has only added $9, but on a percentage basis the white Precious metal gained 45%.
The outperformance of the Gold stocks can most likely be explained by the change in profit margins that occur based on the increased price of the metal.
As a simple example, imagine that we are producing Gold and breaking even on our operation. Then the price of our product goes up by $700 so all of that increase is pure profit.
If we use the same scenario for mining Silver, the price of our product has increased by 45%, but we are only making $9 of profit for each ounce we mine. We need to sell a lot of Silver to match the $700 of profit being made by the Gold producer.
Watch the video to gain insight into the human brain and how it works against us when we invest, why the chart of Lundin Gold looks so good, and why one of the Gold mining companies in today’s set of stocks might be a poor choice.
Gold stocks covered in today's video
Newmont Corp. (NYSE: NEM)
Agnico Eagle Mines Ltd. (NYSE: AEM)
Barrick Gold Corp. (NYSE: GOLD)
Wheaton Precious Metals Corp. (NYSE: WPM)
Franco-Nevada Corp. (NYSE: FNV)
Gold Fields Ltd. (NYSE: GFI)
AngloGold Ashanti PLC (NYSE: AU)
Northern Star Resources Ltd. (OTC: NESRF)
Kinross Gold Corp. (NYSE: KGC)
Royal Gold Inc. (Nasdaq: RGLD)
Alamos Gold Inc. (NYSE: AGI)
Pan American Silver Corp. (NYSE: PAAS)
Harmony Gold Mining Company Ltd. (NYSE: HMY)
Evolution Mining Ltd. (OTC: CAHPF)
Endeavour Mining PLC (OTC: EDVMF)
Fresnillo PLC (OTC: FNLPF)
Lundin Gold Inc. (OTC: LUGDF)
Buenaventura Mining Company Inc. (NYSE: BVN)
Hecla Mining Company (NYSE: HL)
B2Gold Corp (NYSE Arca: BTG)
Eldorado Gold Corp. (NYSE: EGO)
Triple Flag Precious Metals Corp. (NYSE: TFPM)
Osisko Gold Royalties Ltd. (NYSE: OR)
Iamgold Corp. (NYSE: IAG)
Sandstorm Gold Ltd. (NYSE: SAND)
SSR Mining Inc. (Nasdaq: SSRM)