Investment in gold dates back to ancient times.
In the world of finance, gold has its advocates and its detractors. However, few would dispute gold’s unique place in markets as a store of value unmatched by most other assets.
No matter your stance on the precious metal, experts agree that gold equities may be a valuable addition to a balanced portfolio. Even if you don’t think gold is an excellent inflation hedge, you can’t deny that it has maintained its purchasing power throughout time.
Real gold is difficult and costly to get. However, investors may diversify their portfolios and get exposure to gold by purchasing gold stocks.
Here are the best five gold stocks with solid fundamentals and attractive valuations.
Sibanye-Stillwater Corp.
Precious metals are mined and refined by Sibanye-Stillwater, situated in South Africa. In addition, the business cultivates and extracts mineral characteristics. Its global holdings include gold, copper, and platinum operations in the US, SA, and Zimbabwe. In addition, the corporation has a 30% interest in a Finnish lithium project.
The business has inked a 3-year wage agreement for its gold operations in SA, beginning July 1, 2021. The lockout of two unions, which had lasted for months, was ended with the signing of the deal, including an “inflation-linked” average salary rise of 6.3% over three years.
Newmont Mining, Inc. (NEM)
According to output and market capitalization, Newmont is the industry leader in gold mining. Because of its size, the corporation may take advantage of economies of scale and synergies with other departments. It also has a sizable war chest to explore and acquire other mining operations.
Casanova, however, claims that the gold mining sector has progressed to the point where huge miners are no longer automatically regarded as reputable. Instead, she explains that they are beneficial because of their ability to generate value. Newmont has lost around 11.8% this year as of July 15 compared to the 18.9% drop in the S&P 500.
OceanaGold Company
OceanaGold is a gold producer in Australia that also does gold exploration and mining. Additionally, copper and silver are produced by the firm. It runs mines in the Philippines (Didipio Mine), New Zealand (Macraes and Waihi), and the United States (Haile Gold Mine). Around 2,300 employees are working for the firm.
OceanaGold also offers over-the-counter (OTC) trading in the United States for its shares under the symbol OCANF. On April 28, 2022, OceanaGold announced financial results for the first quarter. Revenue virtually quadrupled from the previous year, while net profit increased almost five times. Strong overall gold output and a record quarter for gold obtained at the Haile mine fueled success.
Golden Minerals Company (AUMN)
Another junior mining company, Golden Minerals, has begun total gold and silver production at its Rodeo mine in Mexico. The firm expects to profit from running the mine until the third quarter of 2023. In addition, the firm’s two silver and gold mines in Mexico that had been shut down are set to reopen.
Feneck, who is consulting with Golden Minerals and formerly held its shares, notes that this year’s restart decision might be a growth stimulus in the short term.
Successful continuation of drilling at its Sarita Este property in Argentina and the Yoquivo project in Mexico would also be a positive catalyst. In addition, Barrick might potentially increase its stake in Golden by 70% via an exploration agreement if the company’s El Quevar project in Argentina yields favorable results.
The company’s cost per ounce of gold was $1,156 in Q1. It had sales of $3 billion and an adjusted net income of $546 million on the production of 1.34m ounces of gold.
Dundee Precious Metals Inc.
DPM is a global mining business headquartered in Canada that acquires, explores, develops, mines, and processes assets containing precious metals. Chelopech runs a copper, silver, and gold mine in Bulgaria; Krumovgrad is building a gold project in Bulgaria, and Tsumeb owns and maintains the business concentrate processing plant in Namibia.
DPM also has OTC shares that trade under the name DPMLF in the US. On May 4 of this year, Dundee released its financial results for the first quarter of 2022. Year-over-year, both sales, and net income rose significantly (YOY). Chelopech, the company’s mining business, contributed to this expansion by producing more gold and copper.
Read More: 5 Best Gold Stocks To Buy Now