Gold stocks are an effective way to diversify a portfolio, reduce overall risk and protect assets against inflationary periods; however, they also come with greater volatility and risk than other investments.
For optimal protection of your assets, look for a reputable company with low storage and annual maintenance fees, such as American Hartford Gold which boasts an A+ rating from Better Business Bureau and five-star Trustpilot reviews.
1. Osisko Gold Royalties
Osisko Gold Royalties is a world-class precious metal royalty company, boasting an outstanding portfolio of more than 180 royalties, streams and precious metal offtakes with an industry leading growth profile. Their crown jewel is their 5% net smelter return royalty on Canada’s Malartic mine located in Quebec – Canada’s largest gold mine.
Osisko’s earnings in 2021 were driven higher by impressive GEOs generated from Eagle, Eleonore, Seabee Island and Lamaque as well as strong contributions from WKP project with drill results including 22.8 grams per ton over 48 metres of drilling.
This company takes an unconventional approach by investing in junior mining companies with the intent of speeding their development while providing access to capital and expertise that may increase the odds of their success.
2. Lundin Mining
Lundin Mining of Canada specializes in copper, zinc and gold mining with operations throughout Sweden, USA, Argentina Chile Portugal producing base metals such as Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan among others.
Growing a mining company can be challenging, yet Lundin Mining has succeeded by purchasing smaller gold miners and expanding into America, South Africa and Australia.
Lundin Mining Company is part of the Lundin Sphere, an influential Swedish family with stakes in companies throughout various industries – particularly mining. Renowned for embracing responsible mining practices and adhering to protocol, their website features invaluable resources for investors ranging from precious metal price charts and market reports.
3. Dundee Gold
Dundee Gold is an international mining company operating and developing projects in Bulgaria, Namibia and Serbia. Their aim is to unlock resources and generate value for all stakeholders involved.
Chelopech and Ada Tepe Mines in Bulgaria recently reported strong production, as well as its first Mineral Resource estimate at its Coka Rakita deposit in Serbia of 1.78 Million Ounces of Inferred Gold.
This chart displays Dundee Precious Metals’ net worth over the past 10 years. Net worth is calculated as the total market value of a company, including assets, liabilities, and shareholder equity. Estimates from public companies and other sources provide data for this chart that’s updated quarterly.
4. Calibre Mining
Calibre Mining is a growth-focused mid-tier gold producer headquartered in Canada with operations in Nicaragua and Nevada. Boasting an enviable balance sheet and numerous development and exploration opportunities in both locations, Calibre aims to unlock significant shareholder value through development projects with positive financial returns as well as district exploration projects that offer significant potential returns for shareholders.
Calibre Mining Company recently generated significant free cash flow due to record production at Pavon Central open pit, while costs have been in line with budget, giving Calibre the confidence it needs to meet or surpass its full year production guidance.
Calibre’s ability to convert earnings to cash flow is an integral indicator of its financial health, yet in three years only managed to convert 3.4% of EBIT into free cash flow – which severely limits its debt repayment efforts.
5. Newmont Mining
Starting life in 1921, Newmont Mining Corporation has spent much of the last century mining gold but also engaging in copper, silver, lead zinc lithium uranium coal and aggregate mining activities. Publicly listed since 1940 on the NYSE, they have made several acquisitions as well.
But its operations remain controversial, from open-pit mines that leave scarred landscapes to its use of cyanide leaching that pollutes water supplies. Lone Tree Mine in Nevada was accused of violating state water-quality standards while Western Shoshone tribe members have filed suit claiming its operations destroyed sacred sites.
Newmont Mining Corp of Denver has an ongoing dispute with indigenous communities both domestically and abroad, including Peru where it has been accused of evading taxes and royalties by funneling profits through subsidiaries to avoid paying them; Christian Aid charged that Newmont defrauded Peru of almost $160 Million during 2009.