I read a lot of financial news ... or at least a lot of financial news headlines. I remember last year, headlines about gold reaching a 10-year high were everywhere, along with speculation about where it would go from there.
But lately, I’ve felt like I haven’t seen anything about gold. Then again, maybe I wasn’t looking in the right places.
So, I headed over to the Weiss Ratings website to see where gold miners were sitting on the rankings.
Well, ok, that was my second stop. My first stop is always over to KITCO to see what has been happening with the spot price of gold.
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Investors were excited when gold hit its 10-year high last year. But it looks like gold has been slipping since. The good news is that we could see gold hold that $1,700 level like it did around this time last year.
Sure, gold miners wouldn’t say no to that extra $300 per month, but in the end, gold miners aren’t upset with $1,700 per ounce. The average cost of mining an ounce of gold is around $990.
That signals to me that there is still plenty of money to be made in gold. And the Weiss Ratings agree. Right now, there are three gold miners that have solid “Buy”-ratings.
First up is Newmont Corporation (NYSE: NEM). The company is the world’s leading gold company, as well as a producer of copper, silver, zinc and lead. It has a solid “Buy” rating, and there’s really no question that the company is successful.
Just last month, Newmont announced that it generated record cash flows in 2020. On top of that, it met its full-year guidance and increased its quarterly dividend to 55 cents per share. The company also announced that it will acquire the remaining 85% of GT Gold Corp. This allows Newmont to expand its portfolio into the highly sought-after Golden Triangle district of British Columbia, Canada.
These two announcements have surely excited investors, and share prices are up 8.5% in just the past month. Clearly, there is plenty of money for Newmont to make in the gold market and plenty of money for shareholders. Share prices are up 96% in the past two years.
Next up is Dundee Precious Metals Inc. (TSX: DPM). The company is headquartered in Canada and has operations in Bulgaria and Namibia. It also recently received board approval to move ahead with a feasibility study for its Timok Gold Project in Serbia.
Just like Newmont, Dundee announced record results for 2020. The company is not nearly as big as Newmont, but there is still huge potential. Share prices have increased 66% over the past year ... and don’t forget the company is still firmly rated “Buy”.
Last, but not least, is K92 Mining Inc. (TSX: KNT). K92 is a precious metals producer and operates the Kainantu Gold Mine in Papua New Guinea. This is another small cap miner like Dundee, but there is still incredible potential for investors.
The company will announce its results from 2020 at the end of the month, but shares are up 179% in the past year. And it’s still signaling a “Buy”.
I can’t explain enough how much I love the simplicity of the Weiss Ratings stock screener. Within a matter of minutes, I could see which miners had a “B”-rating or above.
It’s a great way to catch up on any trend that you’re interested in ... especially if you don’t see what you’re looking for on the mainstream financial news.
And if you’re looking for a bit more info on the hottest metals trends — including gold and beyond — I highly recommend you check out my colleague Sean Brodrick’s Gold X Indicator to profit from these precious metals. For more information, click here.
Best,
Kelly Green
