In today’s turbulent economic times, investing in gold can be an excellent way to protect yourself against inflation and market volatility. Gold mining stocks, in particular, can offer impressive returns to savvy investors who know where to look. In this article, we’ll take a look at the top five gold mining stocks with impressive returns for smart investors.
1. Newmont Corporation (NEM)
Newmont Corporation is the largest gold mining company in the world, with operations in the Americas, Australia, and Africa. The company has a market capitalization of over $50 billion and has been in operation for more than 100 years. In 2020, Newmont produced over 5.9 million ounces of gold, making it the world’s largest gold producer.
Newmont’s impressive financial performance is due in part to its focus on operational efficiency and sustainable mining practices. The company has a strong balance sheet and has consistently increased its dividend for the past several years. In addition, Newmont has a strong pipeline of development projects that is expected to produce significant returns in the years ahead.
As of May 2021, Newmont’s stock price is up more than 47% over the past year, and the company has a forward price-to-earnings ratio of less than 12. With its strong financials and focus on sustainable mining practices, Newmont is an excellent choice for investors looking for exposure to the gold mining industry.
2. Barrick Gold Corporation (GOLD)
Barrick Gold Corporation is the world’s second-largest gold mining company, with operations in North and South America, Africa, and Australia. The company has a market capitalization of over $35 billion and has been in operation for more than 30 years. In 2020, Barrick produced over 4.8 million ounces of gold.
Like Newmont, Barrick has a strong focus on operational efficiency and sustainable mining practices. The company has a strong balance sheet and is committed to returning capital to shareholders through dividend increases and share buybacks. In addition, Barrick has a number of development projects that are expected to produce significant returns in the years ahead.
As of May 2021, Barrick’s stock price is up more than 43% over the past year, and the company has a forward price-to-earnings ratio of less than 11. With its strong operational focus and commitment to returning capital to shareholders, Barrick is an excellent choice for investors looking for exposure to the gold mining industry.
3. Franco-Nevada Corporation (FNV)
Franco-Nevada Corporation is a streaming and royalty company that operates in the gold and silver mining industry. The company has a market capitalization of over $27 billion and has been in operation for more than 30 years. Franco-Nevada provides financing to mining companies in exchange for future production streams or royalty payments.
Franco-Nevada’s unique business model allows it to earn a percentage of the revenues generated by its partner mining companies without having to incur the capital expenditures or operating costs associated with running a mining operation. As a result, the company has a high degree of financial flexibility and is able to generate significant cash flows.
As of May 2021, Franco-Nevada’s stock price is up more than 37% over the past year, and the company has a forward price-to-earnings ratio of over 42. While Franco-Nevada’s valuation is relatively high, its unique business model and ability to generate cash flows make it an excellent choice for investors looking for exposure to the gold mining industry.
4. Kinross Gold Corporation (KGC)
Kinross Gold Corporation is a mid-tier gold mining company with operations in North and South America, Africa, and Russia. The company has a market capitalization of over $11 billion and has been in operation for more than 25 years. In 2020, Kinross produced over 2.4 million ounces of gold.
Kinross has a strong focus on operational efficiency and sustainable mining practices, and the company has a number of development projects that are expected to produce significant returns in the years ahead. In addition, Kinross has a strong balance sheet and is committed to returning capital to shareholders through dividend increases and share buybacks.
As of May 2021, Kinross’s stock price is up more than 79% over the past year, and the company has a forward price-to-earnings ratio of less than 10. With its strong operational focus and commitment to returning capital to shareholders, Kinross is an excellent choice for investors looking for exposure to the gold mining industry.
5. Agnico Eagle Mines Limited (AEM)
Agnico Eagle Mines Limited is a mid-tier gold mining company with operations in North and South America, Europe, and Asia. The company has a market capitalization of over $18 billion and has been in operation for more than 60 years. In 2020, Agnico Eagle produced over 1.7 million ounces of gold.
Agnico Eagle has a strong focus on operational efficiency and sustainable mining practices, and the company has a number of development projects that are expected to produce significant returns in the years ahead. In addition, Agnico Eagle has a strong balance sheet and is committed to returning capital to shareholders through dividend increases and share buybacks.
As of May 2021, Agnico Eagle’s stock price is up more than 46% over the past year, and the company has a forward price-to-earnings ratio of less than 21. With its strong operational focus and commitment to returning capital to shareholders, Agnico Eagle is an excellent choice for investors looking for exposure to the gold mining industry.
Conclusion
The gold mining industry can offer impressive returns to savvy investors who know where to look. Newmont, Barrick, Franco-Nevada, Kinross, and Agnico Eagle are all excellent choices for investors looking for exposure to the gold mining industry. With their strong operational focus, sustainable mining practices, and commitment to returning capital to shareholders, these companies offer a compelling investment opportunity in today’s volatile economic climate.