The company expects to produce approximately 2.8 million to 2.9 million ounces (or 79.37 to 82.21 MT) of gold in 2023. In 2022, the company increased its gold production by 11 percent over 2021, coming in at the top end of its guidance for the year. Its production guidance for 2023 is set at 2.45 million to 2.61 million ounces (69.46 to 74 MT). In its annual report for 2022, Barrick notes that its full-year gold production was slightly less than its stated guidance for the year, rising a little over 7 percent from the previous year’s level.
- Also, for those interested in ESG factors, the company said in its 2022 asset handbook that it has a goal of achieving 40% diverse representation between the board and senior management as a group by 2025.
- A gold ETF offers broad exposure to the sector by owning either shares of gold mining companies or physical gold.
- As a result, the company had a net cash balance as of early 2023, giving it the financial flexibility and strength to repurchase shares and pay an attractive dividend.
- The lowest P/E over the last five years is 20, but P/E can easily climb well above 50 in this stock.
- It’s usually recommended to consult a financial advisor before making any financial decision.
- This provides some perspective on how each stock’s valuation looks now relative to recent history.
Forbes Advisor has provided this list of what we believe to be the seven best gold stocks to own right now. However, each individual investor needs to examine their own investing approach and risk tolerance before deciding which is the best gold stock for them. Whether you choose to buy physical gold or gold stocks depends upon your own goals and requirements. Gold Fields Limited is based in South Africa, and the company maintains gold mining operations in South Africa, Ghana, Australia and Peru. Dundee Precious Metals is a Canadian mining company based in Toronto.
Best Gold Stocks Of 2023
Coming in fourth on this top gold-mining companies list is AngloGold Ashanti, which produced 85.3 MT of gold in 2022. The South African company has nine gold operations in seven countries across three continents, as well as numerous exploration projects around the world. AngloGold’s Kibali gold mine (a joint venture with Barrick as the operator) in the Democratic Republic of Congo is the fifth largest gold mine in the world, having produced 23.3 MT of gold in 2022. Many factors affect the price of gold, including monetary policy and inflation. For years, gold was the top choice of investors seeking to hedge against these risks.
A major benefit of Franco-Nevada’s focus on royalties and streaming is that it reduces risk. It doesn’t face the capital and operating cost overruns that have historically plagued mining companies. At the same time, Franco-Nevada’s agreements position it to profit as its mining partners complete exploration and expansion projects. Gold mining is the practice of extracting gold ore from the earth and processing it into gold bullion. Gold streaming is the provision of upfront financing to gold miners in exchange for the option to buy finished gold bullion at a discount in the future.
SSR Mining Inc. (NASDAQ:SSRM)
P/E values have ranged between six and well over 400 during the last five years. Outstanding shares have been increasing over the last several years.
Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers. These are the gold stocks with the lowest 12-month trailing P/E ratio. The decision to keep cash or gold is a personal preference based on your beliefs about inflation, the economy, and the money supply.
Osisko Gold Royalties Ltd (NYSE:OR)
Once you have decided on these factors, you can purchase the stock. If you’re looking to hold gold stocks in your portfolio over the long term, you should be mindful of the industry’s volatile nature. Gold is a cyclical commodity, and companies in the industry also tend to generate cyclical results. Their profits rise when gold prices are high and decline when gold is cheap.
Dividend payments commenced in 2021, and the company raised the dividend in 2022. RGLD pays a 1.3% dividend and the dividend has increased every year since 2016. The company has been steadily raising sales since 2015 with only a few minor hiccups. EPS has been positive the last four years, rising overall, but lower in 2022 vs 2021.
Kinross Gold (TSX:K,NYSE:KGC)
Franco-Nevada Corp. is a gold streamer headquartered in Toronto, Canada. A streamer doesn’t mine gold, instead it buys contracts to sell other producer’s gold output. The company’s dividend yield is currently around 3.0%, but the dividend amount fluctuates each year. AngloGold pays a 2.4% dividend yield, but the dividend amount can vary drastically from year to year. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Also, for those interested in ESG factors, the company said in its 2022 asset handbook that it has a goal of achieving 40% diverse representation between the board and senior management as a group by 2025.
Top 10 Gold-mining Companies (Updated
The vast majority of that production originates from the company’s Grasberg mine in Indonesia, which ranks as the world’s second largest gold mine by production. The Australian company operates a total of five mines across Australia, Papua New Guinea and Canada. Its Lihir gold mine in Papua New Guinea is the world’s seventh largest gold mine by production. In 2022, Kinross produced 68.4 MT of gold, which was a 35 percent year-on-year increase from its 2021 production level. According to the most recent US Geological Survey data, gold production increased by approximately 2 percent in 2021, and by a mere 0.32 percent in 2022. China, Australia and Russia were the top three countries to produce gold last year.
Advantages of Gold Stocks
Although the U.S. dollar and gold often have an inverse relationship, both can move in the same direction. For example, during periods of global uncertainty, both assets may rise as investors flock to save-haven investments. Due to its finite supply, gold is seen as a hedge against inflation, while the dollar’s status as the global reserve currency makes it sought after during times of risk aversion.