Gold has had quite a run as investors have looked to it as a safe haven. With the economy the way it is and the dollar devaluing, it's not farfetched to think gold prices will continue up. Here is a list of seven gold mining companies I believe will be strong beneficiaries of higher gold prices.
Newmont Mining Corporation (NEM), together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company's assets and operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico.
Newmont is a strong growth play. The company is planning to double its production of gold in its Peru subsidiary. Its is spending 40% of its income and reinvesting it in major projects. The company pays a 1.8% dividend and has a forward P/E of 11.3.
Barrick Gold Corporation (ABX) engages in the production and sale of gold, as well as related activities, such as exploration and mine development. The company has a portfolio of 25 operating mines and a pipeline of projects located in North America, South America, the Australia Pacific region, and Africa.
Barrick is the largest gold miner by market cap (over $50 billion). Barrick is still discovering new properties. Last week it announced two new discoveries in Nevada. The stock has a forward P/E of 13.8 and pays almost a 1% dividend.
AngloGold Ashanti Limited (AU) primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid.
AngloGold is a nice play, as not only are you getting exposure to the gold market, but also get to enjoy the diversification of its other products, like sulfur. This is nice to have in case the gold market turns. The stock has a forward P/E of 12.7 and pays a 0.5 percent dividend.
Kinross Gold Corporation (KGC), together with its subsidiaries, engages in mining and processing gold ores. It also involved in the exploration and acquisition of gold-bearing properties.
Kinross already has a strong amount of proven reserves, so finding new opportunities won't be a priority. It is a developed miner with a strong balance sheet. The stock has a forward P/E of 14 and pays a 0.7% dividend.
IAMGOLD Corporation (IAG), together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals.
IAMGOLD is experiencing some of the best margins in the industry. The company has no debt and over a $1 billion in cash. The stock has a forward P/E of 15.4 and pays a half a percent dividend.
Agnico-Eagle Mines Limited (AEM), through its subsidiaries, engages in the exploration, development, and production of mineral properties. It explores for gold, silver, zinc, copper, and lead.
Agnico is a growth company. It has been financing new discoveries as well as increasing production at its current mines. The stock has a forward P/E of 17.5 and pays a 1% dividend.
Eldorado Gold Corporation (EGO), together with its subsidiaries, engages in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the People's Republic of China, Greece, and Turkey.
Eldorado has been increasing production substantially while continuing to keep its costs down. Eldorado has already issued strong guidance until 2016, showing the company is very confident. The stock has a forward P/E of 20 and pays a 0.5 percent dividend.
Gold stocks have had quite a run-up. However, gold continues to be looked at as a safe haven, and I do not believe that will change anytime soon. I recommend you research these companies before buying.