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Gold stocks shine as investors seek refuge from global market fears

With the price of gold showing no signs of decline, gold companies are reaping the benefits

gold bars and US dollars
The gold price has been on a positive run since last week

Amid fears that North America is bordering on a recession, it is no surprise that gold stocks are rallying on the major exchanges.

The gold price has been on a positive run since last week, creeping above US$1,320 for the first time this month to close at $1,321.80 on Monday. Here are seven gold stocks that are benefiting from a higher gold price.

Gold Resource Corporation (NYSEAMERICAN:GORO) is a gold and silver producer with operations in Nevada and Oaxaca City, Mexico. The Colorado Springs-based company is on track to produce 27,000 ounces of gold and 1.7 million ounces of silver in 2019 at an all-in sustaining cost of US$655 per ounce, significantly less than the industry average of US$878. In Nevada, the gold miner just announced that it began gold processing and expects to start production by June 2019. The US$290 million market cap company has $9 million in cash as of December 2018 and 61 million shares outstanding. Shares of Gold Resource closed up nearly 6% in the US to US$4.10.

DRD Gold Ltd (NYSE:DRD) is a South African gold producer with particular expertise in the recovery of precious metals from surface tailings. In South Africa, the company produced more than 73,000 ounces of the yellow metal from the Ergo and Far West Gold Recoveries operations. In total, the Johannesburg-based miner has nearly 6 million ounces of gold reserves. Looking ahead, the company expects to produce 150,000 ounces of gold at Ergo, with Far West Gold Recoveries set to contribute to the bottom line by the second half of 2019. Shares of DRD were up 2% on Monday to close at US$2.

Eldorado Gold Corp (NYSE:EGO) (TSE:ELD) is a Canadian mid-tier gold and base metals producer with two gold mines in Turkey and two polymetallic mines in Greece. The Vancouver-based company also has exploration projects in the Canadian province of Quebec and two properties in northern Brazil. In 2018, the company produced 349,000 ounces of gold in total and is expecting to produce more than 400,000 ounces in 2019. Eldorado produces gold at an all-in sustaining cost of C$1,200 but has a hefty cash balance of $66 million as of the end of 2018. Commercial production at the Quebec project, Lamaque, is expected to begin in early 2019. With a market capitalization of US$777 million, the company also has significant upside on the base metals front, with 6.7 million ounces of reserves. Shares of Eldorado closed 6.3% higher at US$4.92 in the US and were up 5.6% to C$6.57 in Canada.

Yamana Gold Inc (NYSE:AUY) (TSE:YRI) is a Canadian gold and base metals miner with a strategic focus on the Americas. Its project portfolio encompasses six mines in Canada, Brazil, Chile and Argentina. The target production for 2019 is more than 1 million gold equivalent ounces, plus 120 million pounds of copper. The Toronto-based company put its newest mine, Cerro Moro, into commercial production in 2019. Yamana’s shares were up 5.8% on Monday to close at US$2.76 and gained nearly 6% in Toronto, closing at C$3.72.

IAMGOLD Corp (NYSE:IAG)(TSE:IMG) is an intermediate gold producer with four gold mines on three continents. The Toronto-based company produced more than 880,000 ounces of gold in 2018 at an all-in sustaining cost of US$1,057. As of December 2018, the company has more than $600 million of cash at hand. In January 2019, the gold miner entered into a forward gold sale arrangement to receive $170 million in exchange for delivering 150,000 ounces of gold in 2022. IAMGOLD’s shares were up 3.9% in New York to close at US$3.72 and climbed 3.8% in Toronto to C$4.97.

Goldcorp Inc (NYSE:GG) (TSE:G) is a major precious metals producer with a portfolio of significant projects in the Americas. The company is currently in the process of a merger with Newmont to create the world’s largest gold producer. Independently, Goldcorp produced more than 2 million ounces of gold in 2018 at an all-in sustaining cost of US$765 per ounce. The Vancouver-based company’s newest mine, Penasquito, achieved commercial production in December 2018. Shares of Goldcorp were up nearly 3% in New York to close at US$11.12 and advanced 2.7% in Toronto, closing at C$14.90.

Kinross Gold Corporation (NYSE:KGC) (TSE:K) is a senior gold producer with a portfolio of assets in the US, Brazil, Chile, Ghana, Mauritania and Russia. Headquartered in Toronto, the company produced nearly 2.5 million ounces of gold in 2018 at an all-in sustaining cost of US$965. The producer has $349 million in cash. Kinross is celebrating its 25th anniversary this year. Shares of Kinross closed 4% higher on Monday in the US at US$3.62, and rose nearly 4% in Toronto to close at C$4.86.

 

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