6 Largest Gold Mining Stocks Up 4% In August; +28% YTD

The best time to invest is often when sentiment is at its lowest, and sentiment around gold and silver equities is pretty low right now. History, however, tells us that this could be the perfect time to buy.

By Lorimer Wilson

To help you determine which precious metal equities to consider investing in I have put together a portfolio of the 6 largest ($+10B) stocks by market capitalization that trade on Canadian and/or American stock exchanges as follows for your consideration with their performances for the month of August, in descending order, and YTD, along with their market capitalizations and company profile.

6 Largest Gold Mining Companies Portfolio

1. AngloGold Ashanti (AU):  UP 11.0% in August; UP 58.7% YTD
   • ​​​​​​​Profile: primarily explores for gold in Africa, Australia, and the Americas (as well as produces silver and sulphuric acid as by-products) with its flagship property located in the Lake Victoria gold fields of the Mwanza region in north-western Tanzania.
   • Mkt. Cap:$12.4B
2. Barrick Gold (GOLD): UP 10.8% in August; UP 11.6% YTD
   • ​​​​​​​Profile: engages in the exploration, mine development, and production of gold and copper properties (also explores and sells silver and energy materials) with producing gold mines located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, the Dominican Republic, Mali, Tanzania, and the United States.
   • Mkt. Cap:$35.3B​​​​​​​
3. Agnico Eagle Mines (AEM): UP 7.3% in August; UP 48.5% YTD
   • ​​​​​​​Profile: explores, develops, and produces gold with mines in Canada, Australia, Finland and Mexico and exploration and development activities in Canada, Australia, Europe, Latin America, and the United States.
   • Mkt. Cap: $40.7B​​​​​​​
4. Kinross Gold (KGC): UP 1.0% in August; UP 49.4% YTD​​​​​​​
   • ​​​​​​​Profile: engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania.
   • Mkt. Cap:$11.1B
5. Freeport-McMoran (FCX): DOWN 1.7% in August; UP 4.4% YTD
   • ​​​​​​​Profile: engages in the exploration and mining of copper, gold, molybdenum, silver, and other metals in the USA, Indonesia, Peru and Chile North America, South America, and Indonesia.
   • Mkt. Cap:$63.6B​​​​​​​
6. Gold Fields (GFI): DOWN 15.4 x% in August; DOWN 5.0% YTD​
   • ​​​​​​​​​​​​​​Profile: operates as a gold producer in Chile, South Africa, Ghana, Canada, Australia, and Peru and also explores for copper and silver deposits.
     • Mkt. Cap: $12.5B

Summary

The Portfolio, with an average market cap of $29.3B, was UP 3.8% in August and is now UP 28.3% YTD.

In comparison: 

1. ETFs
   • the Van Eck Gold Miners ETF (GDX), which consists of 60 constituents with an average market capitalization of $23.6B, and has an expense ratio of 0.51%,
     • went UP 4.0% in August and is now UP 24.5% YTD.
   • the Van Eck Junior Gold Miners ETF (GDXJ), which consists of 93 constituents with an average market capitalization of $4.0B, and an expense ratio of 0.52%,
     • went UP 3.3% in August and is now UP 21.3% YTD.
   • the SPDR Gold Shares ETF (GLD), with an expense ratio of 0.40%,
     •  went UP 2.7% in August and is now UP 21.0% YTD and
   • the iShares Silver Trust ETF (SLV), with an expense ratio of 0.50%,
     • went UP 3.4% in August and is now also UP 21.0% YTD.
2. ​​​​​​​​​​​​​​Royalty and Streaming “mining” companies, which provide financing to mining companies in exchange for a share of their future production, consist of 9 such companies providing such services to gold and silver mining companies of which the 3 largest  by market cap are:
   • Wheaton Precious Metals (WPM), with a market cap of $28B, provides financing to 18 operating mines and 27 mines under development and
     • went UP 4.3% in August and is now UP 25.3% YTD
   • Franco-Nevada Corp. (FNC), with a market cap of $24B, provides financing to 118 companies with operating mines, 41 with mines in development and 271 companies that are in the exploration stage. It
     • went UP 8.8% in August and is now UP 10.2% YTD and
   • ​​​​​​​Royal Gold (RGLD), with a market cap of $9B, provides financing to 10 operating mines and 22 that are in development,
     • went UP 10.4% in August and is now UP 15.9% YTD