Question About Gold Mining Companies

[EricSchleien]

Have a friend who some money to invest and needs to put it in Gold Mining Stocks. (long story and don't really feel like explaining). Anyway, wanted to know for those who are knowledgable in the space....if you had to put your money towards one gold mining company, what would it be?

[DTEJD1997]

Have a friend who some money to invest and needs to put it in Gold Mining Stocks. (long story and don't really feel like explaining). Anyway, wanted to know for those who are knowledgable in the space....if you had to put your money towards one gold mining company, what would it be?

I've said it before, and I'll say it again.

 

If I could only pick one gold mining stock, it would have to be Caledonia Mining in Zimbabwe (CAL.to, CMCL).

 

I challenge anyone to give a gold stock with better fundamentals, financial metrics, and near term (12-36 months) growth prospects than CMCL.

 

I also think that Zimbabwe is going to re-rate higher.  Heck, it could be a heck of story and have good prospects in front of it!  Mugabe is gone...There is a good chance the country is going to want to open up to outside investors and grow the economy.

 

Finally, think about this...I bet you would be the ONLY investor in your circle of compatriots to have direct investments in Zimbabwe! 

[thowed]

Can it be a fund?

 

This seems interesting and has been going for a decent amount of time.  Other people at the company (i.e. other funds) are very decent.

 

http://www.aimskl.com/funds/phoenix-gold/newsletter.php

 

Alternatively, how about Franco-Nevada, i.e. go for the royalties, which should be lower-risk.

 

[bskptkl]

I'm going to suggest you take a look at Griffin mining - GFM on AIM. More of a zinc miner but a lot of gold too.

It's run up since releasing 6 month financials where they reported very good results.

Market cap today roughly 190mm compared to 163 mm equity, has 205 mm PPE.

Made 16 mm last 6 months.

Has huge reserves, very low cost being China, large plant capacity, awaiting a license to increase production. Company and insiders buying back shares.

I may prepare a more detailed post later.

[frommi]

I don`t think that i have that much knowledge, but i would go with Randgold at the moment. GOLD and RGLD are the only blue chip gold stocks i know that handle outside investors well and that outperformed the goldprice over the long run.

[Seanzy]

In 2014, I wrote a blog article about McEwen Mining (MUX) on SeekingAlpha.com. You can read it here:

https://seekingalpha.com/instablog/17457762-seanzy/2675201-an-investment-idea-to-consider-mcewen-mining-mux

 

On July 23, 2015, I purchased shares at $0.66 per share (the market cap was around $225 million). This was just about the lowest price it had been in ten years. More important than the price I paid, however, was the reasoning, thought process, and mental model behind my investment decision. I have been trying to understand Warren Buffett's investment decision making process for over ten years. I had been working two jobs and saving up every penny for an opportunity like MUX.

 

This is not a recommendation, and I definitely did not want to give away my secret sauce at the time I wrote my article, but if you read it, you will see some of the major reasons why I believed MUX was such a bargain at $.66 per share.