The continued increase of the price of gold has been fueled by a number of new operations increasing production, with a significant contribution from the Australian market. Additional growth in Argentina and Mexico were also positive, offsetting the decline in production by Russia, Peru, and Indonesia. However, production in Indonesia saw increases of over 50% in recent years, keeping long term market investments stable for investors. Investment options are varied, and benefit different types of investors with different financial goals. While physical gold provides immediate financial gain in today’s market, picking the right mining stocks can have long term financial rewards and benefits. When investing in mining stocks, investors should select a company based on an interest in the future earnings from the development of these natural resources, rather than simply acquiring an interest in the current market value. Some of the strongest performers in the industry include:
• Barrick Gold Corp. (TSX-ABX; NYSE-ABX) is the largest pure gold mining company in the world, with the largest reserves in the industry. A renowned company that takes on a lot more than just the mining industry, Barrick Gold Corporation also has an interest in the sale and production of gold and copper, in addition to hosting Canada oil and gas properties. Barrick Gold’s Corporation operates 26 gold mines, with mining regions located in North and South America, Africa and Australia.
• Newmont Mining Corporation (TSX-NMC; NYSE-NEM) has set the standard for sustainable practices in the gold mining industry, and is the only gold company included in the S&P 500 Index and Fortune 500 Index. With operations on five continents, Newmont’s most significant assets are found in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. In 2007, the company became the first gold company selected to be a part of the Dow Jones Sustainability World Index.
• Goldcorp Inc. (TSX-G; NYSE-GG) has 18 operations and development projects in 7 countries across North, South, and Central America. Goldcorp has seen rapid recent growth, and has gone from a midsized company to one of the world’s largest gold producers. The company’s strategy includes a focus on maintaining low production costs, with a focus on parts of the world with low political risk.
• Yamana Gold (TSX-YRI; NYSE-AUY) is a Canadian based gold producer with a primary land positions in Mexico and South America. With a focus on exploration and advancing development projects, Yamana also has plans to advance their existing operations, with two major projects scheduled to be completed in 2012. The company’s goal is to deliver 60% growth by 2014.
• Kinross Gold Corp. (TSX-K; NYSE-KGC) is a major gold producer based in Toronto with a portfolio of 10 mines, and currently has 6 projects in development. In 2011, Kinross was named to the Dow Jones Sustainability World Index, and was named to the Dow Jones Sustainability North America Index for the second consecutive year.