3 Mining Stocks For Investors Seeking Gold Exposure

As you can see in the chart below, the company has seen massive growth in the last 12 months with a total return nearly exceeding 100 percent. We believe it’s a good candidate for a takeover by a larger miner due to its strong drilling results, competent management team and safe jurisdiction in Canada.

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Wesdome gold mines up significantly in the last 12 months

K92 Mining Inc.

Perhaps a less well-known name, K92 Mining is based in Vancouver and operates solely in Papua New Guinea. Ralph sums up why he likes the company: “I think K92 is another one that has a great deposit, high grade. The CEO spends time at the mine site. It's off on the other side of the world, but he goes and spends a week there every month working, so it's very much a hands-on management style.”

Strong management is an important factor for us when looking at companies. It’s one of our “5 Ms” for picking gold mining stocks: market capitalization, management, money, minerals, and mine life cycle.

K92 has broken out so far in 2019 and could have further to go after reporting strong first quarter results. The company reported 19,125 gold ounces produced from its Kainantu mine in Papua New Guinea.

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K92 Mining has broken out so far in 2019

Wheaton Precious Metals Corp.

Although not technically mining stocks, royalty and streaming companies are a way to gain exposure to miners. These companies own streams on the production of precious metals, in exchange for helping finance the projects and providing upfront capital. One of our favorites is Wheaton Precious Metals Corp. In 2018 Wheaton faced a tax dispute with the Canada Revenue Agency (CRA) over income generated by foreign-owned subsidiaries. The CRA claimed that the company owed back taxes and fines that could have been as high as $1 billion. Fortunately, an agreement was reached, and although Wheaton will face higher taxes, the company can now focus attention on operations and put the issue behind it.

Ralph is in close contact with much of senior management: “In fact, Chief Financial Officer Gary Brown was at our office in San Antonio a few weeks ago and explained to our team that the tax issue has been resolved, but that investors still haven’t woken up to the good news. That’s why we believe right now could be a good time to pick up this name before word spreads.”

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Disclosure: 

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed ...

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