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Industry-Specific Stock Valuation Metrics

 

 

 

 

 

Gold and Silver Mining Stocks

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There are a great number of pitfalls for gold and silver mining stocks as the companies mature from exploration stage to development, feasibility, construction, and production.  In addition to the geological uncertainties, there are often serious capital, environmental, political, and currency risks.  Plus, the price of gold is subject to wide swings.

 

In view of the foregoing, gold and silver mining stocks are generally exceedingly difficult to value.  In making stock valuation comparisons, analysts often use the ratio of enterprise value (market capitalization, plus excess working capital, less debt) to gold-equivalent reserves.  One could improve upon such a valuation model by also taking into account whether the companies have existing production facilities, since such infrastructure is often subject to environmental and political constraints and is tremendously expensive.

 

Gold companies often distinguish between gold reserves and gold resources.  Gold reserves (both proven and probable) are resources that can be developed profitably with available technology; the calculations are generally in accordance with an industry-standard methodology.  Resources are areas of mineralization that have been surveyed, with their quantity and quality determined; they are sometimes categorized as measured, indicated, or inferred.  Mineral resources which are not mineral reserves do not have demonstrated economic viability.

 

Here are some articles relating to gold and silver mining: Gold Mining; Silver Mining; Officially Reported Gold Reserves.

 

The gold and silver mining stocks below, ranked within category by market capitalization, all trade on U.S. markets.

 

 

 

 

Market

Stock

Trading

 

 

 

 

Company

 

Stock

Cap

Price

Stats

Web

SEC

Income

Balance

Profile

Stocks in the Amex Gold BUGS Index (b)

Symbol

(millions)

(4/11)

& Chart

Site

Filings

Statement

Sheet

(a)

 

Barrick Gold Corporation

ABX

37,160

42.69

O

O

O

O

O

NA

Goldcorp, Inc.

GG

27,920

39.31

O

O

O

O

O

NA

Newmont Mining Corporation

NEM

20.830

45.96

O

O

O

O

O

NA

Kinross Gold Corp.

KGC

13,990

22.75

O

O

O

O

O

NA

Agnico-Eagle Mines Ltd.

AEM

9,910

69.09

O

O

O

O

O

NA

Yamana Gold, Inc.

AUY

9,640

14.22

O

O

O

O

O

NA

Gold Fields Ltd ADR

GFI

9,350

14.33

O

O

O

O

O

NA

Harmony Gold Mining Compay ADR

HMY

4,570

11.41

O

O

O

O

O

NA

Randgold Resources Ltd. ADR

GOLD

3,880

50.98

O

O

O

O

O

NA

Eldorado Gold Corporation

EGO

2,480

7.21

O

O

O

O

O

NA

IAMGOLD Corporation

IAG

2,120

7.16

O

O

O

O

O

NA

Coeur d'Alene Mines Corp.

CDE

2,010

3.64

O

O

O

O

O

NA

Hecla Mining Company

HL

1,460

11.86

O

O

O

O

O

NA

Northgate Minerals Corporation

NXG

857

3.36

O

O

O

O

O

NA

Golden Star Resources, Ltd.

GSS

829

3.52

O

O

O

O

O

NA

 

 

 

Market

Stock

Trading

 

 

 

 

Company

 

Stock

Cap

Price

Stats

Web

SEC

Income

Balance

Profile

Other Gold Mining Stocks

Symbol

(millions)

(4/11)

& Chart

Site

Filings

Statement

Sheet

(a)

 

AngloGold Ashanti Limited ADS

AU

10,420

36.99

O

O

O

O

O

NA

Compania de Minas Buenaventura ADS

BVN

8,750

68.75

O

O

O

O

O

NA

Miramar Mining Corporation

MNG

1,360

6.15

O

O

O

O

O

NA

Seabridge Gold, Inc.

SA

891

23.90

O

O

O

O

O

NA

Royal Gold, Inc.

RGLD

830

22.25

O

O

O

O

O

NA

Gammon Gold, Inc.

GRS

943

7.97

O

O

O

O

O

NA

Great Basin Gold, Ltd.

GBN

732

3.58

O

O

O

O

O

NA

Aurizon Mines, Ltd.

AZK

698

4.74

O

O

O

O

O

NA

Crystallex International Corporation

KRY

583

1.98

O

O

O

O

O

NA

Minefinders Corporation, Ltd.

MFN

572

11.54

O

O

O

O

O

NA

Tanzanian Royalty Exploration Corp.

TRE

496

5.69

O

O

O

O

O

NA

Orezone Resources, Inc.

OZN

495

1.39

O

O

O

O

O

NA

Gold Reserve, Inc.

GRZ

238

4.22

O

O

O

O

O

NA

Nevsun Resources, Ltd.

NSU

199

1.56

O

O