Commodities & Metals

The 7 Best Gold Stocks of 2016 Are on Fire

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If you traveled back in time to the last day of 2015, gold looked like it was at risk of finally dropping under $1,000, and the Dow Jones Industrial Average and the S&P 500 were still expected to have a very modest gain in 2016. That was then. The Dow is now down 8% and gold is up nearly 12%, close to $1,200 per ounce.

It turns out the saying “there’s always a bull market somewhere” has come back to gold. The shiny yellow metal has screamed higher now that Japan and Europe both have negative interest rates and now that the rate hike plan from the United States may be on a serious hold. Global uncertainty and central banks continuing to need gold are fueling this fire.

24/7 Wall St. could not ignore that there have been many gold stocks among the top winning stocks since the end of 2015. Again, the Dow was last seen down about 8%. We took a look at the performance in each stock, versus a year ago and the end of 2015. Seven gold stocks valued at $500 million or more have risen over 40% year to date, and one of those is up over 100%. We have added color and relevant trading data on each.

Harmony Gold Mining Co. Ltd. (NYSE: HMY) is still down over 15% from a year ago, but its stock is up a whopping 161% from the end of 2015. Harmony recently reported positive earnings and is said to be looking for acquisitions and debt repayments. Harmony’s all-in sustainable cost of gold production was shown to be down 15% to roughly $950 per ounce. Shares were last seen trading at $2.45, in a 52-week trading range of $0.53 to $2.80. Its consensus analyst target price is $1.70, and its market cap is $1.1 billion. Harmony Gold was a $15 stock in 2011.


Sibanye Gold Ltd. (NYSE: SBGL) is up 10% from this time in 2015 but is up 85% year to date in 2016. If you haven’t heard of Sibanye, you might not be alone. It operates in South Africa with proved and probable gold reserves of about 28.4 million ounces (end of 2014) and probable uranium reserves of approximately 102.5 million pounds. Its stock was recently trading at $11.18, compared to its 52-week trading range of $4.07 to $11.59. Its consensus target price is $13.39 and its market cap is $2.6 billion.

Barrick Gold Corp. (NYSE: ABX) is still down 2% from a year ago, but it is up over 61% so far in 2016. Barrick is among the largest gold stocks in world, and it could be a significant acquirer if it chooses to be. BMO Capital Markets recently reiterated its Outperform rating and raised its target to $13.50 from $10.50. Barrick Gold recently traded at $11.65, within a 52-week trading range of $5.91 to $13.70, and it was a $50 or so stock in 2011. Its consensus target price is $10.25, and its market cap is $13.6 billion.
AngloGold Ashanti Ltd. (NYSE: AU) are still down 11.1% from a year ago, but the stock is up 53.5% since the end of 2015. Merrill Lynch recently maintained its Buy rating, and this one produced roughly 4.4 million ounces of gold in 2014. Its all-in sustainable cost of gold production is said to be roughly $1,100 to $1,200 per ounce, according to Morningstar. Shares were last seen trading at $10.57. The 52-week range is $5.64 to $12.44, and the consensus analyst price is $11.15. Its market cap is $4.3 billion. AngloGold Ashanti was a $50 stock in 2011.

Gold Fields Ltd. (NYSE: GFI) is still down 25% from a year ago, but the stock was up 49.8%, on last look, since the end of 2015. The stock recently was trading at $4.11, compared to a 52-week trading range $2.04 to $5.63. Its consensus analyst target is $3.93 and its market cap is $3.2 billion. This was a $15 stock in 2011.

IAMGOLD Corp. (NYSE: IAG) is still down 21% from a year ago, but the stock is up right at 41% so far in 2016. This company recently forecast that its gold output would be 770 to 800 thousand ounces (down 3% from 2015). Its preliminary 2015 total cash costs and all-in sustaining costs were put at $825 to $865 per ounce and $1,050 to $1,150 per ounce, according to Merrill Lynch in January. IAMGOLD was last seen trading at $1.97, in a 52-week range of $1.15 to $2.51, and it was a $20 stock in 2011. Its consensus target price is $1.76, and its market cap is $771 million.

Newmont Mining Corp. (NYSE: NEM) was last seen up just over 5% from a year ago and was up about 40% on the nose from the last day in 2015. Newmont is also among the top gold companies in the world, and Merrill Lynch recently raised its price objective by 18% to $26.00, with a focus on two development project decisions in Ghana that could add 200,000 to 275,000 ounces of output. Shares were trading recently at $25.48, in to a 52-week trading range of $15.39 to $27.90. Its consensus analyst target is $23.33 and its market cap is $13.5 billion.


As a reminder: the top-performing stocks, particularly those up 50% to over 100%, might already be pricing in a lot of good news ahead. That being said, these stocks are all still down handily from the glory days of gold in recent years.

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