Global geopolitical uncertainty abounds in Ukraine, the Middle East, and a host of other hot spots. In addition, China’s economic growth has ticked up to 7.5%, so the country’s demand for commodities may follow suit. Investors may want to consider these five gold companies to position themselves for better days ahead as investors flock to this safe haven commodity.
1. Barrick Gold
Barrick Gold’s (TSX: ABX)(NYSE: ABX) 2014 full-year gold production guidance is 6 million to 6.5 million ounces. The company has five core mines anticipated to produce approximately 60% of its 2014 production. This week, Barrick’s board announced a new executive management structure, with two lieutenants becoming co-presidents.
Chairman John Thornton said, “These structural changes put an even greater emphasis on operational excellence, and will accelerate our portfolio optimization and cost reduction initiatives, while fostering a partnership culture both inside the company and externally.”
B2Gold (TSX: BTO)(NYSEMKT: BTG) had gold production for Q2 2014 of 85,704 ounces. This represents an increase of 4% over Q2 2013. B2Gold expects company-wide production in 2014 from the Masbate, La Libertad, and Limon mines to be in the range of 395,000 to 420,000 ounces of gold. B2Gold invested more than U.S.$70 million in the La Libertad mine and accomplished a mill expansion in Q2 2013. La Libertad has a processing capacity of 6,050 tonnes of ore per day.
3. Kinross Gold
Kinross Gold (TSX: K)(NYSE: KGC) had Q1 2014 production of 664,690 gold equivalent ounces versus 648,897 ounces in Q1 2013. The company has its operating Kupol and Dvoinoye mines in Russia. In 2013, production at these mines was 550,188 gold equivalent ounces.
For Q1 2014, CEO J. Paul Rollinson said, “Kinross had another quarter of solid performance, with an increase in production year-over-year as our new Dvoinoye mine came fully on stream, and a decline in all-in sustaining cost as a result of capital and operating cost reduction efforts across the company.”
4. Sandstorm Gold
Sandstorm Gold (TSX: SSL)(NYSEMKT: SAND) is a gold streaming company. It provides upfront financing to gold mining companies seeking capital, and in return receives the right to purchase a percentage of the gold produced from a mine, at a fixed price per ounce, for the life of the mine. Sandstorm has a portfolio of nine streams and 28 royalties. For Q1 2014, Sandstorm sold 11,966 attributable gold equivalent ounces versus 9,396 ounces for Q1 2013.
5. Yamana Gold
Yamana Gold (TSX: YRI)(NYSE: AUY) and Agnico Eagle Mines (TSX: AEM)(NYSE: AEM) have recently jointly acquired 100% of the issued and outstanding common shares of Osisko Mining. Together, the two companies will operate the Malartic Mine in the province of Quebec.
Peter Marrone, Yamana’s Chairman and CEO, said, “The completion of our joint acquisition of Osisko and the Canadian Malartic mine adds another cornerstone asset to our portfolio that will contribute significantly to increased production and cash flow levels as we continue to balance top and bottom line growth.”
Gold is often viewed as a safe haven when geopolitical affairs intensify. Moreover, demand from China is always a game-changer. Consider the operations of the above five companies poised to be ready for any increased gold demand that may emerge.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Michael Ugulini has no position in any stocks mentioned.