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Motley Fool says gold mining stocks now in bargain basement

Investment site Motley Fool says gold stocks such as Newmont, Goldcorp and Freeport-McMoRan are trading as though gold has lost its luster entirely and slipped back below $1,250 per ounce and that this latest bout of weakness in the gold mining shares – occurring when quality producers are awash in record cash flow and cozy profit margins – has yielded valuations remarkably depressed.

Christopher Barker writing at says:

The metal continues to build a new floor here above $1,500 in support of its next likely advance, so this weakness in gold mining shares heralds a timely opportunity for investors to build (or make an overdue entry into) this lucrative segment of the market.

Thursday last week reported how billions were wiped off the value of three heavyweight gold miners – Harmony, Gold Fields and AngloGold Ashanti:

Some South African produces are struggling with cash outlays of $1,200/ounce – almost double the global average – thanks to a strong currency, wage disputes, power supply problems and geological issues. As the gold price eases as much as 180,000 oz of quarterly production are being put at risk.