Gold Mining Stocks Screening For Safety As Investors Revisit Safe Haven Assets

Stress signals from the US$32tn Treasury market, rising long term borrowing costs as national debt moves past US$40tn, and investors rotating toward alternatives like gold have pushed safe haven assets back into focus. That shift can create pockets of opportunity and risk, especially in gold and precious metals miners that are exposed to this news. This article walks through three such stocks from our screener and how this backdrop might affect them.

The three stocks below are just a sample from this theme, and the full screen surfaced 17 more gold and precious metals companies with equally compelling stories that are not covered here. To identify and analyze your own highest conviction ideas in this space, head straight into the Gold and Precious Metals Miners screener.

G Mining Ventures is a Québec based gold producer and developer whose flagship asset is the Tocantinzinho Gold Project in Brazil, which ties it directly into the Gold and Precious Metals Miners theme. The company currently generates about US$650 million in revenue from the TZ mine, giving investors focused exposure to a single large producing asset in the precious metals cycle. With a market cap of about CA$14.6b, G Mining Ventures sits firmly in the larger end of listed gold developers and producers.

G Mining Ventures gives you a pure play on a producing Brazilian gold mine with a pipeline of projects such as Oko West and Gurupi that management is working to turn into future sources of cash flow. The company reports peer leading cost metrics at TZ and strong free cash flow that it plans to reinvest into construction and a record exploration program, which could extend mine life and support longer term growth. At the same time, you need to stay alert to classic mining risks such as heavy capital spending over the next few years, sensitivity to gold prices and concentrated exposure to Brazil and Guyana. If you are interested in how a growing multi asset gold producer might fit into a world where investors are questioning traditional safe assets, G Mining Ventures is worth a closer look.

G Mining Ventures is building a multi asset story around Tocantinzinho, Oko West and Gurupi, but the key question is how that growth plan balances against classic mining risks. Get the full picture in the 3 key rewards and 2 important warning signs (2 are major!)

Build your own multi asset gold shortlist

G Mining Ventures and the other two stocks in this article all came from a single screener, but the real edge is in shaping filters around what matters most to you. Use our flexible Screener to mix metrics like valuation, growth and balance sheet strength, or jump straight into our curated Investing Ideas for ready made themes to research further.

Hemlo Mining is a Canadian pure play gold producer listed on the TSX, centred on its 100% owned Hemlo gold mine in northwestern Ontario, which fits neatly into the Gold and Precious Metals Miners theme of direct exposure to gold production and pricing. The company is relatively sizeable for a focused operator, with a market cap of about CA$2.3b.

Hemlo Mining gives you straightforward exposure to a large, long life Canadian gold operation at a time when investors are questioning traditional safe assets and paying closer attention to gold miners. Recent TSX graduation, solid production numbers and a move into profitability, supported by Measured and Indicated resources of more than 4.8 million ounces, put some substance behind the story. At the same time, high P/E ratios, past shareholder dilution and a relatively new leadership team keep the risk side of the ledger in view. If you want to see whether that balance of growth potential and governance and funding questions adds up, this is a stock that deserves a closer look before moving on.

Hemlo Mining’s move into profitability and sizeable resource base raise the question of whether the stock’s risk profile really matches its P/E. Get the full story in the 4 key rewards and 2 important warning signs (1 is major!)

Tongguan Gold Group is a Hong Kong headquartered gold miner that fits neatly into the Gold and Precious Metals Miners theme through its direct exposure to gold prices. It earns about HK$2.4b from its gold mining operation, covering activities from exploration and mining to smelting, recycling and sales of gold bullion and concentrate in mainland China. With a market cap around HK$17.7b, Tongguan Gold Group gives you large cap style exposure to the Chinese gold mining sector.

Tongguan Gold Group brings together pure gold exposure, strong recent earnings momentum and high net margins, which can all matter more when investors are questioning traditional safe assets and watching gold more closely. Forecasts for solid revenue and earnings growth, a recent profit guidance upgrade and the prospect of an interim dividend point to a business that is still building its track record while also returning some cash to shareholders. At the same time, the stock comes with trade offs such as higher risk funding sources, past shareholder dilution and an elevated P/E that could compress if growth cools. The ongoing share buyback and updated bylaws add another layer for investors who want to understand how the board is thinking about capital returns and governance before making a call.

Surging earnings momentum, high margins and a share buyback give Tongguan Gold Group the feel of a story that might be getting away from many investors. See how the 3 key rewards and 1 important warning sign could shift the risk reward picture in one move.

Seeking Alternatives Before Everyone Else?

Fresh ideas move fast. Some stocks are building momentum, others are dropping into attractive territory, and the best entries often get caught early. Stay ahead and get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com