Cost Cutting is Positive for Gold Companies, Says Frank Holmes
Catherine Murray from the Business News Network (BNN) invited Frank Holmes to the studio while he was in Canada to get his take on gold’s pull back, mining companies and energy stocks.
During the discussion, Frank lists a number of opportunities investors should focus on.
Specifically, in the gold mining industry, he says to look for dividend-paying, low-cost operators that have not leveraged their balance sheets. Many of these companies “are paying dividend yields that are higher than the U.S. government 10-year notes,” he says.
A few notable gold miners include Goldcorp, which is a low-cost operating company that produces monthly dividend payments. Frank also likes Franco-Nevada, a dividend-paying company with 60 percent margins.
Frank also talks about the huge capital expenditure cuts made by gold miners. While many view this as a negative, Frank sees it as positive. Watch the video to find out why:
More on Gold:
- See the gold presentation which received 10,000 downloads in one weekend. Download your copy here.
- Want to see gold analysis each week? View the weekly Investor Alert on your smart phone by downloading the app for your Android, Blackberry or Apple device.
- China produces the most gold. Do you know the other nine? See our map of gold-producing companies here.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the links above, you will be directed to third-party websites. U.S. Global Investors does not endorse all information supplied by these websites and is not responsible for their content. The following securities mentioned were held by one or more of U.S. Global Investors Funds as of 06/30/13: AngloGold Ashanti, Franco-Nevada, Freeport-McMoRan Copper & Gold, Goldcorp Inc,. Gran Colombia Gold, IAMGOLD, Kinross Gold, Pacific Rubiales. The Galileo Funds are not offered for sale in the United States.
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