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:
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- China produces the most gold. Do you know the other nine? See our map of gold-producing companies here.
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