Gold go to pieced on a bit of a roller coaster ride in 2017. Gold prices bounced between sharps and lows from month to month in a trading range of roughly $1,200 to $1,300 per ounce in the past breaking out to a yearly high of nearly $1,350 per ounce in September. The SPDR Gold Apportions ETF (GLD), the SPDR ETF that tracks gold bullion, returned 12.81% in 2017. The esteemed metal trades at around $1,333 per ounce as of Feb. 2, 2018.
Despite headwinds reciprocal to the surging stock market and the likelihood of additional interest rate hikes, gold may be self-possessed to deliver solid returns again in 2018. The precious metal has traditionally been remarked as a safe haven investment in times of economic uncertainty – and no one can argue that grave shakeups such as Brexit, Donald Trump’s presidency, North Korea’s atomic ambitions and volatility in the cryptocurrency market have contributed to a general concern of unpredictability. (See also: Missile Tests Send Gold Prices to Highest Levels This Year.)
To get in on the workings in gold prices, there are plenty of options beyond investing in gold-indexed exchange-traded caches (ETFs) or purchasing a stash of the precious metal. Some of the hottest gold lay ins for 2018 are mining and exploration companies. These top gold and gold repository stocks could be a good way to gain exposure to the market this year. All computes are accurate as of Feb. 2, 2018. (See also: What Drives the Price of Gold?)
Barrick Gold Corporation (ABX)
Barrick is the gold hoarding leader, both in terms of size and low operating costs. Company leadership calls for all-in sustaining costs (AISC) of just $740 to $770 per ounce for 2017. The gold miner eccentric out an impressive $1.5 billion in free cash flow (FCF) in 2016, which may get contributed to a 42% dividend hike to investors that year. FCF ticked heading in 2017, but Barrick is still generating enough to secure continued payouts, and the dividend throw in the towel is currently 0.84%.
Barrick’s second quarter 2017 earnings per share (EPS) were up 57% once more the second quarter of 2016, blowing out analysts’ expectations, but third fifteen minutes EPS missed estimates by one cent. Shares declined at the end of October in response to the third locality earnings miss and on concerns about operations in Tanzania, which could be an stick out into 2018. However, given its low costs and solid production in the offing, Barrick could be a good medium-term investment, especially if it can continue to slash encumbered from its balance sheet. The stock is currently trading at $13.74 versus an normal 12-month price target of $18.45. (For more, see: Barrick Gold Q3 Earnings Bachelorette, Revenues Beat Estimates.)
Royal Gold, Inc. (RGLD)
Royal Gold isn’t similar to the traditional mining companies that have to invest in a lot of costly paraphernalia and operations to actually get the precious metal from the ground – it makes its fat through royalty and streaming agreements with the heavy earth movers. In as a matter of actual fact, one of Royal Gold’s major sources of revenue is a streaming agreement for a Dominican dig with Barrick Gold. This low-cost business model is a gold deposit (pardon the pun) for Royal Gold in terms of free cash flow – the associates was able to convert about 60% of its revenue into cash run in the first three quarters of fiscal 2017.
The stock currently trades at $83.17 per parcel, well below its average 12-month price target of $93.35. For the three-month period that ended Sept. 30, 2017, Royal Gold reported EPS of $0.44, throb consensus estimates of $0.38. Revenue of roughly $112.5 million was essentially in score with analyst estimates but marked a slight downtick from the year-ago mercy. Royal Gold offers a relatively attractive dividend yield of 1.15%. (See also: August Gold Discloses Operational Updates for Q1.)
Franco-Nevada Corporation (FNV)
This is another prized metals streaming and royalty company that is heavily focused on gold. Despite that, the Canada-based company has a more diversified portfolio, with investments in 80 oil and gas outlines, of which 61 are currently in production stage. Although the company has captivated advantage of what it views as positive market conditions to jump into the oil and gas lines, Franco-Nevada plans to retain its focus on metals, with the long-term ideal of generating 80% of revenue from precious metals including gold, flatware and platinum group metals.
The Canada-based company has consistently beaten EPS guesstimates over the past four quarters. The stock is currently trading at in every direction $74.18, so there is some room for growth into its average 12-month expense target of $80.55, and the dividend yield of 1.21% could be attractive to some investors. Furthermore, there is a unintentional that the stock could exceed expectations as the company’s diversification attainments begin to bear fruit.
Agnico Eagle Mines Limited (AEM)
This Canadian gold creator is headquartered in Quebec and has a market cap of $10.543 billion. Its balance sheet bestow make an exhibits low debt, with a debt-to-equity ratio hovering around 28%. Agnico Eagle outran EPS expectations in the first three quarters of 2017. Most recently, for the spell ending Sept. 30, 2017, its reported EPS of $0.29 crushed the consensus calculation of $0.16. The company has a long history of consistent dividend payments, and the dividend assent now stands at 0.92%.
The stock is currently trading at $45.79 per share. It carries an usual 12-month price target of $56.55, which represents potential upside of around 23% from current levels. (See also: Assessing Agnico Eagle Collieries Valuation.)