"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 17 hours The $85B Merger That Could Change The Media Forever
  • 18 hours Why Are Governments Creating Their Own Cryptocurrencies?
  • 19 hours How Debt Cycles Impact Gold
  • 20 hours Investors Up the Ante In $1.5B Uber Loan Deal
  • 22 hours Are Gold Miners Poised For A Breakout?
  • 23 hours Is The "Crypto Winter“ Over?
  • 1 day China Says It Doesn’t Fear Trade War
  • 2 days Twitter CEO: The World Will Have A Single Currency
  • 2 days Asian Currency Correction Could Signal Looming Crisis
  • 2 days Best Buy Drops Telecom Giant Over National Security Threat
  • 2 days The Pros And Cons Of The Federal Interest Rate Hike
  • 2 days Good News For Gold Bulls Despite Interest Rate Hike
  • 2 days Trump Hits China With $50 Billion In Tariffs
  • 2 days Russian Gold Reserves Hit Record High Amid Rising Tensions With West
  • 2 days Stocks Pull Back Following Interest Rate Hike
  • 3 days Will Regulatory Rollbacks Make Banks 'Too Big To Fail?'
  • 3 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 3 days Tech Giants Could Be First Victims Of U.S. Trade War
  • 3 days Dow Gains Despite Fed’s Rate Hike
  • 3 days The Biggest Threat To Chinese Oil Futures
Investors Up the Ante In $1.5B Uber Loan Deal

Investors Up the Ante In $1.5B Uber Loan Deal

Uber may be facing significant…

Are Gold Miners Poised For A Breakout?

Are Gold Miners Poised For A Breakout?

Sooner or later, stock prices…

Economic Pressures Weigh On Banks And Borrowers

Economic Pressures Weigh On Banks And Borrowers

Banks and borrowers are under…

Mish Buys a Basket of Miners

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?

  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).

  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).

  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.

  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.

  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.

  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.

  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter