World's 100 hottest gold stocks - selection has been critical

Gold stocks face stiff competition, mainly from base metal miners, but pricing patterns show distinct selection among gold diggers, developers and explorers.

JOHANNESBURG - 

Seen as a global grouping, mining stocks touched nine-month highs on 3 June, before screeching down to a trough on 23 June, and then rising sharply to make 10-month highs on Monday this week, before taking a breather that has continued across Wednesday, particularly among Chinese mining stocks. On Tuesday, Chinese stockmarkets had made yet another series of 12-month highs.

Over the past month in particular, the huge demand for Chinese stocks of all kinds, not least mining names, has created interesting patterns in global investment portfolio flows. Very strong flows into Chinese base metal stocks have to some degree been shadowed in Western markets; outside China, copper stocks have created some of the strongest interest, as seen in the cases of London-listed Antofagasta, Poland's KGHM Polska Miedź, and Canada's First Quantum.

Flows over the past month into precious metals stocks, covering gold, platinum and silver, have been lighter, but still positive; only specialist miners of diamonds, oil sands and potash have been less demanded. At the same time, there is no question that a select list of gold names remain among the world's most desired mining stocks, and indeed, stocks of any kind.

Seen over the past 12 months, listed gold stocks, as a global group, have held closer to stock price highs than most other subsectors, but have been outflanked on the bounce by the likes of specialist copper and silver miners, and even zinc diggers.

In a number of cases, however, the returns recorded are distorted by frothy price levels among any number of listed Chinese stocks. In the case of zinc, as an example, prices are currently relatively high over a 12-month period for Hunan, Huludao Zinc and Shenzhen Zhongjin, while the majority of zinc miners listed elsewhere remain relatively subdued; however, good performances are becoming more the norm, as seen in the cases of Talvivaara Mining and Volcan.

At this point in time, among gold heavyweights, Kinross remains the price leader, a status held for some weeks, followed by China's Zijin, and then Goldcorp, a volatile stock, but one that tends to be a useful indicator for the overall direction of gold stocks. Measured on its NYSE price, Goldcorp has ranged between USD 13.84 a share and USD 40.90 over the past 12 months, with current trades around the USD 35.66 mark. Seen over a longer period, AngloGold Ashanti has ranked as price leader among global Tier I gold diggers; it remains among the most 60 in-demand gold stocks globally.

Gold stocks at the top of the in-demand pile include Mali-focused Glencar Mining, under firm bid from Tier I member Gold Fields; Continental Mines, which holds the Xietongmen project in China, and Evolving Gold, running high on drill results at its Rattlesnake project in Wyoming.

A strong performance from various Australian gold names features: Red 5, focused on the Siana project in the Philippines; Chalice Gold, which has a new partner at its Gnaweeda Gold Project in the northern Murchison province of Western Australia; Barra Resources, where a maiden drilling program intersected significant widths of gold mineralisation at Spargo's Reward at the new Kambalda West Gold project, alongside Barra's other interests at Burbanks, Phillips Find's, and the flagship Mt Thirsty Project; and ever-popular Kingsgate, gold miner at Chatree in Thailand, with plans to expand into southeast Asia, Australia and South America.

Further top guns from down under include Ampella Mining, which has recently started marketing a great gold story out of Burkina Faso, Catalpa Resources, Emmerson Resources, Regis Resources, and, or course, Australia's explosive star of 2009, London-listed Norseman Gold.

Among further most-demanded Canadian-listed names are found the generally firm favourites among specialist investors, in the form of San Gold, Romarco, Lake Shore Gold, Queenston Mining, and West Timmins. Moto Goldmines has also run very hard, as a now-real takeover target.

 Among stocks where prices have reached into the stratosphere, Ventana Gold has seen a relatively stable price for a good month now; there has been some profit taking in Pelangio; the market value displayed by La Mancha Resources has calmed somewhat, and moderate profit taking has been seen in high fliers such as Sandfire Resources, US Gold Corp., and PC Gold.

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Chalice Gold Price Rise The increase in the Chalice stock price has nothing to do with the JV with Kent on the Gnaweeda project and everything to do with the impending merger with Sub Sahara Resources NL. This will consolidate the ownership of the high-grade Zara gold . .more project in Eritrea and provide funding to drive this project towards Feasibility. Check out our website at http://www.chalicegold.com/upload/documents/presentations/20090702CHNCorporatePresentation-TheNewEastAfrican-focusedGoldCompany.pdf . .less by Doug Jones on July 30 2009, 20:17 Find this comment inappropriate? Report it

Great Article This is great analysis. It allows potential gold mining investors to compare the values of many gold mining stocks! Is there a way to get the 100 mining stock graph in Excel format??? Thanks, Daniel by Romarco fan! on July 31 2009, 22:19 Find this comment inappropriate? Report it

Great way to Invest stock Analyst Report coming on VHGI Gold (OTCBB VHGI) by John JC on December 20 2009, 22:46 Find this comment inappropriate? Report it

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