Gold Stocks Offer Leverage to Gold Price
Based on historical data, a $200 (or roughly 14%) move in gold price is likely to generate over-proportional increases in free cash flow (FCF) due to gold miners’ operational leverage.
Industry is FCF positive above $1,076 ($1,072 for majors; $1,085 for mid-tiers)
Source: VanEck; Company Reports. Data as of September 2019.
Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.
Gold Stocks Offer Leverage to Gold Price
Costs to mine one ounce have stabilized at around 900 USD / oz through which mining companies are now able to generate significant Free Cash Flow.
Average All-In Mine Costs for Seniors & Mid-Tiers
Source: VanEck; Company Reports. Data as of June 2020.
Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.