Markets
KGC

Gold's Price Just Spiked; Which Miner Will Profit?

Investors could have seen it coming. Exchange-traded funds that are backed by physical bullion were recording some of their best inflow gains since last year as the price of gold remained below the $1,300 per oz mark. With Russian troops massing on the Ukrainian border, Palestinians and Israelis lobbing rockets into and out of Gaza, the gains made by U.S. troops in Iraq falling apart, and a frothy stock market looking like it's poised for a significant correction at any moment, the idea that gold might be at an inflection seemed strong.

*Estimated for 2014

While their ASIC tells us how efficient they can be at getting minerals out of the ground, the debt-to-EBITDA ratio gives us a sense of how flexible they can be in meeting the demands on their cash flows. All of these numbers have soared since last year as gold's price plunged.

On the surface Yamana Gold perhaps represents the biggest surprise in that while it maintains an industry-leading low-cost ability to operate, its debt levels have exploded. But if investors recall that was largely the result of its acquiring along with Agnico-Eagle the prized Canadian Malartic mine owned by Osisko Mining, an asset it was willing to engage in a bidding war with Goldcorp to capture, we can see that it remains a top choice for investors.

Gold's going up and that should benefit miners, if not directly, but not all miners are equal. Looking beneath the hood and seeing whether one can still maneuver will help in profiting from gold's coming rise amid increasing geopolitical turmoil.

Top dividend stocks for the next decade

The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now .

The article Gold's Price Just Spiked; Which Miner Will Profit? originally appeared on Fool.com.

Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

KGC AEM AUY

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More