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.

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

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 .

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