The Globe and Mail attempts to identify gold producers operating at
lower costs in its Friday, Aug. 14, edition. The Globe's Samuel Oubadia writes in the Number Cruncher column that at the current
price of gold, it is difficult for
many producers to meet their
all-in sustaining costs. In
fact, many companies are
actually losing money and faced
with the decision of whether to
close certain mines.
Mr. Oubadia says he looked for low-cost gold
producers that are also trading
at attractive valuations.
He screened for Canadian gold producers
that had a market capitalization
of $500-million and
higher. He looked at all-in sustaining
costs.
As a measure of
valuation, Mr. Oubadia also considered the forward
price-to-earnings ratio and the
price-to-book value. He also looked
at performance over the
past year.
Most of the companies in Mr. Oubadia's screen have taken a severe beating over the past year. Stocks that glitter for Mr. Oubadia are Yamana Gold (with all-in sustaining costs of $893), New Gold (with all-in costs of $1,014), Barrick Gold (with all-in sustaining costs of $1,024), Primero Mining (with all-in sustaining costs of $1,044) and Kinross Gold (with all-in sustaining costs of $1,050).
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