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Discover gold value with Caledonia Mining

Shares in gold miners are down even as record profits roll in. Caledonia Mining offers more risk but potentially more upside than the big players
May 13, 2021

In the past year, the world’s second-largest gold miner Barrick Gold (Can:ABX) has seen its share price tumble by a quarter. The largest gold miner Newmont (US:NEM) is trading at the same price as a year ago. Investors priced in future earnings early because in recent weeks, both companies have announced record cash profits and are paying out hefty dividends.

IC TIP: Buy at 1,110p
Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points

Gold production increasing 

Dividend consistent and set to rise

Net cash

Expansion plans outside Zimbabwe

Bear points

Power situation, country risk

Lack of access to debt

But gold investors can still find value. It does mean taking on more risk, however, just like miners moving to tougher jurisdictions or exploring unproven orebodies to make new discoveries. 

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