Top Three Gold Miners For 2022
Lots of metal watchers and gold bugs in general are calling for $2000 plus gold in 2022. Whether that will happen or not has yet to be seen, but with all the problems going on in the world these days it's actually shocking to see that gold has not responded in a postive upward rally. Having said that we're going to take a look at three (3) gold mining stocks that have the greatest potential to see their stock values increase when gold finally decides to rally.
The gold miners I've picked here are more of the contrarian type of stock and all three of these stocks pay a dividend already. The dividend paid out by these gold miners is not a lot but it is a whole lot more that any bank or financial institution will ever give you. Also remember these miners all have active mines with a good portfolio of properties in various areas of the globe. I am also not going to include the big blue chip type gold miners like Barrick Gold or Franco Nevada because I feel they will not appeal to the readers of a junior mining site. The three gold stocks listed are ones that I feel have a very good potential to double in value over the course of the next year while giving investors a small dividend. Also I am only giving a very brief write up on each company
The first gold company here is Kinross Gold TSX-K. Founded in 1993, Kinross Gold is a senior gold mining company with a diverse portfolio of mines and projects in the United States, Mauritania, Ghana, Brazil, Chile and Russia, Kinross has approximately 9,000 employees worldwide. On a global bases, Kinross produces about 2.1 million ounces of gold annually from all it's mines. So far for 2021 the company's all in cost of mining was around $1100 per ounce. The company expects about 2.7 million ounces in 2022. Over half of all revenues are from it's Nevada and Alaska mining operations. These mines include Ft. Knox in Alaska, Round Montain and Bald Mountain both in Nevada. At present Kinross pays a quarterly dividend of 3 cents per share and has ratings from 10 analysts with an overall strong buy.
Kinross has been active in putting out news for shareholders with the lastest news being that the company announces the acquisition of Great Bear Resources TSX-GBR. In the news release it states that Kinross will acquire Great Bear's flagship Dixie project located in the Red Lake mining district in Ontario, Canada. The Dixie project is one of the most exciting recent gold discoveries globally and extensive drilling results have shown that it has the makings of a top tier deposit. With this deposit the future looks very bright for Kinross.
K Chart by TradingView
In Africa, Kinross has the Tasiast mine which is an open-pit operation located in northwestern Mauritania and the Chirano mine in Ghana which is an open-pit and underground operation. The Tasiast mine produced over 400,000 ounces of gold in 2020 with a low cost of extraction and production of just $580 per ounce.
In Russia, the company has the Kupol mine which is a high grade underground mine located in the Chukotka region of the Russian Far East. It is the leading gold mine in Russia and has one of the lowest operating costs in the Kinross portfolio of proprties. In 2020 this mine produced over 500,000 ounces of gold with a cost of $600 per ounce. In January 2020, Kinross acquired the high-quality Chulbatkan license in Russia's Far East. In 2020, drilling at the Chulbatkan license was focused within the Udinsk resource pit being the first project the Company expects to develop on the Chulbatkan license. First production at Udinsk is expected in 2025.
The second gold miner is Yamana Gold TSX-YRI. Yamana has five producing mines that produce just under a million ounces gold per year with a cash cost of mining of approximately $1080 per ounce. Yamana stock pays a 3 cent quarterly dividend and is followed by 9 different analyst and has also has a strong buy rating.
In Canada the company has the Malartic mine, in which Yamana holds a 50% interest. This mine is located in the Abitibi region of Quebec near the town of Val-d'Or. It is Canadas largest gold mine and Yamanas biggest producer. Canadian Malartic is currently an open-pit mine, but the operation is advancing a large underground project. This project hosts three main underground mineralized zones: East Gouldie, East Malartic, and Odyssey with an underground mineral resources had grown to approximately 14.4 million ounces of gold. Annual production of this mine is approx. 350,000 ounce of which Yamana will receive 50%.
In Argentina, Yamana has the Cerro Moro mine which is a gold and silver operation located in the Santa Cruz province. This mine produces approx. 90,000 ounces of gold and about 5.4 million ounces of silver annually. It is a combination of both open pit and underground. Next door in Chile the company has the El Penon mine which is an underground operation. The El Penon mine produces about 160,000 ounce of gold and about 4.3 million ounces of silver annually.
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The Jacobina mine is a long life underground mine that has more than doubled production since 2014. This mine is located in Brazil. This operation produces appox. 180,000 ounces of gold annually. With ongoing drilling and exploration to increase the reserves along with added expenditures to the mine and milling operations itself, the company could would increase throughput to 10,000 tpd and bring annual production to 270.000 ounces.
The company's smallest operation is the Minera Florida which is an underground gold mine located in central Chile. This mine produces approx. 190,000 ounces of gold per year. Drilling from 2018 through 2020 led to the discovery, delineation, and initiation of new production fronts which have added new sectors away from the historic core mine, providing flexibility to the operation while increasing mine life.
The third gold miner is a different sort of miner as they do not actually mine the ore. The company is Dynacor Gold TSX-DNG and has it's operations in Peru. The company pays a monthly dividend of 1 cent per share which gives investors at this time about 3%. The other added bonus with Dynacor is the fact that the company only has 39 milion shares and does share buy backs.
The one big difference with this company is that they are more of a gold processing company that an actual miner. What the company does is purchases ore from smaller mines and then mills and process that ore and takes a percentage of the returns. Dynacor has been doing this gold pouring in Peru since 1998 and has upgraded and streamlined operations over the years to make the company more profitable. This milling operation at present grinds out 430 tons per day.
DNG Chart by TradingView
The company does have it's own exploration projects also. The Tumipampa project has a positive geophysical and surface channel results have defined six (6) shallow high priority drill targets on the Breccia Sumac. The drill targets are plotted to intersect with the highest value geophysical readings and surface channel location reporting high anomaly of gold results collected in the past. The company has a planned drilling project of 12 holes totalling 4200 meters.
This gives you the reader and short over view of three potential gold stocks to invest in for 2022. With a potential gold rally and a gold price above $2000 per ounce these three companies could become very profitable and as an investor you could potentially see not only an increase in share price but maybe even an increase in the dividend.
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