I´m searching for gold miners that peg dividends to gold prices

Ramelious Resources is my favorite Gold Miner and they surprised me last year with a 2% dividend, more than any other miner I'm aware of at the moment which is unusual because they are a lot smaller, by far, than the Newmonts and Barricks. My favorite management, makes right decisions, has growth AND yields. What more could I want? ;)
 
swissaustrian said:
After doing some research on GORO, I found this controversy between GORO and an author from Barrons who basicly claims that the company is a fraud. See here:
http://online.barrons.com/article/S...ticleTabs_panel_article=1&articleTabs=article
Defense by the company: http://www.prnewswire.com/news-rele...s-article-the-glittering-prize-125017169.html
Click to expand...

Barron's article was a smear.

Mexico confiscation is not too likely. However, security is an issue. Drug business is stealing trucks, etc. Co. has good security.
 
llepard said:
Barron's article was a smear.

Mexico confiscation is not too likely. However, security is an issue. Drug business is stealing trucks, etc. Co. has good security.
Click to expand...
This author from Barron´s probably shorted the hell out of GORO before publishing his article.
Do you have some information on the role of unions in the Mexican mining business? I´ve heard that it´s a challange to deal with unions in Mexico, but that it´s not as bad as in South Africa...
 
GORO wins

Goro_render_final.jpg


I'll be grabbing Gold Resource shares ASAP.

Doing so breaks my rule against investing in production outside of NATO.

But I've already made an exception for EXK, and it's been my fastest horse.
 
I got into GORO about 3 weeks ago at about 24$ a share... just in time to receive their special dividend.. I'm not sure if I want to hold onto this one for a while or sell around 29-31$ range. I like the dividend, and the management seems to be pretty darn good. They had great (record breaking) production results despite a storm tht took their mine out of operation for some time. They even converted some of their cash into a bunch of physical gold (and maybe silver too..i forget) to add to their assets.

And, yeah, I looked into the article for Barron's and it does just seem to be a smear job, but I am unsure of the modus operandi of the author.
 
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On the subject of miners.. I'm not quite sure if I want to get out of miners and into more physical at the moment or just ride out this storm. If the markets crash hard the miners will probably be brought down with it for a short period of time until people realize how undervalued some of them are with PM prices reaching such nominal highs. I'll most likely just ride out the storm and hold the miners I like most. Has anyone sold their miners in anticipation of the prices going lower from the markets crashing? IMO, I think its safer to hold the miners, because people will have tons of cash from selling their stocks and there will be so few places people will be willing to put it. PMs and miners will be looking very attractive to a lot more people soon..
 
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JasonC said:
On the subject of miners.. I'm not quite sure if I want to get out of miners and into more physical at the moment or just ride out this storm. If the markets crash hard the miners will probably be brought down with it for a short period of time until people realize how undervalued some of them are with PM prices reaching such nominal highs. I'll most likely just ride out the storm and hold the miners I like most. Has anyone sold their miners in anticipation of the prices going lower from the markets crashing? IMO, I think its safer to hold the miners, because people will have tons of cash from selling their stocks and there will be so few places people will be willing to put it. PMs and miners will be looking very attractive to a lot more people soon..
Click to expand...

Do not sell the miners. They are at EPIC levels of undervaluation relative to the metal. Fortunes will be made in the next few years by buying the miners. The metal will go much higher but it is presently 22% above its 200 day moving average. If you feel the need to do something at the margin sell a little spot gold and use the proceeds to buy the quality miners.
 
llepard said:
Do not sell the miners. They are at EPIC levels of undervaluation relative to the metal. Fortunes will be made in the next few years by buying the miners. The metal will go much higher but it is presently 22% above its 200 day moving average. If you feel the need to do something at the margin sell a little spot gold and use the proceeds to buy the quality miners.
Click to expand...
Seems like the market finally realizes this epic undervaluation of the miners:
t
 
Do you guys have a trading group where we can submit equities or trade setups in real time?

I'm looking at MA Mastercard is setup for a bounce off the bottom of a daily channel with great fundamentals. They are on the canslim net buy list as well so this is a great opportunity with a tight stop to bank 10% gains in 2-3 weeks although with The Ben Bernank putting market on pause perhaps the turnaround will be delayed and we will be forced to hedge some SPY if QE3 is mentioned at >500billion on Friday.

Mr Lepard thank you for that information. I've been looking for someone intelligent to say something objective about the comparison between miners and physical. I was going to pull the trigger on AUY last week but the rumor that margins are going to hike at CME scared me off.

I see a spike in volume here that might indicate that very fear that CME will hike margins. Perhaps we get miners at a bargain in 2 weeks?
 
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To be able to pay a dividend based on a rise in the price of gold, an investment would have to physically sell their gold. Or have some sort of futures contracts set up. If gold goes down do you owe them a rebate? Kind of like getting a dividend based on the value of a stock. A firm could budget for a certain rise in the price in their dividend, but a bigger than expected rise could wipe them out (or at least their cash available to pay out in dividends).
 
swissaustrian said:
I want to generate some cash flow from my pm investments.
Therefore i´m searching for gold mining companies that peg their dividends to the price of gold.

I only know one: NEM.
Do you know others?
Click to expand...

Thats a rare find for the industry. If you want a firm that throws off some dividends, you aren't going to find it in PM Miners. You should try a mid cap contract driller, or maybe an industrial manufacturer.
 
The Binghamton Patriot said:
Thats a rare find for the industry. If you want a firm that throws off some dividends, you aren't going to find it in PM Miners. You should try a mid cap contract driller, or maybe an industrial manufacturer.
Click to expand...
That´s not what I´m searching for. I own some blue chips (telecommunications, food, utilities, oil etc.) with yields arround 5-9%.
My goal is to find miners. Their dividend growth rate will be impressive over the next years.
 
I am really liking my NEM right now. Never got a chance to buy ABX in the 40s. I have maxed out my IRA contributions so far this year, hopefully next year I will have a chance to get it "cheap".
 
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