The gold mining industry is watching its production costs surge amid rising energy prices, inflation and increasing labour costs.
Now, Barrick Gold (NYSE: ABX, Stock Forum), the world’s largest primary gold producer, says its total cash operating cost could increase 13% to 22%. Meanwhile, Newmont Mining (NYSE: NEM, Stock Forum), another key gold stock, expects to see a 6%-to-14% rise in costs applicable to gold sales.
The industry is hoping that rising gold prices will buoy the hike in production costs. An annual survey of industry predictions by the London Bullion Market Association forecasts gold could top $2,000 an ounce this year.
The outlook – made by 26 leading precious metals analysts from the world’s largest bullion-dealing banks and trading houses – underscores bullish speculation of gold prices in the broader market.
All but two forecasters predicted that gold would surpass $1,900 an ounce this year, while 7 3% of those surveyed believe gold will top $2,000 an ounce.
European Stocks June 2015:Claude Resources Inc. (CGR)
Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.
Advisors’ Opinion:
- By Kevin M. O’Brien
Apple Inc. (AAPL) will reach $500.00/share at some point in 2012. I view Apple as trading at an extreme discount right now. I am expecting to see a run-up in price ahead of the company’s next earnings call on January 17, 2012. I am also expecting that this earnings release is going to be absolutely fantastic. It would be a wise choice to block out all the negative rumors and sentiment surrounding Apple right now. This is a stock that is so attractively priced right now that it will not stay at this level for very long. Check back with me after January 17th next year.
- By Smith
Temporarily becoming the most valuable company in the world last week, Apple has not been hurt very much by the recent bear market. In fact, for a great read about Apple’s story, consider taking a look at this article. With household names like iPad and iPhone, we all know that Apple is valuable … but the question is how valuable?Answering a question like that isn’t easy, but we believe the answer is up – way up. In fact, when compared to Google (GOOG)’s valuation metrics, this isn’t even that unreasonable. Apple’s price to earnings, price/earnings to growth, and price to sales ratios are 14.91, 0.61, and 3.45 respectively. Google’s numbers in these same categories are 20.34, 0.84, and 5.45 – all much higher. While competitors like Hewlett-Packard (HPQ) and Research in Motion (RIMM) may be a bargain for those hunting sub-8 price to earnings ratios, AAPL is still a good place to be. Th e most recent news affecting Apple has been Steve Jobs’s crazy new plans for company headquarters, but needless to say this will not have a huge impact on AAPL stock price. What will though is whether the company can keep up its knack for fresh technology that consumers love. While some may call this blind faith, we see it as an investment opportunity.The best time to buy AAPL stock is before their next biggest thing is announced – and that time is right now.
- By Andrew
I am a huge believer in Apple’s brand internationally and I think they still have more room to grow than people think. We all know the Iphone 5 is coming out and I think the sales will be insanely good. People buy these products not only because they are great, but because they are the only fashionable computer item on the market. Many people have no problem at all paying the large premium for Apple’s stuff just to look cool. That’s not the reason everyone does it but it’s a reason that all the challenger companies won’t be able to touch a large % of Apple’s core user base. Apple is in a league of their own and will stay that way for the foreseeable fut ure. Any Apple naysayer makes very weak arguments against the investment. Some people buy computers to get the most bang for their buck. Apple users proudly pay the big premium. That’s why they keep beating expectations on Wall S treet. They don’t pay a dividend but certainly could at any time. They are a cash cow already sitting on a mountain of cash. I can see the company going over $500 before the end of 2012. Very strong buy.
European Stocks June 2015:Golden Star Resources Ltd (GSS)
Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.
Advisors’ Opinion:
- By ANDREW
I am a huge believer in Apple’s brand internationally and I think they still have more room to grow than people think. We all know the Iphone 5 is coming out and I think the sales will be insanely good. People buy these products not only because they are great, but because they are the only fashionable computer item on the market. Many people have no problem at all paying the large premium for Apple’s stuff just to look cool. That’s not the reason everyone does it but it’s a reason that all the challenger companies won’t be able to touch a large % of Apple’s core user base. Apple is in a league of their own and will stay that way for the foreseeable fut ure. Any Apple naysayer makes very weak arguments against the investment. Some people buy computers to get the most bang for their buck. Apple users proudly pay the big premium. That’s why they keep beating expectations on Wall S treet. They don’t pay a dividend but certainly could at any time. They are a cash cow already sitting on a mountain of cash. I can see the company going over $500 before the end of 2012. Very strong buy.
- By Andrew
I am a huge believer in Apple’s brand internationally and I think they still have more room to grow than people think. We all know the Iphone 5 is coming out and I think the sales will be insanely good. People buy these products not only because they are great, but because they are the only fashionable computer item on the market. Many people have no problem at all paying the large premium for Apple’s stuff just to look cool. That’s not the reason everyone does it but it’s a reason that all the challenger companies won’t be able to touch a large % of Apple’s core user base. Apple is in a league of their own and will stay that way for the foreseeable fut ure. Any Apple naysayer makes very weak arguments against the investment. Some people buy computers to get the most bang for their buck. Apple users proudly pay the big premium. That’s why they keep beating expectations on Wall S treet. They don’t pay a dividend but certainly could at any time. They are a cash cow already sitting on a mountain of cash. I can see the company going over $500 before the end of 2012. Very strong buy.
- By Michael
This is another technology stock with great potential. With each new release of an iPhone or iPad device, the stock continues to climb. They have the “wow” factor down and I don’t see this changing any time soon. Their new server farm in Charlotte, NC just went online as iCloud. I think this is going to make a huge long term difference. But in the short term, you have very regular releases of new versions of their flashy devices. As long as they keep that up, the stock will continue to rise. Although Steve Jobs is no longer here with us, he probably left a road map for Apple to fol low for the next 3-5 years. The question will be whether Tim Cook will be able to execute on those plans.
European Stocks June 2015:Yamana Gold Inc. (AUY)
Yamana Gold Inc. engages in gold and other precious metals mining, and related activities, including exploration, extraction, processing, and reclamation. It also explores for copper, molybdenum, zinc, and silver metals. The company’s portfolio includes 7 operating gold mines namely Chapada; El Pen Advisors’ Opinion:
- By Scott Rothbort
Apple(AAPL), which I included on my previous list of low-PEG stocks, remains one of the cheapest stocks around. The stock has still managed to increase in value over 16% this year, despite falling 12% since reaching an all-time high in October.
The iPhone 4S is a huge success. In 2012, the iPhone 5 and iPad 3 are likely to get introduced. The company’s computers continue to grab market share away from Windows-based systems. The December quarter is expected to be the company’s best ever. Earnings are expected to grow by 25% in 2011 and 12% in 2012. Yet the stock trades at just under 10 times 2012 earnings.
Apple’s raw beta is 0.77
Apple shows up on recent lists of 5 Gadget Stocks for the Holidays and 9 Top Goldman Sachs Stocks for 2012.
- By Michael
This is another technology stock with great potential. With each new release of an iPhone or iPad device, the stock continues to climb. They have the “wow” factor down and I don’t see this changing any time soon. Their new server farm in Charlotte, NC just went online as iCloud. I think this is going to make a huge long term difference. But in the short term, you have very regular releases of new versions of their flashy devices. As long as they keep that up, the stock will continue to rise. Although Steve Jobs is no longer here with us, he probably left a road map for Apple to fol low for the next 3-5 years. The question will be whether Tim Cook will be able to execute on those plans.
- By Curtis
Even though Apple’s stock has now reached the $420 price range (for just one share!), many analysts believe that AAPL is one of the most undervalued large-cap stocks.
Despite the loss of Steve Jobs last year, Apple has continued to gain value, and the trend is expected to continue through 2012 with the hotly anticipated iPad 3 and iPhone 5 releases. In fact, AAPL is predicted to hit $510 per share in the next year.
European Stocks June 2015:CME Group Inc. (CME)
CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.
Advisors’ Opinion:
- By ANDREW
I am a huge believer in Apple’s brand internationally and I think they still have more room to grow than people think. We all know the Iphone 5 is coming out and I think the sales will be insanely good. People buy these products not only because they are great, but because they are the only fashionable computer item on the market. Many people have no problem at all paying the large premium for Apple’s stuff just to look cool. That’s not the reason everyone does it but it’s a reason that all the challenger companies won’t be able to touch a large % of Apple’s core user base. Apple is in a league of their own and will stay that way for the foreseeable fut ure. Any Apple naysayer makes very weak arguments against the investment. Some people buy computers to get the most bang for their buck. Apple users proudly pay the big premium. That’s why they keep beating expectations on Wall S treet. They don’t pay a dividend but certainly could at any time. They are a cash cow already sitting on a mountain of cash. I can see the company going over $500 before the end of 2012. Very strong buy.
- By Jonas
It seems everyone is abuzz with Apple these days. They have a good product, lots of vision, and decent value in share price. But why would I buy this on a market pullback? Apple trades close to the S&P 500 (SPY) as well it should since Apple makes up a huge part of the S&P 500 market cap. However, shares of Apple have higher relative strength than the market. This means that while Apple shares will surely fall with the price during a pullback, they will also rebound quicker and rise farther with the next leg up.
If the market pulls back, I’d wait for the 1,365 – 1,370 level to be hit and then grab some shares of Apple.
- By Smith
Temporarily becoming the most valuable company in the world last week, Apple has not been hurt very much by the recent bear market. In fact, for a great read about Apple’s story, consider taking a look at this article. With household names like iPad and iPhone, we all know that Apple is valuable … but the question is how valuable?Answering a question like that isn’t easy, but we believe the answer is up – way up. In fact, when compared to Google (GOOG)’s valuation metrics, this isn’t even that unreasonable. Apple’s price to earnings, price/earnings to growth, and price to sales ratios are 14.91, 0.61, and 3.45 respectively. Google’s numbers in these same categories are 20.34, 0.84, and 5.45 – all much higher. While competitors like Hewlett-Packard (HPQ) and Research in Motion (RIMM) may be a bargain for those hunting sub-8 price to earnings ratios, AAPL is still a good place to be. Th e most recent news affecting Apple has been Steve Jobs’s crazy new plans for company headquarters, but needless to say this will not have a huge impact on AAPL stock price. What will though is whether the company can keep up its knack for fresh technology that consumers love. While some may call this blind faith, we see it as an investment opportunity.The best time to buy AAPL stock is before their next biggest thing is announced – and that time is right now.