Try some Goldcorp, folks.
One of the largest, lowest cost producers with decent growth prospects for the next several years.
Operates in safe jurisdictions.
Even has a dividend, so that's a bonus too.
The problem with the gold miners is that in the past they post the hard cost to mine gold and you are getting a cost that does not reflect the total cost to mine and sell their gold. In 2013 most miners will correct this by posting their "all in" cost which includes everything from mining cost to administrative cost to sell the finished product. For GG, this cost is estimated at $1,000 to $1,100 an ounce. As long as gold stays in the $1,600 range, they make a good margins. But if it drops to the $1,500 range, this stock will get hit hard.
On your recommendation, I traded this stock and did very well, so thank you for pointing it out. I have found you want to keep a close eye on the GLD as it telegraphs the moves in GG.
For me, GG is a good trading stock while TCK is a great long term investment.
I disagree with this new costing methodology that the World Gold Council is pushing. I've spent years in the finance departments of some mining industry players, and the idea of tossing in SG&A to cost per ounce, is stupid. I can understand sustaining capital and exploration, but SG&A is fixed over the shorter term (until a company can reduce staff in a sufficiently legal manner so as not to get sued by terminated employees), and thus quarterly SG&A is largely spent money, irrespective of quarterly production. It should not be included.
Regarding GG, it's a great company for the long term. In 4-5 yrs., their production will be up 70%. I would rate their longer term prospects as being better than TCK, at the moment.
I own lots of both.
Anyway, gotta git.
You are right, many gold stocks are cheap, and should pay attention when gold price rise again to near $1,900.00.
Other than GoldCorp, there are a few great co such as IAG, BRD, and jr ones such as CALVF.
Check them out.
Sentiment: Strong Buy
CALVF is an interesting dice throw, but not too keen on the rest. I try to avoid miners with operations in Africa, simply for the expropriation risks present in SA.
Here's some for you:
SSRI (incubator of PM operations, owns big chunk of PVG)
PPP (primarily operation is a GG castoff, but their expanding in Mexico, a superior place to mine).
PVG (this one is real interesting development, but I want to see it cheaper)
CGR (long shot miner on the mend)
RRFFF (GG will buy this, eventually)
RBY (more GG bait, right in their path at Red Lake - only a matter of time)
DRGDF (might be overvalued right now on hoopla of new mine opening - but rate it a WATCH, nonetheless).