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Which Gold Miners Have Upside Potential after 1Q18

Annie Gilroy
Which Gold Miners Have Upside Potential after 1Q18

Among the senior mining companies under review in this series (GDX), Newmont Mining (NEM) is currently trading at the highest EV-to-forward EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, of 8.3x. The company’s slower production growth added to its woes in 2017. Its follow-through on its long-term vision of improving reserves, production, and unit costs by 20% each by 2021 could go a long way in further re-rating its multiple. Barrick Gold’s (ABX) higher financial leverage is still a concern for investors, and the recent issues at its Tanzanian mines have added to its woes.