from Outsider Club:
On Friday I talked about the underlying dynamics of the gold mining sector.
The main takeaway was that the industry is amidst a major shake-out.
Indeed, the weaker players are being weeded out — liquidated or taken over. But the stronger companies are cutting costs, reducing debt, and snapping up cheap assets.
Remember, precious metals are five years into a bear market. So investing in this space isn’t about chasing momentum. It’s about buying up bargains.
To that end, here are some companies that are on the right track.
Right now, investors really should be focused on gold mining majors. These are the companies that have the assets, capital, and expertise to weather a challenging environment.
But there are also some smaller players out there positioned to deliver some serious profits when the market turns positive.
Here’s a look at five potential investments…
Agnico Eagle Mines Ltd (NYSE: AEM)
Agnico has lost two-thirds of its value over the past five years. But it’s in relatively good shape.
The company has a market cap of $5.85 billion. And with shares are trading around $25, it offers a 1.28% dividend yield.
All-in sustaining costs (AISC) for Agnico are expected to fall between $870 and $890 for all of 2015.
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