The price of gold has surged ahead almost 10% over the past two weeks. This has translated into share price gains for gold producers who, all else being equal, will be more profitable. Two gold producers have shown up in the top five of my momentum model.
IAMGOLD (IMG) is a mining company focused on producing gold through five operating mines in Quebec, West Africa and South America. They also own a niobium mine and diamond royalty. Earlier this year, an analyst said they are “pretty good operators” with “pretty good cash costs.”
Eldorado (ELD) is a exploration and development company with projects in Turkey, China, Greece and Brazil. In the past year, two analysts have called it “well managed.”
These companies are highly dependant on the price of gold, which is very volatile. This is a good time to watch, but it’s hard to know whether gold will continue to rise in price.
I wrote about Apple (AAPL) recently. After the initial jump, it hasn’t done much, which has translated into a reduced momentum score. I’m not confident that it will go any higher. EnerPlus (ERF) may also be levelling off.