3 Gold Shares Rising Strongly: Polymetal International PLC, African Barrick Gold PLC and Aureus Mining Inc

Polymetal International PLC (LON:POLY), African Barrick Gold PLC (LON:ABG) and Aureus Mining Inc (LON:AUE) all outperformed the price of gold last week.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The price of gold for immediate delivery fell steadily to a low of $1,272 per ounce during the first half of last week, before recovering to end the week up by 0.15% at $1,315/oz. Gold’s continued to rise after Asian markets opened this morning, and was trading at $1,331/oz. at 8am.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $39bn SPDR Gold Trust (NYSE: GLD.US), ended last week 0.3% higher at $126.86, while London-listed Gold Bullion Securities (LSE: GBS) edged up by 0.15% to end the week at $126.65. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 20%, while the value of SPDR Gold Trust shares has fallen by 22%.

Gold’s big movers

Gold’s rebound seemed to help lift a number the share prices of a number of battered gold miners. Among the top risers were:

Aureus Mining  (LSE: AUE) climbed 32% to 41p last week, helped by the late rebound in the gold price and by the company’s first-half results, which showed that progress on its 100%-owned New Liberty gold mine project in Liberia is continuing. At the end of June, the company had $53.9m in cash and cash equivalents and was awaiting approval for a project debt finance facility for the mine. Aureus completed a Definitive Feasibility Study earlier this year, showing that the mine would deliver an internal rate of return of 29% at a gold price of $1,400/oz., with an operating cash cost per ounce of $668.

African Barrick Gold (LSE: ABG) gained 12% to 128p as it continued its recent recovery from its 28 June low of 96p. The company didn’t disclose any new information last week, but the recent stabilisation of the gold price may be helping to support the firm’s share price, as it narrows the potential margin of loss between the firm’s all-in sustaining costs of $1,507/oz. and the current price of gold.

Polymetal International (LSE: POLY) ended last week up 9% at 716p, helped by the rising gold price, and perhaps by the admission of the company’s shares to the A1 list of the Moscow Stock Exchange (MICEX). An A1 listing is only available to large, well-established companies that comply with internationally recognised accounting standards, so shares with A1 listings are likely to be more attractive to Russian institutional investors.

Shares vs commodities

Shares in commodity companies have outperformed their underlying commodities many times over the last ten years, thanks to their ability to magnify their gains through successful development of new resources. This free report from the Fool, Ten Steps To Making A Million From The Market contains some excellent tips on identifying and investing in potential multibagger shares, including resource shares like gold miners. I strongly recommend that you click here and download it now, as it will only be available for a limited time.

> Roland does not own shares in any of the companies mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

1 hot UK growth stock I’m buying right now

I've more than doubled my money on this UK growth stock. But with a 948% boost to earnings, I think…

Read more »

Illustration of flames over a black background
Investing Articles

In freefall after earnings, is this FTSE 250 company now a bargain?

Yesterday's earnings report from Future caused a major drop in the share price, but is this FTSE 250 company now…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

After a strong first half, this is one of my top FTSE 100 stocks to buy for 2024

I'm looking for FTSE stocks to buy as we get close to 2024. This one, with a healthy outlook for…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How to earn passive income using the Warren Buffett method

Warren Buffett’s investment in Coca-Cola earns spectacular passive income. Stephen Wright looks at how to try and make a similar…

Read more »

Road trip. Father and son travelling together by car
Investing Articles

Could Tesla shares turn £10,000 into £53,410 by 2033?

Some influential people believe Tesla shares could soar to $1,275 within 10 years. Is this likely, or typical of the…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Top Stocks

5 small-cap stocks Fools think will soar in the next bull market

Finding the 'next big thing' in the stock market is no easy feat. However, some of our Foolish writers think…

Read more »

Growth Shares

Should I buy Rolls-Royce shares for 2024 as brokers raise their price targets to £4?

City analysts are growing increasingly bullish on Rolls-Royce shares. Should Edward Sheldon buy them for his portfolio for 2024 and…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

Are UK shares set to soar in 2024?

With 2024 on the horizon, this Fool looks at what the year could entail and explores whether now could be…

Read more »