Owning securities of firms that derive significant amounts of income from the purchase and/or sale of physical commodities is known as “pure play” investment. To illustrate, if investors were to buy stock of a gold mining company, it may be considered a “pure play” investment in gold. However, the caveat is “pure play” investment is not synonymous with purchasing the commodity itself as the former does not provide the same exposure. For example, the mining company’s stock price could drop even though gold’s value is increasing, which may appear odd to some.
Nevertheless, despite the discord in prices, these are the “pure play” mining stocks which you may want to consider adding on to your portfolio for diversification. I have 23 gold and silver mining companies on my watch list, and based on 10-year financial data, there are only 3 gold and silver miners which are poised for an uptrend.
Harmony Gold Mining Company Limited (HMY): To monitor on watch list. Sitting on its key support level now. Resistance: $13.88.
Harmony Gold Mining Company Limited engages in underground and surface gold mining operations in South Africa and Papua New Guinea. It is also involved in related activities such as exploration, processing and smelting. The company has 10 underground operations and various surface operations, including an open cast mine and nine processing plants, which are located in goldfields in the Witwatersrand basin of South Africa, as well as the Kraaipan Greenstone Belt.
In addition, it holds interests in the development and exploration prospects at Hidden Valley and Wafi Golpu in Papua New Guinea. Further, the company owns prospective reserves for silver, copper, and molybdenum through its Papua New Guinea projects. It owns 100% interests in four projects in Papua New Guinea, including Mount Hagen in the Western Highlands; Amanab in the Sandaun province; two tenement applications in the Central province; and two tenement applications in the Southern Highlands province.
The company's prospecting interests comprise 67,922 hectares in South Africa and 344,522 hectares in Papua New Guinea. Harmony Gold Mining Company Limited was founded in 1950 and is based in Randfontein, South Africa.
AngloGold Ashanti Limited (AU): Nearing its key support level now. Resistance: $47.30
AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia.
As of Dec. 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.
Hecla Mining Company (HL): Attractive buy ONLY if it breakout from its channel. Resistance: $8.65
Hecla Mining Company, together with its subsidiaries, engages in the discovery, acquisition, development, production and marketing of silver, gold, lead and zinc. The company produces lead, zinc and bulk concentrates and sells them to custom smelters; and unrefined gold and silver bullion bars, which it sells to precious metals traders. It holds 100% interest in the Greens Creek operating unit located near Admiralty Island in Alaska, and 100% interest in the Lucky Friday operating unit located in Idaho. Hecla Mining Company was founded in 1891 and is based in Coeur d'Alene, Idaho
Italics are copied from Yahoo Finance
Note: This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.
Nevertheless, despite the discord in prices, these are the “pure play” mining stocks which you may want to consider adding on to your portfolio for diversification. I have 23 gold and silver mining companies on my watch list, and based on 10-year financial data, there are only 3 gold and silver miners which are poised for an uptrend.
Harmony Gold Mining Company Limited (HMY): To monitor on watch list. Sitting on its key support level now. Resistance: $13.88.
| Business Summary |
In addition, it holds interests in the development and exploration prospects at Hidden Valley and Wafi Golpu in Papua New Guinea. Further, the company owns prospective reserves for silver, copper, and molybdenum through its Papua New Guinea projects. It owns 100% interests in four projects in Papua New Guinea, including Mount Hagen in the Western Highlands; Amanab in the Sandaun province; two tenement applications in the Central province; and two tenement applications in the Southern Highlands province.
The company's prospecting interests comprise 67,922 hectares in South Africa and 344,522 hectares in Papua New Guinea. Harmony Gold Mining Company Limited was founded in 1950 and is based in Randfontein, South Africa.
AngloGold Ashanti Limited (AU): Nearing its key support level now. Resistance: $47.30
| Business Summary |
As of Dec. 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.
Hecla Mining Company (HL): Attractive buy ONLY if it breakout from its channel. Resistance: $8.65
| Business Summary |
Italics are copied from Yahoo Finance
Note: This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.
