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Top Global Gold Stocks
UPDATED Apr 25, 2024
What are the best Global Gold Stocks?
According to our Simply Wall St analysis these are the best Global gold companies. We look for companies that generate strong returns and have healthy balance sheets or cash positions compared to their peers.
Our criteria to find Top Gold Companies
Healthy Balance Sheet
- A healthy balance sheet is essential for resources companies to fund their intensive capital requirements.
- Repayments on debt take precedence over other initiatives to improve shareholder returns, so investors want to make sure the company is comfortably positioned to cover its debts.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
Low Cost Producer
- Being a low cost producer is important because it protects the business in case the price of gold falls.
- Having strong returns on assets is a sign that they are being used efficiently and provide insulation against falling sales prices per unit.
What do we look for?
- Companies with a high return on assets (ROA) compared to their peers.
Profitability
- In order to grow, companies will need to be able to expand the capacity of existing assets or develop new assets.
- Having sufficient income allows the company to maintain operations while considering expansion opportunities.
What do we look for?
- Is the company currently profitable or forecast to become profitable in 3 years.