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3 Gold Shares Rising Strongly: Patagonia Gold, Archipelago Resources, and Barrick Gold

LONDON -- Gold ended last week almost unchanged, with gold for immediate delivery trading at about $1,469 per ounce.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $51 billion SPDR Gold Trust  (NYSEMKT: GLD  ) , ended the week 0.1% higher at $142.09, while London-listed Gold Bullion Securities  (LSE: GBS  ) fell 0.3% to end the week at $141.51. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 9.7%, while the value of SPDR Gold Trust shares has fallen by 12.9%.

Gold's big movers
Several miners made gains last week, despite the price of gold remaining flat. Here are three of the biggest risers:

Patagonia Gold  (LSE: PGD  ) climbed 32% to 13 pence last week, after investors welcomed its final results. The firm, which operates in the Patagonia region of Argentina, narrowed its pre-tax losses to $21 million last year and poured its first gold ingot at its Lomada de Leiva heap leach project. Patagonia says that the Lomada project is expected to have production cash costs of less than $500 per ounce, making it profitable and cash generative for the company despite the recent fall in the price of gold.

Archipelago Resources  (LSE: AR  ) gained 6% last week to close at 52 pence. The Indonesian gold miner recently confirmed its guidance for full-year production of between 140,000 and 155,000 gold equivalent ounces at a cash cost of between $620 and $680 per ounce of gold -- well below the industry average. Archipelago's low cost mines are enabling it to continue developing its business with confidence, and last week the firm announced that total gold resources at its main Toka Tindung mine had risen by 16% to more than three million ounces.

Barrick Gold Corporation  (NYSE: ABX  ) rose 5% to $20.00 last week, continuing the rebound in its share price which started when the company reported better than expected results on April 24. Barrick's earnings came in at $0.92 per share, above expectations for earnings of $0.86 per share. Gold production costs were lower than anticipated, too -- the company said that its all-in cost of gold production is expected to be between $950 and $1,050 per ounce this year, compared with a previous forecast of $1,000 to $1,100.

Shares vs. commodities
Shares in commodity companies have outperformed their underlying commodities many times over the last 10 years, thanks to their ability to magnify their gains through successful development of new resources. This free report from the Fool, "10 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.


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Related Tickers

9/27/2016 3:20 PM
ABX $17.55 Down -0.37 -2.06%
Barrick Gold CAPS Rating: ***
AR $0.00 Down +0.00 +0.00%
Archipelago Resour… CAPS Rating: No stars
GBS $126.05 Down -1.44 -1.13%
ETF Securities Gol… CAPS Rating: No stars
GLD $126.60 Down -0.95 -0.74%
SPDR Gold Trust CAPS Rating: **
PGD $2.22 Up +0.05 +2.07%
Patagonia Gold CAPS Rating: No stars