Gold Miners to Focus on Growing Returns, Say Ralph Aldis and Brian Hicks
In an interview with Brian Sylvester from The Gold Report, portfolio managers Ralph Aldis and Brian Hicks explain how understating cash costs and producing for production’s sake have hurt gold companies in recent years. Read the full interview to find out which companies we’ve found to be focused on return on capital, increasing insider ownership and paying dividends.
Brian says the benefit to owning the stock instead of the commodity is a potential 2-to-1 leverage. He says, “Our job as active money managers is to sift through the large universe of companies and pick stocks that will exhibit that leverage in a rising gold market.”
See more on this topic:
- Read U.S. Global’s Special Gold Report focusing on miners.
- Ralph Aldis, along with Frank Holmes, discussed miners’ profitability with Mineweb. Click here to listen.
- Find out how the Gold and Precious Metals Fund earned 4 stars.
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.
Morningstar Overall Rating™ among 70 equity precious metals funds as of 9/30/12.
Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.
Holdings in the Gold and Precious Metals Fund as a percentage of net assets as of 9/30/12: Agnico-Eagle Mines 4.42%; Argonaut Gold 0.00%; Aurcana Corporation 0.00%; Barrick Gold 4.33%; Dundee Precious Metals 7.27%; Eldorado Gold 1.72%; Franco-Nevada Corp 2.15%; Gold Fields 0.00%; Goldcorp 2.68%; Gran Colombia Gold 3.96%; Keegan Resource 0.00%; Kinross Gold 2.48%; Mandalay Resources 0.38%; Minera Irl 0.00%; Newcrest Mining 1.46%; Newmont Mining 5.92%; Rainy River Resources 0.00%; Randgold Resources 1.97%; Revett Minerals 0.00%; Royal Gold 2.05%; SPDR Gold Shares 1.11%; St. Andrew Goldfields 0.00%; Sandstorm Gold 1.82%; Silver Wheaton 3.15%; Tahoe Resources 0.00%; Teranga Gold 0.00%;
Holdings in the World Precious Minerals Fund as a percentage of net assets as of 9/30/12: Agnico-Eagle Mines 5.18%; Argonaut Gold 0.00%; Aurcana Corporation 0.00%; Barrick Gold 1.38%; Dundee Precious Metals 4.36%; Eldorado Gold 1.41%; Franco-Nevada Corp 1.09%; Gold Fields 0.00%; Goldcorp 2.05%; Gran Colombia Gold 4.43%; Keegan Resource 0.00%; Kinross Gold 0.81%; Mandalay Resources 0.37%; Minera Irl 0.00%; Newcrest Mining 0.00%; Newmont Mining 1.79%; Rainy River Resources 0.00%; Randgold Resources 0.81%; Revett Minerals 0.41%; Royal Gold 0.00%; SPDR Gold Shares 1.31%; St. Andrew Goldfields 0.00%; Sandstorm Gold 0.00%; Silver Wheaton 2.85%; Tahoe Resources 0.00%; Teranga Gold 0.00%.
Holdings in the Global Resources Fund as a percentage of net assets as of 9/30/12: Agnico-Eagle Mines 0.00%; Argonaut Gold 0.00%; Aurcana Corporation 0.00%; Barrick Gold 0.00%; Dundee Precious Metals 0.79%; Eldorado Gold 2.16%; Franco-Nevada Corp 0.08%; Gold Fields 0.00%; Goldcorp 0.00%; Gran Colombia Gold 2.23%; Keegan Resource 0.00%; Kinross Gold 0.00%; Mandalay Resources 0.00%; Minera Irl 0.00%; Newcrest Mining 0.00%; Newmont Mining 0.00%; Rainy River Resources 0.00%; Randgold Resources 0.00%; Revett Minerals 0.00%; Royal Gold 0.00%; SPDR Gold Shares 0.00%; St. Andrew Goldfields 0.00%; Sandstorm Gold 0.00%; Silver Wheaton 0.00%; Tahoe Resources 1.53%; Teranga Gold 0.00%.
Morningstar Ratings are based on risk-adjusted return. The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarantee future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content. Diversification does not protect an investor from market risks and does not assure a profit.