The Gold Stock Secret

THE
GOLD STOCK
SECRET
Three Gold Stocks
to Buy for 10x Gains
THE GOLD STOCK SECRET Three Gold Stocks to Buy for 10x Gains
Did you know gold stocks soared 1,350% during gold’s last bull market?
And this huge rally was not a one-time thing. Gold stocks have exploded for triple-or
quadruple-digit gains seven times in the past 48 years.
I won’t blame you if you’re skeptical of these numbers. Most of the time, stories about
1,000% gains are wild exaggerations… or outright scams.
But gold stocks are a very special breed of asset. In this report, I’m going to explain why they
frequently deliver stunning gains like this.
Gold stocks, as you may know, are extremely cyclical. This means they routinely go through
huge booms and busts.
If you buy early in a boom phase, you have a realistic shot at 3x, 4x, 5x gains or more. I often
call harnessing this cyclicality the #1 secret to making huge gains in gold stocks.
But fair warning: while cyclicality can lead to life-changing gains, it can also rob you of huge
sums of money very quickly if you don’t respect it.
I’m telling you this now because I think the next gold “upcycle” is approaching.
Just above, I mentioned gold stocks have skyrocketed seven times in the past 48 years. That
is once every seven years, on average.
And as you may know, it’s been exactly seven years since gold stocks hit their all-time highs
back in 2011. This pattern is one reason why I think a new gold bull market is set to begin in
the next 12 months.
In this report, I’m going to tell you the three best gold stocks to buy for the coming bull
market.
But first, let’s talk about the powerful force that makes 1,000% gains possible.
The Amplifying Force of Leverage

Before we discuss cyclicality, you should understand that gold mining stocks are “leveraged”
to the price of gold. Even a small change in the price of gold can have a big effect on a
miner’s profitability.
For example, Barrick Gold is the world’s largest gold producer. According to its latest
quarterly report, it costs Barrick $804 to produce one ounce of gold.
If the gold price increases from $1,300 to $1,350, that’s a 3.8% move. But the boost to
Barrick’s profits is much larger.
TURNING DISRUPTION 2
INTO WEALTH
Let’s run the numbers. When Barrick produces an ounce of gold for $804 and sells it for
$1,300, it makes a $496 profit. If the price of gold rises to $1,350, it now makes a $546 profit.
That’s a 10% boost in profits from a 3.8% move in the gold price.
As the gold price ramps up, profits leap higher. A $500 rise would push the price of gold up
to $1,800, good for a 38% gain.
But this same $500 rise would spark a 100% surge in Barrick’s profits.
From 2001 to 2011, the price of gold surged 630%. As you can see in the chart below, this
huge bull market was actually comprised of two smaller upcycles. The average of these two
upcycles was 227%.
Source: World Gold Council
Remember, a 38% rise in the price of gold would lead to around a 100% surge in profits for
many gold miners. Imagine what 227% surge in gold would do for the profits and share
prices of gold companies?
INTO WEALTH
Mining Is a Brutal Business

Earlier I told you that the gold price is extremely cyclical. Let me explain why…
Building a gold mine is expensive and takes a long, long time. In 2009, Barrick Gold and
Goldcorp teamed up to build the Pueblo Viejo gold mine in the Dominican Republic. Today,
it’s the third-largest mine in the world.
It took 5 years and $3.7 billion just to get the mine up and running.
Before they could even begin building the mine, they had to carry out a “feasibility study”
and submit it to the Dominican government. This is an in-depth report which assesses how
much gold is in the ground. It also details how they’ll build and operate the mine.
This alone took more than a year to put together.
Then the real work began with the construction of the mine’s infrastructure. This involved
laying miles of road, building an on-site power grid, and building processing facilities to sort
gold from rock…
Plus, they had to dig a giant drainage pond to collect runoff from the mine. And get housing
units for 3,000 workers.
To do all this, they needed very expensive machines. For example, there are 34 Caterpillar
trucks operating at Pueblo Viejo. Each one costs up to $5 million.
When you add in the cost of paying employees for three years while the mine was developed,
you can see why it took $3.7 billion before they even mined an ounce of gold.
Leverage + Cyclicality = A Shot at Huge Profits

In most industries, supply can be easily adjusted. For example, if Walmart sells out of apples,
it can simply order more to meet the demand. Or if people aren’t buying as much ground
beef, it’ll order less to avoid spoiled leftovers.
The key is, Walmart can quickly adjust its supply to match shifts in demand. For this reason,
the price of apples and ground beef doesn’t move around much. They are stable rather than
cyclical.
Gold is the opposite. As we just discussed, it often takes years and billions of dollars to bring
new gold supply online.
For the most part, the supply of gold is fixed. Companies can’t just “order” new gold to meet
demand. Economics 101 tells us when demand rises but supply stays the same… the price
will rise.
INTO WEALTH
This is why gold goes through big booms, like its 630% rise from 2001 to 2011. It’s also why
gold frequently suffers big busts, like its 40% drop over the following four years.
Here’s what this “cyclicality” looks like on a chart of the gold price going back to 1975.
Boom… bust… boom… bust… repeat.
Understanding how to harness the boom-bust nature of gold is the #1 secret to

making big gains in gold stocks.
As I mentioned earlier, gold stocks are “leveraged” to the gold price. This means they are
even more cyclical than the price of gold itself.
Take the HUI Gold BUGS Index, which tracks the performance of gold stocks. Since it started
in 1996, it’s had 2 big “booms,” rising 1,327% and 274%, respectively.
Do you know what happened before each of these booms? A huge bust. As you can see from
the following chart, gold stocks plunged 81% leading into the 2001 boom. And they dropped
67% leading into the boom that began in late 2007.
INTO WEALTH
As you can see, the busts led to the booms. That’s why the best time to buy gold stocks is
when they’ve bottomed after a bust.
The key phrase is “WHEN THEY’VE BOTTOMED.” These may be the three most important
words in this whole report. Please don’t ignore them.
Buying gold stocks while the price is falling is dangerous. Like all cyclical assets, gold stocks
can fall a lot further and for a lot longer than many folks think possible.
If you buy gold stocks while they’re in a downtrend, you’re fighting cyclicality. I want no part
of that. I want to ride the waves in gold stocks, not fight them.
So before buying gold stocks after a bust, I need to see clear evidence that they’ve bottomed.
As you can see from the chart above, gold stocks carved out a bottom in late 2016. As I write
this in the summer of 2018, they have not yet entered a new boom phase. But they’re clearly
no longer in the painful bust phase that knocked the HUI Index down 83% from 628 to 106.
I’m comfortable buying gold stocks here. As I mentioned just above, the ideal time to buy
gold stocks is after a bust. And as I said near the beginning of this report, gold stocks tend
to boom every seven years on average, and it has been seven years since gold peaked in 2011.
INTO WEALTH
Right now, I think the odds favor a big move higher. So to give you the chance to make
10-times your money in this coming gold bull market, I did a lot of research.
I wanted to know, why do some gold stocks soar 2,000% to 3,000% in a gold bull market,
while others can’t even keep up with the price of gold?
The Key to Buying High Upside Gold Stocks

There’s one “thread” that most of the best-performing gold stocks have in common.
Profitability.
More specifically, the best-performing gold stocks during gold bull markets tend to have
excellent net profit margins.
This metric is the “bottom line” when it comes to a company’s profitability. It tells us how
much of each dollar of sales the company gets to keep and either reinvest in business or pay
out in dividends.
And it makes perfect sense that companies with the highest margins do best when gold
rises. Because higher margins mean a company can convert gains in the gold price straight
into profits.
The three gold stocks I’m about to show you had an average net profit margin of 32% in the
last bull market. That’s outstanding in a tough business, like mining.
All three delivered massive profits to shareholders in the 2001–2011 gold bull market. In
fact, the “worst” performer of the three soared 1,740%. As you can see in the chart below,
they all crushed the average performance gold stocks.
INTO WEALTH
Let’s dig into these three companies.
Gold Stock Pick #1:

Randgold Resources (GOLD)
Randgold Resources (GOLD) Key Stats

Founded - 1995 Gold Production (2017) - 1.32 Million Oz.
Recent Price - $75.50 Proven & Probable Reserves - 21 Million Oz.
Market Cap - $7.13 Billion Net Profit (2017) - $278 Million
Share Outstanding - 95 Million Current Net Profit Margin - 21%
52 Week High - $108.29 Cash - $719.8 Million
52 Week Low - $74.02 Cash Cost Per Gold Oz. - $620
Dividend Yield - 2.65% Price to Sales Ratio - 5.79
Number Of Producing Mines - 5 Price to Earnings Ratio - 27.08
Sources: Randgold, Morningstar, Reuters
INTO WEALTH
Randgold (GOLD) was founded as a gold exploration company in 1995. Since then it has
become Africa’s largest gold producer. Today is it the world’s seventh-largest publicly traded
gold stock.
Last year, it produced 1.32 million ounces of gold, which marked its seventh straight year of
rising production.
Randgold has 14 million ounces of gold reserves, which is worth around $17.5 billion at
gold’s current price of $1,250.
The largest of Randgold’s five mines are in Mali and the Congo. Doing business in Africa has
its challenges, but don’t let the locations deter you.
Randgold’s management team has 23 years of experience operating in the world’s toughest
countries. This is a major advantage: it has proven it can do business in places most others
can’t.
One of the Most Profitable Gold Companies Since 2000

In the last gold bull market, Randgold achieved an average net profit margin of 26%.
This means it was able to reinvest $0.26 of every $1 in sales back into the business. This
allowed the company to increase production and build new mines, which is a big reason why
its stock soared 3,740% between 2002 and 2012.
For perspective, that’s more than two-and-a-half times better than the HUI Gold Index.
Randgold still boasts an impressive 21% margin today, which ranks third-highest of any gold
company with a market cap above $1 billion.
The Driving Force Behind Randgold’s Success

In a tough business, like mining, a good management team can make all the difference. A
surefire way to know if a team is any good is to evaluate its track record.
CEO Mark Bristow founded Randgold in 1995 and has been running the show ever since. As I
mentioned, he’s built the company from a startup looking for gold in West Africa into one of
the world’s largest gold producers.
He’s also guided it to profitability for 17 years in a row, which proves he and his team can
achieve success even when the price of gold is struggling.
Along with a solid track record, it’s a good sign when a CEO owns a lot of his company’s
stock. It shows he believes in the company’s future. And most important for us, it means his
interests are aligned with ours as shareholders.
INTO WEALTH
It’s called having “skin in the game” and Bristow has plenty of it. He owns 890,000 shares,
which are worth around $69 million today.
World-Class Gold Mines

Randgold’s largest mine is Kibali, located in the Congo.
The company owns 45% of Kibali, which produced 596,000 ounces of gold last year. And this
year that figure is expected to rise to over 700,000 ounces, making it the world’s 11th-largest
producing gold mine.
Randgold achieved this big production increase by installing a new automated handling
system at the mine last year. This system starts 800 meters below the surface and will
automate the crushing and hoisting of rock through the mine shaft.
Along with increased production, this new system will also reduce labor costs. It should
make the company even more profitable.
As I mentioned, GOLD has turned a profit every year since 2000. And while the gold price is
well below what it was a few years ago, Randgold recorded its third-highest net profit ever
last year.
Randgold also has a rock-solid balance sheet. If you’ve spent much time looking at gold
companies, you know they’re notorious for borrowing too much debt to fund growth.
Not Randgold. It has only $2.8 million in debt—barely a speck compared to its $720 million
in cash.
Randgold also produces gold very cheaply. It costs the company just $620 to produce an
ounce of gold.
Randgold sold the 1.32 million ounces it mined last year for an average price of $1,258/oz—
meaning it made an average profit of $638/oz.
GOLD’s consistently excellent profitability is why I believe it’ll be one of the biggest winners
in the coming gold bull market.
INTO WEALTH
Gold Stock Pick #2:

Goldcorp Inc. (GG)
Goldcorp Inc. (GG) Key Stats
Founded - 1994 Gold Production (2017) - 2.6 Million Oz.
Recent Price - $13.40 Proven & Probable Reserves - 53.5 Million Oz.
52 Week High - $15.55 Cash - $234 Million
52 Week Low - $11.64 All-In Sustaining Cost Per Gold Oz. - $810
Number Of Producing Mines - 10 Price to Earnings Ratio - 16.18
Sources: Goldcorp, Morningstar, Reuters
Vancouver-based Goldcorp (GG) is the world’s fifth-largest gold producer.
Last year, it produced 2.6 million ounces of gold from its 10 mines. And it’s planning to
increase that amount to 3 million ounces by 2021.
This is part of the company’s 20/20/20 plan, which aims to achieve a:
1. 20% increase in gold production
2. 20% increase in gold reserves
3. and a 20% reduction in all-in sustaining costs…
…All by 2021.
And GG is on track to hit its targets.
It has 53.5 million ounces of gold reserves across its 10 mines today. This stockpile is worth
$70 billion at current gold prices. And under its 20/20/20 plan, GG plans to grow its reserves
to a massive 60 million ounces by 2021.
GG is also on track to reduce its all-in sustainable costs to $700 per ounce by 2021. It has
already slashed this from $856 to $810 in the past two years. And that makes it one of the
lowest-cost gold producers in the world.
When gold rose 630% from 2001–2011, GG’s stock soared 1,740%.
INTO WEALTH
I believe a major reason GG’s stock tripled the performance of gold was because of its
excellent net profit margin. It averaged 31% for the decade, which is 3x better than the
average margins of the 12 largest gold companies during that time.
Like almost all gold mining companies, GG’s margins have slipped since the last gold bull
market. But at 19%, its net profit margin is still among the best in the industry today.
100% Unhedged
Aside from its great margins, there’s another reason I expect GG’s stock to be one of the
biggest winners in the coming gold bull market: GG does not “hedge” its gold sales at all.
As we discussed earlier, gold is very cyclical and goes through big booms and busts.
To protect themselves from the busts, gold firms often hedge their gold sales. This means
they agree to sell their gold at a certain price in the future, regardless of what the actual
gold price is.
Locking in a future price can protect a company when the bottom drops out of the gold
market. It can reduce uncertainty and risk for a gold miner.
But it cuts both ways. A company that’s hedged will benefit far less from a surge in gold
prices.
GG is 100% unhedged. So, it will benefit from every last dollar increase in the gold price in
the coming bull market.
This gives it a big head start over its competitors.
For example, GG sold its gold for an average price of $1,334 last year. Barrick, which has
some hedges in place, realized an average price of around $100 less.
Proven Managers and Profitable Mines

David Garofalo took over as CEO in 2016. He’s been in the mining business since 2006,
having served as the CFO of Agnico Eagle Mines.
David helped take Agnico Eagle from a small firm with one mine to the world’s ninth-
largest gold producer. And in 2009, he was named Canada’s CFO of the Year.
After two years in charge of GG, David has made his mark. He has returned the company to
profitability after three losing years from 2013–2015. And his 20/20/20 plan is helping cut
costs while also increasing production…. which will further increase profits.
INTO WEALTH
GG has 10 producing mines: four in Canada, four in Central and South America, and two in
Mexico.
Its biggest mine is Penasquito in northwest Mexico. It produced 476,000 ounces of gold in
2017. It also churned out $802 million worth of silver, zinc, and copper. This prolific mine
generated one-third of the company’s $3.42 billion in sales last year.
Penasquito is also one of the world’s lowest-cost gold mines. It produces gold at an all-in
sustained cost of just $370 an ounce.
The Most Innovative Gold Miner

GG is the world’s most innovative gold mining company. For example, it has built an X-ray
machine that separates ore rock from waste rock.
Working like a body scanner at the airport, it can see through rocks and determine which
ones have gold in them and which ones don’t.
It then funnels the rocks with gold into a processing machine and dumps the waste rock.
This technology only operates at a small scale now. But the machine will help lower
production costs by removing waste rock before it hits the processing plant.
Here’s another example of GG’s innovation: in March 2018, it teamed up with a firm called
Tradewind. Together they achieved the first ever use of blockchain technology to record and
manage a physical gold transaction.
Blockchain, as you may know, is the technology behind Bitcoin. It’s a ledger that creates a
permanent record of transactions which can’t be tampered with. This eliminates the need
for third parties, like banks.
As part of this partnership, GG sends 3,000 ounces of gold from its Red Lake mine to a
refinery. Using Tradewind’s blockchain, GG can sell gold directly to dealers and banks,
eliminating the cost of a middleman.
To wrap up, GG’s financials are strong. The company recorded a net profit of $658 million
last year, which was a four-fold increase over last year and its best year since 2012.
It also paid down $350 million in debt last year. GG still has $2.4 billion in long-term debt
(which was borrowed by a previous management team to fund growth). CEO David Garofalo
has made a point of paying down the debt.
INTO WEALTH
Gold Stock Pick #3:

Royal Gold Inc. (RGLD)
Royal Gold Inc. (RGLD) Key Stats
Founded - 1981 Metals Sales (2017) - $441 Million
Recent Price - $92.03 Average Remaining Years Of Gold Reserves in Mines - 15 Years
52 Week High - $94.39 Cash - $85.8 Million
52 Week Low - $76.15 Revenue Per Employee - $19 Million
Number Of Producing Mines - 39* (*Interests In) Price to Earnings Ratio - 74.97
Sources: Royal Gold, Morningstar, Reuters
Denver-based Royal Gold (RGLD) is the eighth-largest gold company in the world.
It has interests in 192 properties across six continents. Around 90% of its sales come from
mines in Canada, US, the Dominican Republic, and Chile.
The thing is, RGLD doesn’t produce a single ounce of gold. It’s not a gold miner… but a
streaming/royalty company.
70% of Sales from Streaming

A stream is an agreement that RGLD enters into with gold miners like Barrick.
In exchange for an upfront payment, RGLD gets the right to buy a percentage of the metals
produced from a mine at a set price.
Take RGLD’s stream for Thompson Creek’s Mount Milligan mine, for example.
RGLD gave the miner $782 million toward the cost of building the mine. In return,
Thompson Creek will give RGLD 35% of all the gold from the mine.
RGLD then pays Thompson Creek $435 for every ounce it delivers. It can then sell the gold
for the market price, which today is around $1,250.
Buying gold for $435 and selling it for $1,250 or more… without taking on much of the risk
of actually building the mine… can be very profitable.
Because RGLD enters into agreements that lock in how much it will pay per ounce of gold,
its costs are mostly fixed. This removes a lot of the risk inherent in the gold business.
INTO WEALTH
For example, say a mine gets hit by a torrential storm that floods the shafts. This may
increase the cost of producing gold there by $100/oz. For a miner, this means profits drop
$100/oz.
But as long as the mine keeps producing gold, RGLD’s profits won’t drop at all. Its cost per
ounce stays the same regardless of how much it costs the miner to produce the gold.
Last year, RGLD got 103,000 ounces of gold and 1,165 tonnes of copper from the Thompson
Creek stream. You could say the company gets “paid in gold.” RGLD then sold that for $137
million.
30% of Sales Come from Royalties

Similar to streams, royalties give RGLD the right to a set percentage of a mine’s production.
The difference is, with royalties, RGLD doesn’t get the metal. Instead, it gets dollars from
the sale of the metal.
Look at RGLD’s royalty on Goldcorp’s Penasquito mine, for example. It bought this royalty
for $100 million in 2006. In return, RGLD gets 2% of the value of the metals Goldcorp
produces from the mine… for the life of the mine.
This royalty brought in $26.7 million last year alone.
Most of RGLD’s royalties are based on the value of a mine’s production. This means it
benefits from both higher gold production AND higher gold prices. Exactly what we want for
the coming bull market.
And around 85% of RGLD’s sales come from gold. That figure is about 70% for its rival
royalty firm Franco-Nevada.
$441 Million in 2017

Last year RGLD earned $441 million on streams and royalties. Its business model helps turn
a big chunk of this straight into profits.
RGLD doesn’t have to buy $5 million trucks, build infrastructure, or pay many employees.
Guess how many employees RGLD has?
Just 24.
Twenty-four people running a $6 billion company.
For perspective, Barrick has 11,000 employees.
INTO WEALTH
This is the magic of the streaming/royalty model. It’s why during the 2001–2011 bull
market, RGLD achieved an extraordinary net profit margin of 40%.
That’s the highest of any gold company with a market cap above $1 billion in that period.
And it’s four times better than the average for the 12 largest gold companies.
It means RGLD could take $0.40 of every $1 in sales and use it to buy new streams and
royalties… which further boosts its profits. A virtuous and very profitable cycle.
RGLD’s unrivaled net profit margin helped push its stock up 2,730% in the last bull market.
That was double the performance of the HUI Gold Index.
The company still has a solid 23% margin today, making it one of the most profitable gold
firms heading into the next bull market.
Managing Gold’s Cycles

RGLD also has a stellar management team that has proven itself through good times and
bad.
Tony Jensen has been CEO of RGLD since 2006. He has over three decades of experience in
mining. He spent 18 years in senior positions at Placer Dome, a Canadian gold miner which
Barrick acquired in 2006.
Tony has guided RGLD to profitability in 11 of the 12 years he’s been in charge. He took it
from a small $600 million outfit to a $6 billion global player.
But what impresses me most about Tony and his team is how they’ve taken advantage of the
slump in gold prices over the past few years.
As I’ve mentioned a few times, gold is very cyclical.
And just like nobody loaned money to real estate firms during the financial crisis… nobody
wants to lend money to gold miners when the gold price is tanking.
That’s where RGLD swoops in.
While gold prices were near their lows in 2015, RGLD bought $1.5 billion of streams
and royalties. Because the companies it invested in were desperate for cash, RGLD got
phenomenal deals.
Take the stream with Barrick at their Pueblo Viejo mine, for example.
In 2015, RGLD gave Barrick $610 million as an upfront payment. It now gets 7.5% of the gold
and 75% of the silver produced from the mine.
INTO WEALTH
RGLD pays Barrick 30% of the market price for every ounce of gold and silver it delivers.
Meaning it can sell each ounce for a 70% profit.
This is just one of many great deals RGLD’s management struck during the bust, which
shows me they really understand gold “cyclicality.” And most important, that they can
execute the deals to take advantage of it.
Strong Financials
Thanks to the streams and royalties RGLD acquired during the bust, it recorded its highest
ever revenue and net profit last year.
Better yet, it’s on track to top both again this year, which is very impressive given the gold
price is 30% below its 2011 high.
And RGLD is a cash-generating machine. It will take in about $350 million in cash from
streams and royalties this year, a 32% increase over last year.
Its ability to generate piles of cash is a major reason why RGLD has increased its dividend
for 17 years straight. And that’s stunning when you think about the fluctuations in the gold
price since 2001.
Summing Up
I began this report by telling you that timing is everything when buying gold stocks.
Every boom is created by a bust. Therefore, the ideal time to buy gold stocks is when they’re
emerging from a bust.
Today gold stocks are down 72% from their 2011 highs. As I write this in the summer of
2018, it’s clear they’ve broken out of their downtrend. But are they in a new uptrend yet? I
can’t say for sure.
I’m comfortable taking a smaller position in the three gold stocks analyzed in this report at
today’s prices. As I’ve demonstrated, 10x gains are possible on all three. With gains that big,
you don’t need to obsess over picking the exact bottom.
However, if you’re not convinced gold is headed higher yet, consider waiting to buy until
gold breaks above $1,400. That would be a 12% rise from current levels. Breaking this level
would be clear evidence that we’re in a renewed gold bull market.
Above all else, keep in mind that gold stocks are NOT “set it and forget it” investments.
They are risky trades that can earn you huge profits in bull markets. But they require
constant attention because they often drop just as quickly as they can surge.
INTO WEALTH
And as I’ve shown you in this report, gold stocks are really not investments at all. They are
speculations. So please, only buy them with money you can afford to take losses on. This is
not the sector to invest your kids’ college fund in.
You can follow my ongoing analysis of gold and these three stocks in my free weekly letter,
The RiskHedge Report. In it, I’ll alert you when gold cracks the $1,400 level, and I’ll tell you
when I’m “backing up the truck” on gold stocks with 10x potential.
You can subscribe to The RiskHedge Report for free right here.
Thanks for reading,
Stephen McBride
Chief Analyst – Riskhedge
INTO WEALTH
TURNING DISRUPTION
INTO WEALTH
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19

The Gold Stock Secret

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The Gold Stock Secret

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THE

The Amplifying Force of Leverage

Source: World Gold Council

Mining Is a Brutal Business

This alone took more than a year to put together.

Leverage + Cyclicality = A Shot at Huge Profits

Source: World Gold Council

Boom… bust… boom… bust… repeat.

Understanding how to harness the boom-bust nature of gold is the #1 secret to

Source: World Gold Council

The Key to Buying High Upside Gold Stocks

Source: World Gold Council

Let’s dig into these three companies.

Gold Stock Pick #1:

Randgold Resources (GOLD) Key Stats

Sources: Randgold, Morningstar, Reuters

One of the Most Profitable Gold Companies Since 2000

The Driving Force Behind Randgold’s Success

World-Class Gold Mines

Gold Stock Pick #2:

Sources: Goldcorp, Morningstar, Reuters

Vancouver-based Goldcorp (GG) is the world’s fifth-largest gold producer.

This is part of the company’s 20/20/20 plan, which aims to achieve a:

1. 20% increase in gold production

2. 20% increase in gold reserves

3. and a 20% reduction in all-in sustaining costs…

And GG is on track to hit its targets.

This gives it a big head start over its competitors.

Proven Managers and Profitable Mines

The Most Innovative Gold Miner

Gold Stock Pick #3:

Sources: Royal Gold, Morningstar, Reuters

70% of Sales from Streaming

30% of Sales Come from Royalties

This royalty brought in $26.7 million last year alone.

$441 Million in 2017

Guess how many employees RGLD has?

Twenty-four people running a $6 billion company.

For perspective, Barrick has 11,000 employees.

Managing Gold’s Cycles

As I’ve mentioned a few times, gold is very cyclical.

That’s where RGLD swoops in.

Thanks for reading,

Unauthorized Disclosure Prohibited

© Copyright 2018 by RiskHedge and www.riskhedge.com.

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