The CEO of Gold Miner Newmont Mining Corp (NEM) Has Been Buying

Other gold miners include Barrick Gold Corporation (USA) (NYSE:ABX), Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), and Kinross Gold Corporation (USA) (NYSE:KGC). Barrick and Kinross are actually unprofitable on a trailing basis when we consider special items, though according to Wall Street analysts these peers are actually bargains: in terms of consensus for 2014 they are valued at 5 and 8 times earnings estimates respectively. Their stock prices have not done well over the last year either obviously, and certainly we would be careful not to put too much weight on sell-side forecasts, but if an investor is interested in gold miners from a value perspective that advantage may be useful to note. Goldcorp and Yamana carry a slight premium in terms of their forward P/E multiples, but in the 11-12 range they would also qualify for value status assuming that analyst forecasts prove correct. Of course, any company in the industry is going to be dependent on gold prices over the long term and so investors would have to be comfortable with that factor.

We are a bit cautious ourselves when it comes to gold, and so even with this insider purchase- which of course could in turn be taken as bullish on gold, given how dependent Newmont Mining Corp (NYSE:NEM) itself is on the market- we’d hesitate to recommend any of these companies as a buy. It might be best to wait a quarter or so and see how the various mining companies have performed in the current environment, where gold prices are well below their levels from Q1.

Disclosure: I own no shares of any stocks mentioned in this article.