What are the biggest gold mining companies in the world? Although gold the commodity hasn’t done well over the last two quarters, there are still reasons to own it in a diversified portfolio. Up to this point, gold has been negatively affected due to the strong dollar, which has lowered the value of gold in dollar terms. The commodity has also been dinged due to the perception that interest rates will increase faster given President Trump’s policies. The President has favored more infrastructure spending as well as tax cuts, both of which might increase inflation from its current low level.
There is potential for inflation to increase faster than the target 2-3% range, however, and if that happens, investors could rotate some capital into gold as a safe haven. Similarly, if Trump follows through with his tough stance on China in terms of Taiwan and the South China Sea, times could be more uncertain and investors could buy gold. Lastly, Trump himself isn’t necessarily a big fan of the strong dollar (which hurts exports), and a weaker dollar could benefit gold as well.
While gold isn’t a particularly productive asset that pays a dividend or a coupon, many investors believe the commodity does offer value if an investor limits his/her allocation to a certain small percentage of the overall pie. Gold diversifies the portfolio, and it has historically offered security in times of great uncertainty. If gold the commodity does well, many investors believe the stock prices of gold miners could potentially do well as well, at least in the short term.
With that said, let’s take a look at the 10 biggest gold mining companies in the world, ranked in terms of annual gold production according to the Thomson Reuters GFMS gold survey for 2015. To put the numbers into perspective, the total amount of gold production in the world amounted to around 3,158 metric tons for that year. That’s an increase of less than one percent versus that for 2014. Some of the companies on the list include NYSE listed stocks such as Goldcorp Inc. (USA) (NYSE:GG), Barrick Gold Corporation (USA) (NYSE:ABX), Gold Fields Limited (ADR) (NYSE:GFI), Newmont Mining Corp (NYSE:NEM), and AngloGold Ashanti Limited (ADR) (NYSE:AU). For those of you interested, also check out the article, 10 Countries that Export the Most Gold in the World.
#10 Agnico Eagle
Agnico Eagle produced 52 metric tons of the yellow metal for 2015, good for the number ten spot on our list. The company is a gold producer with mining operations in northwestern Quebec, northern Mexico, Finland, and other locations.
#9 Polyus Gold International
Polyus Gold International came in at number nine, producing 54.8 metric tons of gold for 2015. Polyus Gold International’s main operations are in Russia and the company’s shares are floated in London.
#8 Gold Fields Limited (ADR) (NYSE:GFI)
Publicly traded Gold Fields Limited (ADR) (NYSE:GFI) produced 62.9 metric tons for 2015. Gold Fields Limited (ADR) (NYSE:GFI) shares are up 16% year-to-date so far.
#7 Navoi Mining and Metallurgical Combinat
Navoi Mining and Metallurgical Combinat increased its gold production to 74.9 metric tons for 2015, versus 73 metric tons for 2014. The company has its main operations in Uzbekistan and also produces uranium, phosphorites, and other products.
#6 Newcrest Mining
Newcrest Mining mined 77.4 metric tons for the year. Newcrest is the largest gold producer listed on the Australian Stock Exchange.
#5 Kinross Gold Corporation (USA) (NYSE:KGC)
At 5h place on our list of biggest gold mining companies in the world is Kinross Gold Corporation (USA) (NYSE:KGC) ‘s yellow metal production amounted to 78.4 tonnes. Kinross Gold Corporation (USA) (NYSE:KGC) stock has surged almost 25% year-to-date.
#4 Goldcorp Inc. (USA) (NYSE:GG)
Goldcorp Inc. (USA) (NYSE:GG) reported gold production of 107.8 metric tons. Goldcorp Inc. (USA) (NYSE:GG) is one of the few gold miners that pay a dividend, with shares yielding around 0.5% at current prices.
#3 AngloGold Ashanti Limited (ADR) (NYSE:AU)
The third place on our list of biggest gold mining companies in the world goes to the AngloGold Ashanti Limited (ADR) (NYSE:AU) that produced 128 metric tons of gold in 2015, good for third place. AngloGold Ashanti Limited (ADR) (NYSE:AU) currently trades for around 12.74 times forward earnings estimates.
#2 Newmont Mining Corp (NYSE:NEM)
In second place is Newmont Mining Corp (NYSE:NEM), which produced 156.6 metric tons of gold in 2015. Newmont Mining Corp (NYSE:NEM) stock is up 5% year-to-date.
#1 Barrick Gold Corporation (USA) (NYSE:ABX)
At the top of the heap is Barrick Gold Corporation (USA) (NYSE:ABX), which produced 190.3 metric tons of the yellow metal. Barrick Gold Corporation (USA) (NYSE:ABX) also achieved its preliminary full year 2016 gold production target, producing 5.52 million ounces for 2016, which came in near the high end of management’s guidance of 5.25-5.55 million ounces.
In conclusion, many of the 10 Biggest Gold Mining Companies In The World are publicly traded companies listed in either New York, London, or Australia. While some have done better than others in terms of year-to-date return, all of them will benefit if gold the commodity trends higher.