Record high gold prices are boosting the earnings and valuations of Gold Mining companies. Around 20 of the biggest gold producers are members of the World Gold Council, representing approximately 60% of global corporate gold production and with mining operations that stretch to almost every inhabited continent. According to the association, this equals an annual gold production of 30 million fine ounces, or some 950 metric. The member companies have a combined value of $200 billion and $40 billion in annual revenue.
This week, the world's largest gold producer Barrick Gold Corp. reported record high profits for 2010. Fourth quarter (Q4) net income was a record $896 million ($0.90 per share). Q4 adjusted net income rose 57% to $947 million ($0.95 per share) compared to $604 million ($0.61 per share) in Q4 2009. Full year production was 7.77 million ounces at lower total, and net cash costs of $457 and $341 per ounce, respectively.
Following are profiles of five of the world's largest gold mining companies and images of their large scale mining operations.
Barrick Gold Corporation (NYSE: ABX) is the largest pure gold mining company in the world, and the most valuable listed gold stock, worth about USD 50 billion. It is headquartered in Toronto, Ontario, Canada, with four regional business units located in Australia, Africa, North America and South America.Barrick is currently undertaking mining and exploration projects in Papua New Guinea, the United States, Canada, Dominican Republic, Australia, Peru, Chile, Russia, South Africa, Pakistan, Colombia, Argentina and Tanzania. The company produces between 7.5 and 8 million ounces of gold per year, at a cash cost of around US $450/ounce. The proven and probable gold mineral reserves stand at 139.5 million ounces, as of the latest report in 2011.2011 production is expected to be comparable to 2010 in the range of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce and net cash costs of $340-$380 per ounce (IFRS basis).According to Barrick, the newly expanded Cortez mine exceeded expectations in its first full year of production and the Company continues to advance its project pipeline, including the world-class Pueblo Viejo and Pascua-Lama projects.BarrickNewmont Mining Corporation (NYSE: NEM), based in Denver, Colorado, USA, is among the 3 largest producers of gold in the world. It has active mines in Nevada, Indonesia, Australia, New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Holdings include Battle Mountain Gold, Normandy Mining, and Franco-Nevada Corp. Newmont also has many joint venture relationships.Newmont can produce approximately 6 million equity ounces of gold annually and holds reserves of about 100 million ounces. Production in the Americas accounts for about 70% of the company's equity ounces, but even so, Newmont is the largest gold mining company in Australia. Newmont employs approximately 15,000 people worldwide. Other metals that the company mines include copper and silver.NewmontGoldcorp Inc. (NYSE: GG) is one of the world’s fastest growing multi-million ounce gold producers. Headquartered in Vancouver, British Columbia, Canada, Goldcorp has 16 operations and development projects in 6 countries across the Americas. Goldcorp plans to increase it's gold production by over 50% over the next five years.Goldcorp produced 2.42 million troy ounces of gold in 2009 at a total cash cost of $295 per ounce of gold. Adjusted net earnings increased to $588.2 million compared to $397 million in 2008. Goldcorp continues to pay a monthly dividend to shareholders which amounted to $131.7 million during 2009.GoldcorpSouth African miners began striking at a mine owned by AngloGold Ashanti, continuing an outbreak of labor unrest in the region that threatens the global supply of precious metals, which could send prices up.AngloGold Ashanti LimitedLatest data from the ‘Mining Industry Major Projects – October 2011’ report of the Bureau of Resources and Energy Economics (BREE) showed committed capital investment into the country’s already booming resources industry grew 34 per cent to A$231.8 billion (US$229.8 billion) in the six months ended Oct. 31. Projects in petroleum, iron ore and coal dominated the investment growth.Newcrest Mining Limited
