Gold and Silver Mining Stocks

Gold Stocks

SEASIDE ANALYTICS, LLC

Sectors of Interest in a Fast-Evolving Economy

Gold Stocks

Gold Production. All of the gold ever mined through 2006 has been estimated at 158,000 tonnes (a cube with an edge length of approximately 20.2 meters). The vast majority of that gold still exists, as gold is nearly always recovered and recycled. Approximately half of total gold production to date came from South Africa, with other major contributors being the United States, Australia, China, Russia, and Peru. The largest gold-producing states in the U.S. are Nevada and South Dakota.

Gold production has become increasingly expensive. Many of the top-grade deposits have been exploited, resulting in higher production costs for lower-grade ores. There are also increasing costs for labor, permitting, and other environmental issues.

Reserves and Resources. Gold companies often distinguish between their gold reserves and gold resources. Gold reserves (both proven and probable) are resources that can be developed profitably with available technology; the calculations are generally in accordance with an industry-standard methodology. Resources are areas of mineralization that have been surveyed, with their quantity and quality determined; they are sometimes categorized as measured, indicated, or inferred. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

NYSE Arca Gold BUGS Index. There are 15 large gold stocks in the NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (Stock Symbol: HUI). The Index is a modified equal-dollar-weighted index of gold mining companies. The Index is designed to provide significant exposure to short-term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years.

There are scores of other gold stocks not contained in the NYSE Arca Gold BUGS Index.

Valuation of Gold Stocks. There are a great number of pitfalls for gold stocks as the companies mature from exploration stage to development, feasibility, construction, and production. In addition to the geological uncertainties, there are often serious capital, environmental, political, and currency risks. Plus, the price of gold is subject to wide swings.

In view of the foregoing, gold stocks are generally exceedingly difficult to value. In making stock valuation comparisons, analysts often use the ratio of enterprise value (market capitalization, plus excess working capital, less debt) to gold-equivalent reserves. One could improve upon such a valuation model by also taking into account whether the companies have existing production facilities, since such infrastructure is often subject to environmental and political constraints and is tremendously expensive.

Articles of Interest. Here are some articles relating to gold stocks and mining: Gold Mining; Silver Mining; Officially Reported Gold Reserves.

Stock Listings. All of the publicly traded stocks listed below trade on U.S. markets.

				Value-
Stocks in NYSE Arca Gold BUGS Index		Stock	Market	Added	Trading
(Stock Symbol: HUI)	Stock	Price	Cap	Links	Stats	Web	SEC	Income	Balance
(as of September 17, 2009) (b)	Symbol	(10/06)	(millions)	(a)	& Chart	Site	Filings	Statement	Sheet

Agnico-Eagle Mines Ltd.	AEM	70.72	11,030	NA	O	O	O	O	O
AngloGold Ashanti Limited ADS	AU	44.82	16,050	NA	O	O	O	O	O
Barrick Gold Corporation	ABX	38.98	34,060	NA	O	O	O	O	O
Coeur d'Alene Mines Corp.	CDE	21.80	1,640	NA	O	O	O	O	O
Compania de Minas Buenaventura ADS	BVN	36.98	9,370	NA	O	O	O	O	O
Eldorado Gold Corporation	EGO	12.07	4,480	NA	O	O	O	O	O
Gold Fields Ltd ADR	GFI	14.88	10,510	NA	O	O	O	O	O
Goldcorp, Inc.	GG	41.71	30,510	NA	O	O	O	O	O
Harmony Gold Mining Company ADR	HMY	11.70	4,990	NA	O	O	O	O	O
Hecla Mining Company	HL	4.83	1,140	NA	O	O	O	O	O
IAMGOLD Corporation	IAG	14.58	5,360	NA	O	O	O	O	O
Kinross Gold Corp.	KGC	22.06	15,340	NA	O	O	O	O	O
Newmont Mining Corporation	NEM	46.10	22,590	NA	O	O	O	O	O
Randgold Resources Ltd. ADR	GOLD	73.00	5,609	NA	O	O	O	O	O
Yamana Gold, Inc.	AUY	11.33	8,310	NA	O	O	O	O	O

				Value-
		Stock	Market	Added	Trading
	Stock	Price	Cap	Links	Stats	Web	SEC	Income	Balance
Other Gold Mining Stocks	Symbol	(10/06)	(millions)	(a)	& Chart	Site	Filings	Statement	Sheet

American Sierra Gold Corp.	AMNP	1.03	82	NA	O	O		O	O
Apollo Gold Corporation	AGT	0.50	131	NA	O	O	O	O	O
Atna Resources Ltd.	ATNAF	.67	56	NA	O	O	NA	O	O
Aurizon Mines, Ltd.	AZK	4.90	778	NA	O	O	O	O	O
Banro Corporation	BAA	2.95	163	NA	O	O		O	O
Capital Gold Corporation	CGLD	0.65	126	NA	O	O	O	O	O
Claude Resources Inc.	CGR	0.76	85	NA	O	O		O	O
Crystallex International Corporation	KRY	0.24	73	NA	O	O	O	O	O
DRDGOLD Limited	DROOY	7.85	297	NA	O	O		O	O
Dutch Gold Resources, Inc. (e)	DGRI	0.17	NA	NA	O	O	O	O	O
Eastern Goldfields, Inc.	EGDD	2.50	25	NA	O	O	O	O	O
Entree Gold Inc.	EGI	2.84	269	NA	O	O		O	O
Exeter Resource Corporation	XRA	5.35	332	NA	O	O		O	O
Fronteer Development Group Inc.	FRG	4.54	537	NA	O	O		O	O
Gammon Gold, Inc.	GRS	9.38	1,160	NA	O	O	O	O	O
Gold Canyon Resources	GDCRF	0.2930	NA	NA	O	O		O	O
Gold Reserve, Inc.	GRZ	0.93	54	NA	O	O	O	O	O
Gold Resource Corporation	GORO	7.55	349	NA	O	O	O	O	O
Golden Star Resources, Ltd.	GSS	3.51	830	NA	O	O	O	O	O
Great Basin Gold, Ltd.	GBG	1.54	513	NA	O	O	O	O	O
Hawthorne Gold	HWTHF	0.32		NA
Jaguar Mining Inc.	JAG	9.53	743	NA	O	O	O	O	O
Keegan Resources Inc.	KGN	4.95	181	NA	O	O		O	O
Metanor Resources	MEAOF	0.57		NA
Minefinders Corporation, Ltd.	MFN	10.01	593	NA	O	O	O	O	O
Nevsun Resources, Ltd.	NSU	2.50	321	NA	O	O	O	O	O
New Gold, Inc.	NGD	3.85	1,370	NA	O	O		O	O
New Jersey Mining Company (d,f)	NJMC	0.21	8	NA	O	O	O	O	O
Northgate Minerals Corporation	NXG	2.76	707	NA	O	O	O	O	O
Orezone Resources, Inc.	ORZCF	0.51	NA	NA	O	O	O	O	O
Pacific Rim Mining Corp.	PMU	0.32	37	NA	O	O	O	O	O
Paramount Gold and Silver Corp.	PZG	1.32	109	NA	O	O		O	O
Piedmont Mining Company, Inc.	PIED	0.03	2	NA	O	O	O	O	O
Richmont Mines, Inc.	RIC	3.05	80	NA	O	O	O	O	O
Royal Gold, Inc.	RGLD	47.68	1,940	NA	O	O	O	O	O
Rubicon Minerals Corporation	RBY	4.34	835	NA	O	O		O	O
Rye Patch Gold Corp.	RPMGF	0.31		NA		O
San Gold Corporation	SGRCF	2.58		NA
Seabridge Gold, Inc.	SA	28.54	1,070	NA	O	O	O	O	O
Searchlight Minerals Corp.	SRCH	1.98	211	NA	O	O		O	O
Tanzanian Royalty Exploration Corp.	TRE	2.93	263	NA	O	O	O	O	O
US Gold Corporation	UXG	2.89	352	NA	O	O	O	O	O
USCORP	USCS	0.07	5	NA	O	O	O	O	O
Vista Gold Corp.	VGZ	2.94	101	NA	O	O		O	O

(a) For details regarding our Value-Added Links program, Click Here.

(b) The NYSE Arca Gold BUGS Index (Stock Symbol: HUI) is a modified equal-dollar-weighted index of gold mining companies. The Index is designed to provide significant exposure to short-term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. Stock weighting adjustments are made quarterly after the close of trading on the third Friday of March, June, September & December.

(d) The analyst who compiled this table (William J. Ritger) owns a position in this company's common shares and common stock purchase warrants.

(e) An LLC controlled by the analyst who compiled this table (William J. Ritger) owns a position in this company's common shares.

(f) An LLC controlled by the analyst who compiled this table (William J. Ritger) owns a position in this company's common shares and common stock purchase warrants.