Barrick Gold Is Top Gold Mining Company in The World; Canadian Companies Dominate the List
On a global scale, the price of gold continually fluctuates, which causes gold mining companies to constantly recompute their yearly earnings and production targets. The current price of gold hovers around $1200 - $1300 an ounce, with an all-time high of $1800 in the middle of 2011.
There are different methods of ranking gold mining companies. The most common method is market capitalization which considers the total value of capital holdings. Another common method is by determining cash cost per ounce, which represents the amount it costs to mine the gold. With the price of gold consistent in any part of the world, the lower the cost per ounce, the higher is the potential profit. These figures are used by the stock market to determine the value of each company of an ounce to ounce basis.
The major players in the gold mining industry hail from just a few countries. However, majority of them get their profits from mines located outside their borders. Most of these companies are based in Canada and plays a major role in the industry. Canadian gold mining ranks 7th globally and is the dominant force in the industry. Here now are the top five gold mining companies based last year's production, according the TheRichest list.
5. Kinross Gold Corp. - Canada
Market Capitalization : $6.5 billion 2.63 million ounces/year
Kinross also has major operations in Ghana, Brazil, Russia, and Alaska. Aside from that, it is also involved in gold mining in Nevada and Chile. Its Brazilian property Paracuta holds the distinction of being the biggest gold mine in the country at 450,000 ounces of gold produced yearly.
4. Goldcorp Inc. - Canada
Market Capitalization : $23 billion 2.67 million ounces/year
Its Red Lake mine in northern Ontario is responsible for digging 490,000 ounces of gold per year. Aside from that, it also operates in Nevada, Mexico, Guatemala, Chile, and Argentina. Its Penasquito mine in Central Mexico generates 400,000 ounces of gold annually.
Market Capitalization : $7 billion - 4.1 million ounces/year
Based in South Africa, a huge chunk of AngloGold Ashanti's revenues originates from six underground mines on local soil. Aside from that, it also operates mines throughout the continent, such as in Ghana, Namibia, Guinea, Mali, and Tanzania. However, it also has operations outside Africa, particularly in Australia, Colorado, and Colombia.
2. Newmont Mining Corp - USA
Market Capitalization : $11.5 billion - 5.1 million ounces/year
With major operations in four continents, Newmont Mining Corp derives a significant chunk of its yearly production from 16 mines in Nevada amounting to two million ounces of gold mined yearly. It also operates in other countries like Peru, Ghana, Indonesia, and Australia.
1. Barrick Gold Corp - Canada
Market Capitalization : $20 billion - 7.16 million ounces/year
Operating in four continents with Chile, Argentina, Peru, Nevada, and Australia as major operation centers, Barrick Gold Corp is banking on its future growth as soon as gold prices rebound from its 2013 $10 billion operating loss. Based in Toronto, Barrick Gold gets more than one million ounces of gold annually from its Nevada-based Cortez mine.