Allied Nevada Gold Corp. (ANV), Royal Gold, Inc (RGLD) & Newmont Mining Corp (NEM): Is Value Emerging in These Gold Miners?

Newmont Mining: A dividend giant at a discount

Colorado-based gold producer Newmont Mining Corp (NYSE:NEM) offers an exceptional dividend yield of about 5.3% at a recent market price of $32.60. The stock has lost 15% in the last several days days, and shed 27% so far in the year.

Needless to say, current levels are the lowest in the last 52-weeks. The downside for this stock may be limited by the fact that shares are trading at a premium of just 17% to the net value of the company’s assets.

A price-to-earnings ratio of 8.6 is attractive, but more than this, operational updates from the company would likely drive the stock in the future. Newmont Mining Corp (NYSE:NEM) has a 44% interest in a La Herradura, Mexico joint venture, which is building an oxide mill to improve recoveries on higher-grade material. This is expected to be completed in the second half of 2013.

Foolish bottom line

Overall, it is difficult to say if we are out of the woods yet, and we are probably not, but precious-metal prices have moved into oversold territory and can surprise on the upside. The negative sentiment for gold is not exactly as strong as it appears. If slowing economic growth across the world follows Europe, we may see a revival in gold prices, which has worked as an excellent hedge in recent decades.

The article Is Value Emerging in These Gold Miners? originally appeared on Fool.com.

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