“Companies that we believe could struggle in a $1,100 gold environment, if they do not cut/defer discretionary costs and/or cut dividends include Kinross Gold (NYSE: KGC), Detour Gold, Iamgold (NYSE: IAG), Allied Nevada Gold (NYSE: ANV), AuRico Gold (NYSE: AUQ), LakeShore Gold (NYSE: LSG), Primero Mining (NYSE: PPP), Teranga Gold, Pan American Silver (NasdaqGS: PAAS) and Silver Standard (NasdaqGS: SSRI),” said RBC in the note posted by Barron’s.
Kinross, Pan American Silver, Detour Gold, Aurico Gold, Iamgold, Primero Mining and Silver Standard combine for about 6% of GDX’s weight.
Market Vectors Gold Miners ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.