 Good day, fellow investors. I'm researching gold miners to expose my portfolio 8 to 10% to it to gold because that is in the slate part of the economic cycle very important and in this video I want to give you an overview of the top 10 gold miners of the Van Ek gold mining ETF to give you to show you what's going on in the gold mining industry. I'm not personally a fan of the top 10 as I go lower on the list as I go into more the detailed miners there is more value but I'll make more videos about the smaller miners that I think will provide best better value or a better hedge in the long term. Nevertheless let's start by talking about the Van Ek ETF and then go into individual gold miners. I have put the time when I discuss each one so you can also see it in the description below and click on the right timing for the gold miner that you are interested in. Let's start with the Van Ek ETF. Now the first thing when I look at the weightings of an ETF is that there is no Russia so Russia a Russian gold miner is the seventh current miner in the world and will be the third miner in the next decade very likely but there is no Russia in this ETF of course ETFs do not go by common sense diversification they go by market cap or possibilities to invest so here there is no Russia even if it is very very meaningful in the world. Also something very important is that the ETF is actually the major shareholder of many gold miners so Barrick gold five percent okay not that big but somewhere it goes to 20 percent which means that the mindless investor is the largest investor in a gold miner and that is not good and that is also something to be to keep in mind because even a bad gold miner will go up if people just buy gold mining ETFs no matter what the gold miner is doing and you'll see later what I think about Barrick and their new acquisition or merger. So when I look at my list I see that okay these are the top 10 that we're going to discuss now Newmond than Barrick etc but they are all pretty pretty similar so the market is and every miner is different so I think really believe that by digging into each miner by avoiding the ETF mentality you can really find value where value I mean lower risk for higher potential reward in the future especially if gold prices change as a hedge to new monetary policies so that's why I'm digging deep into the gold miners and that's why I'm focusing on this because I can get more value than what an ETF offers. Important price to cash flows are close all in sustaining costs with the top miners are close some have a little bit more leverage but we are all there when it comes to pricing however those differences are huge in the long term and therefore I again think that the ETF and this approach short-term approach to gold is wrong. So let's start with the list Barrick gold and Rand gold the two stocks have going into a combination to create the most powerful asset gold mining miner in the world however that's a great story to sell but let's look at the individual miners Barrick stable miner stable producers relatively low costs good jurisdiction so very very good miner however growth in production has been stagnating and has been declining so the management was probably bored because okay if there is no excitement what are we doing how can we push the stock price higher because we have declining production declining expected production oh let's do something crazy and let's buy Rand gold or let's merge with a miner that has assets in Africa and very risky jurisdictions so we are screwing up the reason why investors held Barrick just to excite things a little bit. When going to Rand gold cash costs are expected to drop as Kibali Rand Psaap which is a mining the democratic republic of Congo very safe jurisdictions and their production is 1.2 million ounces per year so that really discusses how a big company is in going into combination with a much smaller company but Barrick was desperate for growth and they will be able to put into the Kibali and Rand gold as a growth story and that's very very unfortunate for other shareholders however Barrick has been used to do stupid things look at the total debt in 2014 so they were very leveraged very exciting when gold prices go up then they have managed to survive and now they have low leverage but let's do again something crazy. If I put this Barrick onto my up and down sensitivity gold price table very gold can go to 36 I think so three times up if gold reaches 2000 and down to 2.60 if gold reaches 800. Rand gold also a little bit less upside because of the lower costs however the downside is also a little bit less because of the lower costs but the risk is bigger because of the jurisdiction and what's going on there so Kibali is in Congo they're just putting taxes however they wish there so pretty riskier situation. So really we have had two assets where investors could pick between Barrick stability jurisdiction safety low debt low costs and now they have added Africa growth making these things more exciting but if I am an investor I could have bought Barrick and I could have bought Rand gold individually on the market if I wish to own them now they have combined them because they want to get higher fees higher optionalities higher options that's what managers do if they have no control and who is controlling Barrick the biggest shareholder is the Van Ek ETF so that's again why I don't like ETFs and I think there will be big trouble in the future because of this because nobody is controlling what the management is doing and the management is just looking to get a bigger plane more options more money for them and more money for the investment banks that advise on these deals. Next Franco Nevada is the leading gold royalty and streaming company with the largest and most diversified portfolio of assets they are paying a dividend they are proud of their dividend history but the 6.3 yield is from 10 years ago however the royalty business model is very much liked by the market as they have very low cost so they provide safety however this also gives less optionality up and down and that's why because of the high price to cash flows I don't really like gold mining royalties. Now Newcrest mining has the Kadya asset the Lyhyr asset and the Golpu project very low cost for Kadya Lyhyr has higher costs and the Golpu project is very risky in the jurisdictions but it might be developed especially if gold and copper prices go up. Newcrest retains very long life advantage so in relation to other miners very long mine lives very much pretty much safe low costs that is an advantage and I will look deeper and make full research analysis report on Newcrest. Also when you look at the enterprise value divided by the gold equivalent ounces Newcrest is really among the lowest in the world. Gold corp is the perfect example of what can happen if you pick the right miner and sell at the right time. The stock increased 15 times from 2001 to 2011 and is now down 80% since the peak so it's an excellent hedge but mine the volatility and might the risk nevertheless the portfolio is still there they're operating in the Americas it's currently focused on bringing to zero its debt before the next investment cycle to fulfill their pipeline which is one of the strongest pipelines in the gold industry so there is growth for gold corp I will be also digging in to gold corp to see what is the potential there and what is priced or not fairly priced by the market to see whether this will be an investment I will like. Agnico Eagle Mines has mines in good jurisdictions Canada Finland and Mexico they're investing a lot in growth and have experience in mining as they have been around for 60 years however they are mining in the lower Arctic which requires a lot of development a lot of costs and the free cash flow hasn't been that positive over the last 10 years if that changes okay but a lot of expectations here and the price is already pretty high all the stocks that are in the top of the Veneck index are pretty high with impressionals precious metals a little smaller royalty than Franco Nevada the growth is ending so we are now looking at a stable developed royalty producer which we will see what they will do with the money they are getting will they be paying it out similar to other royalties I don't like the small dividend and I don't like the small optionality on gold prices I prefer higher risk and higher reward or same risk for higher rewards royal gold similarly to other streamers with a bit of more growth but too expensive for me Kirkland Lake Gold is a success story so let's see what made it because this is really a 10 bagger in the last three four years they increased production fivefold increased cash flows tenfold and increased shares outstanding just threefold the result is the tenfold increase in the stock price however they are really still growing still targeting acquisitions in five to seven years they hope to almost double their current 2017 production but they are doing that through acquisition underground underground mines development which is risky and you never know what you're going to find underground so not for the faint hearted but if you believe in the process of what they are doing in what the CEO is doing and how are they approaching this all the mines and then refurbishing them into new mines revitalizing them then you might look at this company northern star resources another australian miner and it's interesting that not even their miners are safe the western australian government wants to increase gold royalties by 50% and that's a pretty big hit to every miner in the area similarly to kirkland they invested heavily in exploration which paid off from the australian undergrounds so they are extending my life mine life increasing reserves and which bodes well for the stock price and the stock market especially if they can lower costs again a stable miner that has seen its growth in the past in the future we'll see how it grows or not plus there is the australian dividend tax that i don't really like anglo gold ashanti very levered to gold prices because the cost is 1000 and the move of 5% in gold prices adds or removes about 200 million in cash flows per year and that's why you see this volatility it was below seven a few months ago now it's already at 10 so if you want if you know gold prices will spike tomorrow by this company from the top 10 you can see that here that when it comes to price sensitivities the third to the fifth column those all the big gold miners are pretty much there some have a little bit more upside some have less upside like the royalties companies because of their lower costs and lower leverage nevertheless the dividend yields if you look at the column to the right those are not that big of course 0.5 to 2% but that's not that much of a difference there are miners with higher dividends there are miners with lower price to cash flows then the average here that is between seven for gold corp which i will dig deeper and it goes up to 23 for frankenovada and other 24 royalties so the most levered gold miner of the top 10 is anglo gold ashanti with above 1000 also newmont is pretty much levered but nothing really special and nothing really that is isn't already priced in by the market except for newcrest and gold corp which i'm going to focus in detail as i dig deeper into the miners i'm continuing with my research as you see i go much lower and my table goes to number 50 100 mines miners so i'll see which one is the best for a well diversified portfolio hedge to gold mining in relation to what might happen in the future so this is an overview those who are interested into more in-depth researches about the gold miners please check my stock market research platform it really saves you a lot of time as what i do day in and day out is stock market research trying to find the best investments out there with the lowest risk and the highest reward thank you for watching and i'll see you in the next video