Gold is on its way up

Gold is on its way up again and so is Randgold Resources Limited (GOLD) on its way up. Starting on September 20th, the stock fell from $113.45 to $92.61 on October 4, 2011. Since then it has been inching its way back up and today it is trading at $108.90. The stock is trading above its 200-day moving average of 91.40 and also above its 50-day moving average of 103.16. Randgold has a market capitalization of $9.5 billion and a beta risk factor of 0.46. While regular gold stocks tend to be directly related to the price of Gold, mining stocks only have to cover the production costs to be profitable.

Randgold has partial ownership in mines located in central and western Africa. These mines are: the Loulo mine in Western Mali; the Gounkoto gold deposit in Mali; the Kibali mine in the Democratic Republic of Congo; the Morila mine in Mali; the Massawa mine located in Senegal and the Tongon mine located in the Ivory Coast. What I like is that this company has several different projects in different locations. If something happens to one the company’s projects, the diversification will balance the loss and lower the total risk.

Randgold was founded by Mark Bristow and has been is gaining in profitability over the last 3 years.

Disclaimer: The content used in this article is for educational purposes. All investments should be thoroughly analyzed before being transacted.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]