Good news for gold stock owners: One of the big "bellcows" of the industry has decisively broken out to a new all-time high.
For the past five years, large-cap gold mining stocks have been criticized for not producing the kind of returns folks expected during a period of rising gold prices.
Major gold miner Newmont Mining (NEM), for example, has treaded water since 2006… even though gold itself has doubled in price. Costs like infrastructure, manpower, and fuel have climbed along with gold prices over the past five years… which has capped earnings.
But as you can see from today's chart, the recent increase of gold from $950 to $1,200 per ounce has had a big effect on Newmont's cash flows and share prices. It has sent this bellcow to a five-year high. If you're long gold stocks, this is a beautiful picture…
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