Top Gold Mining Stocks to Consider for Economic Uncertainty in 2024

When building a portfolio, it’s common for investors to focus on specific assets or strategies. Those with a longer-term perspective, however, can prioritize a variety of measures to reduce the likelihood of change. Gold is generally viewed as a reliable source of diversification, hedging against risks and economic uncertainty.

To hedge against current economic and geopolitical risks, investors can consider particularly high quality gold mining stocks Agnico Eagle Mines Limited (AEM), Barrick Gold Corporation (GOLD), and Kinross Gold Corporation (KGC).

Overview of Gold as a Safe Haven Asset

The interest in gold as a security asset remains strong. Gold rose 12% this year, outperforming most major asset classes. The impressive performance is due to several factors: central banks continue to promote their buying, Asian investors remain active, consumer demand remains strong and geopolitical tensions persist there

Sabrine Chaudhry, head of commodity analysis at BMI, revealed that gold is poised to hit new highs this year. “Gold will go up because of uncertainty,” Chaudhry said, highlighting the peak of uncertainty in 2024, driven by elections, ongoing conflicts and the Middle East conflict

At the same time, the price of gold hit a new high yesterday and is forecast to reach $3,000 for the metal next year. Analysts expect more records in the way of gold, which continues to be attractive amid economic uncertainty.

In parallel, the World Gold Council reported an impressive 4% increase in total gold supply in the second quarter compared to a year earlier. The increase was due to a record 929 tons of mine production and a 4% increase in recycling. Figures for the second quarter show a 3% year-on-year increase in mining, setting a new record for the period.

As the demand for gold continues to rise, due to its role as a safe and essential source of gold used in various industries, gold mining is poised for a significant boost due to the industry of good trends, let’s dive deeper deeper into the basics of the three Gold Powers – Gold stocks starting with #3.

Stock #1: Agnico Eagle Mines Limited (AEM).

3 STOCKS TO DOUBLE THIS YEAR

Headquartered in Toronto, Canada, AEM explores, develops and manufactures precious metals. The company’s projects include the Malartic Complex, Detour Lake, Fosterville, Goldex, Kittila, La India, Laronde Complex, Macasa, Meadowbank Complex, Meliadin and Pinos Altos mines in Canada

On June 24, AEM announced the acquisition of Maple Gold Mines Ltd . 33,821,842 common shares at a price of $0.085 per share, valued at approximately $2.87 million The investment is poised to increase AEM’s portfolio and establish its continued growth trajectory at dig deeper, to facilitate the construction of broader market expansion.

For the fiscal 2024 second quarter ended June 30, 2024, AEM’s mining revenue increased 20.9% year-over-year to $2.08 billion. Its adjusted EBITDA rose 32.9% from its year-ago value to $1.18 billion.

Additionally, the company’s adjusted earnings per share of $535.27 million and $1.07 million represent an increase of 68.3% and 64.6% from the prior year, respectively, and the company’s free cash flow increased 86.8% . annually to $557.24 million.

Analysts expect AEM’s revenue and EPS for the quarter (ending September 2024) to grow 27.5% and 108.9% year-over-year to $2.09 billion and $0.92, respectively, from the company’s stock consensus and EPS estimates for each of the four trailing quarters have been exceeded.

Shares of AEM have gained 22.3% in the past three months and 64.7% over the past year, ending the last trading session at $79.10.

AEM’s upbeat outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system. POWR Ratings are calculated by considering 118 different factors, each weighted to its optimal level.

AEM has a B grade on Sentiment and Growth. B-Rated Miners – Gold is at #12 out of 42 stocks in the industry.

Stock #2: Barrick Gold Company (GOLD) .

Headquartered in Toronto, Canada, GOLD is engaged in the exploration, production, mining, production and sale of gold and copper assets. The company also has gold mines in Argentina, Canada, Côte d’Ivoire, Democratic Republic of Congo, Dominican Republic, USA, among others

On July 9, GOLD confirmed its largest economic contribution to Mali, having invested more than $10 billion over 29 years. With its mines consistently contributing between 5% and 10% of the country’s annual GDP, GOLD has directly invested more than $1 billion in the economy in the past year alone

In addition, GOLD’s pioneering profit-sharing program, originally developed for its Tanzanian operations, has been improved at the reopening of the Porgera mine in Papua New Guinea not only steady economic growth in many areas Feeding has also shown the potential to increase its operational efficiency.

Stock Analysis: Agnico Eagle Mines Limited (AEM)

On May 1, GOLD subsidiary Barrick Gold (International Holdings) Ltd announced the acquisition of Geophysx Jamaica Ltd., a private mineral exploration company, for specific assets in Jamaica. unveiled exploration earn-in agreement with The agreement gives GOLD access to a combined area of ​​approximately 4,000 square kilometers across the country.

The geological potential there is similar to that of the Dominican Republic which is home to GOLD’s successful Pueblo Viejo mine, positioning GOLD to leverage its expertise and expand its footprint into new and promising territories

For the second quarter of fiscal 2024, which ended June 30, 2024, GOLD’s revenue increased 11.6% year-over-year to $3.16 billion. EBITDA from this increased 30.5% from the prior year value to $1.29 billion.

Additionally, the company’s adjusted net income and adjusted earnings per share increased 65.8% and 68.4% from the year-ago quarter to $557 million and $0.32, respectively

The Street expects GOLD’s revenue for the quarter ending September 2024 to grow 29.8% year over year to $3.72 billion. Its EPS is now expected to reach $0.36 for the quarter, up 49.5% from last year. Moreover, the company has met the consensus EPS estimates in all the trailing quarters.

Shares of GOLD have gained 18.5% over the past nine months and 23% over the past year, ending the last trading session at $19.76.

GOLD’s strong fundamentals are reflected in its POWR Ratings. The overall grade of the stock is B, which translates to Buy in our proprietary rating system.

GOLD has a B grade for Sentiment and Quality. It ranks #9 out of a list of 42 stocks in the same industry.

Stock #3: Kinross Gold Company (KGC).

Based in Toronto, Canada, KGC acquires, explores and develops gold properties. The company operates several mines including the Fort Knox and Manh Choh projects in Alaska, the Round Mountain and Bald Mountain mines in Nevada and the Paracatu mine in Brazil.

On September 10, KGC completed a Preliminary Economic Analysis (PEA) for the Great Bear Project, providing its framework for achieving higher, more profitable performance in a challenging infrastructure environment.

Stock Analysis: Kinross Gold Corporation (KGC)

The project anticipates annual production of more than 500,000 ounces for the first 8 years, enabling an overall sustainable cost savings (AISC) of approximately $800 per ounce using conventional mill tons 10,000 per day

The project’s combination of manufacturing with capital and capital requirements places it well within KGC’s portfolio strategy. With a strong financial base and promising growth prospects, Great Bear represents a compelling opportunity for KGC to strengthen its market position and create sustainable profitability in the mining industry.

For the second quarter of fiscal 2024 ended June 30, 2024, KGC’s metal sales increased 11.6% year-over-year to $1.22 billion. Its operating profit rose 25.4% from the year-ago price to $298.30 million.

Additionally, adjusted net income from common shareholders came to $174.70 million, up 4.2% year-over-year, and adjusted EPS was $0.14

Estimates for revenue and EPS are $1.22 billion and $0.16 billion, respectively, reflecting a modest year-over-year growth rate of 10.2% in revenue and 32.9% for the fiscal quarter ended September 2024 Additionally, the company has recognized revenue and EPS estimates for trailing quarters.

Shares of KGC have gained 22% in the past three months and 90.6% over the past year to finish the last trading session at $9.15.

Conclusion: Positioning Your Portfolio for 2024

KGC’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.

KGC has a B grade for quality and feel. Miners – Gold ranks #6 out of 42 stocks in the industry.

 As geopolitical uncertainty persists, it is advisable for investors to consider hedging their portfolios by investing in three gold mining groups.

43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.

Shares of AEM traded up $0.31 (+0.39%) in premarket trading on Wednesday. Year-to-date, AEM has gained 46.99%, compared with a 17.38% rise in the benchmark S&P 500 index during the same period.