KGC - Next-Gen Gold Rush: 3 Mining Stocks That Are Pure Gold
2024-03-06 13:30:37 ET
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Investing in mining companies is a great way to diversify a portfolio. Commodities are typically a lower-risk investment than average securities. Investors seeking less volatility within their portfolio may gravitate towards materials stocks focusing on gold mining or other precious metals.
Gold prices recently reached an all-time high of $2,141 per troy ounce , a large increase of over 16% just this year. The increase in overall gold prices can be attributed to possible rate cuts by the Federal Reserve in the near future. Gold is being used as a hedge against inflation , making this a perfect time to invest in mining stocks, especially companies that mainly focus on gold. Gold prices may also only go up from here if rate cuts are eventually put into place.
Here are a few mining stocks profiting from the increase in gold prices. They are great buys and offer investors great exposure to the industry.
Agnico Eagle Mines (AEM)
Agnico Eagle Mines (NYSE: AEM ) is a mining company that focuses on acquiring and exploring gold properties in North America and Europe.
Over the six months, its share price has increased by 12% due to profitable gold properties and management’s emphasis on cost-effective operating methods. On Feb. 15, Agnico reported earnings for the fourth quarter full-year financial results , which stated that revenue from mining operations increased by 27% and its total gold production increased by 13% compared to the year before.
AEM offers a strong forward dividend yield of 3.36% annually. It announced a quarterly dividend of forty cents per share, payable on Mar. 15.
The increase in gold prices has led more investors to this robust mining company. It offers a strong dividend, growing gold production and sales, and a decent valuation, making it a great buy for investors looking to start investing in mining stocks.
Harmony Gold Mining (HMY)
Harmony Gold Mining (NYSE: HMY ) is a gold mining company that also explores for other precious metals, including copper, uranium, and silver. Its operations are located in South Africa, Papua New Guinea, and Australia.
Harmony stands out as a gold mining company in that, over the past year, its share price has more than doubled due to higher production and precious metals sales. In its half-year earnings results for fiscal year 2024, it reported total revenue that increased by 35% and net profits that more than tripled year-over-year. Its increase in gold production and prices for its precious metals are the primary reasons it experienced revenue growth.
Harmony Gold has profited heavily from the increase in the overall price surge of gold. Its positive outlook regarding future projects is why HMY is still a buy for investors looking to invest in the next-generation gold rush.
Kinross Gold (KGC)
Kinross Gold (NYSE: KGC ) acquires and explores gold properties in the U.S., Brazil, Chile, Mauritania, and Canada.
Over the past year, its share price has increased by approximately 41%, which has been due to improved results within multiple gold properties, most notably its Great Bear Project , in which its resource production increased by 45% year-over-year.
On Feb. 14, Kinross reported earnings for the fourth quarter of 2023 , stating that total gold produced decreased slightly by 8%. In Q4 2022, it reported a net loss of $106 million; for Q4 2023, it reported a net income of $65 million.
Kinross is a solid gold mining company that is experiencing substantial growth despite a slight decrease in total revenue, mainly attributed to a massive quarter of their mine in Brazil. Its free cash flow more than doubled year-over-year. Kinross offers investors long-term growth potential, making it a great buy, especially with the increasing price of gold.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing withtopics such as the stock market and financial news.
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