10 Best Gold Mining Companies to Invest in

4. Royal Gold, Inc. (NASDAQ:RGLD)    

Current Price: $137.88

Upside Potential: 21%

Royal Gold, Inc.(NASDAQ:RGLD), a precious metal streaming company with royalty interests in mines worldwide, experienced a 10% increase in revenue for its gold segment despite a 13% overall revenue decline from the previous year’s record high quarter. This was due to higher gold prices and reduced contributions from certain mines like Mount Milligan and Cortez. The company achieved its best quarterly operating cash flow of $138 million, a 27% increase, thanks to payments from Mount Milligan and capitalized interest from loan repayments. The stock has risen by 15.65% YTD and 15.4% in the past month, supported by analysts’ projections of a 28.1% EPS increase in 2024 and a 25.1% revenue rise in 2025. New ventures at Mara Rosa in Brazil and Cote Gold in Ontario, along with the Goldrush mine at Cortez, are expected to boost production. Analysts have set a price target of $152, a 16.37% potential increase from its current price of $130.62. With 31 hedge fund holders owning stakes worth $321 million, the company reported a 2.6% increase in Q2 gold production and higher realized gold prices. Investors are anticipating further details in August 2024.

Royal Gold Inc (NASDAQ:RGLD) talked in detail about its 2024 guidance in its latest earnings call:

“Analysts believe Royal Gold is attractively valued based on its Net Asset Value (NAV), a common valuation metric using in the gold streaming industry.  The stock is currently trading at around 18 times FY’2024 FCF , well below its average free cash flow multiple of 22. This makes Royal Gold an attractively valued gold mining stock.”