Gold futures experienced a significant uptick on December 10, marking the highest close in more than two weeks. This movement was primarily driven by China’s central bank, the People’s Bank of China (PBOC), which resumed gold purchases for the first time in six months, alongside the Chinese government’s commitment to implementing a “moderately loose” monetary policy and a more proactive fiscal stance in the coming year. ETFs tracking as gold, such as the SPDR Gold Trust (GLD), VanEck Vectors Gold Miners ETF (GDX), VanEck Vectors Junior Gold Miners ETF (GDXJ), iShares Gold Trust (IAU), and iShares Silver Trust (SLV), among others, have also seen increased activity in response to the market movements.
The PBOC’s acquisition of approximately five metric tons of gold in November, which is modest compared to previous purchases that sometimes reached 30 tons per month, was a critical factor in the recent gold rally. Analysts at Commerzbank noted that the resumption of gold buying by the PBOC could be a strategic response to the election of Donald Trump, who has threatened to impose tariffs on China. Additionally, the recent dip in gold prices after a series of record highs may have sparked renewed interest in the precious metal. For gold prices to maintain and potentially extend their gains, it is essential that central bank purchases continue in the coming months, Commerzbank analysts emphasized. Another factor supporting the rise in gold prices is the growing expectation among traders that the Federal Reserve will cut U.S. interest rates at its upcoming meeting. According to ActivTrades analyst Ricardo Evangelista, a rate cut would enhance the appeal of non-interest-bearing assets such as gold.
Gold’s Bull Market Expected to Continue
In an interview with CNBC on December 10, Max Layton, Global Head of Commodities Research at Citi, discussed the impressive performance of gold in the current year and its potential outlook for 2025. Layton noted that this year has been exceptionally strong for gold, with a significant bull market that can be observed over a 50-year chart. He expressed confidence that this trend is likely to continue, citing several key factors.
Citi’s analysts have introduced a fundamental physical flows-based framework for gold pricing, which provides insight into the underlying drivers of the bull market. These drivers include substantial investment from central banks and wealthy over-the-counter (OTC) investors, as well as broader investor concerns about high interest rates and high debt levels in the United States. Additionally, investors are using gold as a hedge against the potential medium-term impact of a U.S. economic slowdown, which has been ongoing for the past two and a half years. The labor market has also been slowing down during this period, and real interest rates remain at 15-year highs, further fueling these concerns. Layton emphasized that as long as these economic issues persist, there will be continued investment in gold as a hedge.
Gold has been shining as a robust investment, driven by renewed buying from central banks, and growing expectations of a U.S. Federal Reserve interest rate cut. With that in context, let’s take a look at the 6 most profitable gold stocks to buy now.
A closeup image of a miner holding a pile of gold nuggets, a representation of the company’s royalty.
Our Methodology
To compile our list of the 6 most profitable gold stocks to buy now, we used Finviz and Yahoo stock screeners to find the companies that are involved in the production, extraction, processing, or sale of gold. We shortlisted companies with a positive 5-year net income compound annual growth rate (CAGR) and a positive net income in the trailing twelve months (TTM) as informed by SeekingAlpha. Then we used Insider Monkey’s Hedge Fund database to rank 6 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
6 Most Profitable Gold Stocks To Buy Now
6. Sandstorm Gold Ltd. (NYSE:SAND)
Number of Hedge Fund Investors: 18
5-Year Net Income CAGR: 20.73%
TTM Net Income: $35.5 Million
Sandstorm Gold Ltd. (NYSE:SAND) is a Canada-based gold royalty and streaming company, headquartered in Vancouver. The company specializes in acquiring royalties and metal purchase agreements from advanced-stage mining companies globally. Through its business model, Sandstorm Gold Ltd. (NYSE:SAND) provides upfront payments to mining companies in exchange for a percentage of their future revenue or production. As of September 2024, Sandstorm Gold Ltd. (NYSE:SAND) holds a diverse portfolio of 243 royalties and streams, including 41 producing mines.
Sandstorm Gold Ltd. (NYSE:SAND) has a strong focus on key development assets such as the Greenstone Gold Mine, Platreef, Hod Maden, and the Robertson Deposit at Cortez Complex. Greenstone, operated by Equinox, has an average throughput of 20,000 tons per day, which is 76% of the designed capacity. As Greenstone ramps up, it is expected to significantly boost Sandstorm Gold Ltd.’s (NYSE:SAND) gold equivalent production. Similarly, Platreef, a project being developed by Ivanhoe Mines, is poised to become one of the world’s largest and lowest-cost producers of platinum group metals (PGMs) and gold. Once Phase 2 of Platree F is operational, it is expected to contribute about 10,000 ounces of gold per year to Sandstorm Gold Ltd. (NYSE:SAND), with a potential to increase to 15,000 to 20,000 ounces per year during Phase 3.
Sandstorm Gold Ltd. (NYSE:SAND) has a disciplined approach to capital allocation, with a primary focus on debt repayment and selective share repurchases. In Q3, the company repaid $9 million of debt, and this pace accelerated in Q4, with an additional $10 million repaid in the first five weeks. The company’s debt has been reduced to $369 million as of November 8, and this trend is expected to continue. By reducing debt, Sandstorm Gold Ltd. (NYSE:SAND) aims to strengthen its balance sheet and improve its financial flexibility.
5. Fortuna Mining Corp. (NYSE:FSM)
Number of Hedge Fund Investors: 18
5-Year Net Income CAGR: 28.91%
TTM Net Income: $25.1 Million
Fortuna Mining Corp. (NYSE:FSM) is a leading international gold mining company with a diverse portfolio of high-quality assets across multiple jurisdictions. The company operates mines in West Africa and Argentina along with exploration projects in Senegal.
Fortuna Mining Corp. (NYSE:FSM) is actively investing in capital projects to enhance the long-term value of its mines. One of the key projects is the leach pad expansion at the Lindero mine in Argentina, which has a budget of $42 million. This project is expected to be completed by early 2025 and will significantly increase the mine’s capacity and extend its operational life for a decade. Additionally, the company is accelerating underground development at the Yaramoko mine in Burkina Faso, with an additional capital budget of $11 million to bring new mineralized zones into the 2025 mine plan.
Fortuna Mining Corp. (NYSE:FSM) is also focusing on high-value opportunities at the Seguela mine in Cote d’Ivoire, the Diamba Sud Project in Senegal, and the Lindero mine in Argentina. These exploration efforts are crucial for expanding the company’s resource base and identifying new mining opportunities. By continuously exploring and developing new deposits, Fortuna Mining Corp. (NYSE:FSM) aims to increase its gold reserves and production capacity.
4. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Investors: 22
5-Year Net Income CAGR: 48.15%
TTM Net Income: $634.5 Million
Gold Fields Limited (NYSE:GFI) is a leading global gold mining company with a diverse portfolio of assets spread across multiple locations, including South Africa, South America (Chile and Peru), Ghana, Australia, and Canada. Gold Fields Limited (NYSE:GFI) has a world-class asset base underpinned by over 20 years of reserves.
Gold Fields Limited (NYSE:GFI) is actively addressing the operational challenges that impacted its performance in the first half of 2024. These setbacks were primarily due to issues at the South Deep mine in South Africa and the Gruyere mine in Australia, as well as the delayed ramp-up of the Salares Norte project in Chile. In Q3, Gold Fields Limited (NYSE:GFI) produced 510,000 ounces of gold, up from 454,000 ounces in Q2 but down from 542,000 ounces in the same quarter last year. The all-in-sustaining costs (AISC) for the quarter were $1,694 per ounce, compared to $1,751 per ounce in Q2 and $1,381 per ounce in the same quarter last year. The company reiterated its guidance for full-year gold production at the lower end of the 2.05 million to 2.15 million ounces range, with an AISC of $1,580 to $1,670 per ounce.
On November 6, Reuters reported that Mike Fraser, CEO of Gold Fields Limited (NYSE:GFI) indicated that the company may seek buyers for its smaller mines in Ghana and Peru to focus on larger operations. Fraser mentioned that the company is shifting its focus to advancing its new Salares Norte mine in Chile, along with projects from the recently acquired Osisko Mining.
3. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Investors: 23
5-Year Net Income CAGR: 108.56%
TTM Net Income: $609.4 Million
Wheaton Precious Metals Corp. (NYSE:WPM) is a leading precious metals streaming company, known for its robust portfolio of long-life, low-cost assets. The streaming model allows the company to purchase a percentage of the metals produced by a mine, for an upfront payment plus an additional payment when the metal is delivered.
Wheaton Precious Metals Corp. (NYSE:WPM) is focusing on growing its portfolio through strategic partnerships and accretive transactions. In Q3, the company announced the expansion to the existing stream on Rio2’s Phoenix project, with an additional investment of $100 million, and the new $625 million gold stream on Montage’s Kona project, located in Cote d’Ivoire, is one of the highest-quality gold projects on the continent, with a long 16-year mine life. On December 5, Wheaton Precious Metals Corp. (NYSE:WPM) also secured a $175 million streaming deal with Allied Gold for the Kurmuk project in Ethiopia. This agreement involves the company paying upfront cash in four equal installments during the construction phase. In return, Wheaton Precious Metals Corp. (NYSE:WPM) will receive 6.7% of the payable gold until a total of 220,000 ounces have been delivered. After this threshold, the company will buy 4.8% of the payable gold for the remainder of the project’s life. This deal will add 180,000 ounces of proven and probable mineral gold reserves, 30,000 ounces of measured and indicated mineral gold resources, and 20,000 ounces of inferred gold resources to the company’s portfolio.
The company is also investing in several development projects that are expected to produce gold in the coming years. These include Blackwater, Goose, PlatReef, and Mineral Park, all of which are expected to be operational within the next 12 months. The development of these projects is forecast to increase the company’s gold production at an industry-leading rate of approximately 40% to over 800,000 ounces by 2028. This growth trajectory is supported by the company’s strong balance sheet, with approximately $700 million in cash and a $2 billion revolving credit facility, which provides the financial flexibility to fund all outstanding commitments and pursue additional opportunities.
2. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Investors: 41
5-Year Net Income CAGR: 34.25%
TTM Net Income: $738.6 Million
Kinross Gold Corporation (NYSE:KGC) is a Canadian gold mining giant with operations and projects in the United States, Brazil, Mauritania, Chile, and Russia. The company is known for its responsible mining practices and commitment to sustainability.
Kinross Gold Corporation (NYSE:KGC) is actively developing several key projects that are expected to drive future growth. The Great Bear project in Ontario, Canada, is a prime example. The Preliminary Economic Assessment (PEA) released in September 2024 outlined annual production of approximately 500,000 ounces of gold with an impressive all-in-sustaining cost of around $800 per ounce. Additionally, the company is making progress on the Lobo-Marte project in Chile, which has the potential to become a long-life, low-cost asset with meaningful production. The project’s high heap leach grade and low strip ratio are particularly attractive, and Kinross Gold Corporation (NYSE:KGC) is advancing baseline studies to further evaluate its potential.
Kinross Gold Corporation (NYSE:KGC) is also heavily focused on exploration to expand its resource base and support future growth. At Round Mountain in the United States, the company is advancing Phase X, which has shown promising results with multiple high-grade intercepts and strong widths. The exploration drilling has expanded mineralization in the lower areas of the resource and indicates potential for higher-margin mining. Similarly, at the Curlew Basin, exploration drilling has highlighted areas with good mining widths and strong grades. Furthermore, Kinross Gold Corporation (NYSE:KGC) has been proactive in reducing its debt, repaying $650 million out of a $1 billion term loan in 2024. This debt reduction has significantly strengthened the company’s balance sheet, with net debt to EBITDA decreasing from 1.7 times to 0.5 times as of the end of Q3 2024.
1. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Investors: 42
5-Year Net Income CAGR: 3.27%
TTM Net Income: $1,62 Billion
Barrick Gold Corporation (NYSE:GOLD) is a global mining company specializing in gold and copper exploration, development, production, and sales. The company operates a diversified portfolio of high-performing mines in regions such as Argentina, Canada, Africa, and the U.S.
Barrick Gold Corporation (NYSE:GOLD) is actively capitalizing on its high-grade gold assets to enhance production and profitability. The company’s flagship operations, such as Nevada Gold Mines (NGM) in the United States, Pueblo Viejo in the Dominican Republic, and Kibali in the Democratic Republic of Congo, are key drivers of its growth. In Nevada, the company is making significant investments in infrastructure and equipment to recapitalize the Nevada Gold Mines complex for the next decade. This includes the expansion of the Gold Quarry roaster, a device that uses a roasting process to treat gold concentrates, which has now reached full capacity. These initiatives are designed to maintain and increase production while keeping costs under control.
Barrick Gold Corporation (NYSE:GOLD) is also focusing on exploration to replace and grow its gold reserves. The company’s near-mine exploration programs have been successful in identifying and developing new opportunities close to existing infrastructure. Additionally, Barrick Gold Corporation (NYSE:GOLD) is making strategic investments in several growth projects to secure its future as a leading gold producer.
While we acknowledge the potential of Barrick Gold Corporation (NYSE:GOLD) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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