But lately, gold supplies have diverted from Asian hubs like Dubai and Hong Kong to the US. This change comes from a big premium on Comex futures over spot prices. Thus, the U.S. market has become a key destination for gold shipments, with bullion banks taking advantage of good pricing trends.
What are royalty and streaming companies in the gold industry?
- Beyond the operational and geological aspects, a thorough analysis requires a deep dive into a company’s financial health and the external risks it faces.
- In 2024, Newmont reported $2.9 billion in free cash flow and a record $3.4 billion in net income.
- However, this leverage works both ways, making gold mining stocks a higher-risk, higher-reward investment.
- On the other hand, the costs of the titanium powder unit have already dropped to $55 per kilogram at full utilization.
This is seen as essential for national security, energy independence, and tech competitiveness. The investments come as the U.S. mining sector contributes approximately $85 billion to the gross domestic product while employing over 400,000 people. Saudi Arabia reiterates its focus on strengthening economic ties with the U.S. while exploring joint investment opportunities in the mining sector.
The appeal of gold as a safe asset keeps growing with ongoing inflation, global conflicts, and financial instability. Fortune Business Insights reports that the global gold market will likely grow from $291.68 billion in 2024 to $457.91 billion by 2032, demonstrating a 5.8% CAGR. These numbers show gold’s rising importance as both a financial hedge and an investment. Buying gold stock with gold at current levels makes sense if the price of gold holds strong and may present additional opportunities if the price of gold sells off. Barrick Gold Corp is one of the world’s largest gold producers, operating mines in North America, South America, Australia, and Africa. The company segments consist of nine gold mines namely Carlin, Cortez, Turquoise Ridge, Pueblo Viejo, Loulo-Gounkoto, Kibali, Veladero, North Mara, and Bulyanhulu.
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For 2025, Kinross is guiding slightly lower gold equivalent production and higher costs. If gold prices retreat dramatically, net earnings will disappoint. This means investors can get outsized returns from miners compared to direct gold investments—because miners’ profit margins can increase as gold prices rise. Franco-Nevada is a Canada-based gold-focused streaming and royalty company.
Royal Gold Business Overview
A major benefit of Franco-Nevada’s focus on royalties and streaming is that it reduces risk. It doesn’t face the capital and operating cost overruns that have historically plagued mining companies. At the same time, Franco-Nevada’s agreements position it to profit as its mining partners complete exploration and expansion projects. These FAQs provide a snapshot of the considerations involved in investing in gold mining stocks, highlighting the balance of risk and potential reward. The price of gold was about $3,309 per ounce as of late July 2025. The merger with Kirkland Lake Gold established the new Agnico Eagle as the industry’s highest-quality senior gold producer.
Hecla Mining Company (NYSE:HL)
GLDG is focused on the acquisition and development of gold assets principally in the Americas. GLDG operates a diversified portfolio of resource-stage gold and gold-copper projects in Canada, the United States, Brazil, Colombia, and Peru. Comstock has an expected revenue and earnings growth rate of 17.4% and 69%, respectively, for the current year.
- Wheaton Precious Metals is a Canadian company that streams gold and other precious metals.
- Some junior miners, like Alamos Gold (AGI), get multiple mines up and running and grow into senior miners.
- This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.
- Mine production in Q2 reached a record 909 tonnes, contributing to a 3% year‑on‑year increase in total supply.
- Kinross generated adjusted net earnings of US$905 million in the first half of 2025 compared to US$300 million in the same period last year.
The gold royalty and streaming business model, on the other hand, provides exposure to mining without the messy operational challenges. Looking ahead, analysts expect double-digit revenue growth from Barrick in 2024 and 2025. Some of the growth will come from the newer Goldrush project in Nevada. Goldrush is expected to produce 130,000 ounces of gold in 2024 and up to 400,000 by 2028. Today, gold is trading for about $2,340 per ounce, which is up 16% from a year ago. The surge likely started as a move to safety amid lingering inflation and global political unrest.
Agnico Eagle is a TSX stock that has crushed the broader markets over the last three years, rising almost 300%. In Africa, Barrick faces challenges at its Loulo-Gounkoto mine in Mali. The company booked a US$1.04 billion writedown on the asset in the second quarter (Q2) of 2025 due to the seizure of both the mine and significant quantities of gold by the government. The latest twist is news that a Barrick executive in Africa is now working as an adviser for the Malian government on the issue. Investors should look beyond these challenges, as they will likely get sorted out. By eliminating handoffs and inefficiencies, the American Resources Unit seeks to provide a secure and scalable supply of rare earth products, thereby ensuring national security and economic leadership.
It has a diversified portfolio, with agreements tied to gold, silver, the platinum group metals (PGMs), iron ore, and oil and gas. In 2025, 79% of its revenue will come from gold and other precious metals. The company has a world-class portfolio of six Tier One gold mines and is building a significant copper business.
Accordingly, these smaller companies saw their budget share dropping 13%. Meanwhile, major gold producers increased their budgets by 14%, proving they can better handle financial storms. Despite these hurdles, the gold sector remains on the upward trajectory, with investments in advanced mining technology and responsible sourcing offering a promising future. The gold mining sector has been one of the few segments of the overall economy that managed to gain value during the COVID-19 world health crisis.
Top Gold Stocks
China’s biggest gold and copper producer Zijin Mining came in sixth place with 1,324 koz, up a significant 16.3% over the first six months of 2024. That momentum is likely keep up, as in June, Zijin agreed to buy one of the largest gold mines in Kazakhstan, the Raygorodok mine, for $1.2 billion. Gold has run a remarkable rally throughout 2025, ascending to unprecedented heights. Typically, gold holds its value, so gold stocks are considered a good investment. Kinross is a gold mining company with projects in the United States, Canada, Brazil, Chile and Mauritania. The table below introduces five top gold stocks that fit the parameters noted.
The company has a long-term estimated earnings growth of 31.3% and a Zacks Rank #3 (Hold). Accordingly, investor desire for gold remains strong, shown by gold-backed ETFs surging 26% in 2024—their best performance since 2010. The broader market’s Gold ETF trades above its 50-day moving average, demonstrating continued interest in gold as an inflation hedge. Furthermore, central banks have been building gold reserves at record speed, further showing gold’s lasting role in financial security.
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Before investing, research the political stability and regulatory environment of the countries where a company operates. Like senior mining stocks, gold streaming stocks tend to track the market price of gold. Some, such as Franco-Nevada (FNV), have increased their dividend every year for more than a decade, and are well on their way to becoming dividend aristocrats. But there are several different ways to buy gold — and if you don’t want the hassle of owning physical gold bullion or trading gold futures, there’s a good chance you’ll be curious about gold gold mining stocks stocks. As trade and exploration evolve, the gold industry is seeing major advances in extraction methods. New eco-friendly techniques like bio-leaching and cyanide-free processing are emerging as viable alternatives to old mining methods.
Gold stocks can also be traded speculatively in the current economic environment. Royal Gold grew 2024 revenue and earnings by 19% and 39%, respectively. Franco-Nevada’s streaming and royalty contracts provide it with the ability to generate lots of cash by selling the physical commodities it receives. That cash flow enables it to invest in new deals and pay a dividend.