Gold has a longstanding reputation as a safe haven asset. As market volatility increases and industrial demand grows, gold continues to be viewed as a secure investment option, leading to expectations of further price appreciation.

That said, investing in gold stocks, AngloGold Ashanti plc (AU), Agnico Eagle Mines Limited (AEM) and Barrick Gold Corporation (GOLD), could offer significant advantages. These companies' resilience amid market fluctuations positions them well to capitalize on gold’s rising value.

As the election season heats up, it’s anticipated that the markets will experience heightened uncertainty, a phenomenon that usually accompanies Presidential election cycles. This year, however, experts expect a degree of market volatility unseen since the year 2000, adding weight to the economic climate’s unpredictability.

Further fueling this uncertain environment are the ongoing conflicts in the Middle East and the Ukraine-Russia crisis. The geopolitical tensions are injecting instability into global markets, intensifying concerns for investors. However, during periods of economic uncertainty, investors traditionally flock to gold, prized for its historical resilience.

Gold serves as a “safe haven” asset, offering financial security when other investments falter. For many, it remains a preferred safeguard amid political upheaval and economic instability. This sentiment has driven gold’s exceptional performance in 2024, with prices reaching unprecedented levels.

In March, the price per ounce surged to $2,160, an 8% increase from December 2023. This upward trajectory marked the beginning of gold’s remarkable rally, fueled by strong investor demand and market fears. The trend continued through the year, with gold setting record highs almost monthly.

The price now hovers near $2,800 per ounce, a testament to the commodity’s enduring allure. Many analysts expect this rally to extend further, with predictions that gold could reach $3,000 per ounce by year’s end.

Gold’s value isn’t solely anchored in its role as a safe investment. Increasingly, it’s used across industries such as electronics and healthcare, where technological advancements rely on gold’s unique properties. This surge in industrial demand promises further price support, cementing gold’s role as a versatile asset.

Given these trends, let’s dive deep into the fundamentals of three Miners – Gold stocks, beginning with #3.

Stock #3: AngloGold Ashanti plc (AU)

AU is a prominent gold mining company operating across Africa, Australia, and the Americas. The company focuses on gold exploration and also produces silver and sulphuric acid as by-products. Its key asset is the Geita mine, fully owned and located in the Lake Victoria goldfields of Tanzania's Mwanza region.

AU’s trailing-12-month EBITDA margin of 30.09% is 81.9% higher than the industry average of 16.54%. Its trailing-12-month EBIT margin of 17.44% is 62% higher than the sector average of 10.77%. Likewise, the stock’s ROTC of 8.74% is 74.6% higher than the industry average of 5%.

For the fiscal 2024 second quarter that ended on June 30, AU’s revenue from product sales increased 19.3% year-over-year to $1.38 billion. Its gross profit grew 84.6% from the year-ago value to $467 million.

Moreover, the company’s profit for the period and earnings per ordinary share came in at $262 million and $0.60, compared to a net loss and loss per share of $81 million and $0.20 in the prior year’s quarter, respectively.

Analysts expect AU’s revenue for the fiscal year ending December 2025 to increase 15.4% year-over-year to $6.57 billion. Its EPS for the same period is expected to rise 5.6% from the prior year to $2.92.

Shares of AU have surged 36.7% over the past six months and 60.4% over the past year to close the last trading session at $29.97.

AU’s POWR Ratings reflect its robust fundamentals. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

AU has an A grade for Growth and a B for Quality. It is ranked #15 out of 42 stocks within the B-rated Miners – Gold industry.

To check AU’s ratings for Sentiment, Value, Momentum, and Stability, click here.

Stock #2: Agnico Eagle Mines Limited (AEM)

AEM, based in Toronto, Canada, produces precious metals from its diverse operations in Canada, Australia, Finland, and Mexico. It has a robust pipeline of exploration and development projects across these regions, as well as in the United States. Notable operations include the Canadian Malartic Complex, Detour Lake, and Fosterville.

On June 24, AEM announced the acquisition of 33,821,842 common shares of Maple Gold Mines Ltd. at a price of $0.085 per share, for a transaction value of approximately $2.87 million. The acquisition could enhance AEM's investment in resource assets and support its long-term growth in the mining sector.

On June 19, AEM provided an update on the Detour Lake mine in Ontario, where it plans to initiate a conversion and expansion drill program targeting the western plunge of the mineralization. With a long mineral reserve life and substantial production base at both Detour Lake and Canadian Malartic, AEM is expected to strengthen its production profile and potentially ensure sustained value for years ahead.

AEM’s trailing-12-month gross profit margin of 57.76% is 103.8% higher than the industry average of 28.3%. The stock's trailing-12-month levered FCF margin of 18.30% is 261.1% higher than the sector average of 5.07%. Additionally, its trailing-12-month EBITDA margin of 49.97% is 202.1% higher than the 16.54% industry average.

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

Plus, the company’s adjusted net income for the period rose 68.3% from the prior year’s quarter to $535.27 million. Meanwhile, AEM’s adjusted net income per share came in at $1.07, up 67.2% year-over-year.

Street expects AEM’s revenue and EPS for the fiscal third quarter (ended September 2024) to grow 28.7% and 133% year-over-year to $2.11 billion and $1.03, respectively. Moreover, the company topped the consensus revenue and EPS estimates in each of the trailing four quarters, which is noteworthy.

AEM’s shares have surged 38.1% over the past six months and 77.9% over the past year to close the last trading session at $87.93.

AEM’s solid prospects are projected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

AEM has an A grade for Sentiment and a B for Growth. It is ranked #12 within the same industry.

Click here to see AEM’s ratings for Quality, Value, Momentum, and Stability.

Stock #1: Barrick Gold Corporation (GOLD)

GOLD, headquartered in Toronto, Canada, explores, develops, produces, and sells gold and copper properties both in Canada and internationally. The company further explores and sells silver and energy materials. Its key operations encompass Nevada Gold Mines, Bulyanhulu, Hemlo, and several others across various countries.

On October 16, GOLD reported preliminary third-quarter production of 943,000 ounces of gold and 48,000 tonnes of copper, with sales reaching 967,000 ounces of gold and 42,000 tonnes of copper. This performance, along with a projected stronger fourth quarter, is expected to help GOLD meet its full-year production goals, bolstering its revenue outlook.

On October 2, GOLD announced the launch of a $2 billion Super Pit project at its Lumwana copper mine, inaugurated by Zambian President Hakainde Hichilema. Expected to begin construction in 2025, the development could grow GOLD’s copper output, strengthening its asset base and supporting long-term growth in the copper market.

GOLD’s trailing-12-month EBITDA margin of 44.69% is 170.2% higher than the industry average of 16.54%. Its trailing-12-month levered FCF margin of 8.53% is 68.3% higher than the sector average of 5.1%. Furthermore, the stock’s trailing-12-month net income margin of 12.78% is 156.9% higher than the 4.98% industry average.

GOLD’s revenues for the fiscal 2024 second quarter, which ended June 30, increased 11.6% year-over-year to $3.16 billion. Its attributable EBITDA grew 30.5% from the year-ago value to $1.29 billion. Furthermore, the company’s adjusted net earnings and adjusted net earnings per share rose 65.8% and 68.4% from the prior year’s period to $557 million and $0.32, respectively.

The consensus revenue estimate of $3.34 billion for the fiscal third quarter (ended September 2024) reflects a year-over-year rise of 16.6%. Its EPS for the same period is expected to increase 31.4% from the prior year to $0.32. Moreover, the company has surpassed the consensus EPS estimates in all four trailing quarters.

GOLD’s stock has surged 23% over the past six months and 30.8% over the past nine months to close the last trading session at $20.32.

GOLD’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It has a B grade for Sentiment and Quality. GOLD is ranked #10 out of 42 stocks within the Miners – Gold industry.

Click here to check out additional GOLD ratings for Growth, Value, Stability, and Momentum.

What To Do Next?

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AEM shares fell $1.78 (-2.02%) in premarket trading Friday. Year-to-date, AEM has gained 63.40%, versus a 23.01% rise in the benchmark S&P 500 index during the same period.

Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.

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