With gold prices recently hitting an all-time high of $2,584 per ounce, the precious metal has gained more than 25% year-to-date. This surge doesn’t show signs of slowing down, and with gold’s potential to reach $3,000 by 2025—fueled in part by expectations of lower interest rates from the Federal Reserve—gold stocks could present some attractive opportunities for investors. As gold’s momentum continues, a few key producers are positioned to benefit in both the short and long term. Let’s take a closer look at some companies worth watching.
Gold Fields (NYSE: GFI)
Strong Growth Prospects from Key Mine
Gold Fields is one stock we’re particularly excited about, given its recent momentum and strong fundamentals. Bank of America recently reinstated coverage of the stock with a buy rating and a price target of $16, implying 13% upside over the next 12 months.
One of the key reasons Gold Fields stands out is its Salares Norte mine in Chile, a project with huge potential. Despite facing initial challenges from the Covid-19 pandemic and macroeconomic hurdles, this mine is expected to become a highly cash-generative asset. By FY2026, Salares Norte could account for 22% of the company’s total production. This marks a significant boost to Gold Fields’ portfolio, adding another source of steady gold production for the company.
In addition to Salares Norte, Gold Fields is also set to benefit from its recent acquisition of Osisko Mining. This deal gives Gold Fields 100% ownership of the Windfall underground project in Quebec, which has the potential to produce nearly 300,000 ounces of gold per year. The company has a strong track record of investing in sustainable mining practices and forward-looking projects, making it a solid long-term play.
Barrick Gold (NYSE: GOLD)
Diversified Portfolio and Major Growth Catalysts
Another stock to keep an eye on is Barrick Gold. Barrick continues to be a major player in the gold mining space, with a diversified portfolio of assets across several countries. Its consistent gold production and steady cash flow make it one of the most reliable names in the sector. Barrick’s projects span North and South America, Africa, and the Middle East, offering investors exposure to both mature and developing markets.
Barrick has also been focusing on growing its copper portfolio, which adds a diversification angle that could further strengthen its business model. While gold remains its core focus, the company’s efforts to expand its footprint in copper, especially as demand for the metal increases with the global push toward renewable energy, add another layer of potential upside for investors.
On the financial side, Barrick’s balance sheet remains strong, with a commitment to maintaining a low debt level and returning capital to shareholders through dividends. As gold prices continue to rise, Barrick’s strong production and disciplined financial management put it in an ideal position to capitalize on the current market environment.
Newmont Corporation (NYSE: NEM)
World’s Largest Gold Miner with Steady Cash Flow
Newmont is the world’s largest gold mining company, and it remains one of the most solid names in the space for long-term investors. The company’s ability to generate steady cash flow, even during periods of market volatility, makes it a key stock to watch. Newmont operates in several safe mining jurisdictions, such as North America and Australia, giving it geographic stability in an often unpredictable industry.
Newmont has a strong pipeline of projects, including the Yanacocha Sulfides project in Peru and expansions at its Tanami and Ahafo operations. These projects are expected to add significant production capacity in the coming years, helping Newmont maintain its position as a leader in the industry.
Additionally, Newmont’s commitment to sustainability and its leadership in responsible mining practices set it apart from many of its peers. As investor interest in ESG (Environmental, Social, and Governance) factors continues to grow, Newmont’s efforts in this area could help it attract more capital in the future.
