Zacks Mining Perspectives – the gold industry looks bright, supported by 38.5% growth, which is still noticeable this year in gold prices. The blocks are expected to be larger, supported by increasing geopolitical tensions and the purchase of the central bank.
Gold prices are expected to increase due to demand supply imbalances, companies like Newmont mining No, no, Agnico Eagle mines Aem, Barrick Mining Corp B, Franco-Nevada Corporation FNV and Kinross gold KGC is well prepared to use it based on their strong balances, efforts to reduce costs and growth initiatives.
About the industry
Zacks Mining – The gold industry includes companies engaged in gold from mines. These mines can be either underground or open pits. Maining is a long and complex process and requires significant financial resources. This includes a deposit size assessment study; evaluate ways to extract and process ore efficiently, safely and responsibly; and create a mine before the actual mining process. Usually to make a gold mine to produce a material that can finally be improved, the gold mine is needed for 10-20 years. Nowadays, industrial players use many modern methods to extract gold and turn it into “dore” bars, gold and silver alloy, along with other impurities. They are then sent to clean, then gold is purchased as rods or coins or used for jewelry or other purposes.
The main trends that form the future of mining the gold industry
A solid gold price rally to help the industry: Gold prices have increased by 38.5%this year and are supported by strong safe demand, geopolitical tension and increasing trade conflict. Central banks worldwide accumulated gold reserves. Yellow metal prices on Tuesday were record more than $ 3,674 per ounce with increased betting. In addition, the geopolitical tension will continue to be created by the yellow metal rally. Meanwhile, central banks are expected to continue the purchase series this year.
Efforts to deal with high costs to keep the margins: The industry suffered a lack of skilled labor and caused a salaries spike. Industrial players face increasing production costs, including electricity, water, materials and supply circuit problems. Because the industry is unable to control gold prices, the focus is on improving sales volume and cash flow, as well as reducing the cost of cash units. Industrial participants choose alternative energy sources such as solar or wind farms to reduce fuel price variability and safe supply. Mountains are committed to implementing cost reduction strategies and digital innovations to increase operational efficiency.
Demand and supply imbalance to support prices: Retained resources, decreasing supply in old mines and a shortage of new mines were a threat to the industry. Due to the lack of discovery and the detailed existing resources, the mining are choosing to accumulate inventory, rather than digging new ones, which are risky and require a lot of capital. When it comes to demand, the use of gold in energy, health care and technology is growing. India and China make up about 50% of consumer gold demand. Demand for gold in India will continue to increase economic impulse and consumer confidence. Yellow metal has long been considered a safe investment related to financial or political uncertainty. Central banks have increased reserves with gold due to currency depreciation and geopolitical and economic risk. Therefore, there will be a possible demand imbalance, which is likely to increase gold prices.
Zacks industry ranking shows vivid prospects
The rank of Zacks Industry, the average rank of all members’ shares, shows promoting the nearest prospects. The Zacks Mining is the gold industry, which is a group of 40 shares in the wider Zacks basic material sector, currently occupies the Zacks industrial rank #91, which places it 37% of 245 Zacks Industries. Our study shows that 50% of the Zacks industries are 50% over 50% compared to more than 2 to 1.
Before presenting some of the shares that you may want to consider your portfolio, let’s look at the latest industrial stock market productivity and evaluation.
Industry compared to the S&P 500 and the sector
The mining gold industry has surpassed the S&P 500 index and the main material sector. In the industry, the stocks together increased by 67.3%compared to the broader sector growth by 6.6%. The S&P 500 rose 19.1%at the same time.
Current industrial assessment
Based on the 12-month EV/EBITDA, most commonly used to evaluate multiple gold mining companies, we see that the industry is currently selling 9.04x compared to the S&P 500 18.23X and the EBITDA-14.11x of the EBITDA-14.11x. This is shown in the diagrams below.
Over the last five years, the industry has been trading as much as 27.96x and even 5.23x – median – 7.44x.
Five mining gold reserves to observe
Agnico Eagle mines: The company closed O3 Mining in March, acquiring ownership of Marban Alliance Property. The integration of these assets into AEM Canadian Malartic Land package will create a significant and unique synergy. Companies are focused on extension of mines during existing operations, checking the capabilities of almost mines and improving the main value of drivers. 2025 Research priorities include converting and expansion of mineral resources in the Detrour Lake Metro project and East Gouldie Canada in Malaritic, as well as advanced Hope Bay. AEM was able to reduce costs by optimizing drilling productivity and innovation efforts. Her efforts to reduce debts are also commendable. AEM shares have increased 24.65 in the last three months.
Zacks consensus on Toronto, Canada -based gold mining company in 2025. Indicates that it is 64%per year. The calculation increased by 7.6% in the last 60 days. AEM on average is a four-quarter-income surprise-10%. The company’s long -term estimated income growth is 23%. Agnico Eagle Minnes is currently playing Zacks Ranking no. 1 (Strong Buy).
You can see A detailed list of today’s Zacks #1 shares;
Barrick’s mining: The company is useful to benefit from the progress of major growth projects, which should significantly increase its production. Currently major gold and copper growth projects, including Goldrush, Pueblo Viejo Factory Development and Mine’s extension, Fourmile, Lumwana Super Pit and Reko Diq. These projects seek the schedule and do not exceed the budget, which is the basis for the new generation of profitable production. Barrick has a strong liquidity position and creates healthy cash flows, using the attractive opportunities for development, exploration and acquisition, increases the value of shareholders and reduces debts. Barrick shares increased by 39.5%over the past three months.
The estimate of this Toronto, Canada Fiskal 2025, Zacks, shows a growth of 56.4% per year. B on average 6.7%of four quarter profits unexpected surprise. Currently, the company occupies the Zacks Rating no. 3 (HOLD) and long-term calculated income growth-27.5%.
Newmont: The company’s acquisition of Newcrest Mining has developed a briefcase in the industry with a few decades of gold and copper production profile in the most favorable mining jurisdiction around the world. Newmont refuses a non -core business because it moves its strategic attention to the 1 pillar assets. The company has a strong liquidity position and creates large cash flows that allow its growth projects to finance, correspond to short -term debt liabilities and increase the value of shareholders. It is carrying out several projects, including the Tanami Expansion 2 2 2 in Australia, Ahaf North North and Cadia Panel caves in Australia, which are expected to expand production capacity and extend the life of mine, increase income and profit. NEM shares increased by 34.6%in the last three months.
In Niumonte, which is located in Denver, CO, there is an average of four-quarter income surprise-32.8%. Zacks consensus on NEM 2025 Income has increased by 15% in the last 60 days and indicates that it grows by 52% a year. The company’s long -term estimated revenue growth is 15.7%. Newmont currently occupies 3 rank.
Franco-Nevada: FNV appears in a promising long -term trajectory, based on a healthy portfolio of streaming transmission and author’s salary agreements on several real estate that some of the best mining companies in the world are excavated. It is expected that 2025 The total GEO will be between 465,000 and 525,000, indicating a 7% increase per year in the middle. Given that the focus is on costs management, FNV has created large margins. The company has no debt and uses its free cash flow to expand the portfolio and pay dividends. It is expected that the third quarter will receive about 10,000 GEOS from Cobre Panama as it began to get gold and silver from Cobre Panama, based on its flow agreement. The company also continues to diversify its portfolio acquisitions.
The Zacks consensus on the earnings of this company shows 51.4% per year. FNV is an average of four-quarter revenue unexpected surprise-5,72%. The company’s long -term expected revenue growth is 15.6% and currently occupies 3 rank.
Kinross gold: Strong company liquidity position and high cash flows allow it to finance its development projects by paying debts and promoting the value of shareholders. Kinross Gold has a strong production profile and boasts a promising gas pipeline for research and development projects. His main development projects and research programs, including Great Bear in Ontario, Redbird pit Bald Mountain and Round Mountain X in Phase Nevada remains on the road. These projects are expected to increase production and cash flow and give great value. Kinross shares increased by 47.8%over the last three months.
The estimate of this Toronto, Canada -based gold mining company Fiskal 2025, Zacks shows 103% per year growth. KGC is on average 22.5%of four quarters of surprise. Kinross Gold’s long -term estimated revenue growth is 21.8%and the Zacks rank is 3.
Want the latest recommendations for Zacks Investment Research? Today you can download 7 best promotions for the next 30 days. Click to get this free report
This article was originally published on Zacks Investment Research (zacks.com).
