Investing in gold stocks could be a great way to diversify an investment portfolio. Because it gives investors a sector that typically has separate price movement compared to others in the market and is based on a commodity. Just recently, gold and silver stocks saw a surge in their share price after the news of airstrikes in the Middle East. When investors are fearful, they often turn away from average stocks toward an investment in precious metals.
Below are three gold mining companies that have seen strong results throughout 2023 and are entering 2024 with the potential for future growth.
Alamos Gold (AGI)
Alamos Gold (NYSE:AGI) is a company that explores and acquires various mining properties in North and South America. The company operates two underground gold mines in Southeastern Canada and an open pit gold mine in Northern Mexico. Alamos also has multiple developing projects in Canada, Turkey and the U.S.
On Oct. 25, AGI reported earnings for the third quarter of 2023. Their total revenue increased by 20% year-over-year. Alamos also reported a free cash flow of $1 million for Q3 2022, which increased to $37 million. Gold production improved year-over-year by approximately 10%; their most productive mine was their property in Mexico.
Recently, Alamos Gold announced that it would acquire Orford Mining in an all-stock transaction. In addition, AGI will also receive multiple of Orford’s gold mining projects located in Canada.
Alamos Gold is a mining stock to buy because they have seen improvement in their financial position, and their new acquisition gives them room to expand operations.
Kinross Gold (KGC)
Kinross Gold (NYSE:KGC) is a company that owns and operates mining properties within Africa, South America and North America. They have 100% ownership in three gold mines in the U.S. and they process ore in multiple mines in South America. Kinross also operates a large open pit mine in Mauritania and a mining project in Ontario, Canada.
Over the past year, the company has seen its share price grow by 26%, partly due to production results recently exceeding expectations. On Nov. 8, they reported earnings for the third quarter of 2023, which stated that total revenue grew by 29% and net income increased by 68% compared to the previous year. Within the same time period, the gold production increased by 11%. On Feb. 14, Kinross Gold is expected to release earnings for the fourth quarter full-year result for 2023.
KGI’s share price has seen decent growth this year, with record production in their mine in Mauritania, among positive results for several other properties they operate. Kinross is positioned to continue to grow.
Eldorado Gold (EGO)
Eldorado Gold (NYSE:EGO) is a gold mining company that operates multiple mines in North America, Europe and Asia. Eldorado operates an underground gold mine located in Quebec, Canada, an underground mine produces gold, silver, zinc, and lead locked in Greece, and two different gold mines within Turkey.
Over the past year, EGO has seen its price increase by approximately 42% due to strong production results and improved financial position. On Oct. 26, they reported earnings for the third quarter of 2023 which stated that total revenue increased by 13% and their net loss shrank by 85%.
On Jan. 2, there was a leadership change in which Paul Ferneyhough was appointed as the chief financial officer as well as executive vice president, effective Jan. 2, 2024, due to the retirement of Phillip Yee.
Full-year production results for 2023 were released on Jan. 15, which stated that total gold production increased by 7% compared to the full-year results for 2022. Their best-performing mine is their underground mine, which is in Canada.
Eldorado Gold has performed very well so far this year. They experience increased production of gold and other precious metals. As well as other metrics such as revenue, and is posted for growth going forward.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
