3 Gold Mining Stocks That Could Strike It Rich for Investors in 2024


  • These are the undervalued gold mining stocks to buy before they surge on the back of higher realized gold price.
  • Barrick Gold (NYSE: GOLD): High-quality tier one gold assets and robust operating cash flow visibility make this a top pick. 
  • Kinross Gold (NYSE: KGC): An investment grade balance sheet, healthy liquidity buffer, and robust cash flow for organic and potential acquisition driven growth drive KGC’s value. 
  • IAMGOLD (NYSE: IAG): Côté Gold mine has commenced production in March and will contribute to revenue and cash flow bump-up.
gold mining stocks - 3 Gold Mining Stocks That Could Strike It Rich for Investors in 2024

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Gold has been trending higher this year after an extended period of consolidation. From a technical perspective, $1800 to $2,000 an ounce serves as strong long term support levels for the precious metal. I believe that the uptrend in gold is likely to sustain. In-sync with this view, I am bullish on some undervalued gold mining stocks.

An important reason to be positive on gold is potential expansionary policies. The fact that gold is trending higher is an indication of the point that multiple rate cuts might be on the cards. Further, factors like central bank buying and geopolitical tensions are likely to keep demand firm for gold.

As realized gold price increases, I expect gold miners to benefit in the form of higher free cash flows. This will also allow gold mining companies to increase dividends at a healthy rate. With these positives, let’s talk about three gold mining stocks to buy for stellar returns.

Barrick Gold (GOLD)

The Barrick Gold (GOLD) logo is displayed on a smartphone screen over a bright blue background.
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Barrick Gold (NYSE:GOLD) stock has been sideways to lower in the last 12 months. This is a gold opportunity to accumulate the blue-chip stock before it blasts higher. GOLD stock looks undervalued at a forward price-earnings ratio of 16.6 and offers a dividend yield of 2.55%.

As an overview, Barrick Gold has one of the largest portfolios of tier one gold assets. As of 2023, the Company reported attributable proven and probable mineral reserves of 77 million ounces. It’s worth noting that Barrick has delivered replacement of over 140% of the company’s gold reserve depletion since end of year 2019. As the reserve base remains robust, there is clear cash flow visibility for the long term.

Another point to note is that Barrick reported operating cash flow of $3.7 billion for 2023. With higher realized gold prices, it’s likely that OCF will be in the range of $4 to $4.5 billion this year. Therefore, there is ample flexibility for dividends, share repurchase, and continued investment in exploration.

Kinross Gold (KGC)

Cellphone with business logo of Canadian mining company Kinross Gold Corp. on screen in front of webpage.
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Kinross Gold (NYSE:KGC) has been in a gradual uptrend in the last 12 months. However, KGC stock remains undervalued at a forward price-earnings ratio of 16.9. The stock also offers an attractive dividend yield of 2% and I expect healthy dividend growth this year.

Besides the valuation, the first reason to like Kinross is an investment grade balance sheet. Further, the Company reported a liquidity buffer of $1.9 billion as of Q4 2023. This provides ample financial flexibility for aggressive exploration investments and potential acquisitions.

I must add that Kinross reported operating cash flow of $1.7 billion for 2023. With gold trading above $2,200 an ounce, OCF for the year is likely to exceed $2 billion. Kinross has guided for steady production through 2026 and has a good reserve base of two million ounces. This provides clear cash flow visibility for growth investments.

Overall, Kinross is attractive considering the cash flow potential. Besides dividends and share repurchase, I expect opportunistic acquisition to set stage for production growth in the coming years.


Gold bars and Financial concept, studio shots. Costco's gold bars, cost stock
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IAMGOLD (NYSE:IAG) is a penny gold mining stock that’s likely to deliver multibagger returns. Currently, IAG stock trades at $3 and I would not be surprised if the stock is trading in double digits before the end of the year. Of course, the key assumption is that gold remains bullish.

Coming to the Company specific factor, IAMGOLD is positioned to report strong production growth this year. Therefore, IAMGOLD will benefit from higher realized price coupled with production bump-up. This is likely to translate into stellar revenue and free cash flow growth.

To put things into perspective, the Côté Gold asset has commenced production in March. The asset has the potential to become the third largest gold mine in Canada. Production is expected at 220,000 and 290,000 ounces for the year.

Even at lower end of the production guidance and a realized gold price of $2,100 an ounce, the incremental revenue impact is at $460 million. With healthy revenue growth outlook and high financial flexibility, it’s a matter of time before IAG stock skyrockets. Gold mining stocks like IAG are perfect fits for your portfolio.

On the date of publication, Faisal Humayun 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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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