3 Promising Gold Stocks to Buy Today

November 28, 2023
By The Investing Insider Staff

Key Takeaways:

  • Barrick Gold (GOLD) has increased production at lower costs, strong cash flows, and is making progress on growth projects, positioning itself well amid high gold prices.

  • SSR Mining (SSRM) has robust production numbers, especially at Marigold, and is pursuing strategic high-return growth projects to expand output.

  • Coeur Mining (CDE) is focused on optimizing key assets like Rochester and Palmarejo, improving production and costs, and exploration to sustain long-term growth.

Gold is starting to shine…

As a safe haven, gold shines brightest amidst economic and political strife. And this glow-up could just be starting…

Bullion has eclipsed $2,000 an ounce and it averaged a stellar $1,928 in Q3 – a 12% surge year over year.

But not all that glitters is gold for mining stocks. 

Headwinds Facing Gold Companies Today

Costs are erupting, talent is scarce, and existing reserves are dwindling. Developing new mines takes years – if not decades – emphasizing the need for new growth strategies.

That’s why gold explorers are getting creative – adopting "green" energy to lower energy costs, deploying AI to better target potential deposits, and implementing advanced analytic analysis.

A lack of new major discoveries is also why larger producers are looking to make acquisitions as a primary growth strategy.  They’re buying-up smaller gold companies with proven mine sites and high potential exploration projects to shore up reserves.

Gold Demand Continues to Surge

Gold demand (excluding OTC) in Q3 was 8% ahead of its five-year average.

Central banks also maintained buying gold at a historic pace this year – snatching up 337tonnes for the third strongest quarter on record. 

And gold remains an integral part of celebrations and culture in China, India, and other nations.

The one-two punch of constrained supply and spiking demand is setting the stage for a prolonged gold bonanza. But are you prepared to capitalize on this potential mother lode?

Today we’ll look at three gold stocks that are set to thrive as prices rise: Barrick Gold (Ticker: GOLD), SSR Mining (Ticker: SSRM), and Coeur Mining (Ticker: CDE).

Gold Stock to Buy #1: Barrick Gold Corporation (Ticker: GOLD)

Why We Think Barrick Gold is a Gold Stock to Buy:

Barrick Gold Corporation is a leader in gold and copper mining.

The company exhibits a robust strategic position in the mining industry with a focus on efficient production and sustainable practices. Its ability to increase production while maintaining lower costs reflects operational excellence and adaptability in a dynamic market.

Barrick’s emphasis on long-term growth and value creation, supported by a strong balance sheet, positions it well for enduring success in the gold mining sector.

Latest Results:

Barrick Gold reported a progressive increase in revenues over the last three quarters, from $2.64 billion to $2.86 billion, with a quarterly average growth of 3.9%.

The company's net profit experienced a significant reversal, transitioning from a deficit of $816 million to a surplus of $368 million across four quarters, representing an average growth of 145.1%. This notable improvement in financial performance can be attributed to increased gold and copper production achieved at reduced costs.

Additionally, there is an anticipation of further enhancement in production during the fourth quarter.

Investing Insider Growth Catalysts:

  • Output Expands: Gold and copper production has consistently risen in recent quarters, underscoring the company's operational effectiveness and adaptability to market conditions.
  • Advancements in Growth Projects: Barrick is making significant progress with growth projects like La Moana and RekoDiq, signaling a strategic expansion and diversification of its mining portfolio​​.
  • Strong Financial Performance: The substantial increase in operating cash flows and free cash flow, along with a notable increase in adjusted net earnings, underscores the company’s financial strength and capability to invest in growth initiatives while continuing to reward shareholders through dividends​​.

Gold Stock to Buy #2: SSR Mining (Ticker: SSRM)

Why We Think SSR Mining is a Gold Stock to Buy:

SSR Mining Inc. distinguishes itself in the gold mining industry with its impressive trajectory of growth and operational efficiency.

SSR Mining's robust production numbers, particularly at its Marigold mine, underscores its capacity to optimize output and manage costs effectively. The company's strategic emphasis on high-return growth projects, such as the Çakmaktepe Extension and the Hod Maden project, demonstrates a clear vision for sustainable expansion and value creation.

This forward-thinking approach, coupled with a strong commitment towards responsible mining and environmental stewardship, positions the company favorably for future growth and profitability in the dynamic gold mining industry.

Latest Results:

SSR Mining showcased strong operating results in the third quarter of 2023.

Consolidated production reached 192,195 ounces of AuEq (Gold Equivalent), continuing on an upward trajectory towards the annual production target of 700,000 ounces AuEq.

The financial performance for Q3FY2023 included an attributable net income of $15.2 million, or $0.07 per diluted share, and an adjusted attributable net income of $53.0 million, or $0.26 per diluted share.

Furthermore, the company generated significant operating cash flow (at $135.3 million) and free cash flow (at $87.8 million), reinforcing its solid financial standing. At the close of the quarter, the company reported a total cash holding of $437.7 million. When accounting for net cash, which stood at $206.9 million, the firm's overall liquidity position is notably strong, amounting to $937.8 million.

Investing Insider Growth Catalysts:

  • Çakmaktepe Extension and Çöpler Expansion:The ongoing ramp-up of the Çakmaktepe Extension project and progress in the Çöpler Expansion project, including value-accretive grind and leach processing studies illustrate SSR Mining's commitment towards enhancing production efficiency and resource utilization​​.
  • Hod Maden Project:  With initial site preparation underway, the company is advancing towards a construction decision in FY2024 for the Hod Maden project, targeting first production in FY2027. This project exemplifies the company's strategic expansion into high-potential mining ventures​​.
  • Marigold Mine Development: The technical work supporting the updated life-of-mine plan at Marigold, including potential contributions from the New Millennium oxide target area, showcases SSR Mining's focus on leveraging its existing assets for long-term production and revenue growth​​.
  • Resource Conversion and Exploration: The company's emphasis on accelerating Mineral Resource conversion across its global portfolio highlights its proactive approach in optimizing resource potential and sustaining production levels​​.

Gold Stock to Buy #3: Coeur Mining (Ticker: CDE)

Why We Think Coeur Mining is a Gold Stock to Buy:

Coeur Mining Inc. (NYSE: CDE) presents an attractive investment opportunity in the precious metals sector.

As a U.S.-based, diversified precious metals producer, Coeur has demonstrated a robust performance in its recent quarterly results. The company's strategic focus on expanding and optimizing its key operations, notably the Rochester mine in Nevada, aligns with its goal of increasing production efficiency and reducing costs.

Coeur's balanced approach to capital investment, efficient operational management, and ongoing exploration initiatives advantageously position it for sustainable growth in the gold and silver markets

Latest Results:

Revenue for Q3FY2023 reached approximately $195 million, a significant increase of 10% from $177 million in the previous quarter.

This increase is attributed to a 15% quarter-over-quarter increase in gold production and a 13% reduction in adjusted costs per gold ounce. While the company posted a net loss of approximately $21.1 million in Q3FY2023, this being an improvement over the approximate $32.4 million net loss in the previous quarter, indicating a 53.6% upward shift.

Investing Insider Growth Catalysts:

  • Rochester Expansion Project Completion: The completion of the Rochester expansion project, a key driver for Coeur's future growth, has enabled a substantial increase in production. In October, the Rochester mine recovered over double the year-to-date monthly average for silver and over triple for gold​​. The expansion project is expected to significantly boost overall production efficiency and profitability in the coming years​​.
  • Enhanced Production and Cost Management: Coeur has successfully improved gold and silver recovery rates and managed costs effectively. Adjusted costs applicable to sales (CAS) for gold and silver on a co-product basis showed a favorable trend, with a 10% decrease for gold and a slight 3% increase for silver, quarter-over-quarter​​.
  • Strategic Exploration Activities: The company's increased focus on exploration, especially at the Palmarejo mine in Mexico, is laying the groundwork for future resource expansion and increased production capacity. Coeur expects five drill rigs to be active at Palmarejo in the fourth quarter, highlighting its dedication to long-term growth through exploration​​.
  • Financial Strength and Hedging Initiatives: Coeur ended Q3FY2023 with approximately $280 million in total liquidity. The company's gold and silver hedges, totaling nearly $20 million in gains, provide a cushion against market volatility and support its capital-intensive projects.

Final Thoughts:

With upbeat gold prices, these companies provide great investing opportunities for the short to medium term.

Each showcases strong operational capabilities and strategic growth initiatives underpinned by solid financial results and potential for continued expansion.

For those looking to capitalize on the current momentum in the precious metals sector, Barrick Gold (Ticker: GOLD), SSR Mining (Ticker: SSRM), and Coeur Mining (Ticker: CDE) merit consideration.

But remember, investing is never a sure-shot bet. Always do your homework while even getting some advice from a financial professional to make sure these options fit your own risk appetite and financial goals. As with any investment, aligning choices with your personal risk tolerance and financial objectives is key to making informed decisions.

Frequently Asked Questions:

Q: Why is the gold exploration sector at an important point currently?

A: Strong gold prices, supply constraints, and rising costs are driving a focus on efficiency and acquisition of existing reserves rather than new exploration.

Q: How has Barrick Gold demonstrated operational excellence recently?

A: By increasing gold and copper production while keeping costs low, resulting in stronger cash flows to support growth projects.

Q: What makes SSR Mining well-placed in the gold mining industry?

A: Optimizing output at mines like Marigold, pursuing high-return growth projects, and converting resources to reserves to sustain production.

Q: What are the key drivers of growth for Coeur Mining?

A: Completing the Rochester expansion to boost output, enhancing production and cost efficiency, and strategic exploration to expand reserves.

-Investing Insider Staff
This article is informational purposes only and is not investment advice.  See full disclaimer here
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