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For investors who haven’t been living under a rock for the past year, the soaring price of gold (and other precious metals for that matter) has become one of the most important story lines to watch in the markets this year.
With the price of a single ounce of gold now currently hovering around $4,700 (right around its all-time high), the question of course is whether it’s too late for investors to dive in. I’m of the view that this momentum rally is probably warranted. That’s in part due to the underlying fundamentals of gold and its overall market capitalization relative to stocks (which is still low, despite its recent rally).
I remember reading a very solid analysis during the pandemic which suggested the true price of gold should have been around $10,000 per ounce at that time. So, with gold prices now rising to nearly half this level, let’s dive into three gold miners investors may want to consider as a way to capture the last 100% move in the price of this precious metal (if such a return materializes, of course).
Newmont Corporation (NEM)
The world’s largest gold miner, Newmont Corporation (NYSE:NEM) is a great place to kick off this list.
The company’s diversified portfolio of mining operations span the globe, with the company operating in four continents. Importantly, the areas Newmont has identified as worthy of development are among the most mining-friendly jurisdictions in the world, with some of the most impressive long-life mines in the market.
With a substantial pipeline of browned expansions and optimization projects that allow Newmont to add new low-cost ounces without raising its execution risk, this is a top option for investors looking to benefit from surging gold prices.
With impressive balance sheet strength and one of the most shareholder-friendly capital return profiles in the sector, Newmont’s forward price-earnings ratio of less than 16-times looks very attractive to me right now.
Barrick Mining (B)
Another top gold miner in terms of production volume, Barrick Gold (NYSE:B) is an excellent option for those seeking high-quality leverage to the price of gold. With tier-one assets in Nevada and Mali, this is a company that has produced more than 120 metric tons of attributable output in recent years.
Focus ing heavily on long-life and low-cost mines, Barrick’s margins are impressive. Strong operating margins have led to significant cash flow growth in recent years, nicely complementing the rising price of gold.
With a management team focusing on returns on invested capital and maintaining a conservative balance sheet, I think Barrick’s debt reduction profile in combination with its capital return prowess make this stock trading at just 14.7-times forward earnings with a 1.4% dividend yield a buy in my books.
Agnico Eagle (AEM)
Last, but certainly not least, we come to my top pick in the gold mining sector overall. Agnico Eagle (NYSE:AEM) is one of the highest-upside picks in this sector, in my view, in part due to the company’s acquisition a few years ago of Kirkland Lake Gold, which provided Agnico Eagle with some of the highest-grade mines in the market.
With more consolidation potential existing in this sector, and Agnico Eagle’s management team among the best in the market in terms of its M&A strategy, I wouldn’t be surprised to see this company add to its portfolio of quality assets with another deal. That’s because Agnico Eagle has one of the best balance sheets in this sector, with its mines located in very constructive jurisdictions (Canada, Finland and Mexico). Thus, this stock’s valuation of more than 18-times forward earnings is one that’s among the most expensive of its large-cap peers, but a premium that’s justified in my opinion.
I think Agnico has among the best upside in terms of being able to turn its high-quality production into surging free cash flow and higher dividends over time. That’s core to my investment thesis in this top gold miner, with Agnico Eagle remaining my top pick in this space as a way to play a continued bull market in 2026.