5 Mining Stocks to Add Shine to Your Portfolio Before the Year Ends
This year has been exceptional for gold and silver, highlighted by numerous dynamic factors that have propelled gold prices to unprecedented heights, leading to significant gains in mining stocks. With geopolitical tensions, U.S. monetary easing, and an upcoming election, the bright spot in commodities is hard to ignore. By October, gold hit a staggering $2,790 an ounce, marking a substantial 28% increase year-to-date, vastly outpacing stocks, bonds, and most commodities. Silver followed suit, climbing 27% year-to-date to peak at $35 an ounce in October, already sidestepping a previous loss.
Gold & Silver’s Stellar Run This Year
According to the World Gold Council, total gold demand surged by 3% in the first three quarters of 2024, with the third quarter witnessing a record demand of 1,313 tons and a cumulative value exceeding $100 billion for the first time. This demand surge is attributed to central banks, which have been on a buying spree, alongside strong bar and coin investment, which increased to 859 tons. While jewelry demand softened due to high prices, notable exceptions have emerged, especially in India where a recent cut in gold import duties drove up sales.
With geopolitical concerns and fears of an economic slowdown providing a supportive backdrop for precious metals, it is prudent for investors to consider strategic plays within the mining sector. Gold and silver markets hint at lasting strength as global industrial demand for silver is poised to rise by 7%, primarily driven by green energy applications—especially in photovoltaic technologies.
2025 Prospects: Bright or Bleak?
Looking towards 2025, analysts are optimistic about gold possibly reaching $3,000 an ounce. Central bank interests, particularly with their ongoing purchases and geopolitical uncertainty, play significant roles in this forecast. Demand from India is likely to stay robust, supported by positive economic indicators. Furthermore, India’s anticipated increase in silver imports driven by green technology initiatives is a noteworthy development. As such, investors must consider mining stocks that are well positioned to benefit from these trends.
5 Gold & Silver Stocks Poised to Perform Well in 2025
After thorough analysis, we have shortlisted five mining stocks ripe for potential robust growth driven by strong operational metrics and positive earnings projections for the forthcoming years. These stocks include:
Coeur Mining (CDE)
This Nevada-based operator is on track to meet ambitious production targets for both silver (4.8-6.6 million ounces) and gold (37,000-50,000 ounces) at its recently expanded Rochester mine. Its impending acquisition of SilverCrest Metals is expected to significantly enhance its cash flow, boosting long-term growth prospects. CDE’s fiscal 2024 earnings estimate indicates a year-over-year surge of 165% and a staggering projected growth of 311% for 2025. With a year-to-date stock gain of 77%, CDE currently holds a Rank #1 (Strong Buy).
Pan American Silver (PAAS)
The acquisition of Yamana Gold last year has positioned Pan American as a formidable player in the silver and gold sector in Latin America. Enhanced resources and operational efficiency promise robust production growth in 2025. Earnings estimates for fiscal 2024 suggest a remarkable 525% growth year-over-year, with a subsequent 96.3% increase for 2025. Year-to-date, PAAS stocks are up 24.8%, and it holds a Rank #2 (Buy).
Fortuna Mining Corp (FSM)
Steadily scaling its production capabilities, Fortuna expects to produce between 343,000-385,000 ounces of gold in 2024, alongside 4-4.7 million ounces of silver. Its disciplined approach focuses on reducing debt while pursuing organic growth methods. Consensus estimates project a 118% earnings increase for 2024, with continued momentum into 2025. FSM stock has risen by 12.2% year-to-date and maintains a Rank of 2.
Fresnillo (FNLPF)
Fresnillo anticipates producing 101-112 million silver-equivalent ounces in 2024 and aims to enhance efficiency and lower costs via its new Juanicipio project. Earnings projections reflect substantial increases of 45.2% in 2024 followed by a boost of 77% for 2025. The stock has gained 6% year-to-date and holds a Rank #2.
New Gold (NGD)
New Gold is expected to output between 300,000-310,000 ounces of gold in 2024, with operational efficiencies enabling stronger free cash flow generation. Projected earnings illustrate a year-over-year climb of 157% for 2024, complemented by a 46% rise for 2025. With an impressive year-to-date increase of 71%, NGD maintains a Rank #2.
Conclusion
As gold and silver are expected to maintain upward trajectories bolstered by demand and geopolitical dynamics, now is a crucial time for investors to consider these mining stocks. With sound fundamentals and robust projected earnings, CDE, PAAS, FSM, FNLPF, and NGD stand out as solid additions to diversify and enhance a commodities-focused investment portfolio. As 2024 winds down and the possibilities for 2025 unfold, these companies are well positioned to shine amidst an ever-evolving commodity landscape.
