Gold prices were up over 26% in 2024, with both spot gold and U.S. gold futures reaching record highs in recent months, driven by strong investor interest amidst economic uncertainty and inflation worries. This exceptional performance continued through most of the year. For example, U.S. gold futures climbed to $2,619.00 per ounce following November's inflation data, which showed a 2.7% year-over-year increase in the U.S. Consumer Price Index (CPI), aligning with market expectations.
Spot gold prices also did well last year hitting a record $2,790.15 an ounce on October 31, 2024. November's inflation figures further fueled anticipation of a potential Federal Reserve interest rate cut at that time, bolstering gold's attractiveness.
Gold's impressive performance throughout 2024 has translated into opportunities for gold stocks and companies involved in gold mining, production, and distribution. With analysts forecasting gold prices to potentially reach $3,000 per troy ounce by the end of 2025, several stocks remain well-positioned to capitalize on this upward trajectory.
Gold Stocks To Get On The Cheap
Iamgold Corp
Investors of Iamgold Corp (NYSE: IAG) have seen a 152% return this year. For much of this year, IAG has been riding on the hype surrounding the yellow metal, with stock performance up more than 142% since the start of the year.
In the third quarter, Iamgold delivered strong results, with year-to-date production of 490,000 fold ounces. Total annual production guidance stands at 625,000 to 715,000 ounces. Further, revenues were $438.9 million, with sales of 184,000 ounces at an average realized gold price of $2,391 per ounce. Total year-to-date sales averaged $2,260 per ounce from sales of 514,000 ounces.
The company recently announced a 9.7% repurchase of the Côté Gold Mine, which was part of a transfer deal to Sumitomo Metal Mining Co in December 2022. However, the repurchase now provides Iamgold with a 70% stake in Côté Gold and will help provide additional production delivery for the fourth quarter.
Coeur Mining Inc
This year has been delivering strong indications that Coeur Mining (NYSE: CDE) is back on track with stock prices rising over 130% since the turn of the year. Despite wider price swings, current stock performance is roughly 1.73% below its former peak.
The third quarter delivered a strong production output across Coeur Mining’s portfolio. Total gold output delivery rose 21%, totaling 94,993 ounces of gold. Silver production increased 15% to 3.0 million ounces, while costs applicable to sales declined by 12% compared to the second quarter.
Robust production delivery resulted in a strong financial performance, largely coupled with higher metal prices. Overall, revenue rose to $313 million, an increase of 41%, with adjusted EBITDA of $126 million up 140% quarter over quarter.
In October 2024, the company announced the acquisition of SilverCrest Metals Inc. with an implied value of $1.7 billion. The acquisition will provide Coeur an opportunity to expand its metals portfolio and create a leading silver metal company.
Kinross Gold Corp
Value investors have kept Canadian-based Kinross Gold (NYSE: KGC) on their radar this year, with stock prices up by more than 78% since the start of 2024. The gold mining extraction and exploration company has seen strong improvement across its gold delivery output, along with increased financial delivery.
For starters, gold production came in strong, with 564,106 gold ounces produced during the third quarter. The strong output was further supported by an increased margin of $1,501 per ounce, which outpaced the rise in average realized gold prices.
In the third quarter, the company largely benefited from increased margins, which rose by 14% compared to the second quarter. Not only this, but the overall 6% increase in the realized gold price had allowed the company to grow its free cash flow more sustainably, rising 20% over the period compared to the previous quarter.
Wheaton Precious Metals Corp
For much of this year, Wheaton Precious Metals (NYSE: WPM`) had delivered impressive results with production output rising quarter-over-quarter. For instance, in the third quarter, the company delivered 144,200 gold equivalent ounces, with a total delivery of 448,400 for the first nine months of the year.
Slower production output from Salobo and Constancia was largely offset by the higher turnout from Peñasquito. On the financial side, the company reported third-quarter revenue of $308 million, with $694 million in cash balance.
For 2024, the company has a production forecast guidance of 550,000 to 620,000 and a total forecasted sector-leading growth of over 800,000 by 2028. Wheaton has been a favorite among investors looking to diversify their portfolios and take advantage of WPM’s dividend. In the third quarter, the company declared a quarterly dividend of $0.155 per share.
Final thoughts
2024 was an exciting year for U.S. futures with prices surpassing traders' expectations, and delivering a more robust turnout on the back of wider economic and political uncertainty. These developments have given some gold stocks a better performance environment, with prices surging as value investors turn to gold stocks for better portfolio diversification.
Looking ahead, 2025 will bring a series of new challenges for the market, but future traders expect the price of precious metals to continue climbing, breaking the glass ceiling yet again. Gold stocks could follow a similar trend, and perhaps provide investors with more buoyancy entering the new year.
Disclosure: I own some GLD; I have no positions in any gold stocks.
