5 Top-Ranked Gold Mining Stocks Amid Strong Central Bank Purchases
At this stage, it will be fruitful to buy gold mining stocks with a favorable Zacks Rank. Five such stocks are: Franco-Nevada Corp. FNV, Royal Gold Inc. RGLD, Kinross Gold Corp. KGC, AngloGold Ashanti plc AU and Agnico Eagle Mines Ltd. AEM. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Solid Gold Demand by Central Banks
Central Banks are bolstering their gold reserves following rising global debt levels, trade and tariff-related uncertainties and lingering geopolitical risks, especially in the Middle East. Central bankers are purchasing more gold from local miners without weighing on foreign exchange reserves, especially the U.S. dollar.
Spot gold price is currently around $3,342/oz, up 37% year to date. Moreover, central banks across the world are in the process of cutting interest rates in order to spur economic growth. A low market interest rate is beneficial for non-income-bearing bullions like gold.
Additionally, the use of gold in energy, healthcare and technology is rising. Therefore, an eventual demand-supply imbalance is likely to drive gold prices. Market participants are optimistic about the gold mining industry's prospects. Giant investment bankers like Goldman Sachs and JP Morgan have forecasted that gold prices could climb to $4,000/ounce by 2026, suggesting continued bullish momentum.
The chart below shows the price performance of our five picks year to date.
Franco-Nevada Corp.
Franco-Nevada is well-poised to deliver strong earnings growth aided by increased contributions from its streaming agreements. Contribution from buyouts and a healthy portfolio of royalty and streaming agreements will aid the growth of FNV. Even though the company has been facing lower output due to the production halt in Cobre Panama, it is likely to be offset by FNV's continued focus on cost management.
FNV has a debt-free balance sheet and uses its free cash flow to expand portfolio and pay out dividends. Gold prices have been on an uptrend in 2025, aided by geopolitical reasons, and the potential for monetary policy easing. This rise in gold price will also boost the results of FNV in the coming quarters.
Franco-Nevada has an expected revenue and earnings growth rate of 34.6% and 43.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Royal Gold Inc.
Royal Gold has been benefiting from its solid streaming agreements. RGLD has been benefiting from its acquisitions and strong business model. Despite persistent inflationary pressures in the broader economy, the company has been maintaining high margins.
RGLD maintains a strong balance sheet, which is likely to drive growth in the upcoming quarters. This rise in metal prices, like gold and silver, will boost RGLD's results in the coming quarters. RGLD is focused on allocating its strong cash flow to dividends, debt reduction and new businesses.
Royal Gold has an expected revenue and earnings growth rate of 28.8% and 42%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the last 30 days.
Kinross Gold Corp.
Kinross Gold has a strong production profile and boasts a promising pipeline of exploration and development projects. These projects are expected to boost production and cash flow and deliver significant value. KGC is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion further increased throughput and production.
KGC's Manh Choh project at Fort Knox is expected to extend operations and benefit from higher gold prices. The Great Bear project in Ontario also offers a promising long-term opportunity with substantial gold resources. Higher gold prices should also boost KGC's profitability and drive cash flow generation.
Kinross Gold has an expected revenue and earnings growth rate of 17.9% and 72.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 30 days.
AngloGold Ashanti plc
AngloGold Ashanti operates as a gold mining company in Africa, Australia, and the Americas. AU primarily explores for gold, as well as produces silver and sulphuric acid as by-products. AU's flagship property is a fully owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.
AngloGold Ashanti has an expected revenue and earnings growth rate of 52.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days.
Agnico Eagle Mines Ltd.
Agnico Eagle Mines is focused on executing projects that are expected to provide additional growth in production and cash flows. AEM is advancing its key value drivers and pipeline projects. The Kittila expansion promises cost savings, while acquisitions like Hope Bay and the merger with Kirkland Lake Gold strengthen AEM's market position.
The merger with Kirkland Lake Gold established the new Agnico Eagle as the industry's highest-quality senior gold producer. Higher gold prices are also expected to drive AEM's margins. Strategic diversification mitigates risks, supported by prudent debt management and maintaining financial flexibility.
Agnico Eagle Mines has an expected revenue and earnings growth rate of 26.6% and 52.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7% over the last 30 days.
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Kinross Gold Corporation (KGC): Free Stock Analysis Report
AngloGold Ashanti PLC (AU): Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
Franco-Nevada Corporation (FNV): Free Stock Analysis Report
Royal Gold, Inc. (RGLD): Free Stock Analysis Report
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