Are these the best gold shares to watch in June 2024?

Gold is widely viewed as the real asset safe haven of choice during times of inflationary or geopolitical stress. Many investors either buy gold stocks or the metal directly as an insurance policy of sorts against wider economic stresses.

Gold continues to flirt with record highs and may continue to stay high. There is of course huge geopolitical instability, includind the Russia-Ukraine war, conflict in the middle east, and increasing tensions between the US and China — particularly over Taiwan.

Further, while inflation has now fallen significantly, it remains a medium-term concern. National governments are nevertheless considering rate cuts, which could make gold relatively more attractive. Longer-term, public sector debt and deficits could see further devaluation of fiat currencies.

For perspective, central banks around the world have been buying gold at a record pace in recent years. World Gold Council data suggests this trend is unlikely to slow, with Q1 2024 seeing central banks buying a net 290 tonnes in the quarter, the strongest start to any year on record. This buying was led by China, Turkey and India.

It’s also worth considering supply issues; there are fewer gold operations coming online than in the past, and those which do come online often sport lower grades than in the past.

Best gold shares to watch

These are the five largest gold stocks in the world by market capitalisation. However, it's worth noting there are some miners with gold interests but for whom the precious metal is not their core business.

Gold and mining stocks can be highly volatile. Only invest money you can afford to lose. Past performance is not a guide to future performance.

1. Newmont
2. Agnico Eagle Mines
3. Barrick Gold
4. Wheaton Precious Metals
5. Franco-Nevada

Newmont

Newmont Mining is an American gold miner based in Colorado. Founded in 1921, it is now the world’s largest gold mining company after concluding a $16.8 billion takeover of Newcrest in November 2023.

The company focuses on Tier 1 assets, which are projects the company considers to be extremely profitable and productive — meeting criteria on reserve size, lifespan, operating costs and cash flow. Examples include the Boddington mine and Tanami mine, both in Australia.

In Q1 2024 results, the gold major produced 2.2 million gold equivalent ounces and generated over $1.4 billion in cash from operations before working capital changes.

President and CEO Tom Palmer enthused that ‘Underpinned by the gold industry's leading portfolio of Tier 1 gold and copper operations, we remain well-positioned to achieve our full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio. We remain focused on delivering on the commitments we laid out at the beginning of this year, creating an attractive value proposition for new and existing investors during this unique time in the gold industry.’

The company also delivered $288 million in dividends to shareholders.

Agnico Eagle Mines

Agnico Eagle Mines is a Canadian-based gold producer with operations in Canada, Finland, Australia and Mexico and exploration and development activities extending to the United States. Agnico Eagle has full exposure to higher gold prices consistent with its policy of no-forward gold sales

In Q1 2024 results, Agnico saw strong payable gold production of 878,652 ounces at an all-in sustaining cost of $1,190. Gold production was led by record quarterly production at Canadian Malartic and strong production from the Macassa and the Company's Nunavut operations.

The company also reported record quarterly cash provided by operating activities and free cash flow, allowing it to increase the cash position by $186 million and reduced net debt. Accordingly, Moody's upgraded the Company's long-term issuer rating to Baa1 from Baa2 in March.

President and CEO Anmar Al-Joundi noted that ‘we are reporting our second consecutive quarter of record operating margins and record free cash flow, on the back of solid operational and cost performance. With this strong start to the year, we are well positioned to achieve our production and cost guidance for 2024.’

The miner is also spending heavily on growth, including on exploration at Hope Bay, Canadian Malartic and Detour Lake. Construction of the Odyssey mine at the Malartic complex in Canada is also reportedly ‘progressing well.’

Barrick Gold

Barrick Gold is another sector-leading gold producer, which also has significant copper assets — though this is because copper and gold are often naturally found together. Its portfolio spans some of the world’s most prolific gold and copper districts and it’s focused on high-margin, long-life assets.

In Q1 2024 results, net earnings per share rose by 143% year-over-year, adjusted net earnings increased by 36%, and operations delivered some $760 million in operating cash flow. Further, Barrick maintained the dividend at 10 cents per share.

Operationally, the gold major remains on track to achieve 2024 targets at key mines Pueblo Viejo and Porgera, while Loulo-Gounkoto and Veladero also contributed solid performances.

A further highlight was the accelerated ramp-up of Goldrush in Nevada after its final permitting decision late in 2023. And at Barrick’s nearby Fourmile project, drilling for a prefeasibility study has also started.

President and CEO Mark Bristow noted that ‘Our focus on exploration has placed Barrick in the unique position of more than replacing the reserves we mine year after year. Our key organic projects, such as the development of Reko Diq, the extension of Pueblo Viejo’s Tier One13 life by more than 20 years and the transformation of Lumwana into one of the world’s major copper mines will secure Barrick’s production profile well into the future.’

Wheaton Precious Metals

Wheaton Precious Metals is one of the largest metals streaming companies in the world. The business has entered into agreements to purchase all, or a portion, of metals production from high-quality mines for an upfront payment and an additional payment upon delivery of the metal.

Wheaton currently has streaming agreements for 18 operating mines and 27 development stage projects — and has partnerships with operations including a gold stream on Vale’s Salobo mine, and a silver stream on Newmont's Peñasquito mine.

This unique business model appears to be delivering; Q1 2024 results saw the company generate $297 million in revenue and $219 million in operating cash flow. At the end of the period, Wheaton held a cash balance of $306 million and no debt, with a $2 billion undrawn credit facility. It had an attributable gold equivalent production of 160,100 ounces in the quarter, up by 19% year-over-year.

President and CEO Randy Smallwood enthused that ‘Looking ahead, we continue to forecast peer-leading production growth of 40% by 2028, buoyed by several development projects in our portfolio, many of which achieved significant milestones during the quarter. Building on the momentum from a record eight acquisitions in 2023, our corporate development team remains actively engaged in evaluating new opportunities and as always, Wheaton remains committed to ensuring that our growth is both accretive and sustainable for all stakeholders.’

Franco-Nevada

Franco-Nevada is widely regarded as a leading gold-focused royalty and streaming business, with he largest and most diversified portfolio of cash-flow producing assets. The company markets itself as an investment choice which provides exposure to the gold price and exploration optionality, but while limiting exposure to cost inflation.

In Q1 2024 results, the business had no debt and $2.3 billion in available capital. Operating cash flow was $178.6 million, and it increased the quarterly dividend by 5.88% to 36 cents per share.

Franco-Nevada is also rated the best precious metals company and the best gold company, by Sustainalytics, AA by MSCI and Prime by ISS ESG.

CEO Paul Brink notes that ‘Our diversified portfolio performed well and production for the quarter met expectations. Elevated gold prices translated directly into some of our highest ever margins. Salares Norte commenced production during the quarter and Greenstone and Tocantinzinho are on track for first production in the coming months. Alamos’ planned acquisition of Argonaut will help realize the full potential of the Magino and Island Gold deposits.’

How to invest or trade in gold shares with us

1. Learn more about gold shares
2. Open an account with us or practise on a demo
3. Select your opportunity
4. Choose your position size and manage your risk
5. Place your deal and monitor your trade

You can either invest in shares directly or trade using spread betting or CFDs to benefit from leverage.
Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.

Learn more about the differences between trading and investing here.

Top gold stocks to watch summed up

These are just a small number of gold stocks to watch - there are many more quoted on stock exchanges around the world. Always do your own research.

Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.
*Based on revenue excluding FX (published financial statements, October 2021).