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

The gold price has been hitting new five-year highs over the past month. It’s thought that the uncertainty surrounding the Israeli/Hamas war is encouraging people to stock up on the precious metal, as well as wider concerns about the world economies and geopolitical upheaval.

Indeed, for centuries, investors have bought gold as a financial safeguard in difficult economic and political times. That’s because, unlike other commodities, it is more likely to keep its value when circumstances are difficult. In tough times, currency can be affected by hyperinflation and the stock market can underperform but gold often remains in demand.

Not all gold stocks are alike, however. There are the major global mining companies, then there are junior mining explorers, the shares in which tend to be highly volatile and dependant on successful discovery and production schedules. Lastly, there are companies that buy royalties in certain mining operations and production projects around the globe.

Best gold shares to watch

We have selected the following stocks for recent market news.

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. Barrick Gold
2. Gold Fields
3. Fresnillo
4. Franco-Nevada
5. AngloGold Ashanti

Barrick Gold (GOLD:NYQ)

Toronto-based Barrick Gold is one of the largest gold mining companies by market capitalisation in the world. Worth $27.7 billion, it operates gold and copper mines in Canada, Argentina, the Ivory Coast, the Democratic Republic of Congo, Tanzania, Mali and other locations in Africa. It merged with Randgold in 2019 and some of its major projects include Bulyanhulu in Tanzania and Loulo-Gounkoto in Mali.

Management says it boasts one of the largest portfolios of Tier One and world-class gold and copper assets in the industry, some of which have potential lifespans of 15 to 20 years. Last year, operating cash flow increased by 7% year-on-year, while free cash flow grew by 50%. Turnover rose by 3.49% from $11 billion to $11.4 billion, while net income improved 194.44% from $432 million to $1.3 billion. The shares, which are down around 10% this year, yield 2.5% and trade on a price earnings ratio of around 21.7.

Gold Fields (GFI:NYQ)

South African company Gold Fields has its primary listing on the Johannesburg stock exchange and its US depository shares trade on the New York exchange. Valued at $13.6 billion, the company owns and operates eight gold, silver and copper mines in Australia, Canada, Peru, Chile and Ghana. The company has total attributable annual gold-equivalent production of 2.40Moz, attributable gold mineral reserves of 46.1Moz and mineral resources of 42.3Moz (excluding mineral reserves). The shares are up 34% this year to $14.68. They trade on a PE of 18 and currently yield 2.7%.

Fresnillo (FRES:LON)

Mexico-based gold and silver mining company Fresnillo recently unveiled resilient full year results. Turnover increased by 11% to $2.7 billion but profits fell by 6.5% to $288 million. The company, which has a market capitalisation of £3.5 billion, has been hit by rising inflation and the strength of the Mexican peso against the dollar. What’s more, thieves stoles $22 million worth of gold from its mines. However, management are reducing costs and Fresnillo also achieved its production targets for the year of 105 million silver equivalent ounces, although this was at the lower end of expectations. The shares are down 37% this year and currently trade on a PE of 18.7.

Franco-Nevada (FNV:NYQ)

Franco-Nevada is a slightly different proposition from the other companies mentioned here. The Canadian firm owns one of the biggest portfolios in the world of royalty, stream and working interests in other mining companies, which generates cash flow. The company invests in mining properties at different stages, including production and early exploration, in the US, Canada, Australia, Europe, Africa, South America and Mexico.

Its portfolio covers gold, silver, platinum group metals, iron ore and other assets, such as oil and gas and includes stakes in properties owned by Barrick Gold, First Quantum and Glencore. The debt-free firm has a market capitalisation of $22 billion and trades on the Toronto and New York stock exchanges. The shares are down by 16% this year after Franco-Nevada saw its revenues fall by 7% to $1.2 billion and adjusted net income fall by 2% to $683 million due to increased costs.

AngloGold Ashanti (ANG:JNB)

Based in the UK, AngloGold Ashanti is a gold mining company, with a portfolio of projects in nine countries, including Africa, the goldfields of Western Australia and the Americas. The company also produces silver in Argentina. Its operations include Kibali, managed by Barrick Gold Corporation, Ghana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali). Currently with its main listing in Johannesburg, and US depository shares trading in New York, AngloGold Ashanti plans to move its main listing to New York. Last year it generated free cash inflow of $314 million for the first half of 2023, compared with free cash outflow of $205 million in the previous six months as gold production rose 15% and total cash costs per ounce fell 9%.

The company declared a 9.1Moz gold Inferred Mineral Resource at its Merlin deposit, nearly doubling its overall Nevada Mineral Resource of the precious metal. The shares have risen by 15% this year.

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
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5. Place your deal and monitor your trade

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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.

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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.

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