The Gold Standard: 5 Gold Mining Stocks To Dig Up Big Returns

Trump’s Trade War & Falling US Dollar Unlocks a New Gold Rush

Grab your shovel. There’s a new kind of gold rush happening on Wall Street.

Maintaining a well-balanced commodities portfolio can be worth its weight in gold in terms of mitigating risk in volatile markets. Gold prices rose more than 1% on Friday, extending a multi-day rally as an escalating trade war between the U.S. and China, tariff fears, and a weakening U.S. dollar drove investors towards the safe-haven metal. ING Bank NV strategist Francesco Pesole wrote:

The question of a potential dollar confidence crisis has now been definitively answered – we are experiencing one in full force…The dollar collapse is working as a barometer of ‘sell America’ at the moment

Over the past year, gold has emerged as a favored safe-haven asset as investors seek to safeguard their portfolios from heightened volatility and rising trade tensions. In March, it exceeded $3,000 per troy ounce for the first time—its biggest price milestone since the COVID-19 pandemic.

Gold Prices Vault Past $3,000 (as of 4/11/25)

According to an analysis by the World Gold Council, a strengthening euro, economic uncertainty triggered by President Donald Trump’s back-and-forth tariff policies, and rising demand for Gold ETFs all propelled gold prices to record highs in March.

Tariff Fears and a Weakening Dollar Push Gold Price to New Highs

U.S. ETFs came in gold with $6B of net inflows, followed by Europe and Asia with 1B apiece. Meanwhile, a sweeping sell-off in equities fueled by tariff uncertainty further drove demand for gold in March.

Gold ETF Flows Surge in 2025

Last month, I recommended readers consider one of two Strong Buy Gold ETFs: the iShares® Gold Trust Micro ETF (IAUM) or SPDR® Gold MiniShares ETF (GLDM), depending on their preferred investment size. Both continue to eclipse the SPDR® S&P 500® ETF Trust (SPY), which closely mirrors the S&P 500. Since recommending these funds on March 19, both have gained around 3.8% compared to SPY’s near 8.5% loss as of April 10.

SA Quant’s ETF Picks Crush the Broader Market

Looking ahead, softer-than-expected inflation data released on Thursday has prompted Fed futures traders to bet that the Federal Reserve will resume slashing rates in June, according to the CME FedWatch tool. Traders have also upped their expectations that the Fed would cut interest rates by 75 basis points in 2025 to a full percentage point by the end of the year. Slashed interest rates typically result in lower borrowing costs, which tend to benefit non-yielding assets such as gold.

82% of Fed Futures Traders Predict a June Rate Cut (as of 4/11/25)

Equities valuations remain high, forecasting further downside to equities should the economic slowdown continue. After the Trump administration’s sudden 90-day pause on most tariffs this week, the market exploded, but the euphoria quickly reversed again. While the tariff freeze may have prevented severe damage to the economy, concerns linger over the levies’ long-term effects. “We believe even these reduced tariffs will imply a serious hit to growth,” the UBS global research team warned on Thursday morning as the U.S. stock market retreated once again following Wednesday’s epic rally.

Amid this gloomy outlook for U.S. stocks, gold shines even brighter. “I think we’re very close, if not in, a recession now,” BlackRock (BLK) CEO Larry Fink told CNBC on Friday, adding that he did not think the U.S. was in a financial crisis and that “megatrends” in the economy like artificial intelligence would persist. J.P. Morgan Chase (JPM) CEO Jamie Dimon said Friday that he expects “estimates for corporate earnings to fall amid the uncertainty created by President Donald Trump’s trade negotiations.”

The comments from the leaders of the world’s largest financial institutions paint a fairly bleak picture for the economy in the near-term. Likewise, these comments can be viewed as positive for Gold’s continued rise. “We remain quite positive for gold,” Dominic Schnider, head of commodities and Asia Pacific currencies at UBS Global Wealth Management, told Bloomberg TV on Thursday. “The next step is going to be, at some point, the Fed coming in — and that gives the next leg up for gold.”

Major banks remain bullish that the price of gold will continue to rise: BofA’s head of metals research, Michael Widmer, predicts that the precious metal will rise to $3,500 in the long term, while Macquarie anticipates it will reach $3,500 by next quarter.

Investing in Gold Producers

Typically less correlated to traditional assets such as stocks and bonds, exposure to physical assets offers a myriad of benefits, from inflation protection to diversification to the potential for high returns.

As I’ve written before, gold ETFs can be a simple and effective way to gain broad exposure to the asset class. Alternatively, gold mining stocks can provide investors with exposure to the asset class, solid dividend income, and a layer of protection against market volatility. There are plenty of advantages to investing in gold producers. Unlike investing in the physical commodity, gold mining stocks often pay dividends, making them a compelling option for income-oriented investors seeking steady returns in volatile markets.

According to an analysis by DWS, gold mining stocks have grown more profitable in recent years after reducing their debt levels, increasing M&A, and placing a higher emphasis on cash generation. They even outperformed the price of gold for significant periods in 2024, a stark reversal of historical trends that shocked many industry insiders, as Reuters Breakingviews’ Edward Chancellor wrote.

Gold Mining Stocks Outperformed Gold on Several Occasions in 2024, Surprising Industry Insiders

Looking forward, Washington’s escalating trade war with China, lingering concerns over economic growth, and future interest rate cuts could potentially boost the performance of gold mining stocks even further. The SA Quant Team has five Strong Buy gold production stocks that have benefitted from gold’s extended rally, all of which possess strong balance sheets and excellent fundamentals.

We selected these stocks by reviewing the Top Gold Stocks quant screen. Our preferences were determined by focusing on Gold stocks that possess both solid growth metrics and an attractive valuation frameworks.

1. DRDGOLD Limited (DRD)

• Market Capitalization: $1.3B
• Quant Rating: Strong Buy
• Sector: Materials Stocks
• Industry: Gold Stocks
• Quant Sector Ranking (as of 4/11/25): 1 out of 276
• Quant Industry Ranking (as of 4/11/25): 1 out of 43

DRDGOLD is a South African mining group ranked first among all materials stocks and all gold stocks, producing gold from the retreatment of surface mine tailings. Headquartered in Johannesburg, the company commissioned one of the largest renewable energy initiatives in the industry by integrating solar photovoltaic (PV) technology and a renewable power grid into its operations to halve its usage of traditional energy sources.

DRD’s HY2025 results favorably reflected the rising gold price of gold, reporting a 28% increase in revenue and a 74% increase in operational profits to R1 578.7 million. Cash operating costs remained well-contained at R2 215.1 million. As SA analyst Alberto Abaterusso noted following its latest earnings results:

The outlook for DRDGOLD’s profitability, a key driver of shares in the US stock market, is very promising as analysts continue to expect gold to be driven higher by strong demand for safe assets amid geopolitical risks and the Federal Reserve’s rate cut. While gold is trading higher, the company is on track with higher throughput and lower costs.

DRD Stock Quant Breakdown

Surging gold prices are reflected by DRD’s ‘A+ momentum grade, with a three-month price performance of 56.2% compared to the materials sector median of -7.98%.

Its forward price-to-earnings (P/E) ratio of 13.2 is slightly cheaper than the sector at a -1.7% discount from the median, while its trailing price-to-earnings-growth (PEG) ratio of 0.48 similarly connotes a fair price tag. Profitability has improved from a ‘D’ to a ‘C’ over the past three months, boosted higher by return on total assets (TTM) of 16.6%, among other positive metrics.

In staying true to gold’s volatility-hedging qualities, DRD’s 1.4% dividend yield (TTM) offers steady, if modest, income with four years of consecutive payments. My next selection offers an even more attractive dividend yield.

2. AngloGold Ashanti plc (AU)

• Market Capitalization: $19.6B
• Quant Rating: Strong Buy
• Sector: Materials Stocks
• Industry: Gold Stocks
• Quant Sector Ranking (as of 4/11/25): 15 out of 276
• Quant Industry Ranking (as of 4/11/25): 7 out of 43

Formed in June 1998, AngloGold Ashanti (AU) is now one of the largest gold mining companies in the world, with operations in Africa, Australia, and the Americas. Last year, it completed its acquisition of Centamin, a gold mining and exploration company with mines in Egypt. This deal increased its annual gold production from 450,000 ounces to over 3M ounces, helping it surge more than 82% YTD. Its increased global footprint and the soaring price of gold helped it achieve record free cash flow last year.

Thanks to the Centamin transaction and strong tailwinds in the mining sector, AU has upped its production target this year to 2.90-3.23Moz, a 15% increase from 2024. As SA analyst Ivan Leyba recently wrote:

For this year, the company aims to surpass this milestone, which is why it has significantly increased its production target. This, coupled with the continued favorable macroeconomic environment for gold prices, could boost Anglo’s operating and financial results to another level, helping to maintain the strong upward trend in its shares since the beginning of this year and putting it back on track to reach its highest levels of the last decade and a half.

AU Stock Quant Breakdown

AU’s biggest selling point is its 3.8% dividend yield, backed by an impressive five-year growth rate of 69%. It also boasts a strong dividend safety score, with a one-year CAGR dividend growth rate of 328%, an impressive 42,123% difference from the sector.

AU Dividend Safety Grade: ‘A-’

AU’s valuation has increased from a ‘D’ to a ‘C+’ over the past six months, with a forward P/E of 9.08, a 38% discount from the sector median. Growth is also strong, with forward revenue growth of 21.8%, a 665.5% difference from the 2.85% sector median.

Like AU, my next pick has drastically improved its production outlook, but its valuation remains cheap despite growing momentum.

3. SSR Mining Inc. (SSRM)

• Market Capitalization: $2.06B
• Quant Rating: Strong Buy
• Sector: Materials Stocks
• Industry: Gold Stocks
• Quant Sector Ranking (as of 4/11/25): 4 out of 276
• Quant Industry Ranking (as of 4/11/25): 2 out of 43

Headquartered in Denver, Colorado, SSR Mining (SSRM) produces gold, copper, silver, lead, and zinc across the United States, Canada, Turkey, and Argentina. Though its company’s production guidance fell short of Wall Street expectations in Q4, shares are still up over 53% year-to-date as a result of the strong uptick in gold prices. It was recently upgraded by UBS after acquiring new Cripple Creek and Victor assets in Colorado, mitigating further downside from a heap leach failure at its Çöpler gold mine in Turkey.

A lapse in Turkish operations as a result of the Çöpler incident resulted in lower production in 2024. However, its powerful growth outlook and cheap valuation make it a compelling long-term investment. As SA analyst Taylor Dart observed:

SSR Mining is one of the better-run producers in the sector with disciplined capital allocation, a track record of per share growth, and several solid assets with diversification…However, the stock has been punished for being in an investment cycle with limited free cash flow generation this year and an outlook of lower production at higher costs. While this is certainly not the ideal setup…I think the negatives here are more than priced in and see this as a very attractive entry point for SSR Mining Inc. shares from a long-term investment standpoint while being paid to wait.

SSR Stock Quant Breakdown

Ranked second among all gold stocks, SSR’s Strong Buy status is upheld by excellent growth, strong momentum, and improving profitability at an attractive price. ‘A+’ momentum is reflected by three-month price performance of 34%, crushing the sector median by 9,984%.

Long-term EPS growth of 82.7%, a 680% difference from the sector median, underpins SSR’s recent acquisitions, increased production outlook, and the soaring price of gold amid intensifying demand. Profitability, which has improved from a ‘C+’ to a ‘B-’ over the past six months, is boosted by a levered free cash flow margin of 15%, an 189% difference from the sector. Finally, its forward PEG of 0.12, an 89% discount from the sector, reflects its strong growth outlook at an excellent price.

Similar to SSR, my next selection is a great choice for long-term, value-oriented investors looking for steady growth on the cheap.

4. IAMGOLD Corporation (IAG)

• Market Capitalization: $3.9B
• Quant Rating: Strong Buy
• Sector: Materials Stocks
• Industry: Gold Stocks
• Quant Sector Ranking (as of 4/10/25): 8 out of 276
• Quant Industry Ranking (as of 4/10/25): 4 out of 43

IAMGOLD Corporation (IAG), a Canadian miner headquartered in Toronto, produces gold across its home country and in Burkina Faso. The company has been leveling up production while bolstering its revenue growth since the opening of the Côté Gold mine, based in Ontario, last year.

After beginning commercial production in August 2024, the mine is expected to produce 250,000 to 280,000 ounces of gold in 2025, which IAG forecasts will result in a 33%-44% rise in production. That momentum has helped it surge more than 43% YTD as the rest of the market has struggled to stay in the green.

IAG February 2025 Presentation

IAG’s bullish growth outlook looks more attractive considering its low valuation, currently priced at just $6.88 per share. As SA analyst David Zanoni noted:

The stock’s low valuation level leaves plenty of room to the upside for the stock. The combination of above-average revenue/earnings growth from a low valuation is a perfect recipe for the stock to outperform the broader market in 2025.

IAG Stock Quant Breakdown

IAG’s ‘A’ valuation grade is upheld by a top-tier forward P/E of 4.9, a 67% discount from the sector median. IAG’s low price tag comes with fantastic growth potential, with forward revenue growth of 38.2%, a 1,240% difference from the sector

Momentum is equally as powerful, with a six-month price performance of 43%, a 194% difference from the sector. With a net income margin (TTM) of 50% (a 1,003% difference from the sector) and return on total assets (TTM) of 15.25% (a 558% difference), IAG’s improving profitability is already shining through in the Quant metrics.

5. Kinross Gold Corporation (KGC)

• Market Capitalization: $16.8B
• Quant Rating: Strong Buy
• Sector: Materials Stocks
• Industry: Gold Stocks
• Quant Sector Ranking (as of 4/10/25): 14 out of 276
• Quant Industry Ranking (as of 4/10/25): 6 out of 43

Kinross Gold Corporation (KGC) is a Canadian-based gold and silver miner operating six active gold mines across the U.S. (Nevada), Canada, Brazil, Chile, and Mauritania. Founded in 1993 and headquartered in Toronto, KGC’s Strong Buy rating is supported by its strong production, robust balance sheet, and high-quality assets in stable regions. The group reported strong 2024 results, achieving a record free cash flow of $1.34B, more than double the previous year.

The company reported an 8% quarterly decline in quarterly production, a drop-off stemming from dwindling supply at its Tasiast and Paracatu mines in Mauritania and Brazil. However, as KGC softens its production outlook for 2025, powerful industrial tailwinds more than make up for the difference. The Operating margins grew by 37% in Q4 compared to the 23% increase in the price of gold over the same period, taking full advantage of gold’s rapid price escalation.

KGC Stock Quant Breakdown

Despite its overall ‘D+’ valuation grade, KGC’s forward PEG of 14.2 comes at a near 5% discount to the sector. That could suggest that the miner’s shares are fairly priced when considering its long-term growth potential. Its forward P/E of 13.7 comes at a 1% premium to the sector. Growth appears strong across the board, with forward revenue growth of 10.5%, a 268.6% difference to the 7% sector median.

Momentum and profitability outshine the wider sector, with an ‘A+’ in both categories. KGC’s modest 0.92% dividend yield, while by no means the best in the industry, serves as an added bonus to its strong growth potential.

KGC, like the other four gold mining stocks discussed in this piece, make attractive options for investors looking to hedge their equity against volatility while gaining a layer of exposure to gold’s glistening rise.

Concluding Summary: A Golden Opportunity in Turbulent Markets

Gold has become a hot commodity for its inflation and volatility-hedging powers, and producers of the metals have profited immensely from its fantastic rise over the past year. The price of gold is likely to keep growing as the Fed looks to cut rates later this year and Trump’s 90-day pause on tariffs casts more uncertainty over the market.

The five Strong Buy mining stocks discussed in this piece can be a great way to diversify and mitigate downside risk as the broader market suffers in the face of economic uncertainty. Alternatively, if you’d like to gain broader exposure to the gold sector, consider using Seeking Alpha’s ETF Ratings Screener tool to help find Strong Buy-rated gold ETFs.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

• I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.

This article was written by: Steven Cress, Quant Team