Fox News reported on December 1 that a super large gold deposit in the Wangu goldfield was discovered in Pingjiang County, Hunan Province, China, which has attracted the attention of global investors. According to Chinese state media, the Wangu goldfield has more than 1,000 tons of potential gold reserves, and the resource value is as high as 600 billion yuan, or about $83 billion, based on current gold prices.
Over the past year, investors have flocked to gold as a safe-haven asset to escape various geopolitical risks, including the ongoing conflicts in the Middle East and Ukraine. Factors such as uncertainty about the direction of U.S. economic policy after the election, the Federal Reserve’s plan to cut interest rates, and the long-term trend of growing U.S. Treasury bonds have also pushed investors to further invest in gold, which is up about 30% so far in 2024.
In an environment where Wall Street investment banks, including Goldman Sachs, continue to believe gold prices will rise to $3,000 an ounce, several gold stocks on the Toronto Stock Exchange are very attractive for investors looking for discounted value stocks.
Agnico Eagle Mines (TSX:AEM) is one of Canada’s top gold miners and an investment choice for investors looking for quality and good upward momentum in 2025. Year-to-date, the gold miner’s shares are up more than 60%.
Major stock indexes in the United States and Canada are currently near all-time highs. Because of the uncertainties surrounding inflation, interest rates, trade and tariffs. Heading into 2025, if investor sentiment shifts into risk-averse mode, it makes sense to have gold stocks like Agnico Eagle Mines in the portfolio. The 1.9% dividend yield is also a key reason for investors to buy the stock.
Kinross Gold (TSX:K) shares have performed solidly in recent months. The company’s third-quarter 2024 earnings report showed a 30% year-over-year increase in revenue to $1.43 billion, driven by a 28% increase in average realized gold prices to $2,477 per ounce. Earnings per share doubled to C$0.24 from C$0.12 a year earlier.
The gold stock currently trades at a price-to-earnings ratio (P/E) of 16.12, below the industry average. The company expects earnings to grow 25.71 percent next year. Earnings per share are expected to increase from $0.70 to $0.88, demonstrating confidence in the company’s ability to deliver strong results amid a strong gold price. In addition, the free cash flow generated by Kinross provides flexibility for reinvestment or further shareholder returns.
China Gold International Resources (TSX:CGG) has rebounded strongly by 20% so far this year and now has a market cap of C $2.775 billion. The Chinese company is not well known among Canadian investors and the shares are significantly undervalued. However, the gold stock is likely to get more attention as more gold investors get excited about the possibility of China continuing to add to its gold reserves.
The company operates two large mines in China, both of which are promising in the long term. Since the company is committed to continuing production despite rising gold prices, investors can keep an eye on the stock when it surges above $7 per share.
