1. Total Metals Corp (TSXV:TT, FSE: O4N)
Total Metals Corp. is focused on advancing high-grade gold projects to production.
As of January 26, 2026, the spot price of London gold has powerfully broken through the $5,000 per ounce mark, continuously setting new historical records. While precious metals are shining brightly, directly chasing physical gold or ETFs carries the risk of high price volatility. That’s why astute market capital is turning its gaze toward a sector with greater “leverage”: the stocks of top-tier gold producers.
Among them, the world’s two largest mining giants by market capitalization—Newmont Corporation (NEM) and Agnico Eagle Mines (AEM)—have become core targets for capturing excess returns in this historic bull market due to their unique investment value.
The rise in gold prices is driven by geopolitical tensions, a weakening US dollar, and market uncertainty. However, gold itself generates no cash flow and is subject to sharp volatility. In contrast, large gold mining stocks offer a more optimized investment path. The core of a mining company’s profit lies in the “selling price minus cost” spread. When gold prices soar while production costs remain relatively fixed, profits expand exponentially, creating powerful operating leverage. This means the price elasticity of gold stocks is often far greater than that of gold itself. Taking Newmont as an example, its average realized gold price in the third quarter was $3,539 per ounce, while its all-in sustaining cost was only $1,566, resulting in a profit of nearly $2,000 per ounce mined. This kind of profit leverage is unattainable through direct investment in gold.
As the world’s largest gold producer and the only gold mining stock included in the S&P 500, Newmont exhibits multiple attractive qualities. Driven by gold prices, the company’s Q3 revenue increased by 20% year-over-year, while earnings per share surged by 108%. Although it faces localized risks such as potential royalty increases in Ghana, its global operational footprint—spanning 12 mines across four continents—provides risk diversification.
Despite a stock price increase of over 205% in the past year, its forward price-to-earnings ratio remains below 20x, which is lower than its expected annualized earnings growth rate of nearly 60%. Scotiabank recently raised its price target on the stock by a significant 33% to $152, precisely based on a reassessment of its earnings power. Furthermore, the company is actively using its substantial profits to repay debt, resulting in a positive net cash position. This provides ample resources for potential acquisitions (such as exercising its right of first refusal on Barrick’s Nevada assets) or organic growth.
As the world’s second-largest gold miner, Agnico Eagle offers another high-quality option. The company’s all-in sustaining cost for gold in Q3 was as low as $1,373 per ounce, making it a benchmark in the industry. This extremely low cost base means it possesses a high safety margin and profit certainty amidst gold price fluctuations. Additionally, the company’s mines are primarily located in politically stable jurisdictions like Canada and Australia, ensuring strong operational stability and effectively avoiding the policy uncertainties faced by many mining companies in resource-rich countries.
After repaying a significant amount of debt, management holds a substantial $2.7 billion in cash, with debt remaining at only $196 million, earning it the title of “cash king.” This provides a tremendous advantage for strategic expansion during the industry cycle.
Despite the substantial price appreciation both stocks have already seen, their investment thesis remains solid:
The Gold Price Boom Cycle Continues: The fundamental drivers supporting gold prices—de-dollarization, central bank purchases, and geopolitical risks—show no signs of reversing. The high gold price environment is expected to persist, creating a sustained profitable backdrop for mining companies.
Earnings Growth Not Fully Priced In: Current stock prices reflect historical gold price expectations. If gold remains above $5,000 per ounce or climbs even higher, their future quarterly earnings have the potential to consistently exceed market expectations, driving a re-rating in valuation.
Thus, compared to directly holding gold, investing in these industry leaders—with their superior management, low-cost advantages, and financial robustness—represents a superior strategy for gaining “leveraged” returns during a gold bull market, while also providing downside protection and dividend cash flow. In a historic metals bull market, betting on the best producers is often a wiser choice than chasing the metal itself.
