4 Gold Stocks to Watch in 2019

The gold price is down about 4 percent year-to-date, with its main headwind so far in 2019 being strength in the US dollar.  

Even so, many analysts predict that the precious metal will rise later in the year, with stocks increasing in tandem. If that happens, the environment could be positive for investing in gold.

So where should investors look to buy? Analysts at Raymond James recently released a publicly traded gold stocks list of the companies they believe have high upside potential, and also raised their average gold price forecast for 2019 to US$1,301 per ounce from US$1,293.

“[The higher price outlook comes] primarily on the back of incrementally dovish commentary from Central Banks suggesting that global monetary policy will remain accommodative thereby keeping real interest rates low,” the analysts state in the report.

Read on to learn which four companies the analysts chose for their gold stocks list. For investors looking to invest in gold and decide which gold stocks to buy, this may be a good place to start.

1. Agnico Eagle Mines (TSX:AEM,NYSE:AEM)

Current share price: C$53.92; 2019 year-to-date: -1.98 percent

Precious metals miner Agnico Eagle Mines has been in production since 1957, and has mining operations in Canada, Finland and Mexico. It also explores in all of those countries, as well as the US and Sweden.

The company released its results for Q4 2018 and the full year in February, reporting annual payable gold production of 1,626,669 ounces. Output came in slightly above the company’s guidance of 16 million ounces, while total cash costs per ounce were US$637, down from guidance of US$650.

Guidance is set at 1.75 million ounces for 2019, with total cash costs per ounce expected to clock in between US$620 and US$670. Further out, mid-point gold output guidance for 2020 and 2021 is set at 2 million and 2.05 million ounces, respectively.

Despite higher production and lower cash costs per ounce, Agnico reported a net loss of US$326.7 million for the year compared with net income of US$240.8 million in 2017.

2. Newmont Goldcorp (TSX:NGT,NYSE:NEM)

Current share price: C$42.58; 2019 year-to-date: N/A

Major mining companies Newmont Mining and Goldcorp officially combined their businesses to become Newmont Goldcorp in April. The new company has assets in North America, South America, Australia and Africa, and will target production of 6 million to 7 million ounces of gold in the decades to come.

In March, while still under the Newmont Mining name, the gold miner set up a joint venture with Barrick Gold (TSX:ABX,NYSE:GOLD). It will combine the companies’ operations in Nevada, allowing them to save about $500 million in average annual pre-tax synergies during the first half decade of the deal.

Newmont Goldcorp’s actions over the last few months are part of a recent surge of mergers and acquisitions in the gold space, and have helped to drive interest in gold-focused mining stocks. Some market watchers speculate that companies like Newmont Goldcorp will now be looking to offload non-core properties to junior and mid-tier mining companies.

3. Endeavour Mining (TSX:EDV,OTCQX:EDVMF)

Current share price: C$18.74; 2019 year-to-date: -14.97 percent

Endeavour Mining, another of the world’s leading mining companies, has four mines in Burkina Faso and Côte d’Ivoire. These mines are expected to produce 615,000 to 695,000 ounces of gold in 2019. The company is also looking to uncover 10 million to 15 million ounces of gold via exploration by 2021.

In January, the company shared its results for Q4 2018 and the full year, reporting a year-on-year production increase of 52 percent. Output hit 612,000 ounces, above Endeavour’s guidance of 555,000 to 590,000 ounces. The company saw a net loss attributable to shareholders of US$32 million.

Contributing to production in 2019 will be Endeavour’s Ity CIL mine in Côte d’Ivoire, where the company declared commercial production in April.

4. Integra Resources (TSXV:ITR,OTCQX:IRRZF)

Current share price: C$0.66; 2019 year-to-date: -18.52 percent

Integra Resources is an exploration and development company operating in the US. It owns the DeLamar and Florida Mountain assets in Idaho, previously operated by Kinross Gold (TSX:K,NYSE:KGC).

Unlike the other mining stocks listed by Raymond James, Integra is not yet producing. It has an extensive drill campaign planned for DeLamar in 2019, with the goal being to create a preliminary economic assessment that will look at the viability of open-pit mining and milling, plus heap leaching, on particular areas of the DeLamar and Florida Mountain properties.

For other possible stocks to buy, check out our lists of the TSX- and TSXV-listed gold stocks that are up the most year-to-date. You may also want to consider investing in physical bullion or looking at gold exchange-traded funds.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.