5 Gold Stocks to Watch (Updated April 2021)

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The first quarter of 2021 is over, and like most metals gold has had an interesting ride.

Trading downward by more than US$200 during the period, the yellow metal has been impacted by diverse headwinds and tailwinds, with the ongoing COVID-19 pandemic of course being a key factor.

In a note released at the end of Q1, analysts at Raymond James shared their new 2021 gold forecast, saying that they expect the precious metal to average US$1,819 per ounce for the year. That breaks down to US$1,775 in Q2, US$1,825 in Q3 and US$1,875 in Q4.

The firm expects a weaker gold price in the first half of the year, with a rebound anticipated for the second half. Raymond James analysts see rising interest rates in the short term providing resistance for gold in H1, followed by inflation in H2 as governments around the world lift economically restrictive lockdowns and pass stimulus programs that are likely to drive gold investment.

For those looking for gold stocks to watch, Raymond James also shared a list of the gold-focused companies it believes have the potential to do well in the current environment.

Raymond James’ preference is for companies with higher trading liquidity and higher operational diversification. Its thinking is that companies with varied asset bases will be more protected as countries around the world continue to take steps to stop the spread of COVID-19.

Read on to learn which five gold-mining companies the analysts chose for their gold stocks list. For investors looking to invest in gold and decide which gold stocks to watch, this may be a good place to start. All stats were current as of April 9, 2021.

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

Current share price: C$76.13; US$60.77

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.

In 2020, the company’s payable gold production totaled 1,736,568 ounces, down slightly from the previous year. The drop was primarily due to lower production at half of Agnico Eagle’s eight mines as a result of government-mandated COVID-19 restrictions, which led to temporary shutdowns or reduced operations in the second quarter of last year.

Agnico Eagle’s midpoint for gold production in 2021 is set at 2.05 million to 2.1 million ounces. The number excludes production from the company’s newly acquired Hope Bay deposits.

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

Current share price: C$77.05; US$61.51

Newmont describes itself as the world’s leading gold company, as well as a producer of copper, silver, zinc and lead. Founded in 1921, it has operations North America, South America, Australia and Africa.

The COVID-19 pandemic may have impacted gold production in 2020 for Newmont, but the company still managed to have a stellar year financially. “In 2020, Newmont achieved record performance including $3.6 billion of free cash flow and ending the year with over $5.5 billion of consolidated cash. These results enable Newmont to lead the industry in shareholder returns, invest in organic growth and maintain financial flexibility,” said Tom Palmer, president and CEO.

The company’s attributable gold production guidance for 2021 is set at 6.5 million ounces.

3. B2Gold (TSX:BTO,NYSE:BTG)

Current share price:C$5.93; US$4.71

The first mid-tier producer on Raymond James’ gold stocks list, B2Gold has operating gold mines in Mali, Namibia and the Philippines, as well as numerous exploration and development projects in Mali, Colombia, Burkina Faso, Finland and Uzbekistan.

B2Gold posted record annual total gold production of 1,040,737 ounces in 2020, at the upper end of its guidance range for the period. In 2021, the company is forecasting total gold production of between 970,000 and 1.03 million ounces.

4. Calibre Mining (TSX:CXB)

Current share price: C$1.82

Calibre Mining has two 100 percent owned operating gold mines in Nicaragua, which it acquired from B2Gold in 2019. At the time, Vice President of Corporate Development Ryan King said that the addition of the gold mines, called El Limon and La Libertad, would be “transformational” for the company.

Among other assets, Calibre has copper-gold exploration agreements with Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) in Nicaragua, where the partners recently initiated a drill program.

In 2020, Calibre exceeded the high end of its production guidance, putting out 136,009 ounces. Its production/sales guidance is set at 170,000 to 180,000 ounces in 2021 on a consolidated basis.

5. K92 Mining (TSX:KNT)

Current share price: C$7.34

K92 Mining’s primary gold production asset is Kainantu gold mine, located in the Eastern Highlands province of Papua New Guinea. Previously mined by major Barrick Gold (TSX:ABX,NYSE:GOLD) between 2006 and 2009, Kainantu is a high-grade, low-cost underground mine.

For 2020, K92 Mining reported record annual gold equivalent production of 98,872 ounces, which breaks down into 95,109 ounces of gold, 1,853,078 pounds of copper and 36,067 ounces of silver. That represents a year-over-year gold equivalent increase of 20 percent. This year, the company expects a 16 to 36 percent increase in gold equivalent production to 115,000 to 135,000 ounces.

Royalty and streaming stocks

It’s also worth noting that Raymond James is interested in royalty and streaming companies, which it said tend to have diverse operations by nature. It named Franco-Nevada (TSX:FNV,NYSE:FNV) and Wheaton Precious Metals (TSX:WPM,NYSE:WPM) as its picks in that arena.

INNdepth

For other possible gold companies to invest in, 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 gold or gold exchange-traded funds (ETFs). Click here to find out about investing in physical gold and click here for an overview of gold ETFs.

Want even more details? Read these articles for more INNdepth coverage:

• Gold Stocks and Gold Production: A Beginner’s Guide
• An Overview of Gold Stocks and Price

Don’t forget to follow us @INN_Resource for real-time updates!

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