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Gold prices soared last year as investors looked for alternatives to hedge their portfolios against rising inflation and economic uncertainty. Gold prices rose by more than 13% and demand for the precious metal reached 4,899 tonnes. This contributed to the profitability of the gold industry this year, making gold stocks an ideal investment option in the stock market.
Additionally, the Middle East conflict and other global events have contributed to gold demand this year, as evidenced by the performance of gold ETFs such as: SPDR Gold Shares ETF (New York Stock Exchange:gold), up more than 14% since the beginning of the year.
Naturally, demand for gold stocks is at an all-time high, with many investors turning to them. In this article, we’ll look at the three best gold stocks to invest in in July.
Equinox Gold (EQX)
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Equinox Gold (New York Stock Exchange:EQX) is a growth-oriented Canadian mining company operating exclusively in the Americas. It owns eight gold mines in several countries, including Canada, Brazil, Mexico and the United States, all working towards its goal of producing more than one million ounces of gold per year.
Equinox Gold established itself as a powerhouse in the gold industry during the peak of the gold price boom last year. The company produced over 150,000 ounces of gold during that period, bringing its total for the year to 546,000 ounces. While it hasn’t been able to repeat its previous feat this year, the company has performed quite well and is currently in an expansion phase.
The company recently acquired the remaining interest in Canadian gold miner Greenstone Gold Mine, which the company announced will begin production later this year and become one of Canada’s largest gold mines.
Financially, Equinox Gold hasn’t performed too badly this year, with its most recent quarterly report showing good earnings across key metrics like revenue and net income.
Alamos Gold (AGI)
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Alamos Gold (New York Stock Exchange:Versatility) is a mid-sized Canadian gold production and mining company that operates three gold mines in Canada and Mexico, and also boasts several growth projects in Turkey and the United States.
The combination of a diverse asset base, lifetime gold production, and an impressive, diverse, low-cost portfolio of growth projects makes Alamos Gold an attractive choice for stock market investors. The company’s commitment to global sustainability practices is another factor that makes it attractive. The company is known for its low-cost production profile and advocacy of sustainable mining practices, as evidenced by its latest ESG report.
Additionally, the company recently embarked on an expansion phase with the acquisition of Argonaut Gold, a low-cost North American gold producer. The company announced via press release that it will combine the two operations to create “one of the largest and lowest-cost gold mines in Canada.”
The addition of the Argonaut mine is expected to increase Alamos Gold’s production to more than 600,000 ounces per year, with the potential to exceed 900,000 ounces per year in the long term.
Financially, Alamos Gold is one of the best performing companies in the gold mining industry. The company has consistently delivered strong production results, and in its most recent quarterly report, revenues increased 25% to a record $1 billion. Earnings per share also increased by almost 500%, and free cash flow from operations reached an impressive $124 million.
Kinross Gold (KGC)
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Kinross Gold (New York Stock Exchange:KGCKinross Gold is a gold and silver mining company based in Ontario, Canada. It operates six gold mines in several countries, including Canada, Brazil, Chile, Mauritania and the United States. Kinross Gold is a major player in the global gold industry and was ranked 5th in the Investing News Network’s “Top 10 Gold Mining Companies” list in 2019.
Kinross Gold boasts several high-profile assets and subsidiaries in its portfolio, including Redback Mining, EastWest Gold Corporation, Sunnyside Gold Corporation, and most recently, Great Bear Resources, which it acquired in 2022.
The company has been busy with expansion plans this year, as evidenced by its recent exploration and venture option agreement with Riley Gold for a gold project in Nevada. Under the terms of the agreement, Kinross Gold could acquire up to a 75% interest in the project after investing a minimum of $20 million.
Kinross Gold has great growth potential in the gold industry, and its recent quarterly report further supports that. According to the report, the company experienced increases in key metrics such as production and revenue, producing over 500,000 ounces of gold, a 13% increase.
Additionally, the company generated operating cash flow of $374.4 million in the period and reported a liquidity buffer of $2 billion.
As of the date of publication, Joel Lim did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Joel Lim is a contributor to InvestorPlace.com and a financial content contractor who creates content for several companies, including LTSE and Realtor, as well as financial publications such as Business Insider, Yahoo Finance, Mises Institution and the Foundation for Economic Education.
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This article “3 Best Gold Stocks to Buy Now: July Edition” originally appeared on InvestorPlace.
