After a strong performance in 2024, the highest since 2010, gold prices seem to be consolidating. This could evoke investors’ interest in potential growth companies indulging in gold mining. Two best growth stocks to buy now are
De Grey Mining Limited (ASX: DEG)
De Grey Mining Limited (ASX: DEG) is to be acquired by Northern Star Resources Ltd for which it has made a binding Scheme Implementation Deed (SID) to acquire De Grey Mining Ltd, including its flagship Hemi Gold Project in Western Australia, through a Court-approved scheme of arrangement. The proposed transaction, valued at ~A$5 billion on a fully diluted basis, offers De Grey shareholders 0.119 new Northern Star shares per De Grey share, implying an offer price of A$2.08.
The strategic acquisition aligns with Northern Star's growth strategy, positioning it to unlock the full value of Hemi, a Tier-1 gold development project with Mineral Resources of 11.2Moz and Ore Reserves of 6.0Moz. Hemi’s scale, low-cost profile, and projected annual gold production of ~530kozpa over its first 10 years bolster Northern Star’s pathway toward producing ~2.5Mozpa by FY29, complementing its KCGM Mill Expansion.
Northern Star’s proven development expertise de-risks the Hemi pathway, leveraging experience gained from the 27Mtpa KCGM project. This ensures efficient execution and highlights management’s focus on operational synergies to drive cash generation and shareholder returns.
Recent resource upgrades reinforce Hemi’s growth potential, with significant increases across the Crow (1.5Moz), Aquila (1.0Moz), and Eagle (2.1Moz) deposits, while deeper drilling continues to demonstrate underground mining opportunities. A conceptual underground study is near completion, which could materially extend mine life. Additional exploration beyond Hemi, particularly at the Withnell and regional deposits, has expanded total non-Hemi resources to 2.4Moz, with ongoing programs targeting further near-surface and large-scale step-out discoveries.
The transaction enhances Northern Star’s portfolio with a second Tier-1 jurisdiction (Pilbara), diversifies its production centres to four, and increases pro forma Mineral Resources to 74.9Moz and Ore Reserves to 26.9Moz. Post-acquisition, Northern Star is expected to retain its position in the lower half of the global cost curve, supported by Hemi’s strong Definitive Feasibility Study (DFS) metrics.
Exploration momentum continues, with near-term upside from ongoing drilling targeting deeper extensions at Hemi and new discoveries in the Egina and Farno JV prospects. Hemi’s long-life, large-scale production profile, combined with Northern Star’s operational strength, underscores the transformational nature of this acquisition and reinforces Northern Star’s status as Australia’s leading gold producer and a top-10 global gold major.
Evolution Mining Limited (ASX: EVN)
On December 10, 2024, Evolution Mining Limited (ASX: EVN) announced that it had received regulatory approval to extend its Cowal Gold Operations, located in New South Wales, Australia. The approval from the NSW Department of Planning, Housing and Infrastructure allows Evolution to continue open pit mining operations at Cowal, including the expansion of the E42 pit and the development of three additional open pits. Ore processing will also continue at a rate of up to 9.8 million tonnes per annum. This Development Consent secures the mine's future until at least 2042, with the mining lease extending to 2045.
Evolution Mining achieved a record financial performance in the 2024 fiscal year, driven by a strong operational and sustainability focus. The company successfully reduced its greenhouse gas emissions by 12% compared to its 2020 baseline, reflecting its commitment to sustainability. In FY24, Evolution contributed $2.7 billion to the Australian and Canadian economies, including $419 million spent on local businesses around its mining sites. Evolution also maintained a disciplined approach to capital allocation, returning over $1.2 billion to shareholders through 23 consecutive dividends. Despite a cyber-attack in August 2024, the company minimized the impact on operations and has since taken steps to bolster its cybersecurity measures. Additionally, the Mt Rawdon operation, which has been a cornerstone of Evolution since its acquisition, marked its final year of mining and is transitioning into a pumped hydropower station.
Evolution Mining continues focusing on the creation of long-term shareholder value through its robust gold and copper assets portfolio. The company restated the solidity of its balance sheet, alongside an investment-grade credit rating. In pursuing its strategy, Evolution has targeted maintaining a debt-to-equity ratio of less than 23% while keeping in mind capital discipline. The company highlighted that the current environment is an opportunity to generate strong returns for shareholders, with the first quarter of the 2025 financial year showing positive results. Evolution plans to maintain a strong platform for growth and is committed to creating long-term value while remaining cautious about spending.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.