With gold investing finding favour, fuelled by trade tensions, gold mining companies stocks are back in limelight. Two of such gold companies to invest in are
Gold Road Resources(ASX: GOR)
Gold Road Resources(ASX: GOR) has delivered a record-breaking financial performance for the full year 2024, showcasing robust revenue growth, improved profitability, and a strong balance sheet.
It is among the top gold companies, having generated total revenue of $528 million from gold sales, an increase from $472.1 million in the previous year. This remarkable achievement was primarily driven by the sale of 143,793 ounces of gold at an average realized price of $3,672 per ounce, significantly higher than the $2,924 per ounce achieved in 2023.
Gold Road reported an all-time high EBITDA of $294.4 million, representing a 56% EBITDA margin, up from 53% in the prior year. Net profit after tax (NPAT) soared to a record $142.7 million, marking a substantial increase from the $115.7 million recorded in 2023. The company’s earnings per share also reached new highs, climbing to 13.17 cents from 10.73 cents. Operating cash flow for the year stood at $250.6 million, reflecting the company’s ability to generate strong cash flows from its gold mining operations.
Maintaining a robust financial position, Gold Road ended the year with cash and short-term deposits amounting to $166.3 million, an improvement from $143.8 million in 2023. The company remains debt-free, reinforcing its ability to fund future growth initiatives without financial constraints. Furthermore, the company’s strategic investment portfolio was valued at $741.7 million as of 31 December 2024, reflecting significant gains from its holdings.
Gold Road declared a fully franked final dividend of 1.5 cents per share for the second half of 2024. This follows the 0.5 cents interim dividend paid in the first half, bringing the total dividend for the year to 2.0 cents per share.
Operationally, Gold Road has continued to achieve steady production at the Gruyere Gold Mine, which has now produced a total of 1.53 million ounces since its first gold pour in June 2019. The company’s production guidance for 2025 is set between 325,000 and 355,000 ounces, reflecting confidence in maintaining a stable output level. Meanwhile, the company has successfully expanded its attributable mineral resources to 4.81 million ounces, a 6% increase, while attributable ore reserves have grown by 5% to 1.92 million ounces.
The company’s exploration strategy remains a key focus, with the Yamarna Mine Readiness Project delivering positive results. A high-grade ore reserve of 190,000 ounces at 4.10 g/t gold was defined at the Gilmour deposit, following a pre-feasibility study that demonstrated the viability of a five-year project. This development is expected to generate a life-of-mine free cash flow of $377 million and a net present value of $231 million, assuming a conservative gold price of A$3,500 per ounce. Additionally, Gold Road continues to explore a wide portfolio of greenfields projects across Australia, aiming to expand its resource base further.
With a strong financial foundation, record profitability, and ambitious growth plans, Gold Road Resources is well-positioned for sustained success.
Predictive Discovery Limited (ASX: PDI)
Predictive Discovery Limited (ASX: PDI), is among the best gold mining stocks, as it has made significant strides in its exploration efforts at the Bankan Gold Project in Guinea, with the latest drilling results from the Fouwagbe and Sounsoun targets reinforcing the project's potential as a high-grade gold discovery. The recent drilling campaign consisted of 41 holes, covering a total of 6,984 meters, aimed at resource definition and further exploration within the Argo area.
At the Fouwagbe target, drilling results have continued to refine interpretations of mineralized zones, revealing several promising intercepts. The best results included a five-meter interval at 15.98 grams per tonne (g/t) of gold, which included a remarkable one-meter segment at 71.98 g/t, suggesting a high-grade shoot within the deposit. Mineralization at Fouwagbe has now been traced to depths of 300 meters below the surface, with the presence of shear-hosted gold within a deep saprolite profile indicating potential for further discoveries.
Sounsoun, an emerging high-priority target, has also yielded impressive results, particularly in the underexplored southwestern corridor. Drilling in this area returned intercepts of 17 meters at 1.76 g/t and 23 meters at 3.07 g/t, with one of the drill holes ending in mineralization, suggesting that the gold system remains open at depth. Other notable results included six meters at 9.09 g/t and eight meters at 6.15 g/t, further validating the scale and continuity of gold mineralization in the region. These findings have positioned the southwestern corridor of Sounsoun as a key area for future exploration, with additional drilling already planned to build on these positive results.
The latest drilling campaign has not only extended the known mineralized zones but has also opened up new targets for further investigation. The company is now progressing with geological modeling and mineral resource estimation for both Fouwagbe and Sounsoun, with a maiden resource estimate expected in the coming quarter. Further exploration drilling is also planned across the broader Argo and Bokoro South areas, aiming to uncover additional high-grade zones.
With its systematic approach to exploration, Predictive Discovery is well-positioned to unlock the full potential of the Bankan Gold Project. The strong drilling results reinforce the project's status as one of West Africa's most promising gold discoveries, and ongoing exploration efforts are expected to further define and expand its resource base. As the company moves closer to a formal resource estimate, these findings continue to highlight the significant opportunity that Bankan represents for future development and gold production.
(Source: Company's Report)
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