For the uninformed, gold mining stocks are a popular investment choice for those looking to gain exposure to the precious metals market. These stocks represent ownership in a company that is engaged in the exploration, mining, and production of gold. As such, the performance of gold mining stocks is closely tied to the price of gold, which can fluctuate significantly based on a variety of factors, including interest rates, currency movements, and geopolitical events.
Investing in gold mining stocks can be a way to gain leverage on the price of gold without physically owning the metal. It also offers the potential for increased returns, as some gold mining companies may also be involved in other precious metal mining operations or have additional revenue streams. For investors looking to diversify their portfolios and protect against inflation, gold mining stocks can be a valuable addition.
When investing in gold mining stocks, it is important to be aware of some of the risks associated with these investments. These include the inherent risks of mining operations, such as accidents, natural disasters, and changing regulations. Considering this, here are three gold mining stocks to watch in the stock market today.
Gold Mining Stocks To Buy [Or Avoid] Right Now
- Wheaton Precious Metals Corp. (NYSE: WPM)
- Agnico Eagle Mines Ltd. (NYSE: AEM)
- Royal Gold Inc. (NASDAQ: RGLD)
Wheaton Precious Metals (WPM Stock)
Leading off, Wheaton Precious Metals Corp. (WPM) is a Canadian precious metal streaming company. This means that the company provides funding to mining companies in exchange for the right to purchase a portion of their metal production at a discounted price. Wheaton Precious Metals Corp produces gold, silver, and palladium in this way, and it is one of the largest precious metal streaming companies in the world.
In November, the company reported its 3rd quarter 2022 financial and operating results. Diving in, In the 3rd quarter of 2022, Wheaton Precious Metals earned $0.21 per share on $218.8 million in revenue. These numbers were slightly lower than what analysts had predicted, which was earnings per share of $0.23 on revenue of $241.5 million.
In the last six months of trading action, shares of WPM stock have rebounded by 23.99%. As of Tuesday’s mid-morning trading session, WPM stock is trading higher by 0.51% at $43.11 per share.
Agnico Eagles Mines (AEM Stock)
Second, Agnico Eagle Mines (AEM) is a Canadian gold mining company. To begin, It has several operating mines in Canada, Finland, and Mexico, and exploration and development projects in Canada, Finland, and the USA. The company produces gold from underground and open-pit mines using mainly conventional mining methods.
Back in October, the company reported its 3rd quarter 2022 financial and operating results. In detail, In Q3 2022, the company announced earnings per share of $0.52 and revenue of $1.4 billion. The company’s financial performance was higher than what analysts had predicted, which was earnings per share of $0.43 on revenue of $2.1 billion. Also, it was reported that the revenue had grown by 48.8% compared to the same quarter of the previous year.
Looking at the last six months of trading activity, shares of AEM stock have rebounded by 21.99%. Meanwhile, as of Tuesday’s late morning trading action, AEM stock is trading flat on the day at $54.66 a share.
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Royal Gold Inc. (RGLD Stock)
Finally, Royal Gold, Inc. (RGLD) is a US-based company that specializes in the acquisition and management of precious metal streams and royalties. The company provides funding to mining companies for the rights to purchase a portion of their production at a discounted price, primarily gold and silver.
Today, Tuesday, Royal Gold’s subsidiary, RGLD Gold AG, announced that during the fourth quarter of 2022, it sold approximately 63,100 gold equivalent ounces. In detail, it comprises 46,000 gold ounces, 706,600 silver ounces, and 2,000 tonnes of copper. The average realized prices for the fourth quarter were $1,710 per ounce for gold. What’s more, The company reported it had 21,000 ounces of gold, 461,200 ounces of silver, and 400 tonnes of copper in inventory on December 31, 2022.
In the last six months of trading, shares of RGLD have recovered 13.20%. On Tuesday, Royal Gold stock is trading up on the day by 0.53% at $123.06 a share.