Gold Is on the Rise Again. 2 Mining Stocks to Buy Now.

On June 10, the spot price of gold was $4,060 an ounce. A week later, that price had jumped to more than $4,300, a 6% increase in just one week. The primary reason for the jump was that U.S. President Donald Trump said on June 15 that the U.S. and Iran had signed a preliminary agreement to end the war in the Gulf. The news eased worries over global inflation and higher interest rates, which can make gold a less attractive investment. It also sent the dollar lower, making dollar-priced metals more ⁠affordable for holders of other currencies. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue » Two gold mining stocks best positioned to benefit from a rise in gold prices are Agnico Eagle Mines (NYSE: AEM) and Alamos Gold (NYSE: AGI). Here are three reasons why I like these stocks. Image source: Getty Images. Their low-political-risk moats Resource nationalism and geopolitical instability are massive risks in mining — just ask any mining company operating in Ghana or Mali, where governments have introduced higher state participation and royalties. Agnico Eagle and Alamos Gold offer defensive footprints centered primarily in low-risk, tier-1 mining jurisdictions. Agnico’s core production is in Canada, Finland, and Australia. Alamos Gold is heavily concentrated with its mines in Northern Ontario and Mexico. By investing in either, you can eliminate the risk of sudden asset nationalization, windfall tax surprises, or severe political blockades that can plague operations in South America, Africa, or parts of Asia. Strong cost control and free cash flow With gold prices holding in historically strong ranges, both precious metals companies are translating elevated spot gold prices directly into record-breaking margins because they manage their all-in sustaining costs (AISC) better than many of their competitors. Agnico Eagle reported a net cash position of $2.92 billion and free cash flow of $732 million in the first quarter. The company was recently upgraded to an A- credit rating from Fitch. It reported record adjusted net income of $1.7 billion, or $3.41 in adjusted earnings per share (EPS), an increase of 123% year over year. While its AISC per gold ounce rose 26% over the same period last year to $1,483, its average realized price per ounce was $4,861, up 68% year over year. While Alamos Gold saw a 12% year-over-year AISC spike to $1,862 per gold ounce in the first quarter, it expects costs to tumble as its processing throughput accelerates. It predicts yearly AISC between $1,500 and $1,600 per ounce. Even with the rise in AISC, the company saw margins soar because average realized price per ounce jumped 72% over the same period last year, to $4,829 per ounce. Adjusted EPS climbed 293% year over year to $0.55. Organic growth driving dividend increases The two companies have organic, high-return expansion projects that allow them to grow production internally. Agnico Eagle began production from the Canadian Malartic East Gouldie ramp ahead of schedule and executed high-grade resource expansion at Detour Lake. Alamos Gold’s massive Island Gold District (IGD) expansion outlines a trajectory to scale annual production to an average of 534,000 ounces starting in 2028. At current elevated gold prices, the 5% after-tax net present value (NPV) of this district alone sits well into the billions, making it one of the most profitable upcoming assets in Canada. The potential for increased production and profits has enabled both companies to increase their dividends. Agnico Eagle increased its dividend by 12.5% this year to $0.45 per share. Even with the increase, its payout ratio remains below 16%. Alamos Gold increased its quarterly dividend by 60% this year to $0.40, yet retains a payout ratio below 5%, meaning there’s room for future increases. Should you buy stock in Agnico Eagle Mines right now? Before you buy stock in Agnico Eagle Mines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Agnico Eagle Mines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $417,305!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,293,148!* Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 209% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 20, 2026. James Halley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Gold Is on the Rise Again. 2 Mining Stocks to Buy Now. was originally published by The Motley Fool



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