Gold bugs out there have had a difficult time in recent years. Despite negative real interest rates and high inflation, the price of gold hasn’t responded as many hoped it would. For those invested in gold miners, this situation is even more pronounced.
Gold miners provide additional leverage to the price of gold. Due to the high fixed costs of these price takers, higher gold prices translate directly into bottom-line performance. For investors, this is a good thing.
However, with the price of gold stagnating, many investors have looked away from this sector. For those still intrigued and looking for some top gold miners, here are two fantastic picks to consider right now.
Top gold miners: Equinox Gold
Equinox Gold (TSX: EQX)(NYSE:EQX) is a Vancouver-based organization with access to more than 30 million ounces of measured gold reserves, and 16.4 million ounces of proven reserves. The company has a significant presence in North and South America. This provides a geographically diverse and resource-rich portfolio of assets for investors.
Notably, Equinox’s new Greenstone mine is still under construction, with the anticipated opening date sometime in 2024. During the construction phase of this project, 2,000 jobs will be created. Once the mine is complete, 500 positions will be made available to operate this mine.
The company’s Greenstone mine and a range of diversified investments over various projects in recent years have allowed Equinox to put forward a projected output of one million ounces of gold per year. This company’s existing reserves, and the ability to acquire future reserves over time, provide for a bullish outlook for this top gold miner this coming year.
Agnico Eagle
Agnico Eagle (TSX: AEM)(NYSE: AEM) is another top-notch gold miner that has delivered impressive earnings growth and revenue. This gold sector behemoth is gearing up to merge with Kirkland Lake Gold. I believe this deal will be a lucrative one, particularly if the price of gold starts gaining momentum.
Indeed, the Kirkland Lake deal is hard to ignore. For Agnico Eagle, this acquisition was done at what I view as a dirt-cheap price. While Kirkland Lake shareholders may have gotten the raw end of the deal, the reality is that the combined entity will have newfound market power and economies of scale investors should like. Accordingly, I think Agnico Eagle is a solid pick right now.
As Agnico ramps up production and focuses on higher-grade production, this company’s margins should improve. I’m forecasting much higher gold prices over the medium term, and view Agnico Eagle as one of the best gold miners in this space right now.
