2 Top Gold Miners to Consider to Take a Defensive Stance

Here’s why Barrick Gold (TSX:ABX)(NYSE:GOLD) and Equinox Gold (TSX:EQX)(NYSE:EQX) are two top gold miners to consider right now.

| More on:

Gold has long been a safe haven during periods of market turmoil. Gold and gold miners prove to be an outstanding hedge against inflation, particularly when currencies such as the U.S. dollar are under pressure. Indeed, gold producers tend to be among my top picks for investors looking for leverage to this trade.

Readers may know that I remain bullish on where gold could be headed from here. Right now, here are two of the top gold miners on my watch list right now.

Top gold miners: Barrick Gold

Barrick Gold (TSX:ABX)(NYSE:GOLD) is one of the planet’s biggest producers of the yellow metal. It operates mines in Australia, South America, Africa, and North America.

This gold miner operates nine gold mines: Pueblo Viejo, Carlin, Cortez, Turquoise Ridge, Veladero, North Mara, Bulyanhulu, Loulo-Gounkoto and Kibali. Of these, the Carlin mine generates a significant portion of Barrick’s revenue. Geographically, the U.S. accounts for most of this company’s revenue. For those who may be spooked by today’s geopolitical situation, that’s a good thing.

Barrick’s earnings of late have been impressive. Recently, the company reported net earnings of $726 million in Q4 alone, or $0.41 per share. This is a meaningful increase over last year, but does not yet factor in this quarter’s impressive run in gold prices. On a forward-looking basis, I expect Barrick to blow away this next quarter’s estimates, given improvements in gold production as well as the high-quality mines currently operated by Barrick.

One key metric driving my interest in Barrick right now is this company’s production increase plans. This year, Barrick expects to increase its attributable gold production to the 4.2-4.6 million ounce range. Doing the math on this, with where the price of gold is, supports this company’s valuation right now, and then some.

Equinox Gold

Equinox Gold (TSX:EQX)(NYSE:EQX) is a growth-focused gold miner operating exclusively in the Americas. Equinox has projects in Mexico, Brazil, Canada, and the United States of America. Again, for those concerned about geopolitical risk, there’s a lot to like about Equinox.

Right now, Equinox has approximately seven operating gold mines. The company also has a clear plan to ramp up production through the advancement of a pipeline of growth projects.

Equinox Gold’s 2022 production guidance of 625,000 to 710,000 ounces of gold is a marked increase from previous estimates. Last year, Equinox brought in a little more than 600,000 ounces of gold. Accordingly, this range translates to roughly 5-20% production growth on a year-over-year basis. Again, given where gold is trading at, there’s a lot to like about this outlook.

Should Equinox continue to increase its production, this would account for the fourth consecutive year of such production growth. Along with new mines that should come into commission this year, I think Equinox is a great growth play in the gold miner space.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

Piggy bank and Canadian coins
Metals and Mining Stocks

Everyone’s Talking About Silver Stocks: Here’s 1 ETF to Consider

iShares Silver Trust (NYSEARCA:SLV) and the silver stocks could be in for some summertime strength.

Read more »

Person slides down a stair handrail
Metals and Mining Stocks

Tariff Shockwave 2025: US Stocks Crater While Canada Rides the Wave

Canadian stocks have collectively displayed resiliency against the US tariff shockwave in 2025.

Read more »

nugget gold
Metals and Mining Stocks

Should You Buy Kinross Gold While it’s Below $21?

Kinross is a gold mining stock that has delivered market-thumping returns to shareholders in the past decade. Is the TSX…

Read more »

nugget gold
Metals and Mining Stocks

Should You Buy New Gold Stock While It’s Below $8?

New Gold is a TSX mining stock that has more than doubled in the last 12 months. Is NGD stock…

Read more »

Metals
Metals and Mining Stocks

Should You Buy First Majestic Silver Stock While It’s Below $12?

First Majestic Silver is a TSX mining stock positioned to deliver outsized gains to shareholders over the next 18 months.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Metals and Mining Stocks

A $7,000 TFSA Investment Strategy That Focuses on Quality

TFSA investors could consider holding quality undervalued TSX stocks and benefit from outsized gains over time.

Read more »

dividends can compound over time
Metals and Mining Stocks

3 Reasons This Sold-Off TSX Stock Is Primed for a Big Rebound

Teck stock is trading well below its peak, but here’s why its next leg up could be closer than most…

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

1 Magnificent Materials Stock Down 3% to Buy and Hold Forever

Allied Gold is a TSX materials stock that offers significant upside potential over the next three years, given its growth…

Read more »