Since the start of 2024, gold prices have risen from US$2,040 to US$3,375 today. Historically, the precious metal has been viewed as a store of value and a hedge against inflation. Moreover, gold has an inverse relationship with bonds and stocks, which further diversifies your portfolio.
Several factors have driven gold prices higher over the past 15 months, including central bank buying from China and India, multiple interest rate cuts from central banks, the ongoing tariff war, and geopolitical tensions.
In addition to buying physical gold or related exchange-traded funds, Canadian investors should consider holding quality gold stocks in their portfolio amid economic uncertainty. Here are two gold stocks you should add to your watchlist in April 2025.
Is this TSX gold stock a buy right now?
Valued at a market cap of $61.6 billion, Newmont (TSX:NGT) is a gold mining giant. The TSX mining stock delivered record free cash flow of US$1.6 billion in the fourth quarter (Q4) of 2024, capping a transformational year that saw the gold giant integrate new assets while divesting non-core operations.
The world’s largest gold producer reported full-year 2024 production of 6.8 million ounces of gold and over 150,000 tonnes of copper, exceeding its production guidance. Moreover, it generated US$2.9 billion in free cash flow for the year.
“2024 was a transformational year for Newmont,” said Tom Palmer, president and chief executive officer. “We took important steps to unlock the value of everything we have done so far on our journey to build a world-class company with an outstanding portfolio of assets.”
Newmont has successfully sold or reached definitive agreements for all six of its non-core operations announced in February last year. It expects to receive about US$2.5 billion in cash proceeds in the first half of 2025 after taxes and closing costs.
Looking ahead, Newmont projects 2025 gold production from its core portfolio to be approximately 5.6 million ounces at an all-in sustaining cost of US$1,620 per ounce. The company raised its gold reserve price assumption to US$1,700 per ounce from US$1,400 previously.
Palmer emphasized that Newmont’s focus is now shifting to improving costs and productivity across its streamlined portfolio. Newmont maintained its US$1 per share annual dividend commitment and has US$1.8 billion remaining in its current share repurchase authorization, having already executed US$1.2 billion in buybacks.
Priced at 14 times forward earnings, the TSX gold stock trades at an 11.6% discount to consensus price targets in April 2025.
Is the TSX stock undervalued?
Valued at $6.2 billion by market cap, IAMGOLD (TSX:IMG) is a gold producer and developer. In Q4, IAMGOLD highlighted production growth and improved financial position, positioning it as a rising mid-tier gold producer with strong Canadian assets.
It produced 667,000 attributable gold ounces in 2024, a 43% increase from the prior year, driven by the successful start-up of its Côté Gold mine in Canada, along with strong performance from its Essakane and Westwood operations.
Its financial results reflected the production gains, with adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) doubling to US$780.6 million in 2024, while net earnings reached $819.6 million, boosted by a reversal of prior impairment on Westwood of $455.5 million.
Looking ahead, IAMGOLD expects Côté Gold to nearly double its output in 2025, forecasting production of 360,000 to 400,000 ounces on a 100% basis. The mine is targeting a throughput capacity of 36,000 tonnes per day by the end of Q4 despite some equipment challenges in early 2025.
The gold miner announced an increase in mineral resources at its Nelligan project in Quebec, now positioning it among Canada’s largest gold deposits, with 3.1 million indicated ounces of gold and 5.2 million inferred ounces.
With approximately 80% of measured and indicated resources now located in Canada, IAMGOLD is positioning itself as a predominantly Canadian producer with the potential for significant free cash flow growth and balance sheet improvement in 2025, particularly if current gold prices persist.
Bay Street expects the company’s adjusted earnings to grow from US$0.55 per share in 2024 to US$0.87 per share in 2026. So, priced at 11.3 times forward earnings, the gold stock is priced at a 14% discount to consensus price targets.
