3 ASX 200 gold stocks to buy now

It isn't too late to buy these gold shares according to a leading broker.

| More on:
Gold bars with a share price chart in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It looks set to be another great session for ASX 200 gold stocks on Monday after the price of the precious metal climbed to yet another record high.

According to CNBC, the spot gold price was up 1.6% to a record of US$2,345.4 an ounce.

This was gold's third consecutive week of gains and was driven by U.S. interest rate cut bets, speculative buying, and central bank purchases.

In light of this, you may think that it is too late to invest in any ASX 200 gold miners. But you would be wrong, according to analysts at Goldman Sachs.

This morning, the broker has named three miners that it believes investors can pick up at current levels.

Which ASX 200 gold stocks are buys?

The first gold share to look at is De Grey Mining Limited (ASX: DEG). Goldman has a buy rating and $1.45 price target on its shares, which implies potential upside of 12% for investors from current levels.

It believes the gold developer could be a top option due to its tier one Hemi asset. The broker also sees the world class deposit as a potential takeover option for a larger player. It said:

While historically mining stocks tend to underperform through the execution and ramp-up phase of a project, we expect with Hemi positioned as a Tier 1 asset of global scale that post-DFS it remains an attractive potential strategic consolidation target.

Another ASX 200 gold stock that could be a buy according to the broker is Evolution Mining Ltd (ASX: EVN).

However, with a buy rating and $4.00 price target on the miner's shares, this implies only modest upside for investors from current levels. It said:

Of the larger cap names EVN (Buy) remains our preference to NST (Neutral) on near-term FCF, and with exposure to further increases in copper pricing (~30% of EVN's revenue over FY24-26E).

A third ASX 200 gold stock that could be worth a closer look according to Goldman Sachs is Gold Road Resources Ltd (ASX: GOR).

The broker currently has a buy rating and $2.00 price target on the miner's shares. This suggests potential upside of approximately 20% for investors over the next 12 months. It recently said:

[W]e retain our Buy rating with GOR the only gold stock in our coverage without major growth spend, supporting cash generation (near-term FCF yields of c. 5-10% in CY24-27E remain attractive vs. peers and support upside to the outlook for capital returns), while trading at a significant discount to peers at ~0.9x NAV / ~4x NTM EV/EBITDA / pricing a LT gold price of US$1,575/oz (peer average ~1.1x NAV / 5-6x EV/EBITDA / ~US$1,930/oz LT gold).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Guess which ASX gold stock just rocketed 92% on this 'outstanding' new discovery

Investor are snapping up the ASX gold stock as excitement over its gold and silver project surges.

Read more »

ETF written in yellow gold.

Should you buy ASX gold ETFs right now?

Is gold a 2024 fad or still a good long-term investment?

Read more »

rising gold share price represented by a green arrow on piles of gold block

Guess which ASX 200 gold stock is marching higher on a 'significant resource upgrade'

ASX 200 investors are bidding up the Aussie gold miner following a sizeable estimated resource increase.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.

2 under-the-radar ASX gold shares shining 11% brighter on Friday

These shares are having a golden finish to the week. But why?

Read more »

St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.

2 ASX gold shares making big news today (one up 300%!)

How is this ASX gold share up more than 300% right now?

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.

This ASX 200 gold stock can rise 30% and could be a takeover target

Bell Potter thinks investors should be snapping up this gold miner before it's too late.

Read more »

A woman's hair blows wildly as she sticks her head out the train window travelling through the desert.

Top ASX gold shares to buy in May 2024

Looking to add some investment exposure to the yellow metal this month?

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.

Are Newmont shares at a stretched valuation right now?

Here's my take on the current Newmont share price.

Read more »