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.
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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).
