With interest rates either falling or on the verge of falling globally and geopolitical tensions rising, the gold price has been breaking records lately.
The team at Bell Potter believes this positive run can continue. It said:
Gold price has had a great run in 2024, and we continue to hold the view that the outlook for the yellow metal is very positive underpinned by multiple positive drivers.
In light of this, it has just named some of the best ASX gold stocks to buy right now. Two that make its list are name below. They are as follows:
Catalyst Metals Ltd (ASX: CYL)
The first ASX gold stock that Bell Potter is bullish on is Catalyst Metals.
It is an Australian gold producer and developer with projects across Western Australia and Tasmania. This includes the Plutonic Gold Operation (PGO) and the Henty Gold Operation.
Bell Potter highlights that there's potential for significant expansion at PGO, which could boost its mine life meaningfully. In addition, it notes that the company has a lot to offer investors in respect to exploration. It explains:
There is good potential for further significant discoveries at PGO from extensions of known deposits and across the greater belt. In-mine exploration is likely to enable CYL to demonstrate at least 5-year mine lives at each of the 4 planned PGO mines, supporting increased market valuations, and diversifying operating risks.
Regional exploration offers significant upside beyond the first 4 mines. Strong forecast free-cash flow is more than adequate to fund CYL's significant CY25 exploration budget ($25m), and expansion capital expenditure. Should CYL make a significant discovery, it would be within the company's granted mining leases, and within 40km of its combined 3Mtpa processing capacity (of which only 1.8Mtpa is utilised in the current 3-year Plan).
The broker has a buy rating and $4.30 price target on its shares.
Gold Road Resources Ltd (ASX: GOR)
Another ASX gold stock that could be a buy according to Bell Potter is Gold Road Resources.
It is a gold producer with an ownership in the tier-1 Gruyere Gold Mine in Western Australia. It also has exploration projects and isn't shy with M&A. The latter includes the company acquiring a large stake in De Grey Mining Ltd (ASX: DEG), which is developing the tier-1 Hemi Gold Project.
Bell Potter has been pleased with the company's recent performance after a couple of years of struggles. It said:
After experiencing production disruptions in late CY23 and early CY24, GOR's recovery from production issues is ongoing with progressive improvements expected over the next six-months.
The broker also highlights that management has its eyes on significantly higher gold production in the future. It adds:
Management commentary continues to highlight the assets potential for significantly higher gold production and earnings (a sustainable 175kozpa on an attributable basis). GOR has underperformed other gold producers which have rallied in the strong gold price environment. As GOR demonstrates gold production is back on track in 4QCY24, we expect the share price to improve rapidly.
The broker has a buy rating and $2.40 price target on its shares.
