Many ASX 200 gold stocks have been exceptional investments in 2024. Thanks to a galloping gold price, many of the companies that mine this precious metal have seen stellar share price gains this year.
Although the price of gold has cooled off a little over the past month, pulling away from the record highs we saw back in late October, many investors are still scouring this corner of the markets for a bargain in case the yellow metal decides to once again reset its record.
Some of the ASX 200's most popular gold stocks are those with large, well-established reserves of gold operating with comfortable profit margins. These include Newmont Corporation (ASX: NEM), Northern Star Resources Ltd (ASX: NST), and Evolution Mining Ltd (ASX: EVN).
Yet one ASX expert has put forward a gold stock that it thinks represents one of the best opportunities in the sector.
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ASX expert picks its favourite ASX 200 gold stock
Medallion Financial Group is a fund manager that runs the Australian Equities Growth Fund. This fund has been an exceptional performer, returning 35.8% to investors over the 12 months to 31 October and 15.91% per annum since its inception in March 2023.
According to this fund's latest update, one of its best-performing stocks in recent months has been ASX 200 gold stock Westgold Resources Ltd (ASX: WGX). Western Australia-based Westgold has already proven to be a winner for Medallion, thanks to its 20.6% rise over just the month of October.
Westgold shares are also up an impressive 36.17% over the past 12 months.
Check it out for yourself below:
However, the fundie remains exceptionally bullish on this ASX 200 gold stock's future. Medallion identifies Westgold's "expected reduction in costs, paired with a ramp up in production" as a potential catalyst for the Westgold share price to move even higher going forward.
It points out that, following the merger with Canadian gold stock Karoa Resources, Westgold was able to achieve the production of 77,369 ounces of gold over the first quarter of FY25 at an all-in sustaining cost (AISC) of $2,422 per ounce. However, the fundie is looking forward to an expected 400,000-420,000 ounces of produced gold over the full 2025 financial year, with a lower AISC of between $2,000 and $2,300 per ounce:
With the AUD Gold price holding above A$3,000/koz, we see the potential for exceptional free cash flow growth in the coming years as the ramp up in production unfolds.
Let's see if Medallion's optimism over this ASX 200 gold stock plays out as predicted.
