With the gold price hovering near US$5,000 per ounce, gold miners are currently generating significant cash from their operations.
In light of this, many ASX 200 gold stocks have rallied strongly over the past 12 months.
But that doesn't mean there aren't any good investment opportunities in the industry.
For example, the three stocks listed below have been named as buys by brokers today. Here's what they are recommending:
Image source: Getty Images
Alkane Resources Ltd (ASX: ALK)
Bell Potter thinks Alkane Resources could be an ASX 200 gold stock to consider. This morning, it put a buy rating and $2.10 price target on its shares.
It likes the company due to its multi-mine exposure in attractive jurisdictions. It commented:
ALK offers multi-mine gold and antimony exposure across three attractive jurisdictions, a strong balance sheet and an operating platform focused on organic and inorganic growth options. Our Target Price lifts 8% to $2.10/sh. Valuation metrics are undemanding and we retain our Buy recommendation.
Newmont Corporation (ASX: NEM)
Another ASX 200 gold stock that has been given the thumbs up is Newmont. This morning, Morgans put a buy rating and $208.00 price target on its shares.
It was pleased with its strong quarterly result and believes it demonstrates the quality of the company. The broker explains:
Strong beat and capital returns increased: NEM delivered a strong beat across multiple operating and financial metrics, while completing its US$6bn buyback and announcing a further US$6bn program. The result reinforces NEM's positioning as a high-quality, cash-generative gold producer with strong balance sheet flexibility and increasing capacity to return capital to shareholders. Maintain BUY rating with a A$208ps target price.
Regis Resources Ltd (ASX: RRL)
Analysts at Morgans have also upgraded this ASX 200 gold stock to a buy rating with a $10.07 price target.
The broker made the move in response to a stronger than expected quarterly update and recent share price weakness. It thinks the latter makes Regis Resources shares undervalued now. It explains:
Gold sales of 89.1koz at an AISC of A$2,807 beat our expectations whilst performing in line with company guidance, delivering revenue of A$622m at an average realised price of A$6,977/oz. RRL continues to build a substantial cash balance, adding an additional A$198m bringing the total to A$1.12bn. Replenished ounces with group MRE exceeding 10% yoy resource growth underpinning future production. We upgrade to BUY (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in RRL underpinned by attractive immediate term cash generation paired with a structured capital management framework.
