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About the Industry
The Zacks Mining - Gold industry comprises companies engaged in extracting gold from mines. These mines may either be underground or open pits. Mining is a long and complex process and requires significant financial resources. It involves exploring to evaluate a deposit's size; assessing ways to extract and process ore efficiently, safely and responsibly; and developing the mine before the actual mining process. It usually takes 10-20 years for a gold mine to produce material that can finally be refined. Nowadays, industry players use a range of sophisticated techniques to extract gold and convert it into dore bars, an alloy of gold and silver, alongside other impurities. These are then sent for purification, after which gold is purchased as bars or coins, or used in jewelry or other purposes.
Major Trends Shaping the Future of the Mining-Gold Industry
Unprecedented Rally in Gold Prices to Aid Industry: Gold recorded a remarkable run in 2025, with the highest annual average of $3,431 per ounce, which was up 44% year over year. Gold price even breached the $4,500 mark in December 2025. The rally was driven by escalating geopolitical and economic uncertainty, a weaker U.S. dollar and continued strong central bank purchases. Total gold demand also hit an all-time high of 5,002 tons. Investment demand was a major driver, reaching a landmark level of 2,175 tons. Investors seeking safe haven and diversification piled into gold ETFs, adding 801 tons throughout the year. Global bar and coin demand is reaching 12-year highs at 1,374 tons. Central bank buying remained elevated in 2025, with the official sector adding 863t of gold. The upward momentum has continued in 2026, with gold up 18.4% year to date and trading near a record $5,140 per ounce as investors increasingly turn to safe-haven assets amid escalating tensions in the Middle East.
Cost Management Efforts Sustain Margins: The industry has been facing a shortage of skilled workforce, causing a spike in wages. Industry players are grappling with escalating production costs, including electricity, water, and material. Since the industry cannot control gold prices, it focuses on improving the sales volume and the operating cash flow, as well as lowering unit net cash costs. The industry participants are opting for alternate energy sources, such as solar or wind farms, to minimize fuel-price volatility and secure supply. Miners are committed to cost-reduction strategies and digital innovation to drive operating efficiencies.
Structural Supply Constraints to Support Long-Term Prices: Depleting resources, declining output from aging mines and the lack of new mines remain inherent threats to the industry. Given the high costs and risks and lengthy time period associated with developing new mines, many companies prefer to expand their reserve base through mergers and acquisitions. On the demand side, the use of gold in energy, healthcare and technology is rising. India and China account for around 50% of consumer gold demand. Gold demand in India will remain strong on improving economic momentum and consumer confidence. The yellow metal has long been considered a safe-haven investment amid financial or political uncertainty. Central banks have been ramping up reserves held in gold due to currency depreciation and geopolitical and economic risks. Therefore, there will be an eventual demand-supply imbalance, which will likely drive gold prices.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. The Zacks Mining - Gold Industry, which is a 40-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #22, which places it in the top 9% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Versus S&P 500 & Sector
The Mining-Gold Industry has outperformed the sector and the Zacks S&P 500 composite over the past year. The stocks in the industry have collectively grown 145.1% compared with the broader sector’s rise of 46.6%. The S&P 500 has gained 21.6% in the same timeframe.
Industry's Current Valuation
On the basis of the trailing 12-month EV/EBITDA, a commonly used multiple for valuing gold-mining companies, we see that the industry is currently trading at 11.82X compared with the S&P 500’s 17.33X and the Basic Material sector’s trailing 12-month EV/EBITDA of 17.38X. This is shown in the charts below.
Over the last five years, the industry traded as high as 12.90X and as low as 5.26X, the median being 7.78X.
5 Mining-Gold Stocks to Bet On
Agnico Eagle Mines: The company continues to prioritize projects aimed at strengthening production and cash-flow generation. It is advancing its key pipeline projects, including the Odyssey project in the Canadian Malartic Complex, Detour Lake, Hope Bay, Upper Beaver and San Nicolas. AEM is also reassessing some higher potential portfolio projects (Hammond Reef, Timmins East and Northern Territory) in light of the high gold price environment. The company generated a record free cash flow of around $4.4 billion in 2025. Through a disciplined, phased development approach, Agnico Eagle aims to lift annual gold output by 20–30% over the next decade, with the potential to surpass 4 million ounces in the early 2030s. AEM shares have gained 51% over the past six months.
The Zacks Consensus Estimate for this Toronto, Canada-based company’s earnings for fiscal 2026 has moved up 33.5% over the past 60 days. The estimate indicates 60.4% year-over-year growth. AEM has a trailing four-quarter earnings surprise of 10.8%. Agnico Eagle currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada: The company recently agreed to a AUD170 million ($120 million) gross royalty from Minerals 260 to support the development of the Bullabulling Gold Project in Western Australia. This deal will lift Franco-Nevada’s effective royalty on the project land package to 2.45%. Bullabulling is a large and growing resource and one of the most attractive gold development projects in Australia. Franco-Nevada also inked a deal to acquire a $250 million net smelter return royalty from i-80 Gold Corp. The royalty rate will start at 1.5%, increasing to 3.0% beginning in 2031, and will apply to all of i80 Gold’s material properties, including their six projects in various stages of development. This increases FNV’s long-term gold exposure in Nevada, where its royalty coverage already extends to Goldstrike, Gold Quarry, Arthur, Marigold, Bald Mountain, South Arturo and numerous other properties. Backed by a diversified royalty and streaming portfolio, a debt-free balance sheet and strong cash flows, Franco-Nevada remains well positioned for long-term growth. FNV shares have gained 32.8% over the past six months.
The Zacks Consensus Estimate for this company’s earnings for fiscal 2026 indicates 58.6% year-over-year growth. The estimate has moved up 24% over the past 60 days. FNV has a trailing four-quarter earnings surprise of 7.7%, on average. The company has a long-term estimated earnings growth of 8.9% and currently sports a Zacks Rank of 1.
Equinox Gold: 2025 marked a transformative year for the company with the merger with Calibre creating a tier one North American-focused gold producer anchored by two new long-life Canadian mines. The company also reported delivery of the first gold and commercial production at Valentine ahead of schedule, and portfolio optimization through asset divestments. The company achieved a record production of 922,827 ounces in 2025. EQX has also transformed the balance sheet, reducing debt by more than $1.1 billion since the second quarter of 2025. In 2026, the company aims to generate strong free cash flow supported by expected gold production of 700,000–800,000 ounces and elevated prices, and continue lowering debt levels. A strengthened balance sheet provides greater flexibility to fund 400,000-500,000 ounces of potential annual organic growth over the next five years from the Phase 2 expansion at Valentine, the Castle Mountain expansion, and optionality at Los Filos. EQX shares have gained 74.5% over the past six months.
Headquartered in Vancouver, Canada, Equinox Gold engages in the exploration, acquisition, development and operation of mineral properties in the Americas. The Zacks Consensus Estimate for EQX’s 2026 earnings has moved up 30% over the past 90 days. The consensus estimate indicates a substantial year-over-year improvement of 263%. EQX has a trailing four-quarter earnings surprise of 89.2%, on average. The company currently sports a Zacks Rank of 1.
IAMGOLD: The company delivered record margins and cash flow in 2025 as its mines moved into robust production phases, as well as solid gold market conditions. Solid operating performance enabled IAMGOLD to advance its balance-sheet deleveraging strategy and return capital to shareholders through its share repurchase program. In 2026, IAMGOLD remains focused on growing the value of its assets while maintaining operational discipline. The buyback program will continue, supported by cash flows from the Essakane mine. At the Côté operation, the focus will be on reducing unit costs and preparing for a future expansion targeting the combined Côté and Gosselin deposits. The company is also advancing its organic growth pipeline with a comprehensive drill program at its newly consolidated Nelligan Complex, which is already positioning itself as among the largest pre-production projects in Canada. IAG shares have gained 126% over the past six months.
The Zacks Consensus Estimate for this Toronto, Canada-based company’s earnings for fiscal 2026 has moved up 29.7% over the past 60 days. The estimate suggests year-over-year growth of 74%. IAG has a trailing four-quarter earnings surprise of 15.75%, on average. The company currently has a long term estimated earnings growth of 5.9% and sports a Zacks Rank of 1.
Eldorado Gold: The company expects gold production at 490,000-590,000 ounces in 2026, representing a 11% year-over-year increase. This will be supported by its current operating mines, the Lamaque Complex, Kisladag, Efemcukuru and Olympias. First concentrate from the Skouries project is now expected in the early part of the third quarter of 2025, with commercial production targeted for the fourth quarter. Once operational, Skouries is set to significantly enhance Eldorado’s production profile, costs and cash generation. The company thus expects gold output to reach 620,000-720,000 ounces in 2027, indicating a solid 40% increase from 2025 levels. With higher production and the addition of copper output from Skouries, Eldorado expects a strong increase in free cash flow supported by its stable operating portfolio. EGO shares have gained 58.3% over the past six months.
The Zacks Consensus Estimate for Vancouver, Canada-based Eldorado Gold’s 2026 earnings indicates year-over-year growth of 194.3%. The estimate has moved up 21% over the past 60 days. EGO presently sports a Zacks Rank of 1.
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This article originally published on Zacks Investment Research (zacks.com).
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