Gold rally attracts investors back to mining stocks after months of outflows

Written by Patoraga Moorogabethi

(Reuters) -It is scheduled to invest in investing in gold mining workers to attract the largest net monthly flows in more than a year in March, as high gold prices improve companies’ profit expectations and increase cash flow.

Although gold prices also rose last year, miners are still struggling to make up for nails that depend on inflation in employment and fuel costs while facing organizational obstacles such as tax disputes in the project delay in Canada.

As a result, investors often collected stock boxes that focused on gold mining workers, and instead chose to obtain traditional gold boxes that provided a safe haven during the war of Russia, Ukraine and escalate commercial tariff fears after Donald Trump won the US elections in early November.

According to LSEG LIPPER data, money investing in gold and material gold derivatives attracted net $ 17.8 billion in 2024, the highest level in five years, while losing money investing in gold miners $ 4.6 billion, which is more than a decade.

With the rise in gold more than 15 % this year to a standard level above $ 3000 an ounce, investors are more optimistic that miners can absorb higher costs, expand margins and generate stronger cash flows.

Better shares of miners such as NewMont and Barrick Gold have decreased, more than 2024 decreased by 10 % and 7 %, respectively, increased by about 27 % and 21.5 % so far this year.

The money targeting gold miners attracted the first net monthly flow in six months in March, according to Libber data, as it attracted 555.3 million dollars, the highest level since November 2023.

“In recent years, gold mining companies have faced cost pressure, but they are now able to benefit from the high price of gold. We add to them,” said Chanel Ramy, a head of assets in the assets of Betti, based in the assets.

“At the current gold prices, the profit returns,” he added.

Barrrick Gold has announced a billion dollar resetting offer after reporting a strong profit and doubled the free cash flow in the fourth quarter.

Anglogold Ashanti said its public budget was the strongest in more than a decade and announced the distribution of final profits of 91 American cents per share – nearly five times for the previous year.

Gold Fields also indicated that it may start the shares re -purchase this year, while Harmony Gold plans to finance a new copper mine in Australia.

“Investors who are looking to diversify their portfolios and hedging against the uncertainty in the market and inflation ultimately may turn their attention to gold mining shares,” Imaru Casanova, Director of Gold and Presious Metals at Vaneck, said.

“We have a positive look at the price of gold, and given the low assessments of gold miners, we are more constructive in stocks.”

(Participated in the coverage of the Patoraga Moragabethi and Johraf Dogra in Bengalore by Fidia Rangana, Kirsten Donovan)