Bullish Developing Trends Are Happening With Gold Stocks

Featured companies in this report are Heliostar Metals, Goliath Resources and Dryden Gold.

A few months ago, I wrote a report highlighting a group of gold stock picks that had made important breakouts. What stood out to me about that group was that it included companies from major miners down to explorers. This was a distinct change from what I had seen in the gold stocks during 2024 and it felt to me like an important milestone.

Gold had a fantastic year in 2024, going from the bottom left of the chart to the top right and making a series of record highs along the way. But, when it came to the gold stocks, it was only a select group of gold miners that joined the gold bull market party by significantly outperforming gold.

When it comes to the outperforming gold miners, I was fortunate to have focused on a few like Agnico Eagle, Alamos Gold and Silvercrest that substantially beat the performance of gold. But, it wasn’t a year that really lifted a lot of gold stock boats, even amongst the gold miners. And for the most part, going down the food chain to the junior miners, developers and explorers they really didn’t join the gold bull market.

So I was very impressed to see back in the middle of February that breakouts were starting to happen across the board from the majors down to the explorers. These are inflection points that I pay attention to as they often develop into long-term trends.

Recently, I added Newmont to my picks because I think they have gone through an inflection point that will not only help them get stronger, but will also bring generalist investors into the gold stocks.They are a bellwether stock for generalist investors when they think of gold miners.

But, during 2024, they were an underperformer compared to several other gold miners and to gold as well. Considering that they make up 12% of the GDX that is the ETF generalist investors look at to assess how the gold miners are doing, it had a negative impact on the performance of the GDX and also influenced sentiment amongst generalists contemplating buying gold miners.

Since I made Newmont a pick in early April, they are up around 20%. It is nice to see them up since then as I’m confident that they have turned a corner and are going to help improve the sentiment of generalist investors considering buying gold stocks. Their improvement is one of those inflection points that I look for, I even called it the Newmont effect.

Lately, I have been noticing another very encouraging trend developing that I see as another important inflection point when it comes to the gold stocks. During 2024, because the gold stocks had gone through a tough few years prior to 2024, the sentiment, even amongst the gold stock bulls was pretty subdued. Good to great news would come out and shareholders of companies down the gold stock food chain would use it as a liquidation event.

But, now I am seeing good to great news being bought and stocks are firming up and holding onto their gains. I’m even seeing companies put out important technical reports and their stocks are firming up. Plus, investors are even buying in anticipation of good news coming out. That didn’t happen in 2024 and I am very encouraged to see it happening in 2025.

I have some examples that I will mention next.

One of those is Heliostar Metals (one of the companies in the report about gold stocks that had broken out) which started 2025 at around C$0.60 and closed today at C$1.25. They transitioned from an explorer to a junior gold miner when they bought a couple gold mines in 2024. Those mines have plenty of exploration potential, and they also have an exciting gold mine development project. Their various assets give them exposure to gold mining, gold mine development and gold exploration. That mix gives them cash flow from mining that is helping them build up their cash position, so they can fund their additional production at their gold mines, and develop their Ana Paula project and also cover the costs of exploration at their various projects. They have a goal to grow from a junior gold miner to a mid-tier gold miner. I recently did an interview with them you can find here that will help you understand their plans to reach that goal.

Another company that was in the report about breakout stocks was Goliath Resources, which is my highest conviction pick for a gold explorer with an important discovery. They started the year at around C$1.00 and closed today at C$2.22. Recently, they put out a technical report that during 2024 would have gotten practically no attention in the stock price. But, the news of the geological study that was completed by the Colorado School of Mines had impressive information about what they have discovered and what they will focus on in their upcoming drilling season. Since the news release went out, the stock has firmed up nicely from under C$2.00 per share to its closing price today. I find the reaction to this very encouraging for Goliath and also a sign that information that would often get a yawn in the market is now being paid attention to which is also a great development for the gold explorers in general. I did an interview with Roger Rosmus (CEO of Goliath) and Randall Karcher (PhD student at the Colorado School of Mines) who did the work in the geological study. It makes me happy to see young geoscientists like Randall that are doing great work and love the business as we need more of them in the mining sector. It was a lot of fun to discuss the geological study with him and be able to showcase a very young talent in the business that has a bright future in the mining sector. You can find the interview here.

Dryden Gold is an example of a company that is seeing its stock move up nicely in anticipation of good news coming out soon. Recently, they were trading at around C$0.10, then they put out a news release with images of impressive coarse visible gold in the drill core. Lately, their stock has perked up as they are awaiting the assay results from that core with the visible gold and they closed today at C$0.24. I haven’t seen stocks firm up based on images of core prior to assay results in a long time. I’m optimistic that the results will come out with great numbers because it is the most visible gold they have hit in a drill hole since they have owned the project. I love high-grade gold and orogenic gold systems, which is what Dryden Gold has, have a look at the core here, it is impressive stuff. Keep an eye on them because the assay results could come out any day.

In Closing

These are just a few examples of companies that are moving up on good news and holding onto those gains (Heliostar), technical reports that are moving them up (Goliath Resources) and one that is moving up (Dryden Gold) in anticipation of great news. They are also a fantastic indicator that investors are paying attention to information that they haven’t given credit to in a long time.

The winds of optimism are starting to make their way down the gold stock food chain and I find that extremely bullish.

I have more examples that I will write about in future reports.

All the best,

Allan Barry Laboucan

Disclosure

Allan Barry Laboucan is a shareholder of Heliostar Metals, Goliath Resources and Dryden Gold.