Several of the world’s best gold stocks reported 2025 financials this week. We can learn much about the gold stock business by looking at these results and the corresponding reaction in the market.
It’s kind of a strange fact of life about publicly traded companies that we only see “official” financial results months after they occur.
If you run your own business (as I do) then you have a very granular, day-to-day understanding of your business’s finances.
And of course, these publicly traded companies have the same ongoing, granular insights, but they only make them official once a quarter.
So, what can we learn?
First, we have our own, self-interested biased expectations.
We expect that when the world’s best gold stocks have record setting quarters and fiscal year financials that the market would send them soaring.
Especially when these same companies issue guidance for the next year that’s above 2025’s numbers.
But no… most of these companies are still flat.
And there’s a perfectly compelling reason for this muted reaction from the market.
They’re being pulled down by “macro” events that seem to have spooked the market more than positive earnings can resist.
War in the Middle East will do that.
And while we can’t control war in the Middle East, we can control, as always, how we react.
This week, we saw blowout earnings from one of the world’s best gold and silver royalty firms. The company saw double digit growth across the board on earnings, cash flow, profitability, gold production, profits, etc.
This company even completed the world’s largest royalty acquisition without diluting shareholders AND it still ended 2025 with over $1 billion in cash on the balance sheet…
AND this company expects to see improved numbers for 2026, with additional gold production of about 20% over 2025.
This company has an amazing cash cost per gold ounce of about $550… and margins over $3k at the average price in 2025…
Imagine what the profit margin will be at $5k gold…
But today – just hours after this earnings announcement, the stock is down 4%.
I have to keep going back to Warren Buffett’s metaphor about Mr. Market – a trading partner who offers you prices every day. It’s your job to decide if the price is dear or if it’s a deal.
When Mr. Market offers you a price substantially under the previous day on good news – a day when everyone in the world can see that the value of this company is up double digits at the very least… it might be a time to take him up on his mistake.
Much of the time, Mr. Market gives us the opposite offer: he says he has a bunch of overpriced stocks on the block. But this week, thanks to scary news from the Middle East, we have a very compelling opportunity to buy some of the best stocks in the world at a discount…
It won’t last.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio