Who Are the EMEA Gold Miners That JPMorgan Is Bullish On?

If you don’t know what EMEA is, let us tell you that first. EMEA stands for Europe, the Middle East, and Africa. This geographical grouping is widely used by global corporations to define regional business activities across these diverse areas.

It encompasses a wide range of countries and cultures, facilitating communication and operational strategies within a common framework.

And the reason we are talking about EMEA is because JPMorgan has expressed strong confidence in several gold mining companies located in the EMEA region.

The bank’s analysts have highlighted a favorable macroeconomic environment, high free cash flow yields, and reduced operational risks as key factors driving their bullish outlook.

Among the companies mentioned, Fresnillo stands out as the top pick. JPMorgan has raised its price target for Fresnillo to £10 per share, noting its attractive valuation at approximately 3.5 times its estimated enterprise value to EBITDA for 2025/26 and a notable 12% free cash flow yield.

Analysts expect that Fresnillo’s upcoming fiscal year 2024 results, set to be released on March 4, will further strengthen its investment case.

Additionally, JPMorgan remains optimistic about Hochschild Mining, which is currently trading at about 2 times spot estimated EV/EBITDA for 2025/26 and boasts a projected free cash flow yield of around 10%. This valuation positions Hochschild as an appealing option for investors seeking value in the gold mining sector.

Another company on JPMorgan’s radar is AngloGold Ashanti, which could benefit from its recent strategic moves, including a primary listing in the United States and the successful closure of its Centamin acquisition.

These actions are expected to enhance AngloGold’s market position and operational efficiency.

The backdrop for this bullish sentiment includes rising gold prices, which have increased by 4% since November. Despite this uptick, mining stocks have remained relatively flat, creating what JPMorgan describes as an attractive buying opportunity.

Their commodities team maintains a positive outlook for gold in 2025, projecting a year-end target of $2,950 per ounce.