Pan American Silver, Strategic Resources, and AngloGold Ashanti: Three Strong Commodity Stocks for Your Portfolio

AngloGold Ashanti: No Africa Discount

Those looking for solid gold stocks in favourable jurisdictions a few years ago would have been wrong to choose AngloGold Ashanti. However, the long-established company has since transformed itself. The stock of this now British company, headquartered in Denver, USA, is primarily traded in New York today. Operationally, too, the company has outgrown South Africa. Its most important mines and projects are now located in Nevada, Australia, Ghana, and Tanzania.

The latest quarterly figures were certainly impressive, with AngloGold Ashanti reporting all-time record figures. Free cash flow nearly tripled to USD 1.2 billion. EBITDA, or operating profit before interest, taxes, and depreciation, rose by a whopping 130% to USD 2.3 billion. The company has used the corporate restructuring and growing profits to reduce its net debt. Instead of reporting liabilities of USD 755 million as in the previous year, the balance sheet now shows a substantial net cash position of USD 868 million. If there is anything to criticize, it is the costs. Global inflation and production-related charges such as royalties had a negative impact. All-in sustaining costs (AISC) rose to USD 1,955 per ounce. However, AngloGold Ashanti achieved a realized gold price of USD 4,863 per ounce over the same period—an all-time record high.

The share is also attractive to dividend hunters. The company paid a dividend of 116 US cents per share for the first quarter. By comparison, in Q1 2025, it paid out just 12.5 cents per share to shareholders. AngloGold Ashanti thus remains true to its policy: Shareholders receive a base dividend as well as a bonus dependent on free cash flow. In addition, the company is planning a USD 2 billion share buyback program. However, shareholders must still approve this at an Extraordinary General Meeting (EGM) on July 23. The company's future growth is likely to come primarily from development projects in Nevada, particularly Merlin and North Bullfrog. Furthermore, thanks to its New York listing and US headquarters, more US funds are likely to take notice of the stock in the future.

Strategic Resources: Canadian Growth Stock

Whether steel, iron ore, or coal, due to the US trade war against much of the world, business partners are reorienting themselves. Tariffs and regulatory requirements are restricting free trade. However, this opens the door for the affected countries to rely more heavily on their own companies and resources. Strategic Resources also aims to benefit from this development. The company has big plans. The starting point is the BlackRock deposit in the province of Québec. It contains significant quantities of high-purity iron, as well as the critical specialty metals titanium and vanadium. In the region, the company can rely on cheap, sustainable hydroelectric power and an established infrastructure for mining companies.

That alone would not be a particularly compelling stock market story. But management has much more ambitious goals and does not want to remain a pure mining company. While the mined minerals will eventually be processed at a planned concentrator facility on the property, the company is prioritizing its Port Saguenay pellet plant first using third-party feed. When the mine is integrated later, the process will benefit from a unique feature: the rock is a vanadium-titanium-magnetite. High-purity iron is produced as a byproduct during downstream processing with minimal additional effort, commanding significantly higher selling prices than standard material. According to feasibility studies, an annual production of 526,000 tonnes of pig iron can be expected once fully integrated. In its initial phase at the port, Strategic Resources plans to scale production of iron pellets to 4 million tonnes per year using merchant ore. These direct reduction grade pellets are indispensable for electric arc furnaces in the steel industry to produce "green steel."

CEO Sean Cleary outlined the company's plans at the recent IIF.

https://www.youtube.com/watch?v=ha8A2-FPIwk

To this end, the still-small company plans to build a pelletizing plant at the Port of Saguenay in Québec. It is a deep-water port that will enable supply to customers in both North America and Europe via the St. Lawrence River. The plans are ambitious, as is the required capital investment. However, Strategic Resources has brought a financially strong partner on board. The commodities trader Javelin Global Commodities will exclusively supply high-grade iron ore until production at BlackRock begins. In addition, the partner will handle the full marketing of both production output and pig iron. Last but not least, Javelin is also providing a USD 150 million working capital credit line.

Strategic Resources is a growth stock for the coming years. Currently, the company has a market capitalization of just CAD 16 million. Additionally, a capital increase is underway to strengthen equity by CAD 10 million. The shares are being offered at a price of CAD 0.25. In addition, there is a warrant (call option) with an exercise price of CAD 0.40. The capital is to be used for preparations for the construction of the pelletizing plant. Given the low valuation, this presents an attractive entry point for bold investors with a medium- to long-term investment horizon.

Pan American Silver: Aggressive Growth

The high cash reserves of many commodity companies are driving investment. Pan American Silver is pursuing one of the most aggressive growth strategies. The Canadian gold and silver producer had cash reserves of USD 1.8 billion as of the end of March. In the months between January and March alone, it generated free cash flow of USD 488 million. Even though average selling prices are likely to decline slightly in the current quarter, the company is on the right track and is now laying the groundwork for future growth.

At the Investor Day on June 1, CEO Michael Steinmann already outlined the path forward. The plan is to invest now to reap the rewards in the coming years. There are likely two reasons behind this. First, there remains a physical shortage of silver, which is likely to be exacerbated by geopolitical conflicts. Second, the trend toward de-dollarization continues. In the long term, the gold price is therefore likely to benefit. Citigroup recently confirmed its price target for the precious metal of USD 5,000 per ounce by year-end.

Pan American Silver is spreading its bets as part of its growth strategy and surprising observers in the process. Until now, the company has been primarily active in Latin America. However, the Timmins camp in Canada is now being expanded as well. An aggressive consolidation strategy is already being pursued there. The plan is to use the underutilized processing plant at Bell Creek as a central hub. The company is planning a phased expansion and has approved an investment program totalling USD 146 million. The shaft at Bell Creek is to be deepened by 625 m and used to construct underground exploration tunnels, known as drifts. This will provide better access to the nearby satellite deposits Vogel and Samson. These have recently yielded high-grade gold discoveries.

However, expansion is also continuing in Latin America, with a particular focus on the "La Colorada Skarn" mine in Mexico. The flagship project for future silver and base metal production is the large skarn deposit located beneath the existing mine. Pan American Silver aims to optimize the mining process here. The goals are ambitious. The company aims to produce an average of 19.1 million ounces of silver in the first five years following completion and ramp-up. Current 2026 investments have already been ramped up to just under USD 95 million.

Like many gold stocks, the share price has lost value in the wake of the war and is currently trading at around USD 20, or 26% below the annual high reached in late February. Given the strong start to the year, with record revenue (+50% to USD 1.2 billion), ongoing share buybacks, and planned investments, Pan American appears to be among the silver stocks best positioned for the medium- and long-term.

With AngloGold Ashanti, investors are betting on an international gold miner that has broken away from its home base in South Africa. New projects and well-performing mines round out the picture. However, costs have recently risen. Strategic Resources, on the other hand, is benefiting from trade conflicts and aims to establish itself as a partner for the steel industry—from raw material extraction to processing. Pan American Silver is one of the best-positioned gold and silver producers. With its aggressive growth strategy, management aims to set the course for the future.