By Amy Legate-Wolfe at The Motley Fool Canada
Gold doesn’t need to keep breaking records to make miners worth owning. As of March 26, gold is trading around US$4,479 per ounce, which is well off its January record high of $5,594.92. Still, that’s sharply higher than where it was a year ago. Gold has more than doubled from the $2,600 range it was at in early 2025. Even after the recent pullback, the structural tailwinds haven’t gone away.
If you’ve been looking to add gold exposure to your portfolio without chasing the peak, the entry point today looks far more interesting than it did two months ago.
A rising gold price doesn’t just lift sentiment — it can also lift margins. When the metal price climbs faster than a miner’s costs, each ounce becomes meaningfully more profitable, which can turn steady quarters into surprise cash flow.
The trick for investors is avoiding stocks that need perfect conditions. The better candidates have credible production, improving execution, and a balance sheet that can fund growth without constantly leaning on shareholders.
Here are two to consider.
Allied Gold: A High-Torque TSX Gold Stock Still Finding Its Footing
Allied Gold (TSX:AAUC) is a newer name for many Canadian investors. It’s a gold stock with operating mines and a growth plan that the market is still learning how to price. Over the last year, news about it has largely been practical stuff that drives re-ratings in this sector — balance sheet moves, project funding, and operational updates. It has also been focusing on scale, aiming to move from “one of many” producers into the camp of companies that can matter in a higher-gold environment.
The numbers show why it can catch attention when gold prices look rich. In its Q3 2025 results, AAUC reported revenue of about US$107 million and adjusted EBITDA of roughly US$50 million, though it also posted a net loss of about US$22 million. That split is typical for a miner in build-and-optimize mode: The cash-style profitability can look decent as the official accounting earnings get pulled around by depreciation, financing costs, and project-related items.
A bullish case here is that the market starts valuing AAUC like a durable producer instead of a work-in-progress. At today’s gold price, the operating leverage could be meaningful if that pans out. The risks, though (project delivery, jurisdiction risk, cost inflation, and any disappointment on production or guidance) should remind investors how quickly miners can fall out of favour.
Dundee Precious Metals: A Disciplined Gold Compounder Built for a Rising Metal Price
On the other hand, Dundee Precious Metals (TSX:DPM) is built around consistency. It operates like a “do the basics well” company: delivering production, controlling costs, generating free cash flow, and returning capital without needing hype. Over the last year, DPM’s storyline has centred on operational delivery and the next phase of growth, with the market watching its ability to fund expansion while staying disciplined.
What makes DPM easier to own when gold has already run up is that the company has shown it can work across cycles. In its 2024 year-end results, it reported revenue of about US$607 million, net earnings of roughly US$243 million, and free cash flow of about US$305 million, alongside well-contained all-in sustaining costs. The more recent financial picture has remained strong, with net income and EPS reflecting a business benefiting from higher realized prices without losing cost control.
Valuation is part of the stock’s appeal. DPM has often looked cheaper than you’d expect for a high-margin operator — with a current market cap around $9.9 billion and a trailing P/E near 16. The forward outlook hinges on keeping production steady, protecting margins, and advancing growth projects on time and on budget. The key risks are the usual mining ones: operational hiccoughs, cost creep, and the reality that gold can pull back fast if real yields jump or risk appetite snaps back.
Bottom line
Gold is off its January highs but at roughly US$4,479 today, it remains at levels that would have seemed extraordinary not long ago. If you want some gold in your portfolio, AAUC and DPM offer two distinct ways to do it.
The post 2 Canadian Gold Stocks to Buy if the Metal Keeps Climbing appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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