With gold above $ 3,000, is it time to consider buying this FTSE miner?

In general terms, economic instability is not good for Ftse 100 stocks. During difficult times, investors tend to abandon shares and look for other assets to invest.

A favorite is gold. It is reputed to be a reliable wealth store. Because of this, it is often seen as an effective coverage against inflation.

And as a result of the erratic approach of President Trump for tariffs, the fears of decelerating global economic growth and continuous regional conflicts, the precious metal is working quite well at this time.

Until now in 2025, its price has established a series of maximum records and this morning (March 14) broke the barrier of $ 3,000/OZ for the first time. It takes less than five years to arrive from $ 2,000/Oz.

How times have changed.

Almost 25 years ago, my first investment was in a confidence unit specialized in precious metals. At that time, gold was quoted at $ 300/Oz. Unfortunately, I sold a long time ago.

A possible beneficiary

But there is a ftse 100 stock, Effort mining (LSE: EDV) that should benefit from an increase in the price of gold.

In 2024, the production of their mines in Western Africa was 1.103koz (one thousand ounces). By 2025, it forecasts a range of 1,110-1,260koz. At the upper end, this would be 14% more.

The group states that it has a “leadershipProduction cost. Miners use the maintenance cost (AISC) with everything. To measure this. In the last quarter of 2024, Endeavor Mining said that his AISC was $ 1,141. And with gold above $ 3,000, there are clearly many profits to obtain.

In addition, in my opinion, there are other positive aspects. Unlike gold, the action pays a healthy dividend. Its payment declared by 2024 is $ 0.98 (75.8Pa the current exchange rates). This means that the action currently produces 4.5% and that puts it in the upper quartile of Footsie members.

Of course, payments are never guaranteed.

Then and now

Since June 14, 2021, when the company appears for the first time in London, the price of its shares has increased by just less than 5%. However, during the same period, the price of gold has fired 67%. Initially, this was a puzzle for me. However, a closer look at the numbers explains why the assessment of the group's stock market has stagnated.

As a result of selling some of its non -basic assets, it is now producing less than it was previously. And their profits have not changed to a large extent.

In 2024, the 1.103koz of gold they extracted generated revenues of $ 2.68 billion. Its net earnings adjusted by action (EPS) of continuous operations were $ 0.93 (72p).

In 2021, the production was 1,524koz, which resulted in a turnover of $ 2.78 billion. His EPS was $ 0.92.

Final thoughts

Despite the more points, I don't want to invest.

An increasing gold price is a double -edged sword. Yes, it should help increase the group's margin and profits. However, a higher price is how to affect demand. This could be affected even more if the fears that lead the price of gold come true higher.

And despite its recent bull, the price of gold can be volatile.

In addition, from an operational perspective, I believe that mining is the most difficult industry in the world. At the time of his list, Endeavoavor Mining's prospect dedicated 23 pages to a detailed explanation of the challenges facing the group.

For these reasons, the action is too risky for me.