Last week’s highly-anticipated Nvidia results gave a brief respite from market fears. However, it seems they’ve failed to shore up the market as much as many hoped.
Lately, I’ve written extensively about the benefits of defensive shares during periods of market instability. However, there are a few growth stocks that could also benefit.
Naturally, gold and precious metal miners are well-positioned, as these commodities are seen as safe havens when markets wobble. We’ve already seen this effect drive up the price of Fresnillo this year. However, with the price now 47.5 times earnings, it might already be overvalued.
Fortunately, there’s a small gold miner on the FTSE 100 which might still be catching up. If so, it could present a compelling growth opportunity.
Impressive performance
With a moderate £7.7bn market-cap, Endeavour Mining‘s (LSE: EDV) a small player next to Fresnillo. It’s also up only 114% this year compared to Fresnillo’s astounding 262% gain.
That leaves it with more breathing space for extra growth if gold keeps rising. At around 20 times earnings, its price-to-earnings (P/E) ratio’s only slightly above the FTSE average.
Looking at the numbers, Endeavour has demonstrated exceptional operational and financial execution throughout 2025. In the first nine months of the year, it produced 911,000 ounces of gold at an all-in sustaining cost (AISC) of just $1,362 per ounce – meaning at current gold prices of around $4,077, the company generates roughly $2,715 in profit per ounce.
Year-to-date adjusted EBITDA has surged 110% to $1.634bn, with adjusted net earnings rocketing 375% to $556m. Most impressively, free cash flow totalled a stunning $680m through September, representing a 1,411% year-on-year increase.
Unsurprisingly with those numbers, its balance sheet is rock solid. Net debt stands at just $678m, with leverage at merely 0.2 times adjusted EBITDA – significantly below the company’s 0.5 times target. The profit growth has helped drive dividend increases, with its yield now up to 3%.
It’s an impressive performance from a company that only joined the FTSE 100 in June 2024.
Risks
As with any investment, it’s critical to assess the risks. In the case of Endeavour Mining, regional and political volatility’s a key concern due to its operations in unstable parts of West Africa.
This year, Burkina Faso nationalised certain mining assets while Guinea and Mali made regulatory changes affecting Endeavour Mining’s operations. These geopolitical risks could disrupt production, impose higher taxes, or even result in partial asset loss.
Additionally, if gold prices collapse from current highs, the company’s generous dividend would come under pressure.
Final thoughts
For a few hours last week, I really thought the AI bubble was just fear-mongering. But it seems even Nvidia’s exceptional performance isn’t enough to keep an oversaturated market climbing. When taking into account additional factors such as US debt, tariff concerns and geopolitical risks, I think gold will keep climbing for some time still.
For investors looking for exposure to rising gold prices without holding physical gold, a stock like Endeavour may be worth considering. While it faces regional- and sector-specific risks, the combined income potential and low valuation make it highly attractive, in my opinion.
