Most investors know about Rolls-Royce‘s stunning share price ascent — it’s up 87% in 2025 alone. But some lesser-known UK stocks have performed even better since 1 January.

Here are two that have delivered greater price gains, and which I think could continue outperforming the FTSE engineer.

Caledonia Mining

Gold producers have been among the best-performing stocks this year as bullion prices have surged. The yellow metal’s appreciated 57% in 2025, hitting new peaks above $4,100 an ounce in recent days.

Against this backdrop, Caledonia Mining‘s (LSE:CMCL) share price has rocketed 229% since 1 January. Its outperformance reflects the fact that miners’ profits can grow faster than gold prices — their fixed costs mean any extra revenues flow straight into the bottom line.

During quarter two, Caledonia’s EBITDA (earnings before interest, tax, depreciation, and amortisation) increased 52% year on year (excluding gains from asset sales). This surged past the 9% rise in gold prices over the period.

I’m confident yellow metal prices can keep rising, driven by global trade tensions, rising inflation, weak growth, and the falling US dollar. I think Caledonia may be one of the best ways to capitalise on this fertile environment given its excellent operational record.

The company delivered record second-quarter production from its Blanket Mine in Zimbabwe. It now expects to produce 75,500 and 79,500 ounces of gold in 2025, up from a previous forecast of 73,500 to 77,500 ounces.

Caledonia only has one working mine and a number of exploration assets. As a consequence, it’s more vulnerable to production outages than gold stocks with multiple active projects. But on balance it’s still an excellent share to consider, in my view.

Frontier Developments

It’s been tough for video game developers in recent years as consumers have tightened their belts. Uncertainty remains for these tech shares given the murky economic outlook.

But Frontier Developments (LSE:FDEV) has managed to defy the gloom and deliver impressive share price gains in the process. The company — best known for the Elite Dangerous space flight simulator — is up 122% in the year to date.

Frontier’s revenues are recovering strongly as it doubles-down on its core business of creative management simulation (CMS) games. Sales across these titles rose 25% in the 12 months to May, helping the developer to return to profit.

A raft of new CMS titles could deliver a sustained rebound for the gaming giant. Jurassic World Evolution 3 is set for release this October. Two further titles are slated for release in the next few years.

With a strong balance sheet, Frontier has room to invest for future growth while also returning cash to shareholders. It launched a £10m share buyback programme over the summer.

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Pan African Resources

First up, we have Pan African Resources (LSE: PAF). This is a mid-tier miner that has operations in Africa and produced 196,527 ounces last financial year (ended 30 June).

What I like about this company is that it has very low operating costs. For its most recent financial year, its ‘all-in sustaining costs’ (AISCs) per ounce of gold were just $1,600. So at current gold prices, its profits are likely to be huge. And if gold keeps going up, the company could make even more money.

I also like the rising dividend. Currently, analysts expect a payout of US 4.5 cents per share for this financial year, more than double the payout last year. That dividend forecast translates to a yield of about 3.7%.

As for the valuation, it remains low. Currently, this stock has a price-to-earnings (P/E) ratio of just eight. Put all this together, and there’s a lot to like here.

Hochschild Mining

Next, we have FTSE 250 company Hochschild Mining (LSE: HOC). It mines gold (and silver) in a range of countries including Argentina, Peru, and Brazil.

Hochschild’s operating costs are a bit higher than those of Pan African Resources. For the first half of 2025, gold AISCs were $1,914 per ounce. At those cost levels, however, the company is still cleaning up. For H1, profit before tax was up 102% year on year to $140m.

One thing I like about this company is its silver exposure. This year, silver prices have actually risen more than gold prices. Note that in H1, Hochschild’s AISC for silver was just $23. That’s far lower than the silver price today (about $48).

Turning to the valuation and dividend, the P/E ratio’s 8.3 and the yield’s 1.7%, (looking at forecasts for 2026). So there’s both value and income on offer.

Caledonia Mining

Finally, check out Caledonia Mining (LSE: CMCL). It’s a smaller producer that operates in Zimbabwe. In the first half of 2025, this company produced around 40,000 ounces of gold. AISC for the period was $1,801.

Looking ahead, this company should be able to make plenty of money with the price of gold near $4,000. Currently, analysts expect the group’s net profit to amount to around $63m this year – roughly 250% higher than the figure posted last year.

At present, this stock trades on a P/E ratio of around 11.7. So it appears to be reasonably valued. The yield’s about 1.5%. So there’s a little bit of income on offer too.

The key to investing in gold stocks

While all these stocks have potential, it’s important to understand risk as there’s a lot that can go wrong. For example, equipment can break down, weather can be poor, staff can go on strike, and governments can impose new restrictive laws. So there’s no guarantee that these shares will be good investments.

I think the key for anyone buying is to size these stocks carefully with small positions. That way, potential gains can be enjoyed without being exposed to excessive risk.

The post 3 UK gold shares to consider buying as bullion prices hit $4,000 appeared first on The Motley Fool UK.

I own a selection of funds and several individual shares that I’ve picked. And although the funds have performed well, it’s the individual stocks that have outperformed.

Striking gold

Investors looking to do the same could consider Caledonia Mining Group (LSE:CMCL). This is a gold exploration and mining company. And right now, it’s enjoying strong profitability due to a sustained high gold price.

The company estimates profitability for 2025 will be “materially ahead of market expectations”. That’s a phrase that frequently makes me smile.

If profits are up due to a high gold price, then the big question is whether it can remain elevated. There are several reasons why prices have risen over the past few years. Among them is a combination of geopolitical risks, global trade tensions, and a weakening US dollar.

Where next for gold?

Global economies have experienced many shocks in recent years and gold is often used as a hedge against this kind of risk.

I think uncertainties could persist, which should keep gold prices elevated. The World Gold Council agrees, forecasting some possible upside for the rest of the year.

This could bode well for Caledonia Mining. That said, bear in mind that there are factors that could cause gold prices to fall and temper profitability for this business. For instance, if global conflicts ease, it could lead to a dramatic fall in gold prices.

Finally, I like that this share offers several appealing financial metrics. For instance, it has a price-to-earnings ratio of just 10, a return on capital employed of 18%, and a 30% profit margin.

This is exactly the kind of UK share that could potentially supercharge an investor’s Stocks and Shares ISA.

Idea for a winning Stocks and Shares ISA

Another cheap share with strong fundamentals is Volex Group (LSE:VLX). It’s a manufacturer and supplier of power and data cables. It might not be a FTSE 100 household name, but this UK business achieved over $1bn of sales this year.

It operates across a diverse range of sectors that includes electric vehicles (EVs), data centres, and medical equipment.

Volex is experiencing strong growth in EVs, where sales grew by 40% this year.

Global sales of EVs are projected to grow from 17m in 2024 to over 30m in 2030. This could bode well for Volex cables.

Strong earnings despite pressures

Despite tariff uncertainty and inflationary pressures, it reported an outstanding year of growth for the company.

And, although it operates in some strong markets, it’s important to note that it’s not immune to wider economic downturns. Also that it sells its cables across several borders, so any escalation of tariffs between countries could raise its costs.

Given strong earnings growth, its price-to-earnings ratio of 14 appears attractive. I also like that it’s a well-managed business with a well-respected CEO.

I’d also note that its Chief Operating Officer bought around £150,000 of shares earlier this year. And although purchases by management don’t always cause share prices to jump, it’s a further encouraging factor.

The post Meet the 2 UK shares that could help double a Stocks and Shares ISA appeared first on The Motley Fool UK.

What are gold stocks?

Gold stocks are simply publicly traded investments that focus on gold. They provide an indirect way for investors to benefit from rising precious metal prices. When the commodity increases in value, so can profits at the companies that pull the shiny substance out of the ground.

Shareholders in gold-mining shares can enjoy a share of the earnings by way of dividends. They can also watch the share prices of their gold stocks rise along with the values of the physical metal.

Gold is used widely in the manufacture of jewellery as well as in a number of industrial applications. However, the metal’s chief role as an investment commodity is what makes it — and by extension, gold-mining shares — such a divisive asset class.

Non-fans argue that gold has no real purpose in a world where trade is dominated by the use of paper currencies. Some argue, too, that the growing popularity of cryptocurrencies lessens the usefulness of precious metals still further.

Others, however, believe that gold’s eternal sentimental appeal, along with its status as a ‘currency of last resort,’ means that the yellow metal remains a critical investment asset.

Top gold mining stocks in the UK

There are many UK mining companies that are involved in the production of gold, which gives share investors a broad range to select from. Here are a few of the top gold mining shares in the UK:

Fresnillo

• 2025 Production: 600,287 ounces
• Dividend Yield: 2.2%
• 12-Month Performance: +425% (24 February 2026)

Fresnillo is perhaps best known as the biggest silver miner on the planet. But it is also one of Mexico’s largest gold stocks by production, and in 2025 churned out more than 600,000 ounces of the yellow metal.

Fresnillo extracts gold from eight mines, the lion’s share of which comes from the Herradura open-pit asset, which has been in operation since 1997. Mexico is one of the world’s precious metal hotspots, and Fresnillo has another four development and advanced exploration projects in the works there.

However, with the regulatory environment in Mexico becoming increasingly strict and the government ruling out any new mining concessions, management has begun exploring new opportunities in Canada through acquisitions.

Greatland Resources

• 2025 Production: 198,319
• Dividend Yield: 0%
• 12-Month Performance: +103% (24 February 2026)

Greatland Resources (formerly known as Greatland Gold) was founded in 2005. And after years of exploration efforts, the group finally transitioned to an actively producing gold mining enterprise in 2024.

The company currently operate a gold and copper project in Australia called Telfer. However, the group’s latest analysis suggests the lifetime of the mine may be far longer than initially anticipated, and when paired with record gold prices, the company’s market capitalisation surpassed the £4bn threshold.

With production expected to ramp up and revenue finally flowing into the income statement, Greatland’s newfound cash flow could help fund its other ongoing and future exploration projects in the region.

Hochschild Mining

• 2025 Production: 311,000 ounces
• Dividend Yield: 0.3%
• 12-Month Performance: +308% (24 February 2026)

Hochschild was founded back in 1911 and began its expansion into regions like Bolivia and Peru.

With operations all over Latin America, Hochschild has been ramping up production with its new Mara Rosa project that started extracting metal from the ground in late 2024. Pairing this with continued strong performance at its flagship Inmaculada mine in Southern Peru, the group achieved record sales during the year.

2025 proved to be a tricky year for production with Mara Rosa suffering a four-week plant suspension due to tailings filter failures.

Yet while volumes suffered, the rapid rise in gold prices nevertheless resulted in strong financials that sent the share price flying. And with these production challenges now in the rear-view mirror, alongside promising results from its exploration efforts, the company is aiming to ramp up production over the coming years.

Pan African Resources

• 2025 Production: 196,527 ounces
• Dividend Yield: 0.8%
• 12-Month Performance: +410% (24 February 2026)

Pan African Resource is a relatively small gold mining enterprise listed in London. The group has been benefiting from the steady rise of gold prices in recent years, enabling profit margins to expand and shareholder dividends to be hiked.

Its portfolio contains both surface and underground mining projects across Southern Africa. And following its 2024 acquisition of a new state-of-the-art tailings treatment facility, production volumes steadily began ramping up in 2025 – a trend that’s expected to continue into the future.

Barberton Mines continues to be the company’s flagship gold-producing asset with an annual capacity of 110,000 ounces.

Caledonia Mining Corporation

• 2025 Production: 76,213 ounces
• Dividend Yield: 1.98%
• 12-Month Performance: +168% (24 February 2026)

Caledonia Mining Corporation’s sole operating gold project is the Blanket Mine in Zimbabwe. Thanks to the commissioning of a new central shaft in 2021, output from the asset has been rising, reaching a record high of 76,656 ounces of gold in 2024.

However, while the project was initially on track to deliver up to 77,500 in 2025, lower ore grades and electricity supply interuptions throughtout the second half of the year resulted in flat year-on-year production volumes.

Caledonia owns a 64% share in Blanket, along with brownfield exploration and development projects. In late 2021, it acquired mining claims at Maligreen in the Zimbabwe midlands, which is home to a mineral resource with an estimated 940,000 ounces of gold.

Are gold stocks right for you?

Not all gold stocks pay a dividend. This is especially the case with smaller operators that run on tighter budgets and dedicate their capital to the expensive business of exploration, development and/or production.

However, a number of gold shares (like all of those mentioned above) can afford to pay dividends to their shareholders. This is something that gives gold-mining stocks an advantage over physical metal (like bars and coins) and financial instruments that only track movements in the physical gold price. Exchange-traded fund (ETF) iShares Physical Gold ETC is an example of one of these.

The perils of buying gold shares

The trouble with buying gold stocks, however, is that they expose investors to the often-problematic world of mining. Sudden power outages, for example, can play havoc with production and, by extension, a company’s revenues. Issues with bringing a project onstream can delay output and cause costs to balloon. Mining licences and export bans can be withdrawn at short notice in the areas in which a project is located. The list of potential problems is long.

This is why buying a major gold-mining stock could have advantages over more modest (or junior) operators. Buying a smaller-scale gold share has the potential to rocket in value if it finds a whopper of a gold resource. But these firms are less financially robust than the majors, which can have a large portfolio of mining interests and impressive cash flows that enable them to traverse such problems. This is why so many junior miners go out of business while the larger operators have excellent staying power.

Investing in an ETF

Of course, profits at major gold stocks can take a hit from one or more of those many mining industry hazards. However, an interesting way that investors can potentially lessen the risk is by buying a financial instrument like an exchange-traded fund (ETF), which is made up of a basket of gold mining stocks.

Take the Sprott Gold Miners ETF, for example. This aims to track the performance of dozens of larger gold shares, and its biggest holdings include Barrick Gold, Newmont and Franco-Nevada. The good thing about owning a gold ETF is that it also pays a dividend, whilst allowing one to also spread the risk across several mining businesses.

Buying gold stocks for the long haul

Mining-related risks aren’t the only dangers of owning gold stocks, of course. Whether buying gold shares or the physical metal itself, investors expose themselves to the possibility of wild swings in the price of the shiny commodity.

Investors might buy gold-producing stocks in the hope of soaring demand for the precious metal. But prices can go up and down, of course, and a collapsing gold price can be devastating for a company, particularly for those cash-starved junior miners.

Take gold’s price performance over the past couple of years, for example. Bullion values soared in recent years, hitting record peaks surpassing $5,000 per ounce. They rose as geopolitical uncertainty supercharged demand for the safe-haven asset, and as a result, profits at many gold-mining companies.

That’s quite a change of tune compared to gold’s performance in 2021, where the price of the yellow metal fell by 7%. As risk appetite returned to markets and investor interest in flight-to-safety gold eased, pulling earnings at most gold shares lower again.

A nexus of macroeconomic, geopolitical and social factors interacts in a complex way to dictate the movement of commodity prices. So, predicting what direction precious metals will move in can be a difficult business.

Many investors buy gold and gold-mining stocks, though, as an insurance policy for when economic conditions worsen. They hold them over the long term to diversify their portfolio and protect their wealth when prices of riskier assets drop through the floor. Gold-related assets are bought to provide peace of mind rather than a way to exploit price movements over a shorter time horizon.

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