The AIM miners that are this year’s hot stocks

Mining companies had dominated AIM around two decades ago, with many also having a listing on another stock exchange such as Australia’s ASX or Canada’s TSX. However, the number of mining companies, and particularly their value, had been declining; that was until the past few years.

The rise in the gold price to $4,000/ounce has been behind a major recovery in some of the small-cap mining sector’s share prices and there has also been positive exploration news relating to other metals.

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The gold price high in 2011 was surpassed during 2020, and that was followed by a period where the price drifted back. Gold has been gaining upward momentum for the past three years. Platinum and silver have risen by even more than gold so far this year.

Share prices of the mining companies on AIM seemed to take a while to respond to the rises in metal prices, but many have gained momentum in the past year.

AIM miners and explorers

At the end of 1999, four out of the 347 AIM companies were miners. Admittedly, technology companies dominated the market at the beginning of the millennium during the so-called dotcom boom. The number rose to 90 by the end of 2004 before a jump to 149 by the end of 2005. The new admissions and readmissions raised more than £260 million during the year, as Australian and Canadian companies tapped the London market for cash.

The most traded AIM companies in December 2005, included Bema Gold, Griffin Mining Ltd (LSE:GFM), which is still on AIM, and Centamin, which moved to the Main Market and was a constituent of the FTSE 250 index before agreeing a £1.71 billion takeover by Anglogold Ashanti (NYSE:AU) in 2024 – it was valued at £94 million at the end of 2005.

The number of mining companies continued to rise, peaking during 2007 when there were nearly 200 mining companies on AIM. Even when the gold price was peaking in 2011, there were fewer companies.

There was a time when mining was the biggest sector and accounted for more than one-fifth of AIM by market capitalisation. By the end of 2019, it was 5.1%, meaning it was one of the bottom three sectors in size. That figure increased to 6.8% by the end of 2020 around the time of the sector high and has continued to rise.

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By the end of September 2025, mining companies made up 17% of the AIM market capitalisation and it was the second-largest sector on AIM. It also accounted for one-quarter of the value on AIM.

The FTSE AIM Basic Resources index, which includes precious and industrial minerals companies, is by far the best AIM sector performer over the past year, having risen by nearly three-quarters. That is more than double the rise of any other AIM sector. In fact, the index is nearly back to its high at the beginning of 2021. 

The performance has been particularly strong since the beginning of the year with an 88.6% gain.

Uranium investor Yellow Cake Ordinary Shares (LSE:YCA), gold miner Greatland Resources Ltd (LSE:GGP), gold miner Pan African Resources (LSE:PAF) and Empire Metals Ltd (LSE:EEE) are four of the six most-traded AIM shares in value terms during September. Those four shares accounted for more than 15% of the value traded on the whole of AIM during the month.

Top 10 mining stocks in AIM All Share index

Source: ShareScope, 9 October 2025

Paying dividends for these three

Dividend-paying gold producers are the ones generally doing the best, among them Caledonia Mining Corp (LSE:CMCL), Pan African Resources and Thor Explorations Ltd Ordinary Shares (LSE:THX).

Thor Explorations started paying quarterly dividends this year. It generates cash from the Segilola gold mine in Nigeria, which has been producing for five years. The forecast yield is 3.7%.

Debt has been paid off and there was $52.8 million (£ million in the bank at the end of June 2025, which could rise to more than $100 million by the end of the year.

In the first half of 2025, 45,574 ounces of gold was produced. The production guidance for the full year is 85,000-95,000 ounces. Full-year cost guidance is $800-1,000/ounce, so this is a highly profitable mine at the current gold price. The current resources will only last until 2028, but current exploration will increase that. There should be an updated resource for Segilola by the end of 2025.

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Thor Explorations has a highly attractive project in Senegal that could commence production by 2028. A pre-feasibility study for the Douta gold project is expected before the end of the year. This could provide further impetus for the share price, which has already risen 345% to 73.5p this year. 

In 2025, Caledonia Mining Corporation is 261% ahead at 2760p. That is just off the all-time high. The yield is 1.5%.

A strong start to the year means that annual production guidance for the Blanket gold mine in Zimbabwe has been raised to 75,500-79,500 ounces of gold. The cost per ounce rose 11% year-on-year to $1,123 in the second quarter

Just like Thor Explorations, debt has been paid off, and net cash could exceed $100 million by the end of 2025.

Management believes that it can finance the development of the 100%-owned Bilboes project from cash generation and not require a share issue. The dividend should be maintained at the current level, but there is a possibility that there could be a short-term reduction to help finance the development, which was acquired at the beginning of 2023 for 5.12 million shares. There has been limited mining, but there are plans for open pit gold mining of 168,000 ounces/year for 10 years.

There is also potential upside from Motapa, which could be integrated with Bilboes, but that is a longer-term project. A feasibility study for Bilboes is expected in a few months and should be positive for the share price.

In the year to June 2026, gold production could be between 275,000 ounces and 292,000 ounces, which will be an increase of around two-fifths. Last year, revenues were 45% ahead at $540 million, while profit increased 78% to $140.6 million. Net debt was $150.5 million and there could be net cash by June 2026.

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Pan African Resources shares are 170% ahead so far this year at 92.3p. The yield is 2.4%. It is the fourth-largest company on AIM and intends to move to the Main Market, probably in October.

Since Greatland Resources’ readmission, after it increased the stake in the Havieron gold project in Australia to 100%, it has become the largest company on AIM. The share price has trebled this year.

First-quarter figures are ahead of expectations, with gold production of 80,900 ounces and costs are at the lower end of guidance. Net cash was A$750 million at the end of September 2025.

Serabi Gold (LSE:SRB) has had technical problems at the Coringa project, but it is coming to understand the ground conditions. The share price is still 162% ahead at 283p.

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Production guidance of 44,000 ounces to 47,000 ounces is expected to be met this year. Cash generation is likely to accelerate with net cash of $45 million forecast for the end of 2025, rising to $97.7 million at the end of 2026.

Ariana Resources (LSE:AAU) has underperformed the sector despite generating cash from its Turkish interests. There were delays to the ASX listing and investors are waiting for further news about the Dokwe gold project in Zimbabwe and its potential funding.

Ariana Resources announced that the second gold mine at Tavsan in Turkey is fully operational. It has a 23.5% interest through its joint venture in Turkey and it could produce up 30,000 ounces of gold each year at a cost of $1,500/ounce. At the current gold price, the EBITDA could be £60 million, according to Zeus, and the company will be entitled to 23.5% of that. Cash could be used to invest in the Dokwe gold project.

There have also been large rises among the gold explorers, including Wishbone Gold (LSE:WSBN) and Orosur Mining Inc (LSE:OMI), where there has been positive exploration news.  

Non-gold

Empire Metals is the best-performing AIM mining company in 2025, with a 593% increase to 47.5p this year. This has led to its inclusion in the FTSE AIM 100 index.   

Empire Metals appears to have discovered a giant-scale hydrothermal titanium and copper mineral system at its 70%-owned Pitfield project in Western Australia. Titanium is classed as a critical metal. A maiden mineral resource estimate is due imminently.

Guardian Metal Resources (LSE:GMET), which is developing tungsten and other projects, is 339% ahead at 123p, helped by news it is seeking a US listing.

Even some of the stronger performers this year, have poor share price performance over 20 years. For example, Orosur Mining has fallen 88.5% over 20 years and Serabi Mining is 94.9% lower.

However, the likes of Caledonia Mining Corporation and Pan African Resources are many multiples of their share prices 20 years ago. These companies and other AIM miners, such as Empire Metals and Ariana Resources, still have potential for further share price rises if there is positive news concerning their exploration and projects in the rest of the year and beyond. 

Andrew Hore is a freelance contributor and not a direct employee of interactive investor.