Five Gold Mining Stocks to Own Now

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#2 Newmont Mining Corp (NYSE:NEM)

Investors with Long Positions (as of September 30): 41

Aggregate Value of Investors’ Holdings (as of September 30): $2.84 Billion

While the total number of hedge funds (among those that we track) holding shares of the $9.6 billion gold producer fell by five during the third trimester, the value of these aggregate investments rose by 18%. The surge came despite a more than 31% drop in the company’s share price. So far this year, the stock is down by about 6.2%. FBR Capital recently has reiterated its ‘Market Perform’ rating for the company and hiked its price target to $22 from $19. The new price target provides an upside of more than 20% at the current trading levels. Newmont Mining Corp (NYSE:NEM) has managed to reduce its AISC by 18% this year and it is expected to remain below $1,000 per ounce for the next five years. William B. Gray‘s Orbis Investment Management boosted its stake in Newmont Mining Corp (NYSE:NEM) by 35% in the July-September period to 7.78 million shares.

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#1 Barrick Gold Corporation (USA) (NYSE:ABX)

Investors with Long Positions (as of September 30): 40

Aggregate Value of Investors’ Holdings (as of September 30): $937.59 Million

So far this year the stock price of the Canada-based Barrick Gold has fallen by nearly 35%. However, the miner is deleveraging itself in the face of a tough environment and recently has revealed plans to buy back up to $1.15 billion of its own debt. Barrick Gold Corporation (USA) (NYSE:ABX)’s debt at the start of this year exceeded $13 billion and the management is trying to reduce this figure to $3 billion by the end of 2015. Collectively the funds we track amassed about 12.7% of the company’s outstanding stock at the end of September. Among these investors, First Eagle Investment Management holds about 27.85 million shares of Barrick Gold Corporation (USA) (NYSE:ABX).

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Disclosure: none

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