In this article we take a look at 10 best Canadian gold stocks to buy right now.
High prices in 2020 boosted the gold industry to new heights, gaining significant attention from investors due, in part, to global uncertainty and low interest rates, making it a decent investment for protection against inflation. According to a report by McKinsey, the gold industry generated returns of approximately 33% as of late 2020.
According to a recent study, the global gold mining market is forecast to grow from $214.1 billion in 2021 to $249.6 billion by 2026, at a compound annual growth rate (CAGR) of 3.1%.
As the fifth largest gold producer in the world as of 2020, the Canadian gold industry has long played an integral role in shaping Canada’s cities and its modern day economy. The gold mining infrastructure that was built alongside the country’s towns in the 19th century has grown to provide $21.6 billion worth of exports for Canada in 2020.
Some of the best Canadian gold stocks to buy right now according to hedge funds include Barrick Gold Corporation (NYSE:GOLD), Franco-Nevada Corporation (NYSE:FNV) and Wheaton Precious Metals Corp. (NYSE:WPM), among others discussed in detail below.
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Our Methodology
Let us now analyze our list of the 10 best Canadian stocks to buy right now.
These are some of the most famous Canadian gold stocks among the 873 hedge funds tracked by Insider Monkey. In addition to hedge fund sentiment, we took into account analyst ratings and long-term growth prospects while choosing these stocks.
Best Canadian Gold Stocks To Buy Right Now
10. Centerra Gold Inc. (NYSE:CGAU)
Number of Hedge Fund Holders: 8
Centerra Gold Inc. is a Canadian gold mining company that focuses on operating, developing, exploring and acquiring gold properties across the world. One of the best Canadian gold stocks to buy according to investors, Centerra Gold Inc. (NYSE:CGAU) owns and operates numerous valuable gold mines, including the Kumtor Gold Mine in the Kyrgyz Republic, the Mount Milligan copper-gold mine in British Columbia, Canada, and the Öksüt gold mine in Turkey.
On November 12, Raymond James analyst Brian MacArthur raised the price target on Centerra Gold Inc. (NYSE:CGAU) to $8.72 from $8.33 and kept a Market Perform rating on the shares.
At the end of the second quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $12.6 million in Centerra Gold Inc. (NYSE:CGAU).
Similar to Barrick Gold Corporation (NYSE:GOLD), Franco-Nevada Corporation (NYSE:FNV) and Wheaton Precious Metals Corp. (NYSE:WPM), Centerra Gold Inc. (NYSE:CGAU) is a notable stock to invest in.
9. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 15
B2Gold Corp. (NYSE:BTG) is a Canadian mining and production company that owns and operates gold mines in Mali, Namibia and the Philippines. Earlier this October, the company agreed to acquire a 75% interest in the Kuortis Property in Finland from Aurion Resources.
Jim Simons’ fund Renaissance Technologies is one of the biggest stakeholders of B2Gold Corp. (NYSE:BTG) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 15 funds were bullish on the company by the end of the June quarter, compared to 18 in the previous quarter.
The company issued its quarterly earnings report for the third quarter of 2021 on November 2, with a reported EPS of $0.12. The company also declared revenues at $510.86 million, surpassing market estimates by $1.92 million.
On October 5, Scotiabank analyst Ovais Habib maintained an Outperform rating on B2Gold Corp. (NYSE:BTG) alongside a $7.14 price target on its shares.
8. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Holders: 20
Formerly known as Silver Standard Resources, SSR Mining Inc. (NASDAQ:SSRM) is a Canada-based producer of gold, silver, zinc and tin. Operating as a free cash flow focused mining company, it has projects in Canada, Argentina, Turkey, and the United States.
On November 4, Canaccord analyst Dalton Baretto raised the price target on SSR Mining Inc. (NASDAQ:SSRM) to $22.21 from $19.83 and kept a Buy rating on the shares of the company.
As of the end of the second quarter, 20 hedge funds tracked by Insider Monkey reported owning stakes in SSR Mining Inc. (NASDAQ:SSRM). The total worth of these stakes is $204.7 million. This shows the hedge fund sentiment is positive for the mining company as 16 funds had stakes in the company in the previous quarter, with a total worth of $178 million.
Palm Valley Capital released its Q1 2021 investor letter and mentioned SSR Mining Inc. (NASDAQ:SSRM) in it. Here is what the firm has to say:
“As precious metals and precious metal miners underperformed during the quarter, several of the mining stocks on our possible buy list became more attractively priced. After declining 33% from the beginning of the year, we purchased SSR Mining, an intermediate gold company with four producing mines located in the United States, Turkey, Canada, and Argentina. In 2021, the company expects to produce 720,000 to 800,000 gold-equivalent ounces with all-in sustaining costs of $1,050 to $1,110 per ounce. At current gold prices, we expect SSR Mining to generate meaningful free cash flow this year, adding to its cash balance. Currently, the company’s balance sheet is very strong and liquid with $470 million in net cash, $1.2 billion in net working capital, and $3.9 billion in tangible book value. We were happy to purchase SSR Mining at a discount to our valuation of its net assets. In addition to being cheap, we think it’s a nice inflation hedge.”
7. Alamos Gold Inc. (NYSE:AGI)
Number of Hedge Fund Holders: 20
Alamos Gold Inc. (NYSE:AGI) is a Canadian multinational company that is engaged in the mining, exploration and extractions of gold and other precious metals. Headquartered in Toronto, the company operates three mines across North America.
As of late October, National Bank analyst Mark Parkin maintained a Sector Perform rating on the shares of Alamos Gold Inc. (NYSE:AGI), alongside a $9.12 price target.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Alamos Gold Inc. (NYSE:AGI), with over 9.29 million shares worth more than $71 million.
6. Kirkland Lake Gold Ltd. (NYSE:KL)
Number of Hedge Fund Holders: 22
Kirkland Lake Gold Ltd. (NYSE:KL) is a Canada-based gold mining, development and exploration company. Engaged in multiple mining and milling projects, the company owns and operates the Macassa Mine and Mill, the Detour Lake Mine, and the Fosterville Mine in Australia.
Earlier this November, Scotiabank analyst Ovais Habib reiterated an Outperform rating on shares of Kirkland Lake Gold Ltd. (NYSE:KL) with a $41.44 price target.
According to Insider Monkey’s data on 873 hedge funds as of Q2, 22 hedge funds held stakes in Kirkland Lake Gold Ltd. (NYSE:KL) in the second quarter of 2021, worth about $391 million.
Out of the hedge funds being tracked by Insider Monkey, Jim Simons’ Renaissance Technologies is the biggest shareholder in Kirkland Lake Gold Ltd. (NYSE:KL), with over 2.84 million shares worth approximately $109.7 million.
In its quarterly earnings report for the third quarter of 2021, Kirkland Lake Gold Ltd. (NYSE:KL) reported earnings per share of $0.91, beating estimates by $0.05. The company’s revenue for the quarter came in at $668.29 million, beating estimates by $36.17 million.
Just like Barrick Gold Corporation (NYSE:GOLD), Franco-Nevada Corporation (NYSE:FNV) and Wheaton Precious Metals Corp. (NYSE:WPM), Kirkland Lake Gold Ltd. (NYSE:KL) is a stock investors are paying attention to.
5. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 23
Franco-Nevada Corporation (NYSE:FNV) is a Canadian gold-focused royalty and streaming company with a branched out portfolio of cash-flow producing assets.
Earlier on October 21, Canaccord analyst Carey MacRury upgraded Franco-Nevada Corporation (NYSE:FNV) to Buy from Hold ahead of the start of earnings season for precious metal producers, citing the implied return to his unchanged $158.61 price target.
At the end of the second quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $959 million in Franco-Nevada Corporation (NYSE:FNV), up from 20 in the preceding quarter worth $933 million.
Of the 873 elite funds tracked by Insider Monkey, Murray Stahl’s Horizon Asset Management is among the leading shareholders of Franco-Nevada Corporation (NYSE:FNV), with 923,734 shares worth more than $134 million.
4. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 26
Wheaton Precious Metals Corp. (NYSE:WPM) is a multinational precious metals streaming company based in Vancouver, Canada. The company set a record revenue of $923 million, earnings of $460 million, and operating cash flow of $650 million for the first nine months of 2021.
On September 24, KeyBanc analyst Adam Josephson initiated coverage of Wheaton Precious Metals Corp. (NYSE:WPM) with an Overweight rating and $47 price target on its shares.
As of the end of the second quarter, 26 hedge funds tracked by Insider Monkey reported owning stakes in Wheaton Precious Metals Corp. (NYSE:WPM). The total worth of these stakes is $471 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Wheaton Precious Metals Corp. (NYSE:WPM), with 16.5 million shares worth approximately $729.6 million.
3. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 28
Kinross Gold Corporation (NYSE:KGC) is a Canadian company that is involved in gold mining and related activities, including exploration and acquisition of gold-bearing properties, as well as the extraction and processing of gold ores.
On October 12, Credit Suisse analyst Fahad Tariq reiterated an Outperform rating on the shares of Kinross Gold Corporation (NYSE:KGC).
Kinross Gold Corporation (NYSE:KGC) issued its quarterly earnings report for the third quarter on November 10, declaring an EPS of $0.07, surpassing the forecast estimates by $0.02. The company’s revenue for the quarter stood at $862.50 million.
According to our database, 28 of the 873 elite hedge funds held stakes in Kinross Gold Corporation (NYSE:KGC) in the second quarter of 2021, worth about $360 million. This is compared to 27 hedge funds that held stakes in the company in the previous quarter, worth $444 million. Eric Sprott of Sprott Asset Management is one of the leading shareholders of the company.
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 29
With gold reserves stand at 24.1 million ounces, Agnico Eagle Mines Limited (NYSE:AEM) is one of the best Canadian gold stocks to buy right now. Operating as a gold producer, the company has operations in Canada, Finland and Mexico, as well as exploration projects in the United States.
On October 6, RBC Capital analyst Josh Wolfson upgraded Agnico Eagle Mines Limited (NYSE:AEM) to Outperform from Sector Perform with a price target of $63 on its shares.
As of the second quarter of 2021, 29 hedge funds held stakes in Agnico Eagle Mines Limited (NYSE:AEM) worth $235 million, up from 28 funds in the preceding quarter that held stakes in the company worth approximately $247 million.
According to the Q3 earnings report, Agnico Eagle Mines Limited (NYSE:AEM) had an EPS of $0.60, in-line with the market estimates. The company also posted revenues of $974.07 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Agnico Eagle Mines Limited (NYSE:AEM) with 5.24 million shares worth more than $272 million at the end of September quarter.
1. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 47
With over 16 operating sites in 13 countries, Barrick Gold Corporation (NYSE:GOLD) is one of the best Canadian gold stocks to buy right now. Based in Toronto, the company engages in gold mining and mineral exploration activities.
On September 24, KeyBanc analyst Adam Josephson initiated coverage of Barrick Gold Corporation (NYSE:GOLD) with a Sector Weight rating on its shares.
Of the 873 elite funds tracked by Insider Monkey, 47 were long Barrick Gold Corporation (NYSE:GOLD) at the end of June, compared to 49 in the first quarter of 2021. New York-based First Eagle Investment Management is one of the leading stakeholders of the company at the end of the June quarter.
In the Q2 2021 Investor Letter, Ariel Investments highlighted a few stocks and Barrick Gold Corp (NYSE:GOLD) is one of them. Here is what the fund said:
“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”
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Disclosure: None. 10 Best Canadian Gold Stocks To Buy Right Now is originally published on Insider Monkey.
