In this article, we discuss 10 best junior mining gold stocks to buy in 2022.
A junior mining company refers to a firm exploring for new deposits of gold, silver, copper, uranium, or other precious metals. A junior mining gold company is usually in the development and exploration phase, and is actively searching for new mineral properties with bigger natural deposits. Junior mining gold companies catch the interest of growth investors, since these stocks tend to explode when the firm finds huge deposits and start production. Many junior mining firms are trading as penny stocks, and they usually do not pay dividends, so the excess capital can be reinvested to expand operational capacity.
In the beginning of October, the US dollar finally lost some steam and the U.S. Treasury yields declined, and investors turned towards safe haven assets like gold once again. Currently, gold is trading near record-high levels. As per a World Gold Council report, demand for gold climbed 12% year-over-year in the first half of 2022. Demand for gold in Q1 2022 jumped 34%, which is the greatest quarterly increase in demand in the gold market since 2018.
Given the global demand for gold and limited supply, Goldman Sachs raised its forecast for the price of gold to hit $2,500 an ounce by the end of 2022. The World Gold Council expects gold price per ounce to exceed $3,000 over the next few years. Currently, the price of gold is declining as interest rates go up, because currently higher-yielding assets are more attractive for investors. However, there is minimal historical evidence which suggests that gold is permanently weakened by federal rate hikes in the long-term. A study of the gold market during the 1970s indicated that gold price reached its record-time high price when interest rates were high and swiftly increasing.
Some of the elite players in the gold market include Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM). Investors who would like exposure to gold, and seek exponential growth potential, can look out for junior mining gold stocks.
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Our Methodology
We selected the best junior mining gold stocks based on their current or future gold projects, positive analyst coverage, and potential for higher scalability in the future. These firms are currently trading as penny stocks and their market cap remains under $1 billion, which offers sufficient room for expansion and growth.
We have arranged the list of the best junior mining gold stocks according to the number of hedge fund holders in each firm. The hedge fund sentiment was assessed from Insider Monkey’s database of elite hedge funds, tracked as of the second quarter of 2022.
Best Junior Mining Gold Stocks to Buy in 2022
10. Caledonia Mining Corporation Plc (NYSE:CMCL)
Number of Hedge Fund Holders: 4
Caledonia Mining Corporation Plc (NYSE:CMCL) was incorporated in 1992 and is headquartered in Saint Helier, Jersey. The company primarily engages in the operation of a gold mine and mineral properties for precious metals in Zimbabwe. On October 7, Caledonia Mining Corporation Plc (NYSE:CMCL) disclosed a purchase of 2,235 shares by CFO Chester Goodburn, priced at $9.95 per share. Following this transaction, Goodburn owns 6,335 shares in the company, representing approximately 0.05% of the total issued share capital.
On October 3, Caledonia Mining Corporation Plc (NYSE:CMCL) declared a quarterly dividend of $0.14 per share, in line with previous. The dividend is distributable on October 28, to shareholders of record on October 14. The company delivered a dividend yield of 5.49% as of October 12.
Caledonia Mining Corporation Plc (NYSE:CMCL) on July 21 announced that it has signed an agreement to purchase Bilboes Gold project in Zimbabwe for a total consideration of 5,123,044 Caledonia Mining Corporation Plc (NYSE:CMCL) shares, representing nearly 28.5% of Caledonia’s fully diluted equity, and a 1% net smelter royalty on the project’s revenues. On July 7, Liberum initiated coverage of Caledonia Mining Corporation Plc (NYSE:CMCL) with a Buy rating and a 1,380 GBp price target.
According to Insider Monkey’s data, 4 hedge funds were bullish on Caledonia Mining Corporation Plc (NYSE:CMCL) at the end of Q2 2022, compared to 3 funds in the last quarter. Israel Englander’s Millennium Management is the leading position holder in the company, with 71,314 shares worth $781,000.
Caledonia Mining Corporation Plc (NYSE:CMCL) is one of the best junior mining gold stocks for exposure to the precious metals market, in addition to firms like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM).
9. Dakota Gold Corp. (NYSE:DC)
Number of Hedge Fund Holders: 4
Dakota Gold Corp. (NYSE:DC) is based in Lead, South Dakota, and the company focuses on the acquisition and exploration of mineral properties. It primarily explores for gold deposits, holding controlling interests in the Blind Gold, City Creek, Homestake Paleoplacer, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and South Lead/Whistler Gulch projects in South Dakota. Dakota Gold Corp. (NYSE:DC) remains one of the best junior mining gold stocks of 2022.
On September 12, Canaccord analyst Michael Fairbairn initiated coverage of Dakota Gold Corp. (NYSE:DC) with a Speculative Buy rating and a $5.25 price target. The company operates out of the “prolific” Homestake District in the Black Hills of South Dakota and listed on the NYSE in April after more than 10 years of property consolidation efforts and multiple deals with Barrick, the analyst told investors. He appreciates Dakota Gold Corp. (NYSE:DC) for its “strong leadership and exploration teams, quality jurisdiction with low geopolitical risk, clear focus on ESG, and major exploration potential,” stating that he sees the likelihood of a multi-million ounce, highgrade discovery.
According to Insider Monkey’s database, 4 hedge funds reported owning stakes in Dakota Gold Corp. (NYSE:DC) at the end of June 2022, collectively worth $4.86 million.
8. Galiano Gold Inc. (NYSE:GAU)
Number of Hedge Fund Holders: 4
Next on our list of the best junior mining gold stocks is Galiano Gold Inc. (NYSE:GAU), a Canadian company that specializes in the exploration, development, and production of gold properties. Its core asset is the Asanko Gold Mine, based in Ghana, West Africa. In Q2 2022, Galiano Gold Inc. (NYSE:GAU) reported gold revenue of $84.7 million, generated from 46,236 gold ounces sold at an average price of $1,832 per ounce. The total gold production was 50,010 ounces during the second quarter, and the full-year gold production guidance was revised from 100,000-120,000 ounces to 140,000-160,000 ounces.
On August 15, Berenberg analyst Jonathan Guy upgraded Galiano Gold Inc. (NYSE:GAU) to Buy from Hold with a price target of C$0.80, up from C$0.70. Galiano Gold Inc. (NYSE:GAU) has elevated its production guidance for FY22 and the analyst has now raised his estimate to 148,000 ounces for the year. He argued that the results of ongoing metallurgical testwork at Asanko should be “a key driver for the shares.”
According to Insider Monkey’s data, Peter Franklin Palmedo’s Sun Valley Gold held the biggest stake in Galiano Gold Inc. (NYSE:GAU), comprising 23.7 million shares worth $9.4 million. Overall, 4 hedge funds were long Galiano Gold Inc. (NYSE:GAU) at the end of Q2 2022, compared to 2 funds in the preceding quarter.
7. Paramount Gold Nevada Corp. (NYSE:PZG)
Number of Hedge Fund Holders: 4
Paramount Gold Nevada Corp. (NYSE:PZG) is a Nevada-based company engaged in the acquisition, exploration, and development of precious metal properties in the United States. It features as one of the best junior mining gold stocks to buy in 2022. The company mainly explores for gold and silver ores. On October 6, Paramount Gold Nevada Corp. (NYSE:PZG) filed its S-K 1300 Technical Report Summary on the Feasibility Study for its 100% owned, high-grade gold mine, to be located at Grassy Mountain in Malheur County, Oregon. The project is in the final stages of the review process with both State and Federal regulators. The initial 8-year mine life will produce 362,000 ounces of gold and 425,000 ounces silver.
According to Insider Monkey’s data, 4 hedge funds reported owning stakes worth $96,000 in Paramount Gold Nevada Corp. (NYSE:PZG) at the end of the second quarter of 2022, compared to 3 funds in the prior quarter worth $152,000. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with 89,481 shares valued at $40,000.
6. Vista Gold Corp. (NYSE:VGZ)
Number of Hedge Fund Holders: 4
Vista Gold Corp. (NYSE:VGZ) is headquartered in Littleton, Colorado, focused on the evaluation, acquisition, exploration, and advancement of gold exploration and development projects in Australia. On July 21, H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Vista Gold Corp. (NYSE:VGZ) but lowered the price target on the stock to $2.25 from $3.25.
On September 12, Vista Gold Corp. (NYSE:VGZ) announced an update regarding the company’s process to find a partner to maximize shareholder value from its 100% owned Mt Todd gold project. This process has generated interest from several prospective parties, including high-quality gold producers of varying scale. These groups carried out extensive due diligence on Mt Todd and the technical merits of the Project have stood up to the rigorous scrutiny of potential investors.
According to Insider Monkey’s data, 4 hedge funds were long Vista Gold Corp. (NYSE:VGZ) at the end of Q2 2022, compared to 5 funds in the earlier quarter. David Iben’s Kopernik Global Investors is a notable position holder in the company, with 1.5 million shares worth $994,000.
Like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM), Vista Gold Corp. (NYSE:VGZ) is one of the notable players in the gold market.
5. TRX Gold Corporation (NYSE:TRX)
Number of Hedge Fund Holders: N/A
TRX Gold Corporation (NYSE:TRX) is based in Toronto, Canada, and is engaged in the acquisition, financing, exploration, and development of mineral property interests in the United Republic of Tanzania, primarily exploring for gold deposits. On September 12, TRX Gold Corporation (NYSE:TRX) reported preliminary Q4 and full-year 2022 gold production and an update on the status of the 1,000+ tonne per day oxide mill expansion at Buckreef Gold project. The company announced Q4 2022 production of 3,619 ounces of gold, topping the earlier production guidance of 750 to 800 ounces of gold per month, as well as preliminary Q4 sales of 3,363 ounces of gold, both new records for TRX Gold Corporation (NYSE:TRX). For full-year 2022, the company reported production of 8,874 ounces of gold and sales of 8,598 ounces of gold. It is one of the best junior mining gold stocks to invest in.
4. U.S. Gold Corp. (NASDAQ:USAU)
Number of Hedge Fund Holders: N/A
Next on our list of the best junior gold mining stocks is U.S. Gold Corp. (NASDAQ:USAU), based in Nevada, and engaged in the exploration and development of gold and precious metals in the United States. As per an update to shareholders on October 5, U.S. Gold Corp. (NASDAQ:USAU) presently has no long-term debt and a cash balance of $6.3 million as of July 31, 2022. The company made advancements with the CK Gold Project in Wyoming in 2022 and has high-potential exploration projects ready for discovery in 2023.
3. Hycroft Mining Holding Corporation (NASDAQ:HYMC)
Number of Hedge Fund Holders: 9
Hycroft Mining Holding Corporation (NASDAQ:HYMC) is a Nevada-based gold and silver development company in the United States. In July, the company announced that its 2022-23 exploration program at the Hycroft mine will consist of 125,000 ft of reverse circulation drilling and 20,000 ft of core drilling. Hycroft Mining Holding Corporation (NASDAQ:HYMC) called it the ‘largest exploration program in nearly a decade’.
According to Insider Monkey’s data, 9 hedge funds were bullish on Hycroft Mining Holding Corporation (NASDAQ:HYMC) at the end of the second quarter of 2022, compared to 12 funds in the prior quarter. Jason Mudrick’s Mudrick Capital Management is the leading position holder in the company, with 24.4 million shares valued at $27 million. For exposure to precious metals, Hycroft Mining Holding Corporation (NASDAQ:HYMC) is one of the best junior mining gold stocks to buy in 2022 according to elite hedge funds.
2. Gold Resource Corporation (NYSE:GORO)
Number of Hedge Fund Holders: 10
Gold Resource Corporation (NYSE:GORO) was founded in 1998 and is headquartered in Denver, Colorado. The company specializes in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. On July 28, Gold Resource Corporation (NYSE:GORO) declared a $0.01 per share quarterly dividend, which was distributed to shareholders on September 30. The dividend yield on October 12 came in at 2.50%.
Alliance Global Partners analyst Jake Sekelsky on July 21 initiated coverage of Gold Resource Corporation (NYSE:GORO) with a Buy rating and a $4.25 price target. The company is an undervalued low-cost precious metals producer with a clear path to internal production growth, the analyst told investors in a research note. He also noted that Gold Resource Corporation (NYSE:GORO) has consecutively returned excess capital to shareholders in dividends over the last decade, and he expects this policy to continue in the future.
According to Insider Monkey’s data, 10 hedge funds were long Gold Resource Corporation (NYSE:GORO) at the end of June 2022, compared to 11 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 1.20 million shares worth about $2 million.
1. New Gold Inc. (NYSE:NGD)
Number of Hedge Fund Holders: 13
New Gold Inc. (NYSE:NGD) is a Canadian intermediate gold mining company that explores for gold, silver, and copper deposits. The company’s principal operating properties are located in Ontario and British Columbia, as well as San Luis Potosí, Mexico. On October 10, New Gold Inc. (NYSE:NGD) announced that British Columbia provincial regulators have authorized underground development of the C-Zone at its New Afton mine. The company expects the production from the C-Zone to begin in H2 2023. It is one of the best junior mining gold stocks to invest in.
On October 3, RBC Capital analyst Michael Siperco upgraded New Gold Inc. (NYSE:NGD) to Outperform from Sector Perform with a price target of $1.25, up from $1.00, after his site visit to the Rainy River mine. The analyst said that he has greater confidence in a production recovery from the open pit after the rainfall-impacted results for Q2, as well as improved visibility into the transition to underground mining. He forecasts GEO production at over 40% by 2024, with 30% lower all-in sustaining expenses.
According to Insider Monkey’s database, 13 hedge funds were long New Gold Inc. (NYSE:NGD) at the end of Q2 2022, compared to 14 funds in the prior quarter. Eric Sprott’s Sprott Asset Management is a notable stakeholder of the company, with 15.40 million shares worth $16.5 million.
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Disclosure: None. 10 Best Junior Mining Gold Stocks to Buy in 2022 is originally published on Insider Monkey.
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