In this article, we discuss the 5 best Canadian gold stocks to buy now. To read the detailed analysis on the subject, go directly to the 10 Best Canadian Gold Stocks to Buy Right Now.
5. Eldorado Gold Corporation (NYSE:EGO)
Number of Hedge Fund Holders: 13
Eldorado Gold Corporation (NYSE:EGO) is a gold mining and exploration company headquartered in Vancouver, Canada.
Eldorado Gold Corporation (NYSE:EGO) faced severe headwinds in the first half of 2022 due to higher costs in Greece and lower output in the Turkish mines. However, things seem to improve for the company in the second half of 2022. The continued progress at the Olympias mine is a significant growth catalyst for the company. The production of the mine reached 15,779 ounces in 2Q22 from 12,934 ounces in 2Q21. The Lamaque mine produced landmark results with a production of 46,917 ounces in 2Q22, which was 39.7% above the previous quarter’s production. Finally, the major breakthrough for Eldorado Gold Corporation (NYSE:EGO) would be the development of the Scouries project in Northern Greece after the company secures financing for it.
Eldorado Gold Corporation (NYSE:EGO) recently reaffirmed its production guidance of 460,000 to 490,000 ounces and updated the FY2022 guidance for total cash costs to $790 to $840 per ounce sold.
On August 2, National Bank analyst Mike Parkin maintained an Outperform rating on Eldorado Gold Corporation (NYSE:EGO)’s shares and raised his price target to C$15.5 from C$15.
4. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 15
B2Gold Corp. (NYSE:BTG) is a Canadian gold mining company. It operates through mines in Mali, Namibia, and the Philippines. The company has one of the lowest all-in sustaining costs in the industry with $860 per oz at the Fekola mine in Mali, $1,110 at the Masbate mine in the Philippines, and $1,160 at the Otijkoto mine in Namibia.
B2Gold Corp. (NYSE:BTG) has one of the highest dividend yields in the sector at 5.37%, with a payout ratio of 45.22% as of September 23. The latest quarterly dividend was declared on September 9 in the amount of $0.04, payable by September 29 to the shareholders of record on September 21.
On September 12, TD Securities analyst Steven Green upgraded B2Gold Corp. (NYSE:BTG)’s shares to Action List Buy from Buy with a C$9 price target. The company is one of Green’s top picks among mid-tier producers and the analyst adds that the company has a “strong near-term outlook.”
3. Alamos Gold Inc. (NYSE:AGI)
Number of Hedge Fund Holders: 19
Alamos Gold Inc. (NYSE:AGI) is a Canadian multinational mining company focusing primarily on gold.
Alamos Gold Inc. (NYSE:AGI) reported solid Q2 results despite the headwinds faced by the sector. However, the most significant growth prospect of the company is its investment to transform the Island Gold mine into one of the lowest-cost gold mines in the world. The mine produced 37,300 ounces of gold in the June quarter at all-in-sustaining costs of $848 per ounce. The site is expected to generate $260 million of mine-site free cash flow at an average $1,850 per ounce gold price. By 2026, the mine-site free cash flow from the Island mine alone can reach around $500 million.
As of September 23, Alamos Gold Inc. (NYSE:AGI) has a dividend yield of 1.36% with an annualized dividend payout of $0.10. The company has a payout ratio of 21.14%, slightly below the sector average of 23%.
On July 21, National Bank analyst Mark Parkin maintained an Outperform rating on Alamos Gold Inc. (NYSE:AGI)’s shares and lowered the price target to C$12.5 from C$13.
2. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the world’s largest precious metals royalty and streaming companies headquartered in Vancouver, Canada.
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the companies that is free from inflationary pressures due to being a royalty company boasting a solid balance sheet. As of the June quarter, the company had cash and cash equivalents of $448.63 million and total liquidity of $2.45 billion, including its revolving credit facility of $2 billion, recently extended to July 2027. Currently, it has no debt outstanding under its credit facility. In addition, Wheaton Precious Metals Corp. (NYSE:WPM) also owns long-term equity investments of around $60.8 million. The company is highly diversified and involved in seven gold, silver, and platinum projects.
On September 12, Goldman Sachs analyst Emily Chieng initiated Wheaton Precious Metals Corp. (NYSE:WPM)’s coverage with a Buy rating and a C$53 price target. According to the analyst, the company offers the most excellent exposure to precious metals compared to its peers. She added that Wheaton Precious Metals Corp. (NYSE:WPM)’s recent stream acquisitions will drive a more substantial free cash flow generation.
1. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 31
Agnico Eagle Mines Limited (NYSE:AEM) is involved in the exploration, development, and production of gold in Canada, Finland, Mexico, and the US. It is headquartered in Ontario, Canada.
Agnico Eagle Mines Limited (NYSE:AEM) is one of the best Canadian gold stocks due to having one of the world’s lowest all-in-sustaining costs (AISC). In addition, the company is constantly expanding its reserves. On February 8, the company announced its merger of equal transactions with Kirkland Gold. In addition, the company also explored other precious metals and announced a 50/50 joint venture with Teck Resources Limited (NYSE:TECK) on San Nicolás copper-zinc project. This JV is a move by Agnico Eagle Mines Limited (NYSE:AEM) to secure a market share in the EV battery metals market.
Agnico Eagle Mines Limited (NYSE:AEM) has an outstanding dividend yield of 4.10% as of September 23. The company has been paying dividends since 1983. The most recent quarterly dividend of $0.40 was paid out on September 15, while the next one is payable by December 15 to the shareholders of record on December 1.
On September 20, Canaccord analyst Carey MacRury maintained a Buy rating on Agnico Eagle Mines Limited (NYSE:AEM)’s shares and raised the price target to C$91 from C$89 and is trading near its historical low multiples.
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