5 Best Copper Stocks to Buy

4. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Holders: 41    

Barrick Gold Corporation (NYSE:GOLD) is a mining firm that focuses on the extraction and development of gold and copper. It has operations in more than 10 countries around the world. Recent reports indicate that the company has decided not to pursue the acquisition of copper assets of Teck, another mining firm, signaling a disinterest in expanding a portfolio in the copper mining sector. The decision comes amidst a recent announcement from the firm that it would focus on strengthening gold and copper operations in jurisdictions where it already has a strong presence.

On April 21, investment advisory Barclays maintained an Overweight rating on Barrick Gold Corporation (NYSE:GOLD) stock and raised the price target to $28 from $26, noting the improved outlook in medium-term copper and gold prices. 

At the end of the first quarter of 2023, 41 hedge funds in the database of Insider Monkey held stakes worth $763 million in Barrick Gold Corporation (NYSE:GOLD), compared to 43 the preceding quarter worth $721 million.

In its Q4 2022 investor letter, Old West Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:

“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.

Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA.”