12 Best Gold Mining Companies to Invest In According to Analysts

Published on February 20, 2024 at 2:15 pm by Sheryar Siddiq in Hedge Funds, News

In this piece, we will take a look at the 12 best gold mining stocks to buy according to analysts.

Gold serves as a safe-haven investment, sought by investors to mitigate risks associated with factors like inflation, geopolitical tensions, and financial instability. These variables often contribute to gold price volatility, as witnessed in 2022 and early 2023. Gold surged to over $2,000 per ounce during this period due to concerns regarding inflation and geopolitical uncertainties. However, the market experienced significant price fluctuations as investors evaluated the possibility of a recession against the backdrop of increasing interest rates, inflation, and other dynamics.

A Bloomberg report released earlier in 2023 unveiled a notable trend among global sovereign wealth funds and investors toward accumulating gold. Invesco’s analysis was based on a survey encompassing 85 sovereign wealth funds and 57 central banks, collectively managing assets totaling around $21 trillion. The report underscored the sentiment surrounding gold, noting that “a significant portion of central banks express concerns about the precedent set by the US freezing of Russian reserves, with the majority (58%) agreeing that this event has heightened the appeal of gold.” The survey findings underscored gold’s enduring role as an inflation hedge, with a considerable number of central banks indicating intentions to bolster their gold reserves over the next three years.

Amidst forecasts of persistent upward trends in gold prices fueled by geopolitical tensions and uncertainties, Netherlands-based ING Group predicts a continuation of the surge witnessed in 2023 into 2024. The initial surge in gold prices followed the outbreak of conflict in Israel earlier in the year, and despite tensions easing, prices have remained high. ING Group anticipates that the Federal Reserve will begin reducing interest rates in May 2024, with a total expected reduction of 150 basis points throughout the year, and an additional 100 basis points in early 2025. These rate cuts are forecasted to bolster gold prices in 2024.

Considering this outlook, let’s explore some of the best gold mining stocks to invest in according to analysts, which include the likes of Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM).

Best Gold Mining Companies to Invest In According to Analysts

A closeup view of a large gold mine, illustrating the company’s gold properties.

Our Methodology

To make our list of the best gold mining stocks to buy according to analysts, we used a stock screener to list down a number of gold and gold mining stocks, ranking the firms by their average analyst share price target upside. The top stocks were chosen as the best gold mining stocks.

For these best gold mining stocks according to analysts, we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

12. Rio Tinto Group (NYSE:RIO)

Average Analyst Share Price Upside: 17.46%

Average Analyst Share Price Target: $81.19

Rio Tinto Group (NYSE:RIO) stands out as one of the premier diversified mining companies globally, dedicated to the exploration, extraction, and processing of a diverse range of mineral resources. With an extensive portfolio, Rio Tinto operates in various minerals including lithium, aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, and molybdenum.

As of the end of the last quarter of 2023, 34 hedge funds tracked by Insider Monkey had stakes in Rio Tinto Group (NYSE:RIO). The biggest stakeholder of Rio Tinto Group (NYSE:RIO) during this period was Ken Fisher’s Fisher Asset Management which owns an $1.19 billion stake in Rio Tinto Group (NYSE:RIO).

Rio Tinto Group (NYSE:RIO) joins the ranks of Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM) in our list of the best gold mining stocks according to analysts.

11. Sibanye Stillwater Ltd (NYSE:SBSW)

Average Analyst Share Price Upside: 21.67%

Average Analyst Share Price Target: $5.67

Sibanye Stillwater Limited (NYSE:SBSW) is a multinational mining and metals processing Group, renowned for its diverse portfolio of mining and processing operations, projects, and investments across five continents. As one of the world’s leading primary producers of platinum, palladium, and rhodium, it also holds a prominent position as a top-tier gold producer. Additionally, the company is a significant producer of other platinum group metals (PGMs) such as iridium and ruthenium. Moreover, it extracts chrome, copper, and nickel as valuable by-products of its operations.

In a notable move on November 9, Sibanye Stillwater Limited (NYSE:SBSW) grabbed attention with its announcement of the acquisition of US metals recycler Reldan for $211 million. Headquartered in Pennsylvania, Reldan is esteemed for its recycling operations, particularly in re-processing various waste streams, including industrial waste.

As of the end of the fourth quarter of 2023, 21 hedge funds tracked by Insider Monkey had stakes in Sibanye Stillwater Limited (NYSE:SBSW), up from 16 funds in the previous quarter. This shows a spike in hedge fund sentiment for Sibanye Stillwater Limited (NYSE:SBSW).

10. Kinross Gold Corporation (NYSE:KGC)

Average Analyst Share Price Upside: 21.89%

Average Analyst Share Price Target: $6.18

Kinross Gold Corporation (NYSE:KGC), a Canadian mining company established in 1993 and headquartered in Toronto, Ontario, specializes in gold and silver extraction. Presently, Kinross oversees operations across six active gold mines. The company has demonstrated strong financial performance in recent quarters, consistently surpassing analyst expectations for earnings per share.

A total of 36 hedge funds tracked by Insider Monkey had stakes in Apple Inc (NASDAQ:AAPL) as of the end of the fourth quarter of 2023. The most notable stake in Kinross Gold Corporation (NYSE:KGC) is owned by Israel Englander’s Millennium Management.

9. Wheaton Precious Metals Corp (NYSE:WPM)

Average Analyst Share Price Upside: 24.66%

Average Analyst Share Price Target: $55.36

Wheaton Precious Metals Corp. (NYSE:WPM) is a Canadian multinational company primarily engaged in precious metals streaming. The company holds a substantial position in the production and sale of precious metals, especially silver, with over 26 million ounces produced and more than 29 million ounces sold. These metals are usually acquired as by-products from the primary operations of other mining companies.

On December 6, Canaccord analyst Carey MacRury reiterated a Buy rating on Wheaton Precious Metals Corp. (NYSE:WPM) stock and raised the price target to C$74 from C$67.

A total of 28 hedge funds tracked by Insider Monkey had stakes in Wheaton Precious Metals Corp. (NYSE:WPM).

8. Royal Gold, Inc. (NASDAQ:RGLD)

Average Analyst Share Price Upside: 26.40%

Average Analyst Share Price Target: $137.33

Royal Gold, Inc. (NASDAQ:RGLD) is renowned as a leading global player in the precious metals streaming and royalty sector. Specializing in the acquisition and management of precious metal streams, royalties, and similar production-based interests, the company has solidified its position in the industry.

On February 15, National Bank Financial analyst Sameer Keswani upgraded Royal Gold, Inc. (NASDAQ:RGLD) from Sector Perform to Outperform, signaling a notable shift in their assessment of the company’s prospects within the precious metals market. This upgrade indicates Keswani’s belief that Royal Gold, Inc. (NASDAQ:RGLD) has the potential to outshine its sector counterparts and deliver superior returns to investors.

As of the end of the last quarter of 2023, 23 hedge funds tracked by Insider Monkey had stakes in Royal Gold, Inc. (NASDAQ:RGLD). The biggest stakeholder of Royal Gold, Inc. (NASDAQ:RGLD) during this period was Jean-Marie Eveillard’s First Eagle Investment Management.

7. Franco-Nevada Corporation (NYSE:FNV)

Average Analyst Share Price Upside: 26.91%

Average Analyst Share Price Target: $138.43

Franco-Nevada Corporation (NYSE:FNV), based in Toronto, Ontario, Canada, operates as a gold-focused royalty and streaming company with a diverse portfolio of cash-flow-producing assets. As of February 18, the stock yielded a dividend of 1.31%.

BMO Capital revised Franco-Nevada Corporation’s (NYSE:FNV) price target to C$200 from C$214 on December 4, while retaining an Outperform rating on the shares.

Insider Monkey’s database of 933 hedge funds shows that 30 funds had stakes in Franco-Nevada Corporation (NYSE:FNV). The most notable stakeholder of Franco-Nevada Corporation (NYSE:FNV) was First Eagle Investment Management which owns a $348.9 million stake.

6. Osisko Gold Royalties Ltd (NYSE:OR)

Average Analyst Share Price Upside: 31.87%

Average Analyst Share Price Target: $18.66

Osisko Gold Royalties Ltd (NYSE:OR), a Canadian firm, specializes in holding royalties in gold, silver, and diamond mines, primarily through net smelter returns and streams. Additionally, the company engages in investments in mineral exploration companies through share purchases.

Osisko Gold Royalties Ltd (NYSE:OR) recently released its Q4 results in January, reporting an acquisition of approximately 23,300 gold-equivalent ounces, marking a roughly 7% decline from the year-ago period. However, the higher gold price partially offset this weakness, with Osisko Gold Royalties Ltd (NYSE:OR) reporting quarterly revenue from royalties/streams of C$65.2 million ($50.9 million) and achieving a record quarterly cash margin of 94%.

A total of 214 hedge funds in Insider Monkey’s database had stakes in Osisko Gold Royalties Ltd (NYSE:OR) as of the end of 2023. The biggest stakeholder of Osisko Gold Royalties Ltd (NYSE:OR) was Millennium Management.

Osisko Gold Royalties Ltd (NYSE:OR), Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM) are some of the best gold mining stocks to invest in according to analysts.

5. Agnico Eagle Mines Ltd (NYSE:AEM)

Average Analyst Share Price Upside: 38.45%

Average Analyst Share Price Target: $66.18

Agnico Eagle Mines Limited (NYSE:AEM), a major player in the Canadian gold industry, manages mining operations across Canada, Finland, Australia, and Mexico, while also conducting exploration and development endeavors in the United States. The company adopts a strategy of retaining complete exposure to rising gold prices by abstaining from forward gold sales. Analysts have overwhelmingly endorsed the company’s shares, with an average Strong Buy rating.

43 hedge funds profiled by Insider Monkey during Q4 2023 had invested in the gold mining company. Agnico Eagle Mines Limited (NYSE:AEM)’s biggest shareholder is Jean-Marie Eveillard’s First Eagle Investment Management as it owns 6.21 million shares that are worth $340.98 billion.

4. Barrick Gold Corp (NYSE:GOLD)

Average Analyst Share Price Upside: 39.39%

Average Analyst Share Price Target: $20.42

Barrick Gold Corporation (NYSE:GOLD), headquartered in Toronto, Ontario, Canada, stands as a leading mining company focused on gold and copper production, boasting operations across 16 sites spanning 13 countries, thus maintaining a robust global presence.

During the 2023 earnings season, Barrick Gold Corporation (NYSE:GOLD) experienced favorable results, buoyed by the sustained strength of gold prices, which exceeded US$1,900 amid expectations of an interest rate cut. The company reported a noteworthy performance, producing gold at an average cost of $1,334 per ounce while realizing a gold price of $1,948 per ounce, marking a significant 13% increase during the quarter. These high gold prices contributed to a 200% surge in its net earnings per share, reaching $0.72. Additionally, the company witnessed a substantial 50% uptick in free cash flow, totaling $646 million, providing the company with flexibility to maintain its quarterly dividend payout of $0.10 per share.

By the end of last year’s fourth quarter, 43 out of the 933 hedge funds covered by Insider Monkey’s research were Barrick Gold Corporation (NYSE:GOLD) shareholders.

3. Newmont Corporation (NYSE:NEM)

Average Analyst Share Price Upside: 41.70%

Average Analyst Share Price Target: $47.37

Newmont Corporation (NYSE:NEM), headquartered in Greenwood Village, Colorado, stands as one of the largest global gold mining companies with a rich history dating back to 1921. The corporation’s operations span across various regions, including Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname.

In a recent strategic move, Newmont Corporation (NYSE:NEM) announced plans to generate $2 billion in cash through the sale of mines and divestment of projects following its acquisition of Australia’s Newcrest Mining. The completion of this approximately $15 billion deal on November 6 significantly bolstered the company’s valuation to around $50 billion. This acquisition integrated five active mines and two advanced projects into Newmont’s robust portfolio, positioning the company for further growth and expansion in the global gold mining industry.

As of the fourth quarter of 2023, Insider Monkey’s analysis of shareholdings revealed that 53 out of 933 hedge funds had acquired shares of Newmont Corporation (NYSE:NEM)

2. Pan American Silver Corp (NYSE:PAAS)

Average Analyst Share Price Upside: 62.42%

Average Analyst Share Price Target: $21.31

Formerly known as Pan American Minerals Corp, Pan American Silver Corp. (NYSE:PAAS) is a diversified metals mining company involved in the exploration, development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines. Its operations span across Canada, Mexico, Peru, Argentina, and Bolivia.

On December 11, BMO Capital resumed coverage of Pan American Silver Corp. (NYSE:PAAS) with an Outperform rating and a $25 price target. The firm highlighted several positive aspects of the company, including its successful acquisitions and robust mine operations, ultimately deeming it “well-valued.”

According to Insider Monkey’s Q4 2023 database, 22 out of 933 hedge funds had investments in Pan American Silver Corp. (NYSE:PAAS).

1. B2Gold Corp (NYSE:BTG)

Average Analyst Share Price Upside: 69.44%

Average Analyst Share Price Target: $4.27

B2Gold Corp. (NYSE:BTG) is a Canadian company specializing in the exploration and development of gold resources. With operations spanning multiple countries, including Colombia, Mali, Namibia, the Philippines, Uzbekistan, Finland, and Canada, the company engages in exploration, development, and production activities.

A total of 14 hedge funds tracked by Insider Monkey reported having stakes in B2Gold Corp (NYSE:BTG). One of the biggest hedge fund stakeholders of B2Gold Corp (NYSE:BTG) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $24.69 million stake in B2Gold Corp (NYSE:BTG).

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