In this article, we discuss 12 best gold mining stocks to buy now.
As per a Bloomberg report dated October 9, investors in the West are dumping their gold assets, while Asians see the tumbling prices as a buying opportunity and are loading up on cheap gold jewelry and bullion. Aggressive interest rate hikes make gold less attractive as an investment vehicle, which is why a large amount of gold is making its way from the West to meet the rising demand in Shanghai and Istanbul, among other Asian countries.
Given logistical constraints, precious metals are not reaching the East fast enough. Resultantly, gold and silver are trading at extraordinarily high premiums in some Asian markets, compared to the global benchmark rates. As Asians snap up large quantities of gold when the rate weakens in the West, the global prices remain somewhat stable. Upon a rally in precious metals, gold usually makes its way back to Western countries as Asians cash out.
Gold plummeted to under $1,700 per ounce last week, as per reports on October 10. Jittery traders are seeking refuge in the US dollar amid fears that intense monetary policies by global central banks will push major world economies into a recession. As investors seek out interest-paying investments like high-yield bonds, there is a buying opportunity in gold in order to benefit from a future rally. Some of the best gold mining stocks include Newmont Corporation (NYSE:NEM), Kinross Gold Corporation (NYSE:KGC), and B2Gold Corp. (NYSE:BTG).
Our Methodology
We selected the following gold mining stocks based on growth fundamentals, dividend profiles, positive analyst coverage, and strong hedge fund sentiment as of June 2022. We have arranged the list of the best gold mining stocks according to the number of hedge fund holders in each firm.
Photo by Ricardo Gomez Angel on Unsplash
Best Gold Mining Stocks to Buy Now
12. AngloGold Ashanti Limited (NYSE:AU)
Number of Hedge Fund Holders: 12
AngloGold Ashanti Limited (NYSE:AU) was incorporated in 1944 and is headquartered in Johannesburg, South Africa. It operates as a gold mining company in Africa, the Americas, and Australia. On August 24, AngloGold Ashanti Limited (NYSE:AU) declared a $0.2935 per share quarterly dividend, a 97.7% increase from its prior dividend of $0.1484. The dividend was distributed on September 19. AngloGold Ashanti Limited (NYSE:AU) delivers a dividend yield of 3.42% as of October 10.
On September 19, Coeur Mining, Inc. (NYSE:CDE) announced that it agreed to sell more than 35,000 acres in southern Nevada to a subsidiary of AngloGold Ashanti Limited (NYSE:AU) for about $200 million based on the amount of gold present there.
Deutsche Bank analyst Abhi Agarwal on October 5 maintained a Buy recommendation on AngloGold Ashanti Limited (NYSE:AU) but trimmed the price target on the shares to ZAR 285 from ZAR 300. The analyst reduced target prices and earnings estimates in metals and mining to reflect soft demand and macro risks.
According to Insider Monkey’s data, 12 hedge funds held stakes worth $232.5 million in AngloGold Ashanti Limited (NYSE:AU) at the end of June 2022, compared to 15 funds in the prior quarter worth $352.4 million. John Paulson’s Paulson & Co is the leading position holder in the company, with approximately 6 million shares worth $88.3 million.
Like Newmont Corporation (NYSE:NEM), Kinross Gold Corporation (NYSE:KGC), and B2Gold Corp. (NYSE:BTG), AngloGold Ashanti Limited (NYSE:AU) is one of the best gold mining firms to watch as buying opportunities arise in the market.
11. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Holders: 15
SSR Mining Inc. (NASDAQ:SSRM) is a Colorado-based company engaged in the acquisition, exploration, and operation of precious metal mining properties in Turkey and the Americas. The company explores for gold, silver, copper, lead, and zinc deposits. On September 22, SSR Mining Inc. (NASDAQ:SSRM) announced that it had received the necessary regulatory approvals from the Turkish government and will immediately restart all operations at the Copler gold mine.
On August 3, investment advisory Canaccord maintained a Buy rating on SSR Mining Inc. (NASDAQ:SSRM) but lowered the price target on the shares to C$26 from C$31. Analyst Dalton Baretto issued the ratings update.
According to Insider Monkey’s data, 15 hedge funds were bullish on SSR Mining Inc. (NASDAQ:SSRM) at the end of June 2022, with collective stakes worth over $206 million, compared to 21 funds in the last quarter holding stakes valued at $262.3 million.
Palm Valley Capital mentioned SSR Mining Inc. (NASDAQ:SSRM) in its Q1 2021 investor letter. Here is what it said:
“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.”
10. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 15
B2Gold Corp. (NYSE:BTG) was incorporated in 2006 and is headquartered in Vancouver, Canada. It operates as a gold producer with mines in Mali, the Philippines, and Namibia. Despite missing market estimates on earnings and revenue in the second quarter of 2022, B2Gold Corp. (NYSE:BTG) remains well positioned for ongoing strong operational and financial performance in the full-year 2022 and is on track to achieve its total consolidated gold production guidance of between 990,000 to 1,050,000 ounces.
On September 12, TD Securities analyst Steven Green upgraded B2Gold Corp. (NYSE:BTG) to Action List Buy from Buy with an unchanged price target of C$9. The shares are presently trading near historical low multiples, and the company has a “strong near-term outlook,” the analyst told investors in a research note. B2Gold Corp. (NYSE:BTG) is well positioned to meet its 2022 production guidance, said the analyst, who called the company his best pick among mid-tier producers.
Among the hedge funds tracked by Insider Monkey, 15 funds were long B2Gold Corp. (NYSE:BTG) at the end of the second quarter of 2022, compared to 17 funds in the last quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 36.3 million shares worth $123 million.
9. Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 16
Hecla Mining Company (NYSE:HL) acquires, develops, and produces precious and base metal properties in the United States and internationally. The company mines for silver, gold, lead, and zinc concentrates. Hecla Mining Company (NYSE:HL) reported silver and gold production of 3.6 million and 45,719 ounces respectively, a 10% increase over the first quarter of 2022. It is one of the best gold mining stocks to buy now.
On July 26, H.C. Wainwright analyst Heiko Ihle maintained a Buy recommendation on Hecla Mining Company (NYSE:HL) but trimmed the price target on the stock to $6.50 from $8.25. The target drop reflects an updated precious metal price deck.
According to Insider Monkey’s second quarter database, 16 hedge funds were long Hecla Mining Company (NYSE:HL), compared to 20 funds in the earlier quarter. Eric Sprott’s Sprott Asset Management is a prominent position holder in the company, with 2.4 million shares worth about $9.5 million.
8. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 16
Next on our list of the best gold mining stocks is Sibanye Stillwater Limited (NYSE:SBSW), a South African precious metals mining company that operates in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company produces gold, palladium, platinum, rhodium, iridium, ruthenium, nickel, copper, and chrome. On October 5, Sibanye Stillwater Limited (NYSE:SBSW) announced that it is interested in Zambia’s Mopani Copper Mines Plc, which has the capacity to produce 225,000 metric tons per year of copper, about triple its estimated 2022 production. However, it requires at least $300 million to finance a complicated underground expansion.
On October 5, Deutsche Bank analyst Abhi Agarwal reiterated a Buy rating on Sibanye Stillwater Limited (NYSE:SBSW) but lowered the price target on the shares to $12.50 from $13. The analyst noted that a “lot of bad news has already been thrown at markets” with metals equities “already pricing in a mild recession.”
According to Insider Monkey’s data, Sibanye Stillwater Limited (NYSE:SBSW) was part of 16 hedge fund portfolios at the end of June 2022, compared to 21 in the prior quarter. Ryan Schedler and Bradley Shisler’s Condire Investors is the largest stakeholder of the company, with nearly 5.5 million shares worth $54.7 million.
Here is what Desert Lion Capital has to say about Sibanye Stillwater Limited (NYSE:SBSW) in its Q2 2022 investor letter:
“Sibanye Stillwater is one of the largest PGM (platinum group metal) producers in the world with major operations in South Africa and the U.S. On top of its additional gold mining operations in SA, the business has significant upside optionality in its growing lithium and nickel operations which are not yet contributing to earnings and remain unrecognized by the market in SSW’s price.
PGM and gold prices are lower than a year ago and Sibanye Stillwater’s earnings followed suit. Gold operations made a loss during the period due to a wage negotiation labor strike (see chart on next page). Notwithstanding all these headwinds, the company reported H1 2022 earnings per share of R4.23 which was in line with the six months ended December 2021 EPS…” (Click here to see the full text)
7. Osisko Gold Royalties Ltd (NYSE:OR)
Number of Hedge Fund Holders: 17
Osisko Gold Royalties Ltd (NYSE:OR) is a Canadian firm that acquires and manages precious metals and royalties, streams, and other interests in Canada and internationally. It primarily explores for precious metals, including gold, silver, and diamonds. On August 9, Osisko Gold Royalties Ltd (NYSE:OR) declared a C$0.055 per share quarterly dividend, in line with previous. The dividend is payable on October 14, to shareholders of record on September 30. The forward yield was 1.64%.
On August 11, TD Securities analyst Greg Barnes raised the price target on Osisko Gold Royalties Ltd (NYSE:OR) to C$20 from C$18.50 and kept a Buy rating on the shares.
Among the hedge funds tracked by Insider Monkey, 17 funds were bullish on Osisko Gold Royalties Ltd (NYSE:OR) at the end of Q2 2022, with combined stakes worth $190.3 million, compared to 17 funds in the prior quarter worth $226.5 million. Israel Englander’s Millennium Management is the biggest stakeholder of the company, with 8 million shares valued at approximately $81 million.
Market experts remain bullish on gold as a long-term investment. This is why it is important to monitor firms like Newmont Corporation (NYSE:NEM), Kinross Gold Corporation (NYSE:KGC), B2Gold Corp. (NYSE:BTG), and Osisko Gold Royalties Ltd (NYSE:OR), which are considered to be some of the best gold mining stocks.
Here is what Palm Valley Capital Management has to say about Osisko Gold Royalties Ltd (NYSE:OR) in its Q2 2021 investor letter:
“The top contributors to the Fund’s second quarter returns (includes) Osisko Gold Royalties (ticker: OR). Osisko’s partner mines are performing well, and the stock has benefited from several positive developments since the end of last year, including: the spinoff of the Cariboo development project into an independent publicly-traded company, Agnico Eagle/Yamana’s decision to proceed with underground development of Canadian Malartic (Osisko’s largest royalty), and a significant rebound in diamond prices, which brings Osisko’s Renard stream nearer to long-term viability.”
6. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 21
Kinross Gold Corporation (NYSE:KGC) is headquartered in Toronto, Canada, and the company is engaged in the acquisition, exploration, and development of gold properties in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. On September 19, Kinross Gold Corporation (NYSE:KGC) announced a new, improved share buyback program that allocates a more significant amount of cash available for enhancing shareholder returns. Under this program, Kinross Gold Corporation (NYSE:KGC) will repurchase $300 million in common stock during the rest of the year and allocate 75% of its excess cash to buybacks in 2023-2024, conditional upon net leverage.
National Bank analyst Mike Parkin on September 21 raised the price target on Kinross Gold Corporation (NYSE:KGC) to C$9 from C$8.25 and kept an Outperform rating on the shares.
According to Insider Monkey’s database, 21 hedge funds were bullish on Kinross Gold Corporation (NYSE:KGC) at the end of June 2022, compared to 22 funds in the preceding quarter. Ken Griffin’s Citadel Investment Group is one of the leading stakeholders of the company, with 9.3 million shares worth $33.5 million. According to recent hedge fund data, Kinross Gold Corporation (NYSE:KGC) is one of the best gold mining stocks to monitor.
5. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Holders: 25
Royal Gold, Inc. (NASDAQ:RGLD) features on our list of the best gold mining stocks. It is a Colorado-based precious metals company that focuses on acquiring stream and royalty interests in gold, silver, copper, nickel, zinc, lead, and cobalt properties. On August 24, Royal Gold, Inc. (NASDAQ:RGLD) declared a quarterly dividend of $0.35 per share, in line with previous. The dividend is distributable on October 21, to shareholders of record on October 7.
Raymond James analyst Brian MacArthur on August 5 maintained an Outperform rating on Royal Gold, Inc. (NASDAQ:RGLD) but lowered the price target on the shares to C$142 from C$144.
Among the hedge funds tracked by Insider Monkey, Royal Gold, Inc. (NASDAQ:RGLD) was part of 25 public stock portfolios at the end of Q2 2022, up from 20 in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest position holder in the company, with 3.2 million shares worth nearly $345 million.
Here is what Argosy Investors said about Royal Gold, Inc. (NASDAQ:RGLD) in its Q1 2021 investor letter:
“Gold royalties business achieve 2 objectives for us: 1) It’s a good business model with strong returns through the gold price cycle; and 2) it provides some protection from inflation, should it materialize due to the increasingly loose fiscal and monetary policy decisions the United States (and other developed market economies) is making.
I don’t want to stay on my soapbox for too long, but this is the first time in history that I’m aware of politicians openly stating that debt levels don’t matter, even in the long term. In 2019, the government spent $4.4 trillion. Of those expenditures, $0.4 trillion was spent making interest payments on existing debt at the time of $16.9 trillion. The interest rate on that debt was 2.4%. Debt for 2021 is projected to increase to $22.5 trillion, and then to $33 trillion by the end of the decade.
I don’t have a crystal ball, but if interest rates increased to previously “normal” levels of only 5%, U.S. interest payments would be over $1.1 billion in 2021, 25% of U.S. total expenditures in 2019. In the event that happens, there are a few choices: 1) run a larger deficit which could lead to accelerating debt levels; 2) reduce government spending on things like the military, Medicare, Social Security, pensions, and other programs; or 3) the government allows or encourages inflation to reduce the value of its debt obligations.
To be clear, this spiraling debt outcome currently seems and likely is not happening within the next several years, but the probability of it occurring is not zero and things have changed rapidly before. For that reason, I think an investment in Royal Gold provides some minor insulation against inflation.”
4. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 25
Franco-Nevada Corporation (NYSE:FNV) is a Toronto-based company that focuses on gold royalties and streaming in Latin America, the United States, Canada, and internationally. Franco-Nevada Corporation (NYSE:FNV) operates through two segments, Mining and Energy. On September 13, the company declared a $0.32 per share quarterly dividend, which was distributed to shareholders on September 29. Franco-Nevada Corporation (NYSE:FNV) is one of the best gold mining stocks to consider.
Goldman Sachs analyst Emily Chieng on September 12 initiated coverage of Franco-Nevada Corporation (NYSE:FNV) with a Neutral rating and a C$177 price target. The company’s diverse asset portfolio “holds growth optionality” across gold, silver, oil and gas, and other commodities, the analyst told investors in a research note. However, its “modest” gold growth profile of 1% results in a moderating revenue outlook, added Chieng.
According to Insider Monkey’s Q2 data, 25 hedge funds were bullish on Franco-Nevada Corporation (NYSE:FNV), compared to 29 funds in the last quarter. Jim Simons’ Renaissance Technologies is the leading stakeholder of the company, with 4.3 million shares worth $567 million.
3. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. (NYSE:WPM) was founded in 2004 and is headquartered in Vancouver, Canada. It is a streaming company, primarily selling precious metals like gold, silver, palladium, and cobalt in Canada and internationally.
Goldman Sachs analyst Emily Chieng on September 12 initiated coverage of Wheaton Precious Metals Corp. (NYSE:WPM) with a Buy rating and a C$53 price target. The company’s latest stream acquisitions will generate stronger free cash flow, resulting in potentially higher capital returns, as per the analyst. The analyst said Wheaton Precious Metals Corp. (NYSE:WPM) provides the greatest exposure to precious metals among streaming peers, which merits its inclusion in our list of the best gold mining stocks to buy now.
According to Insider Monkey’s data, 27 hedge funds held stakes worth about $631 million in Wheaton Precious Metals Corp. (NYSE:WPM) at the end of June 2022, compared to 28 funds in the prior quarter worth nearly $722 million. Jean-Marie Eveillard’s First Eagle Investment Management is the leading position holder in the company, with 17 million shares valued at $613.65 million.
In its Q2 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Wheaton Precious Metals Corp. (NYSE:WPM) was one of them. Here is what the fund said:
“The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.”
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 31
Agnico Eagle Mines Limited (NYSE:AEM) is a Toronto-based company that engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. The company explores for and commercializes gold, silver, zinc, and copper deposits. Agnico Eagle Mines Limited (NYSE:AEM) is one of the best gold mining stocks to buy, especially for income investors, as the company delivers a dividend yield of 3.78% as of October 10.
On September 30, Citi analyst Alexander Hacking upgraded Agnico Eagle Mines Limited (NYSE:AEM) to Buy from Neutral with a $50 price target.
According to Insider Monkey’s data, 31 hedge funds were bullish on Agnico Eagle Mines Limited (NYSE:AEM) at the end of the second quarter of 2022, compared to 38 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 17.4 million shares worth $798.45 million.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 56
Newmont Corporation (NYSE:NEM) is one of the best gold mining stocks to buy according to elite hedge funds. It is a Colorado-based company engaged in the production and exploration of gold, copper, silver, zinc, and lead. The company has operations and assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.
On September 30, Citi analyst Alexander Hacking updated gold models ahead of the Q3 results to reflect updated price forecasts from Citi’s commodity team. Gold stocks have been impacted significantly by the selloff, creating a buying opportunity for investors to accumulate, the analyst told investors. He said Citi is mid-term bullish on gold, seeing prices recovering to $1,900 per ounce in the second half of 2023. He maintained a Buy rating on Newmont Corporation (NYSE:NEM).
Among the hedge funds tracked by Insider Monkey, 56 funds reported owning stakes in Newmont Corporation (NYSE:NEM) at the end of Q2 2022, compared to 53 funds in the last quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with approximately 35 million shares worth over $2 billion.
Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:
“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.
It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”
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Disclosure: None. 12 Best Gold Mining Stocks to Buy Now is originally published on Insider Monkey.
