In this article we discuss the 5 best gold mining stocks to invest in. If you want to read our detailed analysis of the mining industry, go directly to the 5 Best Gold Mining Stocks to Invest In.
5. Wheaton Precious Metals Corp. (NYSE: WPM)
Number of Hedge Fund Holders: 28
Wheaton Precious Metals Corp. (NYSE: WPM) is a Canada-based metal streaming company, mainly engaged in the mining of gold, silver, palladium, cobalt, and other metals. In 2020, it produced over 367 thousand ounces of gold, with 22.9 million ounces of silver. As of 2021, the company has over 23 operating mines.
In Q1 2021, Wheaton Precious Metals Corp. (NYSE: WPM) recorded net earnings of $161 million, up from $101 million during the same period last year, showing a 54% year-over-year growth. The revenue also grew by 27.4% year-over-year at $324 million. The company produced 77,733 ounces of gold, accounting for $135 million of the total revenue. In Q1, it also increased its quarterly dividend by 7.7% at $0.14 per share. Earlier in May, JP Morgan set the price target of $75 on WPM stock, ranking it as ‘Buy’.
At the end of Q1, 28 hedge funds tracked by Insider Monkey have positions in Wheaton Precious Metals Corp. (NYSE: WPM), worth $439 million. With 16.5 million shares, First Eagle Investment Management is the largest shareholder of the company.
4. Agnico Eagle Mines Limited (NYSE: AEM)
Number of Hedge Fund Holders: 28
Agnico Eagle Mines Limited (NYSE: AEM) is a gold mining company based in Toronto, Canada. The company has mines in Canada, Mexico, and Finland, as well as exploration sites in the U.S. and Colombia. In 2020, it produces over 1.7 million ounces of gold with a total of 24.1 million ounces in reserves. Along with gold, Agnico Eagle Mines Limited (NYSE: AEM) also engages in silver, zinc, and copper. The company ranks fourth on our list of the best gold mining stocks to invest in.
In Q1 2021, Agnico Eagle Mines Limited (NYSE: AEM) reported a net income of $162 million and an EPS of $0.67, beating the market estimate of $0.60. The company’s revenue showed a 39% year-over-year growth and stood at $934.3 million, 97% of which was generated by gold sales. In Q1, the total gold production was recorded at 505koz, mainly driven by Kittila Mine, Canadian Malartic, and Meadowbank. In 2021, the company expects 2.04 million ounces of gold production with a cash cost of approximately $750 per ounce. In June, Raymond James maintained a ‘Buy’ rating on the stock with the price target of $93.
At the end of Q1 2021, 28 hedge funds tracked by Insider Monkey have positions in Agnico Eagle Mines Limited (NYSE: AEM), worth $247 million. Southport Management is the biggest shareholder of the company with 10,000 shares, worth $578 million.
3. Newmont Corporation (NYSE: NEM)
Number of Hedge Fund Holders: 43
Newmont Corporation (NYSE: NEM) ranks third on our list of the best gold mining stocks to invest in. It is one of the world’s largest gold mining companies based in Colorado, United States. Along with gold, it also mines silver, zinc, copper, and lead. The company owns the largest gold reserve with over 100 million ounces of gold.
Newmont Corporation (NYSE: NEM) delivered strong Q1 2021 results with a net income of $594 million, up from $326 million during the same period last year. The EPS was recorded at $0.74. The company generated a revenue of $2.8 billion, showing an 11% year-over-year growth. Moreover, Newmont Corporation (NYSE: NEM) produced 1.5 million ounces of gold in Q1, accounting for $2.4 billion of the gross revenue. The quarterly dividend was declared at $0.55 per share. In May, BofA raised its price target on NEM stock to $69 due to growing net gold output in 2021.
At the end of Q1 2021, 43 hedge funds tracked by Insider Monkey have positions in Newmont Corporation (NYSE: NEM), worth $994 million. First Eagle Investment Management is the company’s biggest shareholder, with 18.4 million shares, worth $1.1 billion.
2. Barrick Gold Corporation (NYSE: GOLD)
Number of Hedge Fund Holders: 49
Barrick Gold Corporation (NYSE: GOLD) is a Canadian mining company that mainly produces gold and copper. The company has mining operations in 13 countries, including Saudi Arabia, North and South America, Africa, etc. In 2020, Barrick Gold Corporation (NYSE: GOLD) produced over 4.8 million ounces of gold, with Nevada Gold Mines accounting for 3.5 million ounces of the total production.
In Q1 2021, Barrick Gold Corporation (NYSE: GOLD) reported a net income of $830 million, up from $663 million during the same period last year. The EPS for the quarter stood at $0.29, beating the market estimate of $0.27. The revenue showed a 9% year-over-year growth at $2.9 billion. The strong numbers are driven by copper production as revenue from copper mines grew by 31%. In Q1, Barrick Gold Corporation (NYSE: GOLD) announced a quarterly dividend of $0.09 per share. According to Wall Street Journal, 14 analysts maintain a buy rating on the GOLD stock, with an average price target of $29.
At the end of Q1 2021, 49 hedge funds have positions in Barrick Gold Corporation (NYSE: GOLD), worth $1.3 billion. Southport Management is the biggest shareholder of the company, with shares worth $544 million.
GoodHaven Capital, in its Q4 2020 investor letter, mentioned Barrick Gold Corporation (NYSE: GOLD). Here is what the firm has to say:
“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”
1. Freeport-McMoRan Inc. (NYSE: FCX)
Number of Hedge Fund Holders: 68
Freeport-McMoRan Inc. (NYSE: FCX) is one of the leading mining companies based in Phoenix, Arizona. The company tops our list of the best gold mining stocks to invest in. It has proven reserves of gold, copper, and molybdenum with one of the largest gold deposits in the world.
In Q1 2021, Freeport-McMoRan Inc. (NYSE: FCX) reported a net income of $756 million, up from $235 million during the same period last year. The EPS met the market consensus of $0.51. In Q1, the company produced over 258,000 ounces of gold, which is expected to reach 1.3 million ounces by the end of 2021. The revenue also presented a 73.2% year-over-year growth at $4.8 billion in Q1.
The company attributed the strong earnings to a 24% year-over-year increase in copper production, resulting in higher copper prices. The shares have soared by 185% in the past year and 33.8% year to date. Deutsche Bank raised its price target on FCX stock from $36 to $50 in May and ranked it as a ‘Buy’.
At the end of Q1 2021, we see that hedge funds are turning bullish on Freeport-McMoRan Inc. (NYSE: FCX), as 68 funds have positions in the company, compared with 61 in the previous quarter. Fisher Asset Management is the leading shareholder of the company with 44.2 million shares, worth $1.4 billion.
You can also take a look at Top 20 Gold Mining Companies and 12 Best Mining Stocks to Buy Now.
