5 Best Gold Royalty and Small-Cap Gold Stocks To Buy

2. Franco-Nevada Corporation (NYSE:FNV)

Number of Hedge Fund Holders: 27

Franco-Nevada Corporation (NYSE:FNV) specializes in royalties and streaming in the gold industry. The company operates in Latin America, the United States, and Canada. Franco-Nevada Corporation (NYSE:FNV) primarily focuses on precious metals including gold, silver, and platinum group metals, and also participates in the selling of crude oil, natural gas, and natural gas liquids. It is one of the best gold stocks to invest in. 

On May 4, Heiko Ihle, an analyst at H.C. Wainwright, increased the target price for Franco-Nevada Corporation (NYSE:FNV)’s shares from $145 to $180 and maintained a Buy rating. The reason for the target price increase is the recent market trends and Franco-Nevada Corporation (NYSE:FNV)’s Q1 results. 

According to Insider Monkey’s fourth quarter database, 27 hedge funds were bullish on Franco-Nevada Corporation (NYSE:FNV), compared to 28 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with more than 2 million shares worth $288.6 million. 

Here is what Horizon Kinetics has to say about Franco-Nevada Corporation (NYSE:FNV) in its Q3 2022 investor letter:

“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco Nevada Corp., the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its near sole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”