5 Cheap Gold Stocks To Buy According to Analysts

4. Centerra Gold Inc. (NYSE:CGAU)

Average Price Target Upside: 47.06%

Average Price Target: $8.75

Centerra Gold Inc. (NYSE:CGAU) is a metals and mining company producing gold, copper, and molybdenum. The company’s primary operations are in Canada and Turkey. The company suspended gold doré bar production at its Turkish Öksüt mine in March 2022 due to the detection of mercury in its ADR plant’s gold room. However, Centerra Gold Inc. (NYSE:CGAU) resumed operations at the mine in early June 2023 after the Turkish Ministry of Environment approved Öksüt’s amended environmental impact assessment.

Due to the resumption of the Öksüt mine, Centerra Gold Inc. (NYSE:CGAU) updated its production guidance for 2023 on August 1. The company expects 340,000 ounces to 360,000 ounces of gold produced in the year. The Öksüt mine is expected to produce 160,000 ounces to 170,000 ounces of gold at the end of the fiscal year.

Centerra Gold Inc. (NYSE:CGAU) has been covered by 8 Wall Street analysts in the last three months with an average price target of $8.75, up 47.06% from $5.95 on August 2. Out of the 8 analysts, 7 maintain a Buy rating on Centerra Gold Inc. (NYSE:CGAU)’s stock.

Heartland Advisors made the following comment about Centerra Gold Inc. (NYSE:CGAU) in its Q1 2023 investor letter:

“In a world of depreciating currencies, we are fans of hard assets, in particular gold miners. In our view, miners will be beneficiaries of the Federal Reserve eventually pausing, reverting to an easy money policy to stem a banking liquidity crisis. Money printing, increased deficits, and a weaker dollar are likely to increase demand for the historical storehouse of value, gold, and for those that produce it.

We own two miners, one of which is Centerra Gold Inc. (NYSE:CGAU). Centerra headquartered in Toronto, operates the Mount Milligan mine producing gold and copper and is awaiting the restart of its Oksut, Turkish mine. Due to a startup delay, the stock has been a laggard, currently priced below book value and net asset value. However, Centerra is debt free with substantial cash and ore reserves. Plus, the stock offers a 3.25% dividend yield. Under new leadership and with the restart of Oksut, we believe the earning power, at current metal prices, could approach $0.80 per share.”