5 Cheap Gold Stocks To Buy According to Analysts

In this article, we discuss the 5 cheap gold stocks to buy according to analysts. To read the detailed analysis of the gold industry, go directly to the 11 Cheap Gold Stocks To Buy According to Analysts.

5. Barrick Gold Corporation (NYSE:GOLD)

Average Price Target Upside: 42.68%

Average Price Target: $23.60

Barrick Gold Corporation (NYSE:GOLD) is one of the largest gold-producing companies in the world. It was founded in 1983 and is headquartered in Ontario Canada. The company posted its preliminary Q2 production on July 13. Barrick Gold Corporation (NYSE:GOLD) said that it is on track to achieve a production target of 1.01 million ounces of gold and 107 million pounds of copper in the second quarter. The company added that its production is expected to increase throughout the year and expects better production in the second half of 2023 compared to the first half.

On July 6, Barrick Gold Corporation (NYSE:GOLD) announced that its Tongon mine in Ivory Coast, which was expected to close in 2020, will continue operating till 2030. In 2021 and 2022, four new pits were discovered around the mine. In 2023, the mine is expected to produce over 200,000 ounces of gold and the production is expected to increase further till 2026.

Barrick Gold Corporation (NYSE:GOLD) is one of Credit Suisse’s top 10 Canadian stock picks. The analysts covering the company are quite bullish and their average price target represents a 42.68% upside to the company’s stock price of $16.54 on August 2. Out of 11 analysts, 9 maintain a Buy or Outperform rating on Barrick Gold Corporation (NYSE:GOLD)’s stock.

Old West Management made the following comment about Barrick Gold Corporation (NYSE:GOLD) in its Q4 2022 investor letter:

“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.

Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA”

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.”

3. Sandstorm Gold Ltd. (NYSE:SAND)

Average Price Target Upside: 55.49%

Average Price Target: $8.21

Sandstorm Gold Ltd. (NYSE:SAND) is a gold royalty company headquartered in Vancouver, Canada. The company’s average analyst price target is 55.49% over its August 2 stock price of $5.28. On July 21, National Bank analyst Shane Nagle reaffirmed an Outperform rating on Sandstorm Gold Ltd. (NYSE:SAND)’ shares and raised its price target to C$9.50 from C$9.25.

Sandstorm Gold Ltd. (NYSE:SAND) generated record revenues for the second quarter of 2023. During the three months ending June 30, the company sold 24,500 gold equivalent ounces (GEO) and generated a revenue of $49.8 million compared to 19,276 attributable GEO and $36 million revenue in the same quarter last year.

In the first quarter, 14 hedge funds held a stake worth $95.218 million in Sandstorm Gold Ltd. (NYSE:SAND).

2. B2Gold Corp. (NYSE:BTG)

Average Price Target Upside: 79.09%

Average Price Target: $5.91

B2Gold Corp. (NYSE:BTG) is a gold mining company operating in Mali, Namibia, and the Philippines. In April, the company completed the acquisition of Sabina Gold & Silver for C$2.20 per share, or C$1.2 billion. After this acquisition, B2Gold Corp. (NYSE:BTG)’s operations in Canada are expected to begin in 2025. The CEO of the company said that they are looking to acquire more assets that are already producing gold.

In the last three months, the average price target of B2Gold Corp. (NYSE:BTG) by 4 Wall Street analysts stands at $5.91, representing a 79.09% upward change from its August 2 stock price of $3.18.

B2Gold Corp. (NYSE:BTG) has a hefty dividend yield of 5% as of August 2. The company has a payout ratio of 53.80% which isn’t a burden on the company’s cash flows despite a huge dividend. B2Gold Corp. (NYSE:BTG)’s next quarterly dividend date is expected to be around the end of September.

1. Sibanye Stillwater Limited (NYSE:SBSW)

Average Price Target Upside: 83.02%

Average Price Target: $12.50

Sibanye Stillwater Limited (NYSE:SBSW) is one of the largest mining companies in the world. It produces gold, platinum, rhodium, and palladium. The average price target of $12.50 by 2 analysts shows an 83.02% upside from the stock’s price of $6.83 as of August 2.

Sibanye Stillwater Limited (NYSE:SBSW) shares were owned by 18 out of 943 hedge funds in Insider Monkey’s database. Condire Investors was the firm’s largest stakeholder with over 3.79 million shares worth $31.537 million.

You can also look at the 15 Most Consumed Cheeses in America and Jim Rogers’s Latest Predictions and Investments.

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