10 Gold Stocks to Buy Amid Russian Attack on Ukraine

In this article, we discuss the 10 gold stocks to buy amid the Russian attack on Ukraine.

The Russian invasion of Ukraine has brought world markets into turmoil, and investors are scurrying towards safe haven assets. Investing in gold during times of economic uncertainty is a principle of investing, as the yellow metal provides an excellent hedge against inflation and market volatility. In 2020, the year Covid-19 upended the world economy, the price of gold hit an all-time high of $2,067.15 per ounce in August, as reported by the World Gold Council.

Now with the Russia-Ukraine crisis sending waves of panic throughout the financial world, gold is in the spotlight again. It rose to $1,973.96 at the start of the Russian invasion, which was an 18-month high. As of March 1, it trades at $1908.70. Analysts feel that the bullish run of gold, as well as oil and other commodities, is likely to continue as long as global turmoil persists. Jim Wyckoff, the senior analyst at Kitco Metals, told Reuters:

“When geopolitical tensions get really high, gold still is the main safe haven asset outperforming the crypto currencies and other even other assets like Treasuries”

As gold prices rise, this allows mining companies to piggyback this growth and post higher returns. Mining is a cyclical industry, and the current scenario points to a bullish run for the foreseeable future. The global gold mining market is expected to be worth an estimated $249 billion by 2026, growing at 3% CAGR (compound annual growth rate) till then. In a market fraught with uncertainty, investors would be wise to increase their exposure to gold and gold mining stocks, such as Barrick Gold Corporation (NYSE:GOLD), Newmont Corporation (NYSE:NEM), and Royal Gold, Inc. (NASDAQ:RGLD), along with others mentioned below.

Photo by Ricardo Gomez Angel on Unsplash

Our Methodology

We picked gold stocks that received positive analyst ratings, beat production output estimates, announced deals signaling potential future growth, and posted growth in recent time periods. Hedge fund sentiment was also used to discern investor confidence in each stock, using Insider Monkey’s database of 924 elite hedge funds.

10 Gold Stocks to Buy Amid Russian Attack on Ukraine

10. Equinox Gold Corp. (NYSE:EQX)

Number of Hedge Fund Holders: 14

Equinox Gold Corp. (NYSE:EQX) is a Canadian firm that deals in the exploration and mining of gold and silver deposits in the US, Canada, Mexico, and Brazil. On February 8, Stifel analyst Ian Parkinson maintained a ‘Buy’ rating on Equinox Gold Corp. (NYSE:EQX) shares and revised the firm’s price target on the company to C$17 from C$20.

Equinox Gold Corp. (NYSE:EQX) produced around 210,400 ounces of gold in the fourth quarter, which is a 54.3% increase from the year-ago period. Gold production for 2021 stood at 602,100 ounces, also signalling growth of 20% as compared to 2020. Equinox Gold Corp.’s (NYSE:EQX) gold production in 2022 is expected to increase at least 20% to reach approximately 725,000 ounces.

As of the fourth quarter, 14 out of 924 hedge funds tracked by Insider Monkey were bullish on Equinox Gold Corp. (NYSE:EQX), with combined holdings worth $69 million. This shows an upward trend from Q3 2021, where 13 hedge funds held stakes worth roughly $56 million in Equinox Gold Corp. (NYSE:EQX). In Q4, Sprott Asset Management was the leading shareholder of the company stock, having increased its stake by 12% from the previous quarter to 5.2 million shares worth $35.3 million.

Massif Capital is an investment firm which talked about Equinox Gold Corp. (NYSE:EQX) in its investor letter for Q1 2021. The fund said:

“Equinox Gold remains one of our higher conviction positions. Not only does the management team fill us with confidence because of their continuously thoughtful moves to build the business, but within the gold industry, we struggle to find any firm with comparable growth potential from existing assets. The transactions the firm has undertaken over the last three years to build the business have all came at the market and with either significant shovel-ready brownfield expansion potential, most of which management is undertaking, or greenfield opportunities. Between now and 2025, Equinox will more than double its current annual gold production.”

In addition to Barrick Gold Corporation (NYSE:GOLD) Newmont Corporation (NYSE:NEM) and Royal Gold, Inc. (NASDAQ:RGLD), Equinox Gold Corp. (NYSE:EQX) is an exciting gold stock to buy amid the Russian invasion of Ukraine.

9. Yamana Gold Inc. (NYSE:AUY)

Number of Hedge Fund Holders: 18

Yamana Gold Inc. (NYSE:AUY) is a Canadian company that mines gold, silver, and other precious metals in the Americas, Canada, Brazil, Chile, and Argentina. As of February 25, Yamana Gold Inc. (NYSE:AUY) saw its share price jump 16.67% in the last 12 months, and 14.52% in the last month, trading at $4.97 on the New York Stock Exchange.

On February 23, Canaccord analyst Carey MacRury raised the firm’s price target on Yamana Gold Inc. (NYSE:AUY) to C$9 from C$8 and maintained a ‘Buy’ rating on the company shares. Yamana Gold Inc. (NYSE:AUY) released its Reserve & Resource statement for FY21 in February and announced that it had grown its gold reserves in the year, standing at around 13.7 million ounces at the end of the year. Yamana Gold Inc. (NYSE:AUY) also saw resource growth at its two main assets, i-e the Malartic mine in Canada and Jacobina mine in Brazil. In the fourth quarter, Yamana Gold Inc. (NYSE:AUY) produced 281,400 GEO (gold equivalent ounces) of the yellow metal, up from the estimated figure of 270,000 GEOs.

As of Q4 2021, Yamana Gold Inc. (NYSE:AUY) posted an EPS of $0.10, which beat consensus estimates by $0.01. Quarterly revenue of $503.80 million was up 9.1% in comparison to the year-ago period.

Out of the 924 hedge funds tracked by Insider Monkey in the fourth quarter, 18 were long Yamana Gold Inc. (NYSE:AUY) with combined holdings worth $286.7 million. This shows increasing investor confidence in the gold company in comparison to last quarter, where 15 hedge funds held positions worth $127.1 million.

Jim Simons’ Renaissance Technologies was the top shareholder in Yamana Gold Inc. (NYSE:AUY) at the close of the fourth quarter, with 23 million shares worth $97.2 million, signalling an astounding increase in holding of 106% from the previous quarter.

8. Wheaton Precious Metals Corp. (NYSE:WPM)

Number of Hedge Fund Holders: 24

Wheaton Precious Metals Corp. (NYSE:WPM) is a Canadian mining company that deals in gold, silver, palladium, and cobalt resources. In 2021, the company produced 750,220 ounces of gold, which was above estimates and an increase of 9.9% from its 2020 levels. Wheaton Precious Metals Corp. (NYSE:WPM) has announced six new deals since the first quarter of 2021, which will enhance its annual gold-equivalent production by more than 120,000 ounces once production starts on most of these projects by 2024. As of February 28, shares of Wheaton Precious Metals Corp. (NYSE:WPM) have risen 16.42% in the last 12 months, and 8.76% in the last month.

In January, Wheaton Precious Metals Corp. (NYSE:WPM) agreed to a streaming deal with Adventus Mining (OTCQX:ADVZF) for precious metals from its Curipamba project in Ecuador, with a price tag of $175.5 million. The mine is expected to produce an average of 17,000 ounces per year of gold, and 551,000 ounces silver per annum in the first five years of production. This deal will see Wheaton Precious Metals Corp. (NYSE:WPM) purchase 50% of payable gold production and 75% of payable silver production from Curipamba, until certain conditions are met before the percentage drops to 33% and 50% respectively for gold and silver.

Out of all the hedge funds tracked by Insider Monkey, 24 were long Wheaton Precious Metals Corp. (NYSE:WPM) at the close of the fourth quarter, with combined holdings worth $490.7 million. In comparison, 27 hedge funds held positions in the company in the preceding quarter. First Eagle Investment Management was the leading shareholder of Wheaton Precious Metals Corp. (NYSE:WPM) at the end of December, with the fund’s stake comprising of 16.4 million shares worth $705.7 million.

7. Agnico Eagle Mines Limited (NYSE:AEM)

Number of Hedge Fund Holders: 27

Agnico Eagle Mines Limited (NYSE:AEM) features next on our list of the gold stocks to watch as the Russian invasion of Ukraine unfolds. The firm is based in Canada and develops mineral mining properties around the globe, focusing primarily on gold whilst also exploring for copper, zinc and silver deposits.

In the fourth quarter, Agnico Eagle Mines Limited (NYSE:AEM) stock was held by 27 hedge funds, in contrast to 33 hedge funds in the preceding quarter. With 5.2 million shares worth more than $276 million, First Eagle Investment Management is the leading shareholder of Agnico Eagle Mines Limited (NYSE:AEM) shares in Q4 2021.

In February, Barclays analyst Matthew Murphy upgraded Agnico Eagle Mines Limited (NYSE:AEM) to ‘Overweight’ from ‘Equal Weight’, setting a price target of $69, whilst noting that gold stocks currently provide solid protection against the risks of central bank errors. BMO Capital analyst Jackie Przybylowski also recently gave Agnico Eagle Mines Limited (NYSE:AEM) an ‘Outperform’ rating.

Agnico Eagle Mines Limited (NYSE:AEM) has paid a dividend yield to shareholders in every year since 1983, and recently increased its quarterly dividend by 14% to reach $0.40 per share, payable on March 15. The forward yield stands at 3.17% as of February 28.

In 2021, Agnico Eagle Mines Limited (NYSE:AEM) posted annual gold production of 1.43 million ounces, on the back of exceptional results from many of its mining properties. Agnico Eagle Mines Limited (NYSE:AEM) is on course to merge with Kirkland Lake, another prominent gold producer, in the first quarter of 2022, combining to form a very attractive gold mining entity and presenting a compelling buying opportunity at current levels.

6. Royal Gold, Inc. (NASDAQ:RGLD)

Number of Hedge Fund Holders: 28

Royal Gold, Inc. (NASDAQ:RGLD) deals in the acquisition and management of mining businesses and royalty streams related to precious metals, and is based in Colorado, United States. The firm deals in gold, copper, silver, nickel, lead, zinc and cobalt. Royal Gold, Inc. (NASDAQ:RGLD) beat fourth-quarter earnings expectations, with EPS of $1.05 coming in above consensus estimates by $0.11. Revenue of $168.52 million for Q4 also beat analysts’ forecasts by $2.52 million.

In February, Royal Gold, Inc. (NASDAQ:RGLD) announced its results for the six-month period from July-December 2021, reporting gold production volume of 191,300 GEOs, above target estimates and bringing in a revenue of $343 million. The company also raised its annual dividend yield to shareholders for the 21st year in a row, with yield coming in at 1.16% as of February 25. Royal Gold, Inc. (NASDAQ:RGLD) recently announced that it had received the first deliveries from the Khoemacau copper-silver mine in Botswana, in which the firm now owns a 90% silver stream.

Investors were keen on Royal Gold, Inc. (NASDAQ:RGLD) in the fourth quarter of 2021, where 28 out of 924 elite hedge funds tracked by Insider Monkey were bullish on the company, as compared to 21 hedge funds in the quarter before. First Eagle Investment Management was the top shareholder of Royal Gold, Inc. (NASDAQ:RGLD) over the fourth quarter, holding 3.5 million shares worth $369.2 million, which is an increase of 3% in holding from the previous quarter.

Argosy Investors, an investment firm, talked about Royal Gold, Inc. (NASDAQ:RGLD) in its Q1 2021 investor letter, stating:

“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.”

Along with Barrick Gold Corporation (NYSE:GOLD) and Newmont Corporation (NYSE:NEM); Royal Gold, Inc. (NASDAQ:RGLD) is a gold stock investors are buying.

5. Franco-Nevada Corporation (NYSE:FNV)

Number of Hedge Fund Holders: 29

Franco-Nevada Corporation (NYSE:FNV) is next up on our list of gold stocks to buy amid the Russian invasion of Ukraine. The Toronto-based company mainly focuses on gold for its stream and royalty businesses. As of February 25, shares of Franco-Nevada Corporation (NYSE:FNV) rose an impressive 32.29% in the last 12 months, and 13.05% in the last month.

On February 3, Barclays analyst Matthew Murphy upgraded Franco-Nevada Corporation (NYSE:FNV) to ‘Equal Weight’ from ‘Underweight’, and revised the price target to $110 from $107, noting that although he remains neutral on the mining sector in 2022 owing to cost inflation and slowing economic growth momentum, he believes gold companies now represent an ‘attractive hedge against risks of central bank error.’

In late December, analyst Heiko Ihle of H.C. Wainwright initiated Franco-Nevada Corporation (NYSE:FNV) with a ‘Buy’ rating, noting that the company is ‘widely regarded as the most prolific company in the mining royalty space’. He gave the firm a $167 price target. On January 27, Franco-Nevada Corporation (NYSE:FNV) declared a quarterly dividend yield of $0.32 per share, which is an increase of 6.7% from its previous dividend of $0.30 and brings them forward yield to 1.0%. Franco-Nevada Corporation (NYSE:FNV) has consistently grown its annual dividend yield since 2008.

Investors were quick to realize the upward trajectory of Franco-Nevada Corporation (NYSE:FNV) in the fourth quarter, as 29 hedge funds held combined stakes worth $1 billion in the firm. In comparison, 26 hedge funds held $951 million worth of positions in Franco-Nevada Corporation (NYSE:FNV) in the preceding quarter. Of the 29 hedge funds with long positions, Renaissance Technologies of Jim Simons was the top shareholder in the firm in Q4, with 4.1 million shares valued at $570.2 million.

4. Kinross Gold Corporation (NYSE:KGC)

Number of Hedge Fund Holders: 31

Kinross Gold Corporation (NYSE:KGC) is a mining company that operates gold properties in the United States, Brazil, Ghana, Mauritania, and Russia. In Q4 2021, the firm posted an EPS of $0.08, which was above consensus estimates by $0.02. Gold production for 2021 stood at 2.1 million GEOs (gold equivalent ounces), and the company increased its gold reserves by 2.7 million ounces in the year.

On February 23, Kinross Gold Corporation (NYSE:KGC) announced that its operations in Russia remain unaffected by sanctions imposed by the US, and the firm will continue its operations in the country given its diversified procurement structure. Kinross Gold Corporation (NYSE:KGC) has a full year of supply of resources on hand in Russia, from where it is expected to produce 13% of its global production output in 2022.

Kinross Gold Corporation (NYSE:KGC) recently announced the acquisition of Great Bear Resources, in a deal worth roughly $1.45 billion. Kinross Gold Corporation (NYSE:KGC) will take over Great Bear Resources’ flagship Dixie project located in the Red Lake mining district in Ontario, Canada. The Dixie site is considered one of the most exciting discoveries of gold deposits in recent years around the globe, and has the potential to become a top-tier deposit that could enhance Kinross Gold Corporation’s (NYSE:KGC) long-term production figures.

On February 23, analyst Carey MacRury of research firm Canaccord maintained a ‘Buy’ rating on Kinross Gold Corporation (NYSE:KGC) shares, whilst lowering the price target to C$10.50 from C$11.50. MacRury noted that the updated guidance reaffirms the company’s growth trajectory, although at higher costs than he initially considered.

Investors were seen loading up on Kinross Gold Corporation (NYSE:KGC) stock at the close of the fourth quarter, with 31 hedge funds bullish on the company, as compared to 27 hedge funds in Q3 2021. Renaissance Technologies of Jim Simons was the top shareholder of Kinross Gold Corporation (NYSE:KGC), holding a stake worth $145 million and comprising of almost 25 million shares.

3. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 45

Newmont Corporation (NYSE:NEM) is a gold-mining company based in Colorado with operations in Canada, Mexico, Peru, Suriname, Australia, Ghana, Argentina, Chile, and the Dominican Republic. The firm also mines for lead, copper, silver, and zinc. With a market cap of $53.2 billion, Newmont Corporation (NYSE:NEM) is the only gold company to be listed in the S&P 500. As of February 25, shares of Newmont Corporation (NYSE:NEM) have gained 20.99% in the last 12 months, and 9.48% year to date.

In February, Newmont Corporation (NYSE:NEM) bought Buenaventura’s (NYSE:BVN) 43.65% interest in Minera Yanacocha, which is South America’s largest gold mine, for a $300 million payment plus contingent payments of up to $100 million. This will bring Newmont Corporation’s (NYSE:NEM) stake in the gold mine up to 95%.

Reporting its fourth quarter earnings on February 24, Newmont Corporation (NYSE:NEM) posted earnings per share of $0.78, above consensus estimates by $0.01. Revenue figure of $3.39 billion was also analysts’ forecasts by $13.58 million. As of February 25, Newmont Corporation (NYSE:NEM) offers a healthy dividend yield of 3.24%.

As of the fourth quarter, 45 out of 924 elite hedge funds tracked by Insider Monkey held stakes worth $1.39 billion in Newmont Corporation (NYSE:NEM). This is in comparison to 48 hedge funds with positions worth $774.45 million in the company in the quarter before.

First Eagle Investment Management was the top shareholder in Newmont Corporation (NYSE:NEM), with 17.43 million shares worth $1.08 billion. The investment firm also mentioned Newmont Corporation (NYSE:NEM) in its Q3 2021 investor letter, stating:

“The largest gold miner in the world, Newmont shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”

2. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Holders: 46

Barrick Gold Corporation (NYSE:GOLD) is a Canadian mining company that develops and operates gold mining properties in the United States, Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, and Tanzania. It also deals in copper production in many regions around the world. Hedge fund sentiment was positive on Barrick Gold Corporation (NYSE:GOLD) in Q4 2021, with 46 hedge funds holding stakes in the company worth $958.5 million. In contrast, 41 hedge funds were long Barrick Gold Corporation (NYSE:GOLD) at the close of the third quarter.

In January, Barrick Gold Corporation (NYSE:GOLD) announced that it had met its annual targets for the third year in a row, with preliminary production of gold in 2021 coming in at 4.44 million ounces, well within the estimated target range of 4.4-4.7 million ounces. Copper production for 2021 stood at 415 million pounds, also coming in within the forecasted range of 410-460 million pounds.

On February 16, Barrick Gold Corporation (NYSE:GOLD) announced plans for a share repurchase program to buy back $1 billion worth of its outstanding common shares. This repurchase program will be carried out over the next 12 months at prevailing market prices.

Barrick Gold Corporation (NYSE:GOLD) reported earnings per share of $0.35 for the fourth quarter, beating consensus estimates by $0.05. The company raked in $3.31 billion in quarterly revenue, outperforming estimates by $113.09 million. As of February 25, Barrick Gold Corporation (NYSE:GOLD) shares rose 15.99% in the last 12 months and 18.74% year to date.

Ariel Investments, an investment firm, talked about Barrick Gold Corporation (NYSE:GOLD) in its investor letter for Q2 2021. Here’s what the fund said:

“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”

1. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 66

Freeport-McMoRan Inc. (NYSE:FCX) is a US-based mining giant that explores gold, copper, molybdenum, silver, and other metals, as well as oil and gas. It has operations in the US, Mexico, Chile, Peru, Indonesia, and Iraq. In the fourth quarter, Freeport-McMoRan Inc. (NYSE:FCX) posted an EPS of $0.96, which came in above consensus estimates by $0.02. Quarterly revenue was $6.16 billion, signaling an increase of 37.1% from Q4 2020.

In February, Clarksons Platou analyst Fredrik Stene initiated coverage of Freeport-McMoRan Inc. (NYSE:FCX) with a ‘Buy’ rating and price target of $45. The company saw its gold production volume grow 59% in 2021 as compared to 2020, while copper volumes increased 19% in 2021 as compared to the previous year. Moving forward, Freeport-McMoRan Inc. (NYSE:FCX) expects gold volumes to grow 16% this year, with consolidated gold sales expected at 1.6 million ounces.

In its Q4 conference call, Freeport-McMoRan Inc. (NYSE:FCX) said that electrification holds the key to climate change, and as electric vehicles use up to four times more copper than traditional vehicles, this will usher in a new era of copper demand. The company is bullish on the long-term copper outlook and holds that it has the assets required to sustain its operations over time. As of February 28, Freeport-McMoRan Inc. (NYSE:FCX) saw its share price jump 30.09% in the last 12 months, and 16.93% in the last month, currently trading at $46.95 on the New York Stock Exchange.

In Q4 2021, 66 hedge funds reported bullish bets on Freeport-McMoRan Inc. (NYSE:FCX), with combined stakes worth $3.77 billion. With 48.9 million shares worth more than $2 billion, Fisher Asset Management is the top shareholder of Freeport-McMoRan Inc. (NYSE:FCX) in the fourth quarter.

You can also take a look at 10 Best Magic Formula Stocks To Buy Now and 10 Best Stocks To Buy and Hold For 5 Years.

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