In this article, we discuss the 13 most profitable gold stocks to invest in.
The close of 2023 saw a surge in gold prices driven by the widespread belief that the precious metal serves as a hedge against inflation, prompting investors to seek refuge amid economic uncertainty. That same year, gold prices experienced a notable surge of over 13%, coinciding with a 3% increase in demand for the yellow metal compared to the previous year, reaching 4,899 metric tons. This data, sourced from the World Gold Council, encompasses purchases made by central banks as well as demand from various sectors including industries, jewelry makers, and investors. The SVB crash and conflicts in the Middle East have further heightened demand for the precious metal throughout the year, consequently leading gold stocks to achieve significant gains. According to a Bloomberg report from earlier in 2023, data from Invesco indicated a notable trend of global sovereign wealth funds and investors increasing their gold holdings. The insights from the report were based on a survey encompassing 85 sovereign wealth funds and 57 central banks, managing assets totaling approximately $21 trillion.
Exchange-traded funds (ETFs) that mirror the price of gold also recorded strong performances. The SPDR Gold Shares ETF (NYSE:GLD) saw a gain of 6.06% year-to-date, while the iShares Gold Trust ETF (NYSE:IAU) climbed 4.6%. Many analysts describe the investment environment supporting gold’s recent performance as a Goldilocks scenario, characterized by “just right” conditions. Bill Baruch, president of commodities brokerage firm Blue Line Futures, suggesting that gold’s movement signals the beginning of a “multi-year bull market in metals.” This statement is supported by VanEck’s report that illustrated the direct correlation between gold prices and gold stocks.
“Gold stocks are supposed to outperform the metal when gold’s price is rising. Their leverage to gold justifies outperformance. For any given move in the price of gold, operating cash flow generated by these companies increases (or decreases) by a much greater percentage. Take Alamos (8.06% of Fund net assets), for example. The company estimates that a 5% increase in the price of gold (about a+$100/oz move), would translate into an increase of almost 30% in their free cash flow in 2024. “
With that in mind, today we will explore some of the most profitable gold stocks that investors should take note of, with prominent choices including Freeport-McMoRan Inc. (NYSE:FCX), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM).
A golden nugget illuminated under direct lighting, hinting at the value of precious metals.
Our Methodology
To make our list of the most profitable gold stocks to invest in, we narrowed down a list of gold companies that have operations involving the precious metal and ranked them according to their lates trailing twelve-month net income. For these gold stocks, we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
13. B2Gold Corp (NYSE:BTG)
Number of Hedge Fund Holders: 14
Latest TTM Net Income: 10.10 million
B2Gold Corp. (NYSE:BTG) is a Canadian company focused on the exploration and development of gold resources. Operating across several countries, including Colombia, Mali, Namibia, the Philippines, Uzbekistan, Finland, and Canada, the company is actively involved in exploration, development, and production activities in these regions.
A total of 14 hedge funds tracked by Insider Monkey reported having stakes in B2Gold Corp (NYSE:BTG). One of the biggest hedge fund stakeholders of B2Gold Corp (NYSE:BTG) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $24.69 million stake in B2Gold Corp (NYSE:BTG).
Much like Freeport-McMoRan Inc. (NYSE:FCX), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM), B2Gold Corp. (NYSE:BTG) ranks as one of the most profitable gold stocks to invest in.
12. Equinox Gold Corp. (NYSE:EQX)
Number of Hedge Fund Holders: 10
Latest TTM Net Income: 28.89 million
Equinox Gold Corp. (NYSE:EQX) is a gold producer concentrated on growth that operates solely in the Americas, with seven operational gold mines situated in the U.S., Mexico, and Brazil. Additionally, the company is presently advancing through the commissioning phase at its Greenstone Project near Geraldton, Ontario.
Q4 2023 emerged as Equinox Gold Corp. (NYSE:EQX)’s most robust quarter of the year, during which it generated 155,000 ounces of gold. This performance allowed the company to meet its guidance, resulting in a total production of 564,500 ounces for the entirety of 2023. Equinox Gold Corp. (NYSE:EQX) concluded the year with approximately $192 million in cash and equivalents.
During Q3 2023, 10 out of the 933 hedge funds part of Insider Monkey’s database had held a stake in Equinox Gold Corp. (NYSE:EQX). Out of these, the firm’s largest shareholder is Eric Sportt’s Sprott Asset Management since it owns $40.39 million worth of shares.
11. Sandstorm Gold Ltd. (NYSE:SAND)
Number of Hedge Fund Holders: 12
Latest TTM Net Income: 41.72 million
Based in Vancouver, Sandstorm Gold Ltd. (NYSE:SAND) is a gold royalty company that extends funding to mining firms in exchange for royalties, predominantly in the form of net smelter returns and streams. Since its establishment in 2008, Sandstorm Gold Ltd. (NYSE:SAND) has amassed an impressive portfolio encompassing over 250 royalties on mines worldwide.
In its latest earnings report for the fourth quarter, Sandstorm Gold Ltd. (NYSE:SAND) showcased impressive results, surpassing expectations in both revenue and earnings per share. The company reported revenues of $44.5 million for the quarter, marking a 15.9% increase year-over-year. Additionally, its net income amounted to $24.5 million, or $0.08 per share, in contrast to a net loss of $2.1 million, or $0.01 per share, in the same period the previous year.
12 out of the 933 hedge funds profiled by Insider Monkey had held a stake in the company. Sandstorm Gold Ltd. (NYSE:SAND)’s biggest hedge fund investor is Murray Stahl’s Horizon Asset Management as it owns 4.8 million shares that are worth $24.18 million.
10. IAMGOLD Corporation (NYSE:IAG)
Number of Hedge Fund Holders: 16
Latest TTM Net Income: 94.30 million
IAMGOLD Corporation (NYSE:IAG) is a Canadian company headquartered in Toronto, owning and operating gold mines in Burkina Faso, Suriname, and Canada. Established in 1990, the company has grown to become a significant player in the global gold mining industry.
IAMGOLD Corporation (NYSE:IAG) recently finalized its acquisition of Vanstar Mining Resources Inc., marking the completion of the consolidation of its ownership of the Nelligan Gold Project in Quebec. Following this transaction, IAMGOLD Corporation (NYSE:IAG) now possesses a 100% interest in the Project, located 60 kilometers southwest of Chibougamau, Quebec. Additionally, the company holds a 1% Net Smelter Return (NSR) royalty on selected claims of the project, along with other early-stage exploration properties in Northern Quebec.
During last year’s December quarter, 16 out of the 910 hedge funds tracked by Insider Monkey owned IAMGOLD Corporation (NYSE:IAG)’s shares. The firm’s largest investor in our database is John Overdeck And David Siegel’s Two Sigma Advisors as it owns $12.4 million worth of shares.
9. Alamos Gold Inc (NYSE:AGI)
Number of Hedge Fund Holders: 33
Latest TTM Net Income: 210.00 million
Alamos Gold Inc. (NYSE:AGI) is an intermediate gold producer headquartered in Canada, renowned for its diversified production from three operational mines in North America and a robust portfolio of growth projects. These mines include the Young-Davidson and Island Gold mines in northern Ontario, Canada, as well as the Mulatos mine in Sonora State, Mexico.
In January of this year, Alamos Gold Inc. (NYSE:AGI) finalized an agreement to acquire all issued and outstanding shares of Orford Mining, further solidifying its position in several mining projects located in Quebec, Canada. This strategic move will allow Alamos Gold Inc. (NYSE:AGI) to enrich its portfolio by integrating the Qiqavik Gold Project and other exploration-stage assets, such as Nunavik Lithium, the Joutel Properties, and West Raglan.
A total of 33 hedge funds out of the 933 funds in Insider Monkey’s database of hedge funds had stakes in Alamos Gold Inc (NYSE:AGI). The most notable stake in Alamos Gold Inc (NYSE:AGI) is owned by Jean-Marie Eveillard’s First Eagle Investment Management which owns an $119.2 million stake in Alamos Gold Inc (NYSE:AGI).
8. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Holders: 23
Latest TTM Net Income: 239.44 million
Royal Gold, Inc. (NASDAQ:RGLD) is recognized as a prominent global entity in the precious metals streaming and royalty sector. Specializing in the acquisition and management of precious metal streams, royalties, and similar production-based interests, the company has established a strong foothold in the industry.
On February 15, National Bank Financial analyst Sameer Keswani upgraded Royal Gold, Inc. (NASDAQ:RGLD) from Sector Perform to Outperform, signaling a significant change in their evaluation of the company’s prospects within the precious metals market. This upgrade reflects Keswani’s confidence in Royal Gold, Inc. (NASDAQ:RGLD) to outperform its sector peers and provide superior returns to investors.
As of the last quarter of 2023, 23 hedge funds tracked by Insider Monkey held stakes in Royal Gold, Inc. (NASDAQ:RGLD). The largest stakeholder during this period was Jean-Marie Eveillard’s First Eagle Investment Management.
7. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 36
Latest TTM Net Income: 416.30 million
Established in 1993 and headquartered in Toronto, Ontario, Kinross Gold Corporation (NYSE:KGC) is a Canadian mining company specializing in gold and silver extraction. Currently, Kinross operates across six active gold mines and has shown robust financial performance in recent quarters.
Kinross Gold Corporation (NYSE:KGC) has recently entered into an exploration and venture option agreement with Riley Gold for the PWC gold project in Nevada, US. Under the terms of the deal, Kinross has the potential to acquire up to a 75% interest in the project, contingent upon a minimum investment of $20 million. The PWC project, situated in Lander County, covers approximately 24.7 square kilometers in the Cortez District, renowned for its gold production.
As of the end of the fourth quarter of 2023, 36 hedge funds tracked by Insider Monkey held stakes in Kinross Gold Corporation (NYSE:KGC). Notably, Israel Englander’s Millennium Management is the largest stakeholder in Kinross Gold Corporation (NYSE:KGC).
6. Harmony Gold Mining Company Limited (NYSE:HMY)
Number of Hedge Fund Holders: 13
Latest TTM Net Income: 480.17 million
Harmony Gold Mining Company Limited (NYSE:HMY) operates and develops world-class gold assets in South Africa and Papua New Guinea (PNG), one of the world’s premier new gold-copper regions. With 69 years of experience, Harmony Gold Mining Company Limited (NYSE:HMY) currently stands as South Africa’s largest gold producer.
Earlier this February, Harmony Gold Mining Company Limited (NYSE:HMY) reported earnings for the second half of 2023, revealing a 25% increase in production profit and a tripling of earnings per share to $0.51 compared to the same period ending December 31, 2022. Bolstered by these robust earnings results and the approval to continue utilizing its Mponeng Mine, Harmony Gold Mining Company Limited (NYSE:HMY) announced an interim dividend of approximately $0.08 per share, in addition to its regular quarterly dividend of $0.08 per share.
13 out of the 933 hedge funds polled by Insider Monkey were the firm’s investors in Q4 2023. The biggest Harmony Gold Mining Company Limited (NYSE:HMY) hedge fund shareholder is David Iben’s Kopernik Global Investors as it owns 16.22 million shares that are worth $99.79 million.
Similar to Freeport-McMoRan Inc. (NYSE:FCX), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM), Harmony Gold Mining Company Limited (NYSE:HMY) is one of the most profitable stocks to buy.
5. Wheaton Precious Metals Corp (NYSE:WPM)
Number of Hedge Fund Holders: 28
Latest TTM Net Income: 537.64 million
Wheaton Precious Metals Corp. (NYSE:WPM) is a Canadian multinational company primarily focused on precious metals streaming. The company holds a significant position in the production and sale of precious metals, particularly silver, with over 26 million ounces produced and more than 29 million ounces sold. These metals are typically acquired as by-products from the primary operations of other mining companies. In February 2024, the firm’s shares faced downward pressure as TD Securities downgraded them to Hold from Buy and reduced the share price target to $51 from $58, despite an optimistic sales growth forecast.
As of the latest data, 28 hedge funds tracked by Insider Monkey held stakes in Wheaton Precious Metals Corp. (NYSE:WPM).
4. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Holders: 19
Latest TTM Net Income: 706.38 million
Gold Fields Limited (NYSE:GFI) is a gold mining company that focuses on the production of gold and the operation of mines. The company’s operating mines are situated in Australia, Ghana, Peru, and South Africa.
As of the end of the fourth quarter of 2024, 19 hedge funds tracked by Insider Monkey had stakes in Gold Fields Limited (NYSE:GFI). The biggest stake in Gold Fields Limited (NYSE:GFI) is owned by William B. Gray’s Orbis Investment Management which owns a $52.75 million stake in Gold Fields Limited (NYSE:GFI).
3. Barrick Gold Corp (NYSE:GOLD)
Number of Hedge Fund Holders: 43
Latest TTM Net Income: 1.27 billion
Barrick Gold Corporation (NYSE:GOLD), headquartered in Toronto, Ontario, Canada, is a leading mining company primarily focused on gold and copper production. With operations spanning 16 sites across 13 countries, the company maintains a strong global presence.
On February 14, Barrick Gold Corporation (NYSE:GOLD) announced a quarterly dividend of $0.10 per share, consistent with previous payouts. The dividend was paid on March 15 to shareholders of record as of February 29. Additionally, the company introduced a new $1 billion share repurchase program, which will be executed over the next 12 months. This program enables Barrick to repurchase its common shares at prevailing market prices.
As of the end of the fourth quarter of last year, Insider Monkey’s research indicated that 43 out of the 933 hedge funds covered were shareholders of Barrick Gold Corporation (NYSE:GOLD).
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 83
Latest TTM Net Income: 1.83 billion
Located in the Freeport-McMoRan Center in Phoenix, Arizona, Freeport-McMoRan Inc. (NYSE:FCX), commonly known as Freeport, is a prominent American mining company. Renowned as the world’s largest molybdenum producer, it also holds a significant position in copper production and operates the largest gold mine globally, the Grasberg mine located in Papua, Indonesia.
On January 24, Freeport-McMoRan Inc. (NYSE:FCX) surpassed expectations in Q4 adjusted earnings, benefiting from increased copper demand and higher gold prices.
According to Insider Monkey’s fourth-quarter database, 83 hedge funds were bullish on Freeport-McMoRan Inc. (NYSE:FCX), compared to 73 funds in the previous quarter.
1. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 43
Latest TTM Net Income: 1.94 billion
Agnico Eagle Mines Limited (NYSE:AEM), a prominent player in the Canadian gold industry, operates mining operations across Canada, Finland, Australia, and Mexico, while also engaging in exploration and development activities in the United States. The company pursues a strategy of maintaining full exposure to increasing gold prices by refraining from forward gold sales.
On February 16, Agnico Eagle Mines Limited (NYSE:AEM) announced a quarterly dividend of $0.40 per share, consistent with previous payouts. The dividend was scheduled to be paid on March 15 to shareholders of record as of March 1.
During the fourth quarter of 2023, 43 hedge funds profiled by Insider Monkey had invested in the gold mining company. Agnico Eagle Mines Limited (NYSE:AEM)’s largest shareholder is Jean-Marie Eveillard’s First Eagle Investment Management, which owns 6.21 million shares valued at $340.98 billion.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 20 Countries Facing the Biggest Brain Drain and 16 Best Russell 2000 Stocks To Buy According To Hedge Funds.
Suggested articles:
- Jim Cramer Says Do Not Buy These 11 Stocks
- 10 Best Car Insurance in Texas for 2024
- Ken Fisher Portfolio: 12 Biggest Positions
Disclosure: None. 13 Most Profitable Gold Stocks To Invest In is originally published on Insider Monkey.
