In this article, we will take a look at the 12 most promising new gold stocks according to analysts.
Gold price has been in a seesaw mode as investors continue to weigh and predict the next move of the Federal Reserve in light of fresh data that shows the continuing strength of the US labor market, stubborn inflation and strong consumer spending. The safe-haven asset hardly loses its shine no matter what the market environment is. A CNBC report in January quoted Ole Hansen, head of commodity strategy at Saxo Bank, who said in a note that gold price has seen a boost amid the reopening of China. The analyst noted the People’s Bank of China’s announcement that it bought 62 tons of gold during the last two months of the year. In this backdrop, gold stocks like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV) have been gaining attention.
An “Outrageous” Prediction About Gold
Hansen is making headlines for his “outrageous” prediction that gold price will hit $3,000 in 2023. The analyst thinks inflation is here to stay and gold price will receive a huge boost from a variety of reasons including geopolitical tensions and demand from China. Here is how the analyst explains his rationale:
“In 2023, the hardest of currencies receives a further blast of support from three directions. First, the geopolitical backdrop of an increasing war economy mentality of self reliance and minimizing holdings of foreign FX reserves, preferring gold. Second, the massive investment in new national security priorities, including energy sources, the energy transition, and supply chains. Third, rising global liquidity as policy makers move to avoid a debacle in debt markets as a mild real growth recession (certainly not in nominal prices, however!) takes hold. Gold slices through the double top near USD 2,075 as if it wasn’t there and hurtles to at least USD 3,000 next year.”
The report also quoted David Neuhauser, founder and chief investment officer at Livermore Partners, who told CNBC in an interview that he expects gold to gain on the current momentum. Here’s what the analyst said:
“I think as you look forward, you start to look around and think ‘where is the safest place for your investment in terms of assets?’ and the only place really to go as an alternative now is gold, in terms of knowing that you are not going to see that debasement of your assets.”
Our Methodology
For this article, we used the Finviz stock screener to identify gold stocks whose average analyst price estimates are at least 20% higher than their current levels as of February 21. From the long list of gold stocks we got after this first check, we picked 12 stocks with highest upside potential.
Most Promising Gold Stocks According to Analysts
12. U.S. Gold Corp. (NASDAQ:USAU)
Number of Hedge Fund Holders: 2
Average Price Target by Analysts: $16.83
U.S. Gold Corp. (NASDAQ:USAU) is one of the most promising gold stock picks according to analysts. Its stock price as of February 21 was $4.26, while its average price target is $16.83. This shows a huge upside potential from the current levels.
U.S. Gold Corp. (NASDAQ:USAU) has stakes in three mining projects in Wyoming, Nevada, and Idaho.
As of the end of the fourth quarter of 2022, 2 hedge funds had stakes in U.S. Gold Corp. (NASDAQ:USAU).
11. Austin Gold Corp. (NYSE:AUST)
Number of Hedge Fund Holders: 1
Average Price Target by Analysts: $4.72
Austin Gold Corp. (NYSE:AUST) is a new gold stock as the company went public in 2022. Austin Gold Corp. (NYSE:AUST) has mining assets in Nevada. Austin Gold Corp. (NYSE:AUST)’s average price target of $4.72 shows decent upside potential. However, it could take a while before Austin Gold Corp. (NYSE:AUST) starts showing any performance. It’s a risky gold stock, unlike Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV), which are extremely established companies in the industry.
10. DRDGOLD Limited (NYSE:DRD)
Number of Hedge Fund Holders: 6
Average Price Target by Analysts: $15.00
DRDGOLD Limited (NYSE:DRD) is a South African gold producer. It is one of the most promising gold stocks out there. DRDGOLD Limited (NYSE:DRD) is one of the market leaders in gold tailings retreatment. DRDGOLD Limited (NYSE:DRD) was trading at around $7.35 as of February 21, while its average price target for the next 12 months is $15.
At the end of the fourth quarter of 2022, 6 hedge funds reported having stakes in DRDGOLD Limited (NYSE:DRD).
9. AngloGold Ashanti Limited (NYSE:AU)
Number of Hedge Fund Holders: 16
Average Price Target by Analysts: $21.40
Gold mining company AngloGold Ashanti Limited (NYSE:AU) is headquartered in South Africa. AngloGold Ashanti Limited (NYSE:AU) ranks 9th in our list of the most promising gold stocks according to analysts. AngloGold Ashanti Limited (NYSE:AU) came into the spotlight recently after the company said it met its 2022 targets for production and expenses but it expects to post decline in its full-year earnings. AngloGold Ashanti Limited (NYSE:AU) expects to post FY 2022 production of 2.74 million oz, up 11% from 2.47 million oz in 2021.
In October 2022, AngloGold Ashanti Limited (NYSE:AU) announced that it was targeting a 30% reduction in its scope 1 and 2 greenhouse gas emissions by 2030.
As of the last quarter of 2022, 16 hedge funds tracked by Insider Monkey reported owning stakes in AngloGold Ashanti Limited (NYSE:AU). The total value of these stakes was over $287 million.
8. Sandstorm Gold Ltd. (NYSE:SAND)
Number of Hedge Fund Holders: 16
Average Price Target by Analysts: $8.33
Sandstorm Gold Ltd. (NYSE:SAND) ranks 8th in our list of the most promising gold stocks according to analysts. Back in January, Sandstorm Gold Ltd. (NYSE:SAND) said that its FY 2022 gold production and revenues reached record levels, helped by Q4 performance. The gold royalty company’s Q4 production jumped 31% on a YoY basis to reach 21,800 attributable gold equivalent oz, generating $38.4 million in revenues.
As of the end of the fourth quarter of 2022, 16 hedge funds had stakes in Sandstorm Gold Ltd. (NYSE:SAND). The total value of these stakes was $109 million. The most notable stakeholder of Sandstorm Gold Ltd. (NYSE:SAND) during this period was Murray Stahl’s Horizon Asset Management which has a $33.5 million stake in the company.
7. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Holders: 16
Average Price Target by Analysts: $21.30
SSR Mining Inc. (NASDAQ:SSRM) ranks 7th in our list of the most promising gold stocks according to analysts. In November, SSR Mining Inc. (NASDAQ:SSRM) posted its third quarter results. Adjusted EPS in the period came in at -$0.07, missing estimates by $0.01. Revenue in the period fell about 48.4% on a YoY basis to total $166.63 million, missing estimates by $45.22 million.
Earlier in February, SSR Mining Inc. (NASDAQ:SSRM) announced that in FY 2022, it produced 623,819 gold equivalent oz, including more than182,000 gold equivalent oz in Q4, meeting its guidance figures. SSR Mining Inc. (NASDAQ:SSRM) said that full-year all-in sustaining costs of $1,339 per gold equivalent oz also met its guidance.
At the end of the fourth quarter of 2022, 16 hedge funds tracked by Insider Monkey reported owning stakes in SSR Mining Inc. (NASDAQ:SSRM). The total value of these stakes was over $200 million.
Here is what Palm Valley Capital Management has to say about SSR Mining Inc. (NASDAQ:SSRM) in its Q3 2022 investor letter:
“We also purchased SSR Mining (NASDAQ:SSRM) during the quarter. SSR Mining is a precious metals mining company that we previously sold in November 2021 after it reached our valuation. SSR Mining’s stock has fallen significantly this year due to lower precious metal prices and the temporary closure of its Copler mine. We repurchased its shares in late September after the Copler mine restarted on schedule, since the stock remained depressed. SSR Mining should generate significant free cash flow at current gold and silver prices and has a very strong balance sheet with over $600 million in net cash and $4.1 billion in stockholders’ equity. While we expect the stock to remain volatile, we believe the company is selling at an attractive price relative to its asset-heavy balance sheet and our net asset valuation.”
6. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 17
Average Price Target by Analysts: $13.59
As of February 21, Sibanye Stillwater Limited (NYSE:SBSW) stock was hovering around $8.70. Sibanye Stillwater Limited (NYSE:SBSW)’s average price target for the next 12 months is $13.59. This shows Sibanye Stillwater Limited (NYSE:SBSW) has strong upside potential from its current levels. Sibanye Stillwater Limited (NYSE:SBSW) recently fell after the company warned that its FY 2022 profits will fall on a YoY basis because of strikes at its South African gold mines, floods that affected its US operations and a difficult macroeconomic environment. Sibanye Stillwater Limited (NYSE:SBSW) expects headline EPS of 6.19-6.84 rand for 2022, down from 12.72 rand the previous year.
As of the end of the fourth quarter of 2022, 17 hedge funds tracked by Insider Monkey reported owning shares of Sibanye Stillwater Limited (NYSE:SBSW). The total value of these stakes was over $167 million. The biggest stakeholder of Sibanye Stillwater Limited (NYSE:SBSW) during this period was Ryan Schedler and Bradley Shisler’s Condire Investors which owns a stake worth over $40 million in the company.
Amid recession fears, gold stocks like SBSW, Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV) have been gaining a lot of attention.
5. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 24
Average Price Target by Analysts: $5.30
Shares of Canadian-based gold and silver mining firm Kinross Gold Corporation (NYSE:KGC) have lost about 30% over the past year. Kinross Gold Corporation (NYSE:KGC)’s average price target set by analysts presents a decent upside potential from current levels. It is also one of the notable low-cost dividend stocks to buy. Earlier in February, Kinross Gold Corporation (NYSE:KGC) announced a quarterly dividend of $0.03 per share, in-line with the previous dividend. Forward dividend yield at the time came in at 3.05%.
The dividend is payable on March 23 for shareholders of record as of March 8.
Earlier this month, Kinross Gold Corporation (NYSE:KGC) posted fourth quarter results that beat analyst estimates. Adjusted EPS in the quarter was $0.09, beating estimates by $0.02. Revenue in the quarter totaled $1.08 billion, beating estimates by $30 million. The revenue figure shows a YoY growth of about 75.6%.
4. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 28
Average Price Target by Analysts: $53.28
Another Canadian company in our list, Wheaton Precious Metals Corp. (NYSE:WPM) is one of the notable gold stocks in the market. In November, the company posted its third quarter results. Adjusted EPS in the quarter came in at $0.21. Revenue in the period fell about 19% on a YoY basis to total $218.83 million. Wheaton Precious Metals Corp. (NYSE:WPM) produced more than 73,500 oz of gold.
Wheaton Precious Metals Corp. (NYSE:WPM) is also a dividend payer. In November, Wheaton Precious Metals Corp. (NYSE:WPM) announced a $0.15 per share quarterly dividend, in-line with the previous dividend. Forward dividend yield at the time came in at 1.91%.
As of the end of the fourth quarter of 2022, 28 hedge funds reported owning stakes in Wheaton Precious Metals Corp. (NYSE:WPM), up from 25 hedge funds in the previous quarter, according to Insider Monkey’s proprietary database of elite hedge funds. The biggest stakeholder of Wheaton Precious Metals Corp. (NYSE:WPM) at the end of 2022 was Jean-Marie Eveillard’s First Eagle Investment Management which had a stake worth over $790 million in the company.
3. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 40
Average Price Target by Analysts: $21.99
Barrick Gold Corporation (NYSE:GOLD) is a Canadian company that mines for gold and copper. Barrick Gold Corporation (NYSE:GOLD) ranks 3rd in our list of the most promising gold stocks according to analysts. Earlier this month, Barrick Gold Corporation (NYSE:GOLD) posted mixed fourth-quarter results. Barrick Gold Corporation (NYSE:GOLD) posted a loss of $735 million, while it was profitable in the comparable quarter last year. Adjusted EPS in the quarter came in at $0.13, beating estimates by $0.01. Revenue in the period fell 16.3% on a YoY basis to reach $2.77 billion, missing estimates by $20 million.
Barrick Gold Corporation (NYSE:GOLD)’s board also authorized a new share buyback program of up to $1.0 billion of the company’s outstanding common shares over the next 12 months.
As of the end of the fourth quarter of 2022, 40 hedge funds had stakes in Barrick Gold Corporation (NYSE:GOLD), according to Insider Monkey’s database of 943 hedge funds’ holdings.
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”
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 41
Average Price Target by Analysts: $64.61
Agnico Eagle Mines Limited (NYSE:AEM) is a Canadian gold mining company. Agnico Eagle Mines Limited (NYSE:AEM) is under pressure after the company warned about rising costs in 2023. However, analysts believe Agnico Eagle Mines Limited (NYSE:AEM) is offering an attractive entry point. Its average price target set by analysts also presents a strong upside from current levels. For FY 2023 Agnico Eagle Mines Limited (NYSE:AEM) sees payable gold production to come in between 3.24 million to 3.44 million oz, compared to 3.28 million oz in 2022.
For the fourth quarter of 2022, Agnico Eagle Mines Limited (NYSE:AEM)’s adjusted EPS came in at $0.41, meeting estimates. Revenue in the quarter jumped about 45% on a YoY basis to reach $1.38 billion. However, the revenue metric missed estimates by $40 million.
As of the end of the last quarter of 2022, 41 hedge funds had stakes in Agnico Eagle Mines Limited (NYSE:AEM), compared to 39 hedge funds in the previous quarter.
Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:
“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 50
Average Price Target by Analysts: $58.02
Gold-producing giant Newmont Corporation (NYSE:NEM) is in the spotlight after the company offered to buy Newcrest Mining for $16.9 billion.
For the third quarter, Newmont Corporation (NYSE:NEM)’s adjusted EPS came in at $0.27, missing estimates by $0.07. Revenue in the quarter came in at $2.63 billion, missing estimates by $250 million.
Newmont Corporation (NYSE:NEM) at the time said that it was on track to meet its full-year guidance of 6.0 million ounces of attributable gold production.
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Disclosure: None. 12 Most Promising Gold Stocks According to Analysts is originally published on Insider Monkey.
