We recently published a list of 10 Best Gold Penny Stocks to Buy Now. In this article, we are going to take a look at where Fortuna Mining Corp. (NYSE:FSM) stands against other best gold penny stocks to buy now.
The global precious metals market is influenced by economic uncertainty, inflation, and shifting supply and demand patterns. The Business Research Company projects that the global metals market will grow at a CAGR of 5.9% through 2025. The mining sector is expanding at a CAGR of 6.2%, outpacing the broader metals market, and is expected to reach $2,401.85 billion.
Gold prices set new records in 2025, with Reuters reporting spot gold at $2,936.38 per ounce on March 3 and U.S. gold futures at $2,956.10. Central banks are stockpiling gold, which is driving up demand at record rates. Furthermore, investors seek gold as a safe haven during periods of inflation. S&P Global reports that gold futures grew by 34.6% year-over-year as of March 7, 2025, outpacing broader market indices. These trends are reshaping the gold market’s role in finance.
Supply and demand patterns are also shifting as gold now flows from Asian hubs such as Dubai and Hong Kong to the U.S., driven by higher premiums in U.S. futures markets and fears of import tariffs. U.S. Comex gold inventories have jumped 80% since late 2024, and investors are responding to better pricing and arbitrage opportunities.
Meanwhile, silver prices have also surged, reaching $30 per ounce in 2024, the highest since 2011. This increase was driven by inflation, geopolitical instability, and a weaker U.S. dollar. The Silver Institute expects the total silver demand to reach 1.20 billion ounces in 2025 while fabrication demand will exceed 700 million ounces for the first time. Additionally, silver recycling is expected to rise 5% to over 200 million ounces, the highest since 2012.
Platinum supply remains tight, with global production forecast to rise marginally by 0.76% in 2025, reaching 7.32 million ounces, leaving a supply gap of 539,000 ounces. Refined platinum production is expected to fall by 1%, reaching 5.55 million ounces versus 5.63 million in 2024. South Africa’s declining output worsens this shortfall.
Despite these obstacles, technological advances offer some hope. AI-driven exploration has cut mine development time from 16 years to nine. According to KPMG Mining Outlook 2024, geophysical data analysis now takes weeks instead of years. New refining technologies like bioleaching and cyanide-free processing improve efficiency and sustainability, ensuring more secure long-term precious metal supplies.
Our Methodology
To compile a list of the 10 Best Gold Penny Stocks to Buy Now, we first sifted through ETFs and stock screener to gather the top mining stocks under $5. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1,000 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of miners extracting precious metal deposits in a quarry.
Fortuna Mining Corp. (NYSE:FSM)
Number of Hedge Fund Holders: 19
Fortuna Mining Corp. (NYSE:FSM) operates a diverse portfolio of metal mines across Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. The company extracts silver, gold, lead, and zinc, with significant assets including the Séguéla gold mine in Côte d’Ivoire and Yaramoko in Burkina Faso.
In Q4 ending December 31, 2024, Fortuna Mining Corp. (NYSE:FSM) reported strong results with a record free cash flow of $19.6 million, increasing 69% from the previous quarter. Net cash from operations stood at $142 million ($0.46 per share) before working capital changes, beating analysts’ estimates of $0.40. The company’s yearly revenue topped $1 billion for the first time, with quarterly revenue increasing 10% to $302 million. Higher realized gold prices, averaging $2,660 per ounce, helped drive this growth.
The company increased exploration, investing $49 million in 2024 and allocating $51 million for 2025 to develop projects like Kingfisher and Sunbird Deep at Séguéla. Fortuna Mining Corp. (NYSE:FSM) is divesting its San José mine in Mexico to focus on other core assets. Both Séguéla and Yaramoko performed well, with Séguéla producing 137,781 ounces of gold and Yaramoko yielding 116,206 ounces.
In the future, Fortuna Mining Corp. (NYSE:FSM) expects production costs between $895 and $1,015 per ounce. Séguéla’s production is expected to reach 160,000 to 180,000 ounces by 2026. The company anticipates temporarily higher costs in early 2025 due to a higher stripping ratio at Lindero but expects improvements later in the year. As one of the best penny stocks, the company is focused on cost control and strategic growth for continued success.
Overall, FSM ranks 6th on our list of best gold penny stocks to buy now. While we acknowledge the potential of FSM, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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