In this article, we discuss 10 best Canadian gold stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Canadian Gold Stocks To Buy Now.
Massive purchases by central banks, along with active buying by individual investors and reduced outflows from ETFs, have led to the highest annual demand for gold (excluding over-the-counter transactions) in 11 years. The demand increased by 18% in 2022, reaching 4,741 tons, which is almost comparable to the exceptional investment demand seen in 2011. The total demand for the year was boosted by a Q4 record demand of 1,337 tons. The demand for gold as an investment increased by 10% in 2022, reaching 1,107 tons. The demand for gold bars and coins also grew by 2%, totaling 1,217 tons. Additionally, the decrease in holdings of gold ETFs was smaller than the previous year (-110 tons compared to -189 tons), which contributed to the overall growth in investment. Any changes in demand for over-the-counter transactions over the course of the year were mostly balanced out.
On March 8, the Bank of Canada decided to pause its efforts to increase interest rates and maintained its key overnight rate at 4.5%. The decision was largely anticipated by the markets, and the price of gold in Canadian dollars slightly increased after initially decreasing earlier in the day. The central bank of Canada explained that its decision was based on the fact that economic developments were progressing in accordance with their predictions. The central bank believes that the most recent macroeconomic data indicates that inflation will decrease to 3% by mid-year. The Bank of Canada has become the first major central bank to halt its efforts to tighten monetary policy. This decision comes after Canada had implemented an aggressive policy of tightening along with other central banks worldwide, raising its policy rate at every meeting since March 2022. The Bank stated that the interest rate will remain unchanged if economic developments continue as predicted, but it did not rule out the possibility of future rate hikes.
Meanwhile, Canadian gold companies are continuing to expand their operations to meet long-term demand. B2Gold Corp. (NYSE:BTG), a mining company based in Canada, plans to invest in Snowline Gold, a gold exploration company. This will involve B2Gold Corp. (NYSE:BTG) acquiring common shares of Snowline Gold following the latter’s private placement worth C$19,161,375. The private placement will consist of up to 3,941,048 flow-through common shares of Snowline Gold, which will be priced at C$4.862 per share. B2Gold also recently entered into an agreement to acquire all outstanding shares of Sabina Gold & Silver for C$1.1 billion.
Some of the best Canadian gold stocks to invest in include Agnico Eagle Mines Limited (NYSE:AEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM).
Our Methodology
For this article, we shortlisted Canadian gold companies and selected the following gold stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the fourth quarter of 2022. The list is arranged in ascending order of the number of hedge fund holders in each firm.
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Best Canadian Gold Stocks To Buy Now
10. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 15
B2Gold Corp. (NYSE:BTG) is a gold production company that runs three active mines located in Namibia, the Philippines, and Mali. Furthermore, the company possesses several other properties for assessment and exploration situated in Uzbekistan, Finland, and Mali. Established in 2006, B2Gold Corp. (NYSE:BTG) is based in Vancouver, Canada. On February 22, the company declared a quarterly dividend of $0.04 per share, in line with previous. The dividend is payable on March 17, to shareholders of record on March 8. The forward yield came in at 4.91%.
On February 28, National Bank analyst Don DeMarco reiterated an Outperform rating on B2Gold Corp. (NYSE:BTG) but lowered the firm’s price target on the shares to C$6.50 from C$6.75.
According to Insider Monkey’s fourth quarter database, 15 hedge funds were bullish on B2Gold Corp. (NYSE:BTG), compared to 16 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 28.75 million shares worth $102 million.
Like Agnico Eagle Mines Limited (NYSE:AEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM), B2Gold Corp. (NYSE:BTG) is one of the best Canadian gold stocks to invest in.
9. Osisko Gold Royalties Ltd (NYSE:OR)
Number of Hedge Fund Holders: 18
Osisko Gold Royalties Ltd (NYSE:OR) purchases and manages royalties, streams, and other interests related to precious metals. It also possesses options to obtain the rights to purchase precious metals, provides financing in exchange for royalties or streams, and holds exclusive rights to participate in upcoming royalty or stream financing for different mining ventures. Additionally, Osisko Gold Royalties Ltd (NYSE:OR) is engaged in exploring, assessing, and advancing mining projects, with a primary focus on precious metals such as gold, silver, and diamonds. The company is located in Montreal, Canada.
On February 23, Osisko Gold Royalties Ltd (NYSE:OR) declared a C$0.055 per share quarterly dividend, in line with previous. The dividend is payable on April 14, to shareholders of record on March 31.
TD Securities on March 1 maintained a Buy recommendation on Osisko Gold Royalties Ltd (NYSE:OR) but lowered the firm’s price target on the shares to C$22 from C$24.
According to Insider Monkey’s fourth quarter database, 18 hedge funds were long Osisko Gold Royalties Ltd (NYSE:OR), compared to 20 funds in the last quarter. Eric Sprott’s Sprott Asset Management is the biggest stakeholder of the company, with 3.4 million shares worth $41.8 million.
Here is what Palm Valley Capital Management has to say about Osisko Gold Royalties Ltd (NYSE:OR) in its Q3 2022 investor letter:
“We did not purchase any new holdings during the fourth quarter. We also meaningfully reduced our weightings in Osisko Gold Royalties Ltd (NYSE:OR) as their stock price approached fair value.”
8. IAMGOLD Corporation (NYSE:IAG)
Number of Hedge Fund Holders: 18
IAMGOLD Corporation (NYSE:IAG) explores, develops, and operates gold mining properties in North America and West Africa. The company was incorporated in 1990 and is headquartered in Toronto, Canada. IAMGOLD Corporation (NYSE:IAG)’s fourth quarter revenue came in at $207.2 million, and the attributable gold production was 185,000 ounces in Q4 and 713,000 ounces for the year, higher than the top end of the revised production guidance of 650,000 to 705,000 ounces. It is one of the best gold stocks to invest in.
On February 14, National Bank analyst Mike Parkin maintained a Sector Perform rating on IAMGOLD Corporation (NYSE:IAG) and lowered the firm’s price target on the shares to C$4 from C$4.10.
According to Insider Monkey’s fourth quarter database, IAMGOLD Corporation (NYSE:IAG) was part of 18 hedge fund portfolios, compared to 12 funds in the prior quarter. The collective stakes in the fourth quarter amounted to nearly $170 million, up from $68 million in the earlier quarter. David Iben’s Kopernik Global Investors is the largest stakeholder of IAMGOLD Corporation (NYSE:IAG), with 24 million shares worth $62 million.
7. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 24
Kinross Gold Corporation (NYSE:KGC) is focused on acquiring, exploring, and developing gold resources in the United States, Brazil, Chile, and Mauritania. Additionally, the company is involved in extracting and processing gold-containing ores, restoring mining properties, and selling silver. Established in 1993, Kinross Gold Corporation (NYSE:KGC) is based in Toronto, Canada.
On February 16, Kinross Gold Corporation (NYSE:KGC) reported a Q4 non-GAAP EPS of $0.09 and a revenue of $1.08 billion, outperforming Wall Street estimates by $0.02 and $30 million, respectively. In 2023, Kinross Gold Corporation (NYSE:KGC) expects to produce 2.1 million Au eq. oz. from its operations, which is an increase of approximately 140,000 Au eq. oz. compared to 2022 production.
Canaccord analyst Carey MacRury on March 1 maintained a Buy rating on Kinross Gold Corporation (NYSE:KGC) but lowered the firm’s price target on the shares to C$8.25 from C$8.50.
According to Insider Monkey’s fourth quarter database, 24 hedge funds were long Kinross Gold Corporation (NYSE:KGC), with collective stakes worth $268.8 million. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 4.5 million shares worth $18.5 million.
6. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 27
Franco-Nevada Corporation (NYSE:FNV) specializes in royalties and streaming of gold resources across various locations, including Latin America, the United States, and Canada, among others. The company concentrates on managing a portfolio of precious metals like gold, silver, and platinum group metals, as well as energy resources, such as oil, gas, and natural gas liquids. Its headquarters are situated in Toronto, Canada, and it was established in 1983.
On January 17, Franco-Nevada Corporation (NYSE:FNV) declared a $0.34 per share quarterly dividend, a 6.3% increase from its prior dividend of $0.32. The dividend is distributable on March 30, to shareholders of record on March 16.
Canaccord analyst Carey MacRury on March 10 reiterated a Buy rating on Franco-Nevada Corporation (NYSE:FNV) but lowered the firm’s price target on the shares to C$202 from C$205. This action was taken after the analyst made some adjustments to his predictions based on the latest Q4 production results, 2023 guidance, and updates from various mine operators that Franco-Nevada holds royalties or streams on, as well as the decrease in natural gas GEOs.
According to Insider Monkey’s fourth quarter database, 27 hedge funds were long Franco-Nevada Corporation (NYSE:FNV), compared to 28 funds in the prior quarter. Murray Stahl’s Horizon Asset Management is a significant position holder in the company, with 1.07 million shares worth $146.5 million.
In addition to Agnico Eagle Mines Limited (NYSE:AEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM), Franco-Nevada Corporation (NYSE:FNV) is one of the top Canadian gold stocks to monitor.
Here is what Horizon Kinetics has to say about Franco-Nevada Corporation (NYSE:FNV) in its Q3 2022 investor letter:
“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco Nevada Corp., the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its nearsole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”
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Disclosure: None. 10 Best Canadian Gold Stocks To Buy Now is originally published on Insider Monkey.