In this piece, we will take a look at the 10 best Candian penny stocks to buy now.
As we navigate the complexities of 2024, Canada’s economic landscape presents a unique blend of challenges and opportunities. The global economy is grappling with the aftershocks of generationally high inflation, which has led to the most rapid monetary tightening we’ve seen in decades. While the U.S. economy has shown surprising resilience, achieving a delicate balance of strong growth and moderating inflation, Canada faces a different set of circumstances that investors should closely monitor. Canada’s economy, while robust in many respects, is particularly sensitive to interest rates. High household debt-to-income ratios and relatively shorter mortgage terms mean that Canadian consumers and businesses feel the impact of rising interest rates more acutely than their counterparts in the U.S. Despite this, the latter part of 2023 brought stronger-than-expected economic momentum, bolstered by record immigration and the positive spillover effects from a resilient U.S. economy. As a result, fears of a recession in Canada this year have largely dissipated.
However, this doesn’t mean the Canadian economy is out of the woods. Growth is expected to remain below trend in 2024, with the Bank of Canada projecting a modest GDP growth rate of 1.25% to 1.5%. The slowdown in growth is partly due to the country’s unique economic vulnerabilities. Productivity growth, for instance, has been on a concerning decline, with Canada’s senior deputy governor even describing the situation as an “emergency.” This decline in productivity is largely driven by a lack of business investment in critical areas such as equipment, machinery, and intellectual property, exacerbated by limited competition in key industries like telecommunications and banking. On the brighter side, this slower growth is expected to contribute to a further moderation in inflation pressures. Headline inflation has been gradually decreasing, and core inflation—excluding volatile food and energy prices—is also making its way toward the Bank of Canada’s target range. This gives the Bank of Canada some room to maneuver, with expectations that it will reduce interest rates by 50-75 basis points later this year.
Despite strong economic growth, including an exceptional surge in job creation in April 2024, employment growth of 2.0% over the past year has lagged behind the 3.4% increase in population. This imbalance has driven the unemployment rate up by nearly a full percentage point to 6.2%, and it is expected to remain high through the rest of this year before gradually declining in 2025. Wage growth, which averaged 5.3% in 2023, has slowed significantly to just 3.9% (annualized) in the first quarter of 2024. With inflationary pressures easing, this slower pace of wage growth is likely to persist through 2024 and into next year. The Bank of Canada’s decision to cut its policy interest rate was welcomed, but Canadian households remain the most indebted in the G7. The interest rate hikes since 2022 have strained household finances, leading to a decline in real consumer spending per capita in five of the last seven quarters as more income is directed toward servicing mortgage and loan interest payments.
The impact on the housing market has been even more pronounced. Real residential investment per capita fell by 22.8% in the first quarter of 2024 compared to the same period two years earlier. Looking ahead, consumer spending and residential investment are expected to recover as lower interest rates help restore demand. However, with consumer confidence low, reluctance to make major purchases, ongoing challenges in housing affordability, and savings rates still above normal, the pace of recovery in the second half of 2024 will likely be restrained. Deloitte projects that more significant gains in consumption and residential investment will occur next year as confidence improves. Overall, Canada’s economy performed better in the first half of 2024 than anticipated. However, this strength is expected to be offset by slower real GDP growth in the latter half of the year due to weaker household spending. The updated forecast projects real GDP growth of 1.2% for 2024, with an acceleration to 2.6% in 2025. On a per-capita basis, real GDP is expected to decline by 1.6% this year before rebounding to 1.1% growth in 2025.
In this context, the Canadian stock market, particularly the penny stocks segment, offers intriguing opportunities. Penny stocks, often overlooked, can be a gateway to substantial returns, especially in a market like Canada’s, where economic conditions are ripe for selective investment. Whether you’re a seasoned investor or new to the world of penny stocks, the following picks are poised to potentially deliver impressive returns in the current economic climate.
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Our Methodology
For this article we first used a stock screener to list down all Canadian stocks trading under $5 as of August 25. We then picked 10 of these stocks with the highest number of hedge fund investors. To gauge hedge fund sentiment we used Insider Monkey’s database of 912 hedge funds. This way, the penny stocks mentioned in this article are the best penny stocks to buy according to elite hedge funds.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Repare Therapeutics Inc. (NASDAQ:RPTX)
Number of Hedge Fund Holders: 15
At number ten on our list of ten best Candian penny stocks to buy now stands Repare Therapeutics Inc. (NASDAQ:RPTX). Repare Therapeutics Inc. (NASDAQ:RPTX) focuses on researching, developing, and bringing to market precision oncology drugs that target the specific weaknesses of tumors in patients with genetically defined conditions. Established in 2016, the company is based in Saint-Laurent, Canada. Repare Therapeutics Inc. (NASDAQ:RPTX) is advancing its pipeline of precision oncology drugs, with a particular focus on the combination of lunresertib and camonsertib in treating solid tumors. Preliminary data from their ongoing Phase 1 MYTHIC study shows promising results, especially in patients with gynecological tumors, achieving a 60% overall response rate. This impressive data underscores the potential of this combination therapy in targeting genetically defined tumor vulnerabilities. The company’s collaboration with major pharmaceutical firms like Roche and Bristol-Myers Squibb further strengthens its position. These partnerships could lead to substantial milestone payments, contingent on successful clinical trials. Repare Therapeutics Inc. (NASDAQ:RPTX) financial stability is supported by a solid cash position, bolstered by upfront payments from these collaborations, providing a runway into 2026.
While risks remain, such as the uncertainty of trial outcomes and the potential termination of partnerships, Repare Therapeutics Inc. (NASDAQ:RPTX) strategic focus on advancing its promising drug combinations and leveraging key partnerships positions it well for future growth. If the upcoming results continue to be positive, Repare Therapeutics Inc. (NASDAQ:RPTX) could see significant value creation for shareholders, making it an intriguing investment opportunity in the biotech sector.
During Q2, 2024 the count of hedge funds holding positions in Repare Therapeutics Inc. (NASDAQ:RPTX) stands at 15. These holdings collectively amounted to around $75.52 million. Mark Lampert’s Biotechnology Value Fund / BVF Inc emerged as the leading shareholder among these hedge funds during this timeframe.
09. BlackBerry Limited (NYSE:BB)
Number of Hedge Fund Holders: 16
BlackBerry Limited (NYSE:BB) is demonstrating significant progress in its transformation strategy, positioning itself as a leader in both the IoT and cybersecurity sectors. The company has focused on separating its core divisions IoT and cybersecurity into standalone businesses, allowing each to concentrate on growth and operational efficiency. This strategic shift is showing positive results, with both divisions outperforming expectations in recent quarters. BlackBerry Limited (NYSE:BB) recently reported its Q1 2025 earnings, surpassing market expectations with a reported EPS of -$0.03, compared to the expected -$0.04. This performance highlights the company’s effective cost management and strategic focus on its core divisions IoT and cybersecurity.
The IoT division delivered strong results with $53 million in revenue, driven primarily by automotive applications, particularly digital cockpits and ADAS (Advanced Driver Assistance Systems). With an impressive gross margin of 81%, BlackBerry Limited (NYSE:BB) IoT business is well-positioned for growth, supported by significant design wins from leading global automakers and other industries. The division’s focus on scaling services and unlocking an $815 million royalty backlog indicates strong future revenue potential.
In cybersecurity, BlackBerry Limited (NYSE:BB) also performed well, with revenue of $85 million, surpassing expectations. The company’s SecuSmart business, offering end-to-end encryption solutions, has shown notable strength, particularly in government sectors. BlackBerry’s Cylance segment has also made strides, focusing on operational technology and small to medium-sized enterprises, which are its strongest markets. The rebranding of Cylance GUARD to Cylance MDR and the introduction of new features, including an AI assistant, have driven customer satisfaction and improved key metrics like Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate (DBNRR).
Overall, BlackBerry Limited (NYSE:BB) solid Q1 performance, coupled with ongoing cost reductions and strategic focus on high-growth sectors like IoT and cybersecurity, supports a bullish outlook for the stock. The company’s efforts to streamline operations and its path toward profitability make it an attractive investment opportunity moving forward. During Q2, 2024 the count of hedge funds holding positions in BlackBerry Limited (NYSE:BB) grew to 16 from 15 in the prior quarter. These holdings collectively amounted to around $136.85 million. Prem Watsa’s Fairfax Financial Holdings emerged as the leading shareholder among these hedge funds during this timeframe.
08. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 16
Bitfarms Ltd. (NASDAQ:BITF) is emerging as a strong investment opportunity, particularly for those looking to capitalize on the growth of cryptocurrency mining and its related sectors. Led by a new CEO with extensive experience in the industry, Bitfarms has positioned itself as a leading player in the Bitcoin mining space, with a clear focus on growth, efficiency, and diversification. In Q2 2024, Bitfarms Ltd. (NASDAQ:BITF) reported significant progress in expanding its global footprint, increasing its power capacity by 220 MW, and growing its hashrate by 70% quarter-over-quarter. The company’s focus on efficient operations is evident, with energy efficiency improving by 29% year-to-date, achieving 25 w/TH by the end of Q2.
Financially, Bitfarms Ltd. (NASDAQ:BITF) boasts a robust balance sheet with $195 million in total liquidity and over 1,000 Bitcoins by the end of July 2024. This financial strength fully supports the company’s aggressive growth plan, which aims to reach 21 EH/s by the end of the year. Additionally, Bitfarms continues to innovate, leading the industry with strategic miner purchase agreements that lock in competitive pricing, ensuring operational flexibility and cost-effectiveness. The recent acquisition of a 120 MW site in Sharon, Pennsylvania, marks a significant milestone in Bitfarms Ltd. (NASDAQ:BITF) U.S. expansion strategy. This site not only increases Bitfarms’ U.S. footprint but also offers strategic advantages like access to the PJM grid, which supports Bitcoin mining and energy trading. The site’s proximity to major metropolitan areas and fiber lines also positions it well for future opportunities in High-Performance Computing (HPC) and AI, sectors with a rapidly growing total addressable market.
Looking forward, Bitfarms Ltd. (NASDAQ:BITF) plans to continue its global expansion, with a focus on increasing U.S. exposure and exploring synergistic business lines such as energy trading and AI, further diversifying its revenue streams. With a clear strategy for growth and efficiency, Bitfarms remains a strong investment opportunity, offering high-quality exposure to Bitcoin’s upside while maintaining a solid financial foundation. During Q2, 2024 the count of hedge funds holding positions in Bitfarms Ltd. (NASDAQ:BITF) grew to 16 from 11 in the prior quarter, as reported by Insider Monkey’s database encompassing 912 hedge funds. These holdings collectively amount to around $21.85 million. Israel Englander’s Millennium Management emerged as the leading shareholder among these hedge funds during this timeframe.
07. AbCellera Biologics Inc. (NASDAQ:ABCL)
Number of Hedge Fund Holders: 16
Ranking seventh on our list of the ten best Canadian penny stocks to buy now is AbCellera Biologics Inc. (NASDAQ:ABCL). AbCellera Biologics Inc. (NASDAQ:ABCL) continues to show promising growth prospects, driven by its innovative approach to antibody discovery. The company’s second-quarter 2024 earnings report highlights its strategic focus on advancing internal pipelines, specifically in oncology and autoimmune disease therapeutics. AbCellera’s PSMA and B7-H4 T-cell engager (TCE) programs in oncology have shown strong preclinical results, indicating potential in high-need areas like prostate cancer and solid tumors. The company’s ability to reduce cytokine release while maintaining high tumor-killing efficacy positions these programs as potential game-changers in cancer treatment.
In addition to oncology, AbCellera Biologics Inc. (NASDAQ:ABCL) is making strides in autoimmune diseases through its CD19 TCE program. This program aims to provide a more accessible and cost-effective alternative to CAR T-cell therapies, which are currently limited by high costs and complex administration. The company’s CD19 TCE could offer a safer, more convenient option for conditions like lupus and rheumatoid arthritis, broadening the market potential. AbCellera Biologics Inc. (NASDAQ:ABCL) strategic partnerships further enhance its growth potential. The company’s collaboration with Eli Lilly and other top-tier biotech firms underscores the industry’s confidence in its technology. Moreover, the recent achievements of its partners, such as Abdera’s FDA Fast Track designation for a lung cancer treatment, demonstrate the downstream value of AbCellera’s innovations, promising future royalty streams and equity gains.
Financially, AbCellera Biologics Inc. (NASDAQ:ABCL) is well-positioned with nearly $700 million in liquidity, ensuring that it can sustain its aggressive R&D efforts and platform expansion. The company’s robust financial health, combined with its innovative pipeline and strategic partnerships, makes AbCellera a compelling growth story in the biotech sector. With significant potential in both oncology and autoimmune therapeutics, AbCellera Biologics Inc. (NASDAQ:ABCL) is well-equipped to deliver long-term value to investors. In the second quarter of 2024, there were 16 hedge funds holding positions in AbCellera Biologics Inc. (NASDAQ:ABCL), similiar to the previous quarter according to Insider Monkey’s database. The total value of these holdings is approximately $122.18 million. Julian Baker And Felix Baker’s Baker Bros. Advisors held the largest stake among these hedge funds during this period.
06. NovaGold Resources Inc. (NYSE:NG)
Number of Hedge Fund Holders: 16
NovaGold Resources Inc. (NYSE:NG) presents a compelling investment opportunity, driven by the promising prospects of its flagship Donlin Gold project in Alaska. Donlin Gold is a Tier 1 asset, boasting an impressive 40 million ounces of gold with a grade exceeding 2 grams per tonne, which is significantly higher than the industry average. This high-grade deposit, coupled with a projected mine life of nearly 30 years, positions Donlin Gold as a stable, long-term operation capable of producing around 1 million ounces annually at low costs. The extensive exploration potential within Donlin’s vast landholdings further enhances its growth prospects, making it a cornerstone project in the gold mining industry.
NovaGold Resources Inc. (NYSE:NG) commitment to advancing Donlin Gold is underscored by the company’s strategic approach to project development. With most federal and state permits secured and ongoing efforts to update the feasibility study, NovaGold Resources Inc. (NYSE:NG) is poised to make significant progress when market conditions align. The company’s partnership with Calista and The Kuskokwim Corporation, private landowners in Alaska, ensures strong local support and aligns with the community’s vision for responsible economic growth. This social license, combined with Alaska’s favorable mining regulations, provides a stable and secure environment for Donlin Gold’s development.
The project’s strategic importance is amplified by the global decline in high-quality gold deposits, making Donlin Gold’s scale, grade, and longevity increasingly valuable. As gold prices remain strong, Donlin Gold’s potential net present value exceeds $25 billion, highlighting the significant upside for investors. Additionally, the project’s ESG commitments, including community engagement and environmental stewardship, further reinforce its attractiveness as a sustainable and responsible investment. NovaGold Resources Inc. (NYSE:NG) experienced management team remains focused on delivering value to shareholders by advancing Donlin Gold through a disciplined and strategic approach, positioning the company for long-term success in the gold market.
In the second quarter of fiscal 2024, NovaGold Resources Inc. (NYSE:NG) reported a net loss of $10.9 million, primarily due to exploration and project development expenses. The company maintains a strong cash position with $76.8 million in cash and term deposits, which it intends to use for ongoing project expenditures. The Donlin Gold project is a 50-50 joint venture with Barrick Gold, and NovaGold continues to work towards securing all the necessary permits for its future development. Despite the challenges, NovaGold remains committed to its long-term strategy of developing a world-class gold asset. In the second quarter of 2024, 16 hedge funds had positions in NovaGold Resources Inc. (NYSE:NG). The combined value of these holdings is around $172.65 million, with John Paulson’s Paulson & Co holding the largest position among these funds.
05. Baytex Energy Corp. (NYSE:BTE)
Number of Hedge Fund Holders: 17
Baytex Energy Corp. (NYSE:BTE) takes the fifth spot on our list of the ten best Canadian penny stocks to buy now. Baytex Energy Corp. (NYSE:BTE) has demonstrated strong financial and operational performance in Q2 2024, making it an attractive investment. The company reported an impressive 23% increase in production per share compared to Q2 2023, with an average production of over 154,000 BOE per day, predominantly consisting of oil and NGLs. This growth in production, combined with disciplined capital spending, has resulted in significant free cash flow, which is expected to strengthen in the second half of 2024. The company’s commitment to shareholder returns is evident, with CAD97 million returned through share buybacks and dividends in Q2 alone.
Baytex Energy Corp. (NYSE:BTE) financial metrics further underscore its strong position. The company generated CAD533 million in adjusted funds flow during Q2 2024, translating to CAD0.65 per share, a 38% increase from the previous year. Net income for the quarter stood at CAD104 million, or CAD0.13 per share, with free cash flow amounting to CAD181 million. This robust financial performance is supported by a strategic capital allocation plan, which includes reinvesting in the business, reducing debt, and returning capital to shareholders. The company’s balance sheet remains strong, with a total debt-to-EBITDA ratio of 1.1 times, and efforts to further reduce debt in the coming quarters are underway.
Operationally, Baytex Energy Corp. (NYSE:BTE) has successfully executed its development plans across key assets, including the Eagle Ford and Canadian light oil business units. The company has achieved cost efficiencies, realizing an 8% improvement in operated drilling and completion costs per completed lateral foot over 2023. With continued strong performance from key assets, such as the Eagle Ford and Peavine, Baytex Energy Corp. (NYSE:BTE) is well-positioned to sustain its growth trajectory. The combination of strong production, disciplined financial management, and a shareholder-friendly capital return strategy makes Baytex Energy Corp. (NYSE:BTE) a compelling investment opportunity for those looking to capitalize on the energy sector’s potential.
According to Insider Monkey’s database, 17 hedge funds held stakes in Baytex Energy Corp. (NYSE:BTE) during the second quarter of 2024, an increase from 14 in the previous quarter. These holdings were valued at roughly $77.31 million, with the largest stake held by Israel Englander’s Millennium Management.
04. Fortuna Mining Corp. (NYSE:FSM)
Number of Hedge Fund Holders: 17
Fortuna Mining Corp. (NYSE:FSM) is a diversified precious metals producer with a focus on exploration, extraction, and processing across Latin America and West Africa. The company operates through several segments, including Bateas, Cuzcatlan, Mansfield, and Corporate, managing silver, gold, lead, and zinc mines. Key assets like the Caylloma silver mine and the San Jose silver-gold mine have demonstrated solid production metrics, underlining the company’s robust operational capabilities.
In Q2 2024, Fortuna Mining Corp. (NYSE:FSM) reported impressive financial results, driven by the rising prices of gold and silver. The company produced 116,000 gold equivalent ounces, with gold sales accounting for 81% of the total revenue. The average realized gold price rose significantly to $2,334 per ounce from $2,087 in Q1, boosting total sales to $260 million. Fortuna Mining Corp. (NYSE:FSM) also generated $93 million in cash flow before working capital adjustments and achieved a free cash flow of $39 million, highlighting its strong financial health. The company’s focus on strategic capital projects is expected to fuel future growth. The Lindero mine’s leach pad expansion, now 60% complete, is set to enhance production capacity, while the Seguela processing plant’s optimization has already yielded significant operational efficiencies. Additionally, Fortuna Mining Corp. (NYSE:FSM) exploration efforts at the Kingfisher discovery in the Seguela mine present promising opportunities, potentially adding new resources to its portfolio.
Fortuna Mining Corp. (NYSE:FSM) secures its position on our list of the ten best Canadian penny stocks to buy now, thanks to its robust financial stability. The company boasts a strong balance sheet, highlighted by $350 million in liquidity, bolstered by a successful $172 million convertible notes placement. Fortuna’s low total net debt to EBITDA ratio of 0.2 reflects its prudent financial management, enabling the company to seize value-focused opportunities across its operational regions. With ongoing investments in high-potential projects and a steadfast commitment to operational excellence, Fortuna Mining Corp. (NYSE:FSM) is well-positioned for sustained growth and value creation for its shareholders. In the second quarter of 2024, the number of hedge funds holding positions in Fortuna Mining Corp. (NYSE:FSM) stands at 17 similar to the previous quarter, as reported by Insider Monkey’s database. The collective value of these holdings is about $96.29 million, with the largest position held by Joel Greenblatt’s Gotham Asset Management.
03. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 21
Denison Mines Corp. (NYSE:DNN) is a Canadian uranium development company that stands out for its high-quality assets and strong financial position. The company’s flagship project, Wheeler River, which includes the Phoenix and Gryphon deposits, is a cornerstone of its growth strategy. Phoenix, in particular, has impressive projected economics, with an all-in sustaining cost (AISC) below $20/lb and an after-tax net present value (NPV) of approximately $1.3 billion at current uranium prices. The internal rate of return (IRR) for Phoenix is exceptionally high, above 90%, making it a robust project even if costs rise.
Denison Mines Corp. (NYSE:DNN) strategic foresight is evident in its acquisition of 2.5 million pounds of uranium at $29.6/lb in 2021, which has since appreciated significantly. The company currently holds 2.2 million pounds, valued at around $180 million. This, combined with its substantial cash reserves of C$121 million, positions Denison as a well-capitalized player in the uranium industry, with no debt burden to weigh it down.
According to analysts, Denison Mines Corp. (NYSE:DNN) presents an attractive valuation, particularly in light of current uranium market conditions. With an enterprise value to net asset value (EV/NAV) ratio of 0.5, based on a uranium price of $80 per pound, the stock is trading at a discount. This undervaluation, combined with high-quality assets and strong financial metrics, offers a compelling investment opportunity within the uranium sector. As the long-term contract price of uranium continues to rise, Denison Mines is well-positioned to benefit from the increasing demand for this vital resource. This makes Denison Mines Corp. (NYSE:DNN) a standout choice in our list of ten best Canadian penny stocks to buy now.
In the second quarter of 2024, there were 21 hedge funds holding positions in Denison Mines Corp. (NYSE:DNN), as compared to 22 in the previous quarter according to Insider Monkey’s database. The total value of these holdings is approximately $95.36 million. Steve Cohen’s Point72 Asset Management held the largest stake among these hedge funds during this period.
02. New Gold Inc. (NYSE:NGD)
Number of Hedge Fund Holders: 21
New Gold Inc. (NYSE:NGD) holds the number two spot on our list. New Gold Inc. (NYSE:NGD) is a well-established gold mining company with a diversified portfolio that includes the Rainy River, New Afton, and Cerro San Pedro mines. The company, headquartered in Toronto, Canada, has a strong track record of delivering on its operational goals, which is evident from its consistent performance in recent quarters.
In the second quarter of 2024, New Gold Inc. (NYSE:NGD) reported solid production figures, with Rainy River producing approximately 50,300 ounces of gold and New Afton contributing around 18,300 ounces of gold and 13.6 million pounds of copper. The company’s all-in sustaining costs (AISC) were $1,381 per gold ounce on a byproduct basis, and it managed to keep costs under control, with expectations of further reductions in the second half of the year. This focus on cost management, coupled with increased production, has positioned New Gold Inc. (NYSE:NGD) to generate positive free cash flow.
New Gold Inc. (NYSE:NGD) financial health is robust, with Q2 2024 revenue of $218 million, a 10% increase in copper production, and net earnings of $52 million. The company has a healthy liquidity position with $184 million in cash on hand. New Gold Inc. (NYSE:NGD) strategic initiatives, including the expansion of its interest in New Afton to 80.1%, further strengthen its financial position, making it well-prepared to leverage the higher metal price environment.
The company’s exploration efforts, particularly at Rainy River and New Afton, have been promising, with significant progress in drilling and development. This positions New Gold for long-term growth, with the potential for extended mine lives and increased production. With strong fundamentals, a disciplined operational approach, and strategic growth initiatives, New Gold Inc. (NYSE:NGD) is well-positioned to capitalize on future opportunities in the gold and copper markets.
The number of hedge funds in Insider Monkey’s database owning stakes in New Gold Inc. (NYSE:NGD) grew to 21 in Q2 2024, as compared to 17 in the preceding quarter. The consolidated value of these stakes is nearly $169.45 million. Among these hedge funds, Ryan Schedler And Bradley Shisler’s Condire Investors was the company’s leading stakeholder in Q2.
01. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 22
Leading our list of the ten best Canadian penny stocks to buy now is B2Gold Corp. (NYSE:BTG). B2Gold Corp. (NYSE:BTG) is a Vancouver-based exploration company that focuses on the acquisition and development of mineral properties. With operations spanning multiple sites, including the Fekola Mine in Mali, Otjikoto Mine in Namibia, and Masbate Mine in the Philippines, B2Gold Corp. (NYSE:BTG) has established itself as a significant player in the gold mining sector. Despite some operational challenges, such as the temporary production setback at Fekola due to equipment issues, the company remains well-positioned for growth, supported by its strong track record of successful exploration and mine development.
In the second quarter of 2024, B2Gold Corp. (NYSE:BTG) reported revenues of $492.57 million, a 4.61% year-over-year increase, which exceeded market expectations. Although the company faced a slight miss on earnings per share (EPS), posting $0.06 instead of the expected $0.07, the strong revenue performance highlights the robust demand for gold and B2Gold Corp. (NYSE:BTG) ability to capitalize on this trend. The company’s financial position remains solid, with $467 million in cash and cash equivalents and access to a $700 million revolving credit facility, ensuring sufficient liquidity to fund ongoing operations and future growth initiatives.
Looking ahead, B2Gold Corp. (NYSE:BTG) growth potential is further supported by its ongoing projects, such as the expansion of the Fekola Mine and the development of the Goose Mine in Canada. The company is also exploring additional opportunities through its aggressive drilling programs, which could unlock further reserves and extend the life of its mines. With a strong foundation, a focus on operational efficiency, and a commitment to growth, B2Gold Corp. (NYSE:BTG) is well-positioned to deliver long-term value to shareholders, making it a compelling pick among Canadian penny stocks.
In the second quarter of 2024, the number of hedge funds with stakes in B2Gold Corp. (NYSE:BTG) increased to 22 from 19 in the previous quarter, according to Insider Monkey’s database. The combined value of these stakes is approximately $132.61 million. Jim Simons’s Renaissance Technologies emerged as the largest stakeholder among these hedge funds during this period.
BTG stands at number one on our list of ten best Candian penny stocks to buy now. However, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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