The U.S. Federal Reserve now anticipates just two interest rate cuts next year, a reduction from the four previously forecasted in September, due to inflation concerns and the potential economic impact of President-elect Donald Trump’s proposed trade tariffs. On November 18, in the immediate aftermath of the Fed’s announcement, the U.S. dollar surged, with the dollar index reaching a two-year high. This rally placed downward pressure on gold prices, which fell 2% to their lowest levels in a month. Traditionally, a stronger dollar and higher U.S. Treasury yields make gold less attractive as an investment. However, analysts suggest that these traditional relationships between gold, the dollar, and interest rates have become less predictable in recent years.
In an interview with CNBC on December 18, Thomas Rupf, Chief Investment Officer and Head of Trading at VP Bank Asia provided detailed insights into the current market conditions and future projections for the U.S. dollar and gold. Rupf acknowledged the resilience of the U.S. dollar and attributed it to the perception of the continued strength of the U.S. economy. However, he also pointed out that the U.S. dollar is currently overvalued and expects the US economy to slow down, which could contribute to a weaker US dollar by the end of next year.
Regarding gold, Rupf is optimistic and noted that the potential slowdown in the US economy and dollar as well as the ongoing trend of de-dollarization are all bullish factors for gold prices. He mentioned that ETF flows, which are still 20% below historical levels, indicate that there is significant room for retail investors to increase their investment in gold ETFs. Rupf concluded by agreeing that gold prices could realistically reach $2,800 to $2,900. He also mentioned the possibility of gold reaching up to $3,000, which he considers the top end of his forecast.
Gold has historically been recognized as a reliable investment, known for its enduring value and resilience against economic uncertainties. This precious metal has been a cornerstone in many diversified investment portfolios, offering a sense of security and stability in times of financial turmoil. With that in context, let’s take a look at the 10 best gold royalty and small-cap gold stocks to buy.
Drills extracting gold from a gold mine, revealing the company’s gold mining operation.
Our Methodology
To compile our list of the 10 best gold royalty and small-cap gold stocks to buy, we used Finviz and Yahoo stock screeners to find the companies that are involved in the production, extraction, processing, financing, or sale of gold and have a market capitalization between $200 million and $10 billion as of December 23. Then we used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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 Best Gold Royalty and Small-Cap Gold Stocks to Buy
10. Metalla Royalty & Streaming Ltd. (NYSEAMERICAN:MTA)
Number of Hedge Fund Investors: 8
Market Capitalization as of December 23: $236.02 Million
Metalla Royalty & Streaming Ltd. (NYSEAMERICAN:MTA) is a leading precious metals royalty and streaming company, headquartered in Vancouver, Canada. The company’s primary focus is on acquiring and managing a diversified portfolio of royalties and streams, predominantly in gold and silver.
Metalla Royalty & Streaming Ltd. (NYSEAMERICAN:MTA) is actively expanding its portfolio of royalties and streams to ensure a robust and diversified revenue stream. The company has recently achieved a significant milestone with its first royalty payments from the Tocantinzinho project, where it received 648 Gold Equivalent Ounces (GEOs) at an average realized price of $2,481 per GEO. This success is expected to continue as production scales up to full capacity by the fourth quarter of 2024 and into 2025. Additionally, Metalla Royalty & Streaming Ltd. (NYSEAMERICAN:MTA) is looking forward to the commencement of production at the Endeavor project, which is slated to begin production in the first half of 2025.
Metalla Royalty & Streaming Ltd. (NYSEAMERICAN:MTA) holds a 2.5% GVR royalty on the northern and southern extensions of the Fosterville mining license, where Agnico Eagle continues to focus on productivity gains and cost control. Additionally, the company holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine, where Equinox Gold Corp. is making significant progress in the permitting process. These projects are expected to generate significant and sustainable cash flow while maintaining a low operational risk profile, positioning the company to capitalize on the growth and development of the mining industry.
9. Centerra Gold Inc. (NYSE:CGAU)
Number of Hedge Fund Investors: 16
Market Capitalization as of December 23: $1.20 Billion
Centerra Gold Inc. (NYSE:CGAU) is a Canadian-based gold mining company with operations in North America and Asia. The company’s major assets include the Mount Milligan Mine in Canada and the Öksüt Mine in Turkey. Centerra Gold Inc. (NYSE:CGAU) also owns the Goldfield District Project in Nevada and the Kemess Project in British Columbia.
Centerra Gold Inc. (NYSE:CGAU) is focusing on enhancing the performance of its existing mines, particularly at Mount Milligan in British Columbia and Öksüt in Turkey. At Mount Milligan, the company has implemented a site-wide optimization program that includes continuous improvements in safety, productivity, and cost efficiency. This program has already shown positive results, with a 12% reduction in milling costs in the first nine months of 2024 compared to the same period last year. The company is also working on a preliminary economic assessment (PEA) for Mount Milligan, which aims to extend the mine’s life and identify value-added initiatives. The PEA is expected to be completed by the end of the first half of 2025.
Centerra Gold Inc. (NYSE:CGAU) is actively exploring new growth opportunities to expand its gold portfolio. The company is progressing with the Goldfield project in Nevada, where an initial resource estimate is expected to be released in early 2025. Additionally, the company is evaluating alternative technical concepts for the Kemess project in British Columbia, aiming to identify a viable path for future gold and copper production. These initiatives are part of the company’s broader strategy to diversify its asset base and ensure sustainable long-term growth.
8. Orla Mining Ltd. (NYSEAMERICAN:ORLA)
Number of Hedge Fund Investors: 16
Market Capitalization as of December 23: $1.79 Billion
Orla Mining Ltd. (NYSEAMERICAN:ORLA) is an intermediate gold mining company that operates the Camino Rojo oxide gold project in Mexico. The company is also developing the South Railroad and open-pit, heap leach gold project in the United States.
Orla Mining Ltd. (NYSEAMERICAN:ORLA) is actively expanding its footprint through strategic acquisition, exploration, and development projects. On November 18, the company announced the acquisition of the Musselwhite Gold Mine in Ontario from Newmont Corporation. The transaction valued at $810 million is set to more than double the company’s annual gold production to over 300,000 ounces and is expected to generate more than $150 million in average annual free cash flow over the next six years. The company intends to aggressively explore the 65,000-hectare concession, including following up on historical drilling that suggests 2 to 3 kilometers of mineralized strike potential beyond the current reserves.
Following the acquisition of Musselwhite Gold Mine, Scotiabank upgraded Orla Mining Ltd. (NYSEAMERICAN:ORLA) to Outperform. Scotiabank analyst Ovais Habib said that the acquisition diversifies the company into a tier 1 jurisdiction, more than doubling annual production without diluting existing shareholders.
Orla Mining Ltd. (NYSEAMERICAN:ORLA) is also making progress on the South Railroad project in Nevada, which encompasses the South Railroad and Pony Creek properties. The company is progressing requirements by the Bureau of Land Management (BLM) before issuing the Notice of Intent and plans to complete all supplemental environmental reports required by the BLM by the end of 2024. The Notice of Intent is anticipated to be published in early 2025, with the targeted Record of Decision, which is the final permitting decision, expected by mid-2026. Following this approval, construction on the South Railroad project is set to begin, with the first gold production anticipated in 2027.
7. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Investors: 17
Market Capitalization as of December 23: $1.40 Billion
SSR Mining Inc. (NASDAQ:SSRM) is a leading precious metals mining company with a diverse portfolio of gold and silver assets across North and South America. The company operates the Marigold Mine in Nevada, and the Seabee Mine in Canada. The company also has a significant stake in the Hod Maden project and Çöpler Gold Mine in Turkey.
SSR Mining Inc. (NASDAQ:SSRM) is focusing on the development of the Hod Maden project in Turkey. The project is progressing well, with site establishment and engineering activities underway. The company expects to provide an update on the anticipated 2025 capital spend for the project with its normal guidance update early next year. Hod Maden is expected to be a high-quality asset that will contribute significantly to the company’s portfolio.
SSR Mining Inc. (NASDAQ:SSRM) is also advancing brownfield exploration programs at Marigold and Seabee, to identify and delineate new mineralization opportunities. At Marigold, the company is advancing on the Buffalo Valley to replace mine depletion and potentially further expand the mine’s operating life. Whereas at Seabee, despite the temporary suspension due to forest fires, the company is focusing on evaluating and drilling near-mine extensions and advancing the Porky and Porky West targets, as they are both gold exploration areas located near the Seabee gold mine, can be mined in an open pit and represent potential mine life extension opportunities.
6. Triple Flag Precious Metals Corp. (NYSE:TFPM)
Number of Hedge Fund Investors: 18
Market Capitalization as of December 23: $3.06 Billion
Triple Flag Precious Metals Corp. (NYSE:TFPM) is a leading precious metals royalty and streaming company headquartered in Toronto, Canada. The company has interests in a diversified portfolio of high-quality assets, with a strong focus on gold in Australia, West Africa, and Mexico, along with other metals such as silver, nickel, copper, zinc, and lead.
Triple Flag Precious Metals Corp.’s (NYSE:TFPM) growth strategy is bolstered by its strategic acquisition of Maverix, which added royalties on Camino Rojo, Koné, and Beta Hunt to its portfolio. These assets have demonstrated significant potential, with Orla Mining increasing its production guidance for Camino Rojo and Montage Gold fully permitting and financing the Koné project. Furthermore, the recent exploration success at the Fletcher Zone of Beta Hunt, which is operated by Westgold Resources, can nearly double the current resource base and will allow Triple Flag Precious Metals Corp. (NYSE:TFPM) to benefit from the exploration and development activities of its partners without incurring additional costs.
Triple Flag Precious Metals Corp. (NYSE:TFPM) owns a large portfolio in Latin America. However, the company is aiming to maintain a balanced portfolio outside Latin America and is looking for projects in Australia, a jurisdiction known for its stable regulatory environment and mature mining industry. This geographic diversification aims to mitigate geopolitical risks and ensures a steady stream of revenue from multiple sources.
5. Osisko Gold Royalties Ltd (NYSE:OR)
Number of Hedge Fund Investors: 17
Market Capitalization as of December 23: $3.41 Billion
Osisko Gold Royalties Ltd (NYSE:OR) is a leading gold royalty and streaming company with a diversified portfolio of high-quality assets. The company’s portfolio includes a mix of producing and development-stage assets, primarily Canada, the United States, and Australia.
Osisko Gold Royalties Ltd (NYSE:OR) is actively pursuing strategic acquisitions to expand its portfolio and enhance its revenue streams. One notable recent acquisition is the 1.8% gross revenue royalty on Spartan Resources’ Dalgaranga Gold Project in Western Australia. This acquisition also aligns with the company’s aim to generate near-term cash flow.
The Dalgaranga Gold Project has a mineral resource estimate of 1.9 million ounces at 8.7 grams per tonne, with significant exploration potential. Osisko Gold Royalties Ltd (NYSE:OR) expects a maiden reserve estimate and project feasibility study, to be completed and released in Q2 2025, which will potentially lead to the start of mining and milling operations by late 2026. This acquisition is expected to contribute over 2,500 gold Equivalent Ounces (GEOs) annually over the life of the mine.
Furthermore, the East Gouldie deposit, where Osisko Gold Royalties Ltd (NYSE:OR) holds a 5% Net Smelter Return (NSR) royalty, highlighted the potential for additional mineral reserves and extended mine life. The company expects to benefit from its increased production in the coming years.
4. Fortuna Mining Corp. (NYSE:FSM)
Number of Hedge Fund Investors: 18
Market Capitalization as of December 23: $1.35 Billion
Fortuna Mining Corp. (NYSE:FSM) is a prominent international gold mining company with a diverse portfolio of high-quality assets across multiple regions. The company operates mines in West Africa and Argentina, alongside exploration projects in Senegal.
Fortuna Mining Corp. (NYSE:FSM) is making significant investments in capital projects to enhance the long-term value of its operations. One major initiative is the leach pad expansion at the Lindero mine in Argentina, with a budget of $42 million. Scheduled for completion by early 2025, this project is expected to substantially increase the mine’s capacity and extend its operational life by an additional decade. The company is also accelerating underground development at the Yaramoko mine in Burkina Faso, allocating an extra $11 million to integrate new mineralized zones into the 2025 mine plan.
In addition, Fortuna Mining Corp. (NYSE:FSM) is pursuing high-value opportunities at the Seguela mine in Côte d’Ivoire, the Diamba Sud Project in Senegal, and the Lindero mine in Argentina. These exploration efforts are vital for expanding the company’s resource base and uncovering new mining prospects. By consistently exploring and developing new deposits, Fortuna Mining Corp. (NYSE:FSM) aims to grow its gold reserves and enhance its production capacity.
3. Sandstorm Gold Ltd. (NYSE:SAND)
Number of Hedge Fund Investors: 18
Market Capitalization as of December 23: $1.60 Billion
Sandstorm Gold Ltd. (NYSE:SAND) is a Canadian gold royalty and streaming company headquartered in Vancouver. The company focuses on acquiring royalties and metal purchase agreements from advanced-stage mining companies worldwide. Through its business model, Sandstorm Gold Ltd. (NYSE:SAND) provides upfront payments to mining companies in exchange for a percentage of their future production or revenue. As of September 2024, the company holds a diverse portfolio of 243 royalties and streams, including 41 producing mines.
Sandstorm Gold Ltd. (NYSE:SAND) places a strong emphasis on key development assets such as the Greenstone Gold Mine, Platreef, Hod Maden, and the Robertson Deposit at the Cortez Complex. Operated by Equinox, the Greenstone Gold Mine has an average throughput of 20,000 tons per day, which represents 76% of its designed capacity. As Greenstone continues to ramp up production, it is anticipated to significantly enhance Sandstorm Gold Ltd.’s (NYSE:SAND) gold equivalent production. Similarly, Platreef, a project under development by Ivanhoe Mines, is set to become one of the world’s largest and lowest-cost producers of platinum group metals (PGMs) and gold. Once Phase 2 of Platreef becomes operational, it is expected to contribute approximately 10,000 ounces of gold annually to Sandstorm Gold Ltd. (NYSE:SAND), with the potential to increase to 15,000–20,000 ounces annually during Phase 3.
Sandstorm Gold Ltd. (NYSE:SAND) maintains a disciplined approach to capital allocation, prioritizing debt repayment and selective share repurchases. During Q3, the company repaid $9 million in debt, with this momentum increasing in Q4 as an additional $10 million was repaid in the first five weeks. As of November 8, the company’s debt has been reduced to $369 million, with further reductions expected. By lowering its debt levels, Sandstorm Gold Ltd. (NYSE:SAND) aims to strengthen its balance sheet and enhance its financial flexibility.
2. New Gold Inc. (NYSEAMERICAN:NGD)
Number of Hedge Fund Investors: 23
Market Capitalization as of December 23: $1.98 Billion
New Gold Inc. (NYSEAMERICAN:NGD) is a prominent intermediate gold mining company with a diversified portfolio of high-quality assets across North America. The company operates two flagship mines: Rainy River in Ontario, Canada, and New Afton in British Columbia, Canada.
New Gold Inc. (NYSEAMERICAN:NGD) prioritizes exploration to generate additional value and extend the operational life of its mines. At Rainy River, the company has identified promising opportunities in the main pit and several smaller satellite pits. These prospects could further extend the open-pit mine’s life while minimizing capital expenditures. At New Afton mine, New Gold Inc. (NYSEAMERICAN:NGD) is focusing on optimizing the C-Zone, the fourth block cave at the mine, and advancing the technical study for the East Extension, which has the potential to introduce a high-grade zone in the mine’s eastern section.
New Gold Inc. (NYSEAMERICAN:NGD) is also advancing several critical projects aimed at boosting production capacity and improving cost efficiency. At the C-Zone, the company has successfully commissioned the gyratory crusher and conveyor system, eliminating the need for truck haulage. At the Rainy River Mine, efforts are concentrated on developing the Underground Main Zone, the second and much larger sector of the mine compared to Intrepid. The Underground Main Zone is slated to begin production in the first half of 2025 and is expected to ramp up to processing 5,500 tonnes of gold ore per day by 2027.
1. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Investors: 30
Market Capitalization as of December 23: $8.79 Billion
Royal Gold, Inc. (NASDAQ:RGLD) is a prominent precious metals royalty and streaming company with a diverse portfolio of high-quality assets spanning North America, South America, and other key mining regions. Founded in 1981, the company is headquartered in Denver, Colorado.
Royal Gold, Inc. (NASDAQ:RGLD) continues to actively seek new opportunities to expand its portfolio. The favorable gold price environment has highlighted several attractive projects, and the company is well-positioned to seize these opportunities thanks to its strong balance sheet and liquidity. As of September 30, Royal Gold is debt-free and has access to a $1 billion revolving credit facility, along with approximately $160 million in working capital, totaling around $1.16 billion in available liquidity. This financial strength enables the company to remain highly competitive in securing new royalty and streaming agreements, especially in stable jurisdictions and with reputable partners.
Royal Gold, Inc. (NASDAQ:RGLD) is also dedicated to executing key strategies aimed at driving sustained growth and value creation. A significant focus is on the organic growth of its existing portfolio. The company collaborates closely with operators such as Newmont at Penasquito and Kinross at Great Bear to enhance production efficiency and extend mine life. These efforts are expected to make meaningful contributions to the company’s revenue and cash flow in the years ahead.
While we acknowledge the potential of Royal Gold, Inc. (NASDAQ:RGLD) to grow, our conviction lies in the belief that 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 RGLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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