In this article, we discuss 10 best junior mining gold stocks to buy in 2022. If you want to see more stocks in this selection, check out 5 Best Junior Mining Gold Stocks to Buy in 2022.
A junior mining company refers to a firm exploring for new deposits of gold, silver, copper, uranium, or other precious metals. A junior mining gold company is usually in the development and exploration phase, and is actively searching for new mineral properties with bigger natural deposits. Junior mining gold companies catch the interest of growth investors, since these stocks tend to explode when the firm finds huge deposits and start production. Many junior mining firms are trading as penny stocks, and they usually do not pay dividends, so the excess capital can be reinvested to expand operational capacity.
In the beginning of October, the US dollar finally lost some steam and the U.S. Treasury yields declined, and investors turned towards safe haven assets like gold once again. Currently, gold is trading near record-high levels. As per a World Gold Council report, demand for gold climbed 12% year-over-year in the first half of 2022. Demand for gold in Q1 2022 jumped 34%, which is the greatest quarterly increase in demand in the gold market since 2018.
Given the global demand for gold and limited supply, Goldman Sachs raised its forecast for the price of gold to hit $2,500 an ounce by the end of 2022. The World Gold Council expects gold price per ounce to exceed $3,000 over the next few years. Currently, the price of gold is declining as interest rates go up, because currently higher-yielding assets are more attractive for investors. However, there is minimal historical evidence which suggests that gold is permanently weakened by federal rate hikes in the long-term. A study of the gold market during the 1970s indicated that gold price reached its record-time high price when interest rates were high and swiftly increasing.
Some of the elite players in the gold market include Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM). Investors who would like exposure to gold, and seek exponential growth potential, can look out for junior mining gold stocks.
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Our Methodology
We selected the best junior mining gold stocks based on their current or future gold projects, positive analyst coverage, and potential for higher scalability in the future. These firms are currently trading as penny stocks and their market cap remains under $1 billion, which offers sufficient room for expansion and growth.
We have arranged the list of the best junior mining gold stocks according to the number of hedge fund holders in each firm. The hedge fund sentiment was assessed from Insider Monkey’s database of elite hedge funds, tracked as of the second quarter of 2022.
Best Junior Mining Gold Stocks to Buy in 2022
10. Caledonia Mining Corporation Plc (NYSE:CMCL)
Number of Hedge Fund Holders: 4
Caledonia Mining Corporation Plc (NYSE:CMCL) was incorporated in 1992 and is headquartered in Saint Helier, Jersey. The company primarily engages in the operation of a gold mine and mineral properties for precious metals in Zimbabwe. On October 7, Caledonia Mining Corporation Plc (NYSE:CMCL) disclosed a purchase of 2,235 shares by CFO Chester Goodburn, priced at $9.95 per share. Following this transaction, Goodburn owns 6,335 shares in the company, representing approximately 0.05% of the total issued share capital.
On October 3, Caledonia Mining Corporation Plc (NYSE:CMCL) declared a quarterly dividend of $0.14 per share, in line with previous. The dividend is distributable on October 28, to shareholders of record on October 14. The company delivered a dividend yield of 5.49% as of October 12.
Caledonia Mining Corporation Plc (NYSE:CMCL) on July 21 announced that it has signed an agreement to purchase Bilboes Gold project in Zimbabwe for a total consideration of 5,123,044 Caledonia Mining Corporation Plc (NYSE:CMCL) shares, representing nearly 28.5% of Caledonia’s fully diluted equity, and a 1% net smelter royalty on the project’s revenues. On July 7, Liberum initiated coverage of Caledonia Mining Corporation Plc (NYSE:CMCL) with a Buy rating and a 1,380 GBp price target.
According to Insider Monkey’s data, 4 hedge funds were bullish on Caledonia Mining Corporation Plc (NYSE:CMCL) at the end of Q2 2022, compared to 3 funds in the last quarter. Israel Englander’s Millennium Management is the leading position holder in the company, with 71,314 shares worth $781,000.
Caledonia Mining Corporation Plc (NYSE:CMCL) is one of the best junior mining gold stocks for exposure to the precious metals market, in addition to firms like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM).
9. Dakota Gold Corp. (NYSE:DC)
Number of Hedge Fund Holders: 4
Dakota Gold Corp. (NYSE:DC) is based in Lead, South Dakota, and the company focuses on the acquisition and exploration of mineral properties. It primarily explores for gold deposits, holding controlling interests in the Blind Gold, City Creek, Homestake Paleoplacer, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and South Lead/Whistler Gulch projects in South Dakota. Dakota Gold Corp. (NYSE:DC) remains one of the best junior mining gold stocks of 2022.
On September 12, Canaccord analyst Michael Fairbairn initiated coverage of Dakota Gold Corp. (NYSE:DC) with a Speculative Buy rating and a $5.25 price target. The company operates out of the “prolific” Homestake District in the Black Hills of South Dakota and listed on the NYSE in April after more than 10 years of property consolidation efforts and multiple deals with Barrick, the analyst told investors. He appreciates Dakota Gold Corp. (NYSE:DC) for its “strong leadership and exploration teams, quality jurisdiction with low geopolitical risk, clear focus on ESG, and major exploration potential,” stating that he sees the likelihood of a multi-million ounce, highgrade discovery.
According to Insider Monkey’s database, 4 hedge funds reported owning stakes in Dakota Gold Corp. (NYSE:DC) at the end of June 2022, collectively worth $4.86 million.
8. Galiano Gold Inc. (NYSE:GAU)
Number of Hedge Fund Holders: 4
Next on our list of the best junior mining gold stocks is Galiano Gold Inc. (NYSE:GAU), a Canadian company that specializes in the exploration, development, and production of gold properties. Its core asset is the Asanko Gold Mine, based in Ghana, West Africa. In Q2 2022, Galiano Gold Inc. (NYSE:GAU) reported gold revenue of $84.7 million, generated from 46,236 gold ounces sold at an average price of $1,832 per ounce. The total gold production was 50,010 ounces during the second quarter, and the full-year gold production guidance was revised from 100,000-120,000 ounces to 140,000-160,000 ounces.
On August 15, Berenberg analyst Jonathan Guy upgraded Galiano Gold Inc. (NYSE:GAU) to Buy from Hold with a price target of C$0.80, up from C$0.70. Galiano Gold Inc. (NYSE:GAU) has elevated its production guidance for FY22 and the analyst has now raised his estimate to 148,000 ounces for the year. He argued that the results of ongoing metallurgical testwork at Asanko should be “a key driver for the shares.”
According to Insider Monkey’s data, Peter Franklin Palmedo’s Sun Valley Gold held the biggest stake in Galiano Gold Inc. (NYSE:GAU), comprising 23.7 million shares worth $9.4 million. Overall, 4 hedge funds were long Galiano Gold Inc. (NYSE:GAU) at the end of Q2 2022, compared to 2 funds in the preceding quarter.
7. Paramount Gold Nevada Corp. (NYSE:PZG)
Number of Hedge Fund Holders: 4
Paramount Gold Nevada Corp. (NYSE:PZG) is a Nevada-based company engaged in the acquisition, exploration, and development of precious metal properties in the United States. It features as one of the best junior mining gold stocks to buy in 2022. The company mainly explores for gold and silver ores. On October 6, Paramount Gold Nevada Corp. (NYSE:PZG) filed its S-K 1300 Technical Report Summary on the Feasibility Study for its 100% owned, high-grade gold mine, to be located at Grassy Mountain in Malheur County, Oregon. The project is in the final stages of the review process with both State and Federal regulators. The initial 8-year mine life will produce 362,000 ounces of gold and 425,000 ounces silver.
According to Insider Monkey’s data, 4 hedge funds reported owning stakes worth $96,000 in Paramount Gold Nevada Corp. (NYSE:PZG) at the end of the second quarter of 2022, compared to 3 funds in the prior quarter worth $152,000. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with 89,481 shares valued at $40,000.
6. Vista Gold Corp. (NYSE:VGZ)
Number of Hedge Fund Holders: 4
Vista Gold Corp. (NYSE:VGZ) is headquartered in Littleton, Colorado, focused on the evaluation, acquisition, exploration, and advancement of gold exploration and development projects in Australia. On July 21, H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Vista Gold Corp. (NYSE:VGZ) but lowered the price target on the stock to $2.25 from $3.25.
On September 12, Vista Gold Corp. (NYSE:VGZ) announced an update regarding the company’s process to find a partner to maximize shareholder value from its 100% owned Mt Todd gold project. This process has generated interest from several prospective parties, including high-quality gold producers of varying scale. These groups carried out extensive due diligence on Mt Todd and the technical merits of the Project have stood up to the rigorous scrutiny of potential investors.
According to Insider Monkey’s data, 4 hedge funds were long Vista Gold Corp. (NYSE:VGZ) at the end of Q2 2022, compared to 5 funds in the earlier quarter. David Iben’s Kopernik Global Investors is a notable position holder in the company, with 1.5 million shares worth $994,000.
Like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Wheaton Precious Metals Corp. (NYSE:WPM), Vista Gold Corp. (NYSE:VGZ) is one of the notable players in the gold market.
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Disclosure: None. 10 Best Junior Mining Gold Stocks to Buy in 2022 is originally published on Insider Monkey.