In this article, we discuss 5 best gold mining stocks to buy now. If you want to see more stocks in this selection, click 12 Best Gold Mining Stocks to Buy Now.
5. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Holders: 25
Royal Gold, Inc. (NASDAQ:RGLD) features on our list of the best gold mining stocks. It is a Colorado-based precious metals company that focuses on acquiring stream and royalty interests in gold, silver, copper, nickel, zinc, lead, and cobalt properties. On August 24, Royal Gold, Inc. (NASDAQ:RGLD) declared a quarterly dividend of $0.35 per share, in line with previous. The dividend is distributable on October 21, to shareholders of record on October 7.
Raymond James analyst Brian MacArthur on August 5 maintained an Outperform rating on Royal Gold, Inc. (NASDAQ:RGLD) but lowered the price target on the shares to C$142 from C$144.
Among the hedge funds tracked by Insider Monkey, Royal Gold, Inc. (NASDAQ:RGLD) was part of 25 public stock portfolios at the end of Q2 2022, up from 20 in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest position holder in the company, with 3.2 million shares worth nearly $345 million.
Here is what Argosy Investors said about Royal Gold, Inc. (NASDAQ:RGLD) in its Q1 2021 investor letter:
“Gold royalties business achieve 2 objectives for us: 1) It’s a good business model with strong returns through the gold price cycle; and 2) it provides some protection from inflation, should it materialize due to the increasingly loose fiscal and monetary policy decisions the United States (and other developed market economies) is making.
I don’t want to stay on my soapbox for too long, but this is the first time in history that I’m aware of politicians openly stating that debt levels don’t matter, even in the long term. In 2019, the government spent $4.4 trillion. Of those expenditures, $0.4 trillion was spent making interest payments on existing debt at the time of $16.9 trillion. The interest rate on that debt was 2.4%. Debt for 2021 is projected to increase to $22.5 trillion, and then to $33 trillion by the end of the decade.
I don’t have a crystal ball, but if interest rates increased to previously “normal” levels of only 5%, U.S. interest payments would be over $1.1 billion in 2021, 25% of U.S. total expenditures in 2019. In the event that happens, there are a few choices: 1) run a larger deficit which could lead to accelerating debt levels; 2) reduce government spending on things like the military, Medicare, Social Security, pensions, and other programs; or 3) the government allows or encourages inflation to reduce the value of its debt obligations.
To be clear, this spiraling debt outcome currently seems and likely is not happening within the next several years, but the probability of it occurring is not zero and things have changed rapidly before. For that reason, I think an investment in Royal Gold provides some minor insulation against inflation.”
4. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 25
Franco-Nevada Corporation (NYSE:FNV) is a Toronto-based company that focuses on gold royalties and streaming in Latin America, the United States, Canada, and internationally. Franco-Nevada Corporation (NYSE:FNV) operates through two segments, Mining and Energy. On September 13, the company declared a $0.32 per share quarterly dividend, which was distributed to shareholders on September 29. Franco-Nevada Corporation (NYSE:FNV) is one of the best gold mining stocks to consider.
Goldman Sachs analyst Emily Chieng on September 12 initiated coverage of Franco-Nevada Corporation (NYSE:FNV) with a Neutral rating and a C$177 price target. The company’s diverse asset portfolio “holds growth optionality” across gold, silver, oil and gas, and other commodities, the analyst told investors in a research note. However, its “modest” gold growth profile of 1% results in a moderating revenue outlook, added Chieng.
According to Insider Monkey’s Q2 data, 25 hedge funds were bullish on Franco-Nevada Corporation (NYSE:FNV), compared to 29 funds in the last quarter. Jim Simons’ Renaissance Technologies is the leading stakeholder of the company, with 4.3 million shares worth $567 million.
3. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. (NYSE:WPM) was founded in 2004 and is headquartered in Vancouver, Canada. It is a streaming company, primarily selling precious metals like gold, silver, palladium, and cobalt in Canada and internationally.
Goldman Sachs analyst Emily Chieng on September 12 initiated coverage of Wheaton Precious Metals Corp. (NYSE:WPM) with a Buy rating and a C$53 price target. The company’s latest stream acquisitions will generate stronger free cash flow, resulting in potentially higher capital returns, as per the analyst. The analyst said Wheaton Precious Metals Corp. (NYSE:WPM) provides the greatest exposure to precious metals among streaming peers, which merits its inclusion in our list of the best gold mining stocks to buy now.
According to Insider Monkey’s data, 27 hedge funds held stakes worth about $631 million in Wheaton Precious Metals Corp. (NYSE:WPM) at the end of June 2022, compared to 28 funds in the prior quarter worth nearly $722 million. Jean-Marie Eveillard’s First Eagle Investment Management is the leading position holder in the company, with 17 million shares valued at $613.65 million.
In its Q2 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Wheaton Precious Metals Corp. (NYSE:WPM) was one of them. Here is what the fund said:
“The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.”
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 31
Agnico Eagle Mines Limited (NYSE:AEM) is a Toronto-based company that engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. The company explores for and commercializes gold, silver, zinc, and copper deposits. Agnico Eagle Mines Limited (NYSE:AEM) is one of the best gold mining stocks to buy, especially for income investors, as the company delivers a dividend yield of 3.78% as of October 10.
On September 30, Citi analyst Alexander Hacking upgraded Agnico Eagle Mines Limited (NYSE:AEM) to Buy from Neutral with a $50 price target.
According to Insider Monkey’s data, 31 hedge funds were bullish on Agnico Eagle Mines Limited (NYSE:AEM) at the end of the second quarter of 2022, compared to 38 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 17.4 million shares worth $798.45 million.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 56
Newmont Corporation (NYSE:NEM) is one of the best gold mining stocks to buy according to elite hedge funds. It is a Colorado-based company engaged in the production and exploration of gold, copper, silver, zinc, and lead. The company has operations and assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.
On September 30, Citi analyst Alexander Hacking updated gold models ahead of the Q3 results to reflect updated price forecasts from Citi’s commodity team. Gold stocks have been impacted significantly by the selloff, creating a buying opportunity for investors to accumulate, the analyst told investors. He said Citi is mid-term bullish on gold, seeing prices recovering to $1,900 per ounce in the second half of 2023. He maintained a Buy rating on Newmont Corporation (NYSE:NEM).
Among the hedge funds tracked by Insider Monkey, 56 funds reported owning stakes in Newmont Corporation (NYSE:NEM) at the end of Q2 2022, compared to 53 funds in the last quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with approximately 35 million shares worth over $2 billion.
Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:
“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.
It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”
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