In this article, we discuss the 5 gold stocks to buy amid the Russian attack on Ukraine. If you want to read our detailed analysis of the Russia-Ukraine conflict and how it affects the gold industry, go to 10 Gold Stocks to Buy Amid Russian Attack on Ukraine.
5. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 29
Franco-Nevada Corporation (NYSE:FNV) is next up on our list of gold stocks to buy amid the Russian invasion of Ukraine. The Toronto-based company mainly focuses on gold for its stream and royalty businesses. As of February 25, shares of Franco-Nevada Corporation (NYSE:FNV) rose an impressive 32.29% in the last 12 months, and 13.05% in the last month.
On February 3, Barclays analyst Matthew Murphy upgraded Franco-Nevada Corporation (NYSE:FNV) to ‘Equal Weight’ from ‘Underweight’, and revised the price target to $110 from $107, noting that although he remains neutral on the mining sector in 2022 owing to cost inflation and slowing economic growth momentum, he believes gold companies now represent an ‘attractive hedge against risks of central bank error.’
In late December, analyst Heiko Ihle of H.C. Wainwright initiated Franco-Nevada Corporation (NYSE:FNV) with a ‘Buy’ rating, noting that the company is ‘widely regarded as the most prolific company in the mining royalty space’. He gave the firm a $167 price target. On January 27, Franco-Nevada Corporation (NYSE:FNV) declared a quarterly dividend yield of $0.32 per share, which is an increase of 6.7% from its previous dividend of $0.30 and brings them forward yield to 1.0%. Franco-Nevada Corporation (NYSE:FNV) has consistently grown its annual dividend yield since 2008.
Investors were quick to realize the upward trajectory of Franco-Nevada Corporation (NYSE:FNV) in the fourth quarter, as 29 hedge funds held combined stakes worth $1 billion in the firm. In comparison, 26 hedge funds held $951 million worth of positions in Franco-Nevada Corporation (NYSE:FNV) in the preceding quarter. Of the 29 hedge funds with long positions, Renaissance Technologies of Jim Simons was the top shareholder in the firm in Q4, with 4.1 million shares valued at $570.2 million.
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 31
Kinross Gold Corporation (NYSE:KGC) is a mining company that operates gold properties in the United States, Brazil, Ghana, Mauritania, and Russia. In Q4 2021, the firm posted an EPS of $0.08, which was above consensus estimates by $0.02. Gold production for 2021 stood at 2.1 million GEOs (gold equivalent ounces), and the company increased its gold reserves by 2.7 million ounces in the year.
On February 23, Kinross Gold Corporation (NYSE:KGC) announced that its operations in Russia remain unaffected by sanctions imposed by the US, and the firm will continue its operations in the country given its diversified procurement structure. Kinross Gold Corporation (NYSE:KGC) has a full year of supply of resources on hand in Russia, from where it is expected to produce 13% of its global production output in 2022.
Kinross Gold Corporation (NYSE:KGC) recently announced the acquisition of Great Bear Resources, in a deal worth roughly $1.45 billion. Kinross Gold Corporation (NYSE:KGC) will take over Great Bear Resources’ flagship Dixie project located in the Red Lake mining district in Ontario, Canada. The Dixie site is considered one of the most exciting discoveries of gold deposits in recent years around the globe, and has the potential to become a top-tier deposit that could enhance Kinross Gold Corporation’s (NYSE:KGC) long-term production figures.
On February 23, analyst Carey MacRury of research firm Canaccord maintained a ‘Buy’ rating on Kinross Gold Corporation (NYSE:KGC) shares, whilst lowering the price target to C$10.50 from C$11.50. MacRury noted that the updated guidance reaffirms the company’s growth trajectory, although at higher costs than he initially considered.
Investors were seen loading up on Kinross Gold Corporation (NYSE:KGC) stock at the close of the fourth quarter, with 31 hedge funds bullish on the company, as compared to 27 hedge funds in Q3 2021. Renaissance Technologies of Jim Simons was the top shareholder of Kinross Gold Corporation (NYSE:KGC), holding a stake worth $145 million and comprising of almost 25 million shares.
3. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 45
Newmont Corporation (NYSE:NEM) is a gold-mining company based in Colorado with operations in Canada, Mexico, Peru, Suriname, Australia, Ghana, Argentina, Chile, and the Dominican Republic. The firm also mines for lead, copper, silver, and zinc. With a market cap of $53.2 billion, Newmont Corporation (NYSE:NEM) is the only gold company to be listed in the S&P 500. As of February 25, shares of Newmont Corporation (NYSE:NEM) have gained 20.99% in the last 12 months, and 9.48% year to date.
In February, Newmont Corporation (NYSE:NEM) bought Buenaventura’s (NYSE:BVN) 43.65% interest in Minera Yanacocha, which is South America’s largest gold mine, for a $300 million payment plus contingent payments of up to $100 million. This will bring Newmont Corporation’s (NYSE:NEM) stake in the gold mine up to 95%.
Reporting its fourth quarter earnings on February 24, Newmont Corporation (NYSE:NEM) posted earnings per share of $0.78, above consensus estimates by $0.01. Revenue figure of $3.39 billion was also analysts’ forecasts by $13.58 million. As of February 25, Newmont Corporation (NYSE:NEM) offers a healthy dividend yield of 3.24%.
As of the fourth quarter, 45 out of 924 elite hedge funds tracked by Insider Monkey held stakes worth $1.39 billion in Newmont Corporation (NYSE:NEM). This is in comparison to 48 hedge funds with positions worth $774.45 million in the company in the quarter before.
First Eagle Investment Management was the top shareholder in Newmont Corporation (NYSE:NEM), with 17.43 million shares worth $1.08 billion. The investment firm also mentioned Newmont Corporation (NYSE:NEM) in its Q3 2021 investor letter, stating:
“The largest gold miner in the world, Newmont shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
2. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 46
Barrick Gold Corporation (NYSE:GOLD) is a Canadian mining company that develops and operates gold mining properties in the United States, Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, and Tanzania. It also deals in copper production in many regions around the world. Hedge fund sentiment was positive on Barrick Gold Corporation (NYSE:GOLD) in Q4 2021, with 46 hedge funds holding stakes in the company worth $958.5 million. In contrast, 41 hedge funds were long Barrick Gold Corporation (NYSE:GOLD) at the close of the third quarter.
In January, Barrick Gold Corporation (NYSE:GOLD) announced that it had met its annual targets for the third year in a row, with preliminary production of gold in 2021 coming in at 4.44 million ounces, well within the estimated target range of 4.4-4.7 million ounces. Copper production for 2021 stood at 415 million pounds, also coming in within the forecasted range of 410-460 million pounds.
On February 16, Barrick Gold Corporation (NYSE:GOLD) announced plans for a share repurchase program to buy back $1 billion worth of its outstanding common shares. This repurchase program will be carried out over the next 12 months at prevailing market prices.
Barrick Gold Corporation (NYSE:GOLD) reported earnings per share of $0.35 for the fourth quarter, beating consensus estimates by $0.05. The company raked in $3.31 billion in quarterly revenue, outperforming estimates by $113.09 million. As of February 25, Barrick Gold Corporation (NYSE:GOLD) shares rose 15.99% in the last 12 months and 18.74% year to date.
Ariel Investments, an investment firm, talked about Barrick Gold Corporation (NYSE:GOLD) in its investor letter for Q2 2021. Here’s what the fund said:
“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 66
Freeport-McMoRan Inc. (NYSE:FCX) is a US-based mining giant that explores gold, copper, molybdenum, silver, and other metals, as well as oil and gas. It has operations in the US, Mexico, Chile, Peru, Indonesia, and Iraq. In the fourth quarter, Freeport-McMoRan Inc. (NYSE:FCX) posted an EPS of $0.96, which came in above consensus estimates by $0.02. Quarterly revenue was $6.16 billion, signaling an increase of 37.1% from Q4 2020.
In February, Clarksons Platou analyst Fredrik Stene initiated coverage of Freeport-McMoRan Inc. (NYSE:FCX) with a ‘Buy’ rating and price target of $45. The company saw its gold production volume grow 59% in 2021 as compared to 2020, while copper volumes increased 19% in 2021 as compared to the previous year. Moving forward, Freeport-McMoRan Inc. (NYSE:FCX) expects gold volumes to grow 16% this year, with consolidated gold sales expected at 1.6 million ounces.
In its Q4 conference call, Freeport-McMoRan Inc. (NYSE:FCX) said that electrification holds the key to climate change, and as electric vehicles use up to four times more copper than traditional vehicles, this will usher in a new era of copper demand. The company is bullish on the long-term copper outlook and holds that it has the assets required to sustain its operations over time. As of February 28, Freeport-McMoRan Inc. (NYSE:FCX) saw its share price jump 30.09% in the last 12 months, and 16.93% in the last month, currently trading at $46.95 on the New York Stock Exchange.
In Q4 2021, 66 hedge funds reported bullish bets on Freeport-McMoRan Inc. (NYSE:FCX), with combined stakes worth $3.77 billion. With 48.9 million shares worth more than $2 billion, Fisher Asset Management is the top shareholder of Freeport-McMoRan Inc. (NYSE:FCX) in the fourth quarter.
You can also take a look at 10 Best Magic Formula Stocks To Buy Now and 10 Best Stocks To Buy and Hold For 5 Years.
