In this article, we discuss the 5 mining stocks to buy now according to David Iben’s Kopernik Global Investors. If you want to read our detailed analysis of Iben’s history, investment philosophy, and hedge fund performance, go directly to 11 Mining Stocks to Buy Now According to David Iben’s Kopernik Global Investors.
5. Harmony Gold Mining Company Limited (NYSE:HMY)
Kopernik Global Investors Stake Value: $22,863,000
Percentage of Kopernik Global Investors’ 13F Portfolio: 2.56%
Number of Hedge Fund Holders: 5
Harmony Gold Mining Company Limited (NYSE:HMY) is South Africa’s first and largest gold mining corporation, based in Papua New Guinea and South Africa. Cliff Asness’ AQR Capital Management is the most significant shareholder of Harmony Gold Mining Company Limited (NYSE:HMY) as of Q3 2021, with 18.28 million worth $57.57 million.
In November, Harmony Gold Mining Company Limited (NYSE:HMY) reported a 32% year-over-year and 7% quarter-over-quarter rise in gold output, as well as a 23% year-over-year reduction in net debt for the first quarter of 2022. Harmony Gold Mining Company Limited (NYSE:HMY) produced 606,000 ounces of gold in the quarter, up from 563,000 ounces the year before, despite sales falling slightly to $1.77 billion from $1.82 billion.
By the end of the third quarter of 2021, 5 hedge funds out of the 867 funds tracked by Insider Monkey held stakes in Harmony Gold Mining Company Limited (NYSE:HMY), worth roughly $82.30 million. This is compared to 11 hedge funds in the previous quarter, with a total stake value of approximately $102.39 million.
4. NovaGold Resources Inc. (NYSE:NG)
Kopernik Global Investors Stake Value: $32,753,000
Percentage of Kopernik Global Investors’ 13F Portfolio: 3.67%
Number of Hedge Fund Holders: 16
NovaGold Resources Inc. (NYSE:NG) is a company that buys, explores, and develops metal resources, especially in Alaska and British Columbia. Barrick Gold Corporation (NYSE:GOLD) and NovaGold Resources (NYSE:NG) announced earlier this month that recent work on their 50-50 Donlin gold project in Alaska enhanced the definition of mineralization controls and that the project is nearing a new feasibility study.
David Iben first bought 1.62 million shares of NovaGold Resources Inc. (NYSE:NG) way back in 2013. He increased his stake in the firm by 4% in the third quarter of 2021, and his position in NovaGold Resources Inc. (NYSE:NG) is worth about $32.75 million, representing 3.67% of his total Q3 securities.
Our hedge fund data shows that 16 hedge funds were bullish on NovaGold Resources Inc. (NYSE:NG) in the third quarter of 2021. Their total stake value was $247.87 million.
3. Seabridge Gold Inc. (NYSE:SA)
Kopernik Global Investors Stake Value: $35,712,000
Percentage of Kopernik Global Investors’ 13F Portfolio: 4%
Number of Hedge Fund Holders: 10
Seabridge Gold Inc. (NYSE:SA) is a Canadian company that develops the Kerr Sulphurets Mitchell mine in northwest British Columbia, which primarily supplies gold, copper, and silver. David Iben is one of Seabridge Gold Inc. (NYSE:SA)’s largest investors as of the third quarter of 2021. He strengthened his position in Seabridge Gold Inc. (NYSE:SA) by buying 221,893 additional shares in Q3. This makes his stake in Seabridge Gold Inc. (NYSE:SA) amount to 2.31 million shares, worth $35.71 million.
Seabridge Gold Inc. (NYSE:SA)’s posted a loss per share of $0.01 in the third quarter of 2021, beating the estimates by $0.03. On September 30, 2021, the company’s working capital position was C$41.6 million, up from C$36.0 million on December 31, 2020.
Out of the 867 hedge funds tracked by Insider Monkey, 10 hedge funds held stakes in Seabridge Gold Inc. (NYSE:SA) in the third quarter of 2021, worth $105.76 million. 11 hedge funds were bullish on the stock, with stakes worth $120.77 million in the previous quarter.
2. Turquoise Hill Resources Ltd. (NYSE:TRQ)
Kopernik Global Investors Stake Value: $169,816,000
Percentage of Kopernik Global Investors’ 13F Portfolio: 19.05%
Number of Hedge Fund Holders: 10
Turquoise Hill Resources Ltd. (NYSE:TRQ) is a mineral property exploration and development company. Rio Tinto Group (NYSE:RIO) and Turquoise Hill Resources Ltd. (NYSE:TRQ) formed a joint venture with the Mongolian government to run the Oyu Tolgoi copper and gold mine on December 13.
BMO Capital analyst Jackie Przybylowski lowered the rating on Turquoise Hill Resources Ltd. (NYSE:TRQ) from “Market Perform” to “Underperform” in November, with a price target of $12, down from $14. Przybylowski informed investors that their faith in the time-frame and budget is shaky, and it is based on hazy data provided by Turquoise Hill Resources Ltd. (NYSE:TRQ).
In the third quarter, Kopernik Global Investors bought 1.45 million shares of Turquoise Hill Resources Ltd. (NYSE:TRQ), increasing its stake by about 15%. At of the end of the third quarter, the hedge fund held more than 11.51 million shares of Turquoise Hill Resources Ltd. (NYSE:TRQ), worth about $169.82 million.
Pentwater Capital Management, a Florida-based investment firm holding 18.72 million shares valued at more than $276.28 million, is a major shareholder in Turquoise Hill Resources Ltd. (NYSE:TRQ) as of Q3 2021.
In its fourth-quarter 2020 Investor Letter, Massif Capital mentioned Turquoise Hill Resources Ltd. (NYSE:TRQ). Here is what the fund said:
“Turquoise Hill remains a challenging company to evaluate and a problematic company to manage within our portfolio. The company holds rights to a world-class asset, but one with very different characteristics than Ivanhoe’s Kamoa Kakula. Kamoa is a flat, low depth, high-grade block of copper ore that is relatively easy to mine. Turquoise Hill’s OT mine is a deep underground mine with good grades and high tonnage, but it is very challenging to monetize. The planned extraction method, block cave mining, is still a relatively new approach to mining an asset in the grand scheme of things. The scale of the OT mine exacerbates the challenge. Management challenges compound technical risks. Rio-Tinto (the mine operator and developer via a 51% stake in Turquoise Hill) and Turquoise Hill seem to always be at odds with each other, and both parties seem to always be at odds with the Mongolian Government.
Although we have spent significant time underwriting the technical, managerial, and political risks associated with the investment, we are continuously surprised by how frequently issues occur for this company. With that in mind, we constructed a collar on the position during the fourth quarter, selling call options for January 2022 at a $20 strike and using the proceeds to buy January 2022 puts on the position at a $7 strike. This will allow us to confidently hold the position in the near term, knowing we have locked in a gain of at least 50% from our purchase price while still allowing for significant potential price appreciation from the current $12 price.”
1. Cameco Corporation (NYSE:CCJ)
Kopernik Global Investors Stake Value: $194,863,000
Percentage of Kopernik Global Investors’ 13F Portfolio: 21.87%
Number of Hedge Fund Holders: 35
Cameco Corporation (NYSE:CCJ) is a uranium producer and seller. Uranium and Fuel Services are the two segments in which it works. The Uranium section is responsible for uranium concentrate exploration, mining, milling, procuring, and selling uranium concentrates. In the fourth quarter of 2013, Kopernik Global Investors began building its position in Cameco Corporation (NYSE:CCJ), and by the third quarter of 2021, the hedge fund had over 8.97 million shares in the firm, valued at $194.86 million.
In November, BofA analyst Lawson Winder upgraded Cameco Corporation (NYSE:CCJ) to “Buy” from “Neutral” with a price target of C$40, up from C$36.25. In addition, Cameco Corporation (NYSE:CCJ) issued an annual dividend of $0.08 per share at the end of November, in line with the previous.
35 hedge funds in our database held stakes in Wheaton Cameco Corporation (NYSE:CCJ) at the end of the third quarter, compared to 25 funds in the second quarter.
You can also take a peek at 10 Best Silver Mining Stocks to Invest In and 10 Best Junior Gold Mining Stocks To Buy
