In this article, we will take a look at the 5 most undervalued gold stocks to buy according to hedge funds. To see more such companies, go directly to 11 Most Undervalued Gold Stocks To Buy According To Hedge Funds.
5. Sandstorm Gold Ltd. (NYSE:SAND)
Number of Hedge Fund Holders: 16
P/E ratio: 14.55
Canadian gold company Sandstorm Gold Ltd. (NYSE:SAND) is one of the most undervalued gold stocks to buy according to hedge funds. Recently Sandstorm Gold Ltd. (NYSE:SAND) posted its fourth quarter results. Net loss in the quarter totaled $2.1 million. Revenue in the period increased by about 29% on a YoY basis to reach $38.4 million, beating estimates by $0.46 million.
Sandstorm Gold Ltd. (NYSE:SAND) said that based on its existing royalties, attributable gold equivalent ounces for 2023 are expected to be between 85,000 and 100,000 ounces. Sandstorm Gold Ltd. (NYSE:SAND) expects its attributable gold equivalent production to be approximately 140,000 ounces in 2025.
As of the end of the fourth quarter of 2022, 16 hedge funds tracked by Insider Monkey had stakes in Sandstorm Gold Ltd. (NYSE:SAND). The total value of these stakes was about $109 million.
4. AngloGold Ashanti Limited (NYSE:AU)
Number of Hedge Fund Holders: 16
P/E ratio: 13.76
Another gold mining company headquartered in South Africa, AngloGold Ashanti Limited (NYSE:AU) ranks 4th in our list of the most undervalued gold stock to buy according to hedge funds. At the end of the fourth quarter of 2022, 16 hedge funds in Insider Monkey’s database of elite hedge funds had reported owning stakes in AngloGold Ashanti Limited (NYSE:AU), up from 13 hedge funds in the previous quarter. The biggest stakeholder of AngloGold Ashanti Limited (NYSE:AU) was John Paulson’s Paulson & Co which had a stake worth over $74 million in the company.
Recently, AngloGold Ashanti Limited (NYSE:AU) posted a decline in FY 2022 pretax profit. Revenue in the period however jumped 12% to reach $4.39 billion from $3.9 billion posted for the previous year.
Gold production in FY 2022 jumped 11% on a YoY basis to reach 2.74 million oz from 2.47 million oz in 2021.
3. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Holders: 17
P/E ratio: 9.29
Headquartered in South Africa, Gold Fields Limited (NYSE:GFI) is one of the biggest gold mining companies in the world. Recently, Gold Fields Limited (NYSE:GFI) posted its FY 2022 results. Adjusted EPS in the year came in at $1.19, beating estimates by $0.21. Revenue in the quarter jumped about 2.1% on a YoY basis to reach $4.29 billion, beating estimates by $250 million.
For 2023, Gold Fields Limited (NYSE:GFI) expects attributable gold equivalent production (excluding Asanko) to total between 2.25Moz – 2.30Moz.
As of the end of the fourth quarter of 2022, 17 out of the 943 elite hedge funds tracked by Insider Monkey had reported owning shares of Gold Fields Limited (NYSE:GFI). The net worth of these hedge fund stakes was about $385 million. The biggest stakeholder of Gold Fields Limited (NYSE:GFI) during this period was William B. Gray’s Orbis Investment Management which had a $148.5 million stake in the company.
2. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 17
P/E ratio: 5.46
Sibanye Stillwater Limited (NYSE:SBSW) has lost significant value over the past few months but some analysts believe the stock is offering an attractive entry point for investors as they are hopeful about the company’s promising projects such as the Keliber lithium project.
Recently, Sibanye Stillwater Limited (NYSE:SBSW) said it recorded a maiden lithium mineral reserve of 193,600 metric tons of lithium carbonate equivalent at the end of 2022.
As of the end of the last quarter of 2022, 17 hedge funds tracked by Insider Monkey had stakes in Sibanye Stillwater Limited (NYSE:SBSW). The net worth of these stakes at the end of the quarter was over $167 million. The biggest stakeholder of Sibanye Stillwater Limited (NYSE:SBSW) among these 17 hedge funds was Ryan Schedler And Bradley Shisler’s Condire Investors with a $40.4 million stake. The second biggest stakeholder of Sibanye Stillwater Limited (NYSE:SBSW) was Cliff Asness’AQR Capital Management which has a $37 million stake in the company.
1. Yamana Gold Inc. (NYSE:AUY)
Number of Hedge Fund Holders: 33
P/E ratio: 19.04
Yamana Gold Inc. (NYSE:AUY) is a Canadian mining company that has gold, silver and copper mining operations. Yamana Gold Inc. (NYSE:AUY) is one of the most undervalued gold names to buy according to hedge funds. Insider Monkey’s proprietary database of 943 hedge funds shows that 33 hedge funds had stakes in Yamana Gold Inc. (NYSE:AUY) as of the end of the fourth quarter of 2022, up from 31 hedge funds in the previous quarter. The biggest stakeholder of Yamana Gold Inc. (NYSE:AUY) during this period was John Overdeck and David Siegel’s Two Sigma Advisors which had a $71 million stake in the firm.
In January, Yamana Gold Inc. (NYSE:AUY) announced that for FY 2022, its gold equivalent production totaled 1.01 million oz, beating guidance of 1 million oz. Yamana Gold Inc. (NYSE:AUY) also said that its all-sustaining costs in the period were expected to come in at $1,125/GEO, more than $932/GEO in the previous year but “generally in line” with its guidance.
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