As Gold Stocks Soar, Here Are The 5 That Hedge Funds Like The Most

#2 Newmont Mining Corp (NYSE:NEM)

– Hedge Funds with Long Positions (as of December 31): 36

– Value of Hedge Funds’ Holdings (as of December 31): $531.85 Million

There were 36 smart money investors with stakes in Newmont Mining Corp (NYSE:NEM) at the end of Decembe, compared with 37 registered at the end of the prior quarter. The value of these investment firms’ holdings dropped to by about 1% from $536.12 million quarter-over-quarter. The gold producer has operations and assets in the United States, Australia, Peru, Indonesia, Ghana, and Suriname. The company also produces copper through the Batu Hijau mine in Indonesia, Boddington in Australia, and Phoenix in the United States. By taking a glimpse at the company’s balance sheet, one can quickly conclude that Newmont Mining has a very healthy financial outlook. The gold producer had cash and cash equivalents amounting to $2.78 billion at the end of December and $6.24 billion in debt, after the company used some of its cash to repay $454 million in debt during 2015. Moreover, the company maintains an unused $3.00 billion corporate revolving credit facility that matures in March 2020. What’s more, Newmont Mining’s net cash provided by continuing operating activities amounted to $2.16 billion in 2015, while capital expenditures reached $1.40 billion. Therefore, the company could keep generating enough cash to further strengthen its balance sheet, make aggressive capital investments, pay dividends, and make new acquisitions. Shares of Newmont have climbed by a whopping 45% since the start of the year. Ken Griffin’s Citadel Advisors LLC trimmed its stake in Newmont Mining Corp (NYSE:NEM) by 42% during the October-to-December period, ending the year with 2.08 million shares.

#1 Barrick Gold Corporation (USA) (NYSE:ABX)

– Hedge Funds with Long Positions (as of December 31): 40

– Value of Hedge Funds’ Holdings (as of December 31): $1.16 Billion

Barrick Gold Corporation (USA) (NYSE:ABX) represents the favorite gold mining stock among the hedge funds tracked by Insider Monkey. Although the hedge fund sentiment towards the stock remained steady in the December quarter, the value of hedge funds’ long positions in Barrick Gold grew to $1.16 billion from $937.59 million quarter-over-quarter. It should also be noted that the 40 funds invested in Barrick at the end of December amassed 13.40% of the company’s outstanding common stock. The world’s largest gold producer recorded positive free cash flow for the first time in four years in 2015 despite facing lower gold prices, generating FCF of $471 million. The company also significantly strengthened its balance sheet in 2015, after reducing its total debt by $3.1 billion or 24%. The company also set a debt reduction target of at least $2 billion for 2016. Barrick Gold Corporation produced 6.12 million ounces of gold in 2015 at all-in sustaining costs of $831 per ounce. The company’s management anticipates producing between 5.0 and 5.5 million ounces of gold in 2016 at all-in sustaining costs in the range of $775 to $825 per ounce. More importantly, Barrick aims to reach all-in sustaining costs of below $700 per ounce by the end of 2019. Let’s not forget to mention that Barrick’s stock has enjoyed an 85% rally since the beginning of 2016. William B. Gray’s Orbis Investment Management owns 19.80 million shares of Barrick Gold Corporation (USA) (NYSE:ABX) as of December 31.

Disclosure: None