In this article we will take a look at the 15 best gold mining stocks to invest in. You can skip our detailed analysis of the mining industry’s outlook for 2021 and some of the major growth catalysts for mining stocks, and go directly to the 5 Best Gold Mining Stocks to Invest In.
Gold has always been seen as one of the most valuable and profitable commodities by long-term investors. The weakening of the dollar and uncertainties regarding traditional stocks result in the escalation of gold prices and in turn, gold stocks. For example, between 1998 and 2008, the gold prices grew manifold, reaching nearly $2,000 per ounce in 2012. Gold investments work as an exceptional hedge against inflation, especially when the national currency is declining.
According to a report by McKinsey & Company, the gold industry has delivered a 33% return to the shareholders in 2020. Despite the rise in prices and solid earnings, the gold mining industry did face the repercussions of the pandemic in 2020, putting over 8 million ounces of gold production in grave peril. However, the gold mining industry is recovering from the after-effects of the pandemic and is expected to rise 5.5% in 2021. According to Mining.com, gold production is projected to grow at a CAGR of 2.9% at over 124.1 million ounces by 2024. The growth rate of mining can certainly accelerate the precious metals and gold prices, resulting in some fruitful investments.
World Gold Council reports that in 2020, China remained the biggest producer of gold, accounting for over 11% of the total global production, followed by Russia and Australia. However, some of the major gold mining companies are headquartered in Canada, including Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM), Alamos Gold Inc. (NYSE: AGI), Franco-Nevada Corporation (NYSE: FNV), etc. These companies, along with some other gold mining giants, are expected to generate over $50 billion in 2021, compared with $38 billion in 2020, according to the analysts at McKinsey. In 2020, Barrick Gold Corporation (NYSE: GOLD) generated over $12 billion in revenues, with gold revenue soaring by 27%. Similarly, Freeport-McMoRan Inc. (NYSE: FCX), one of the largest mining companies, generated $14.2 billion in 2020.
Bank of America BofA expects the gold stocks to gain in 2021 due to growing production and net gold output. According to BofA, Newmont Corporation (NYSE: NEM) will reach 6.5 million ounces of gold production in 2021 and the bank included the stock in its top gold picks. The company is also added to the bank’s high-conviction buy list. Moreover, the share price of Newmont Corporation (NYSE: NEM) also gained over 55% in the past five years.
In addition to Newmont Corporation (NYSE: NEM), BofA also highlighted Agnico Eagle Mines Limited (NYSE: AEM) and Kinross Gold Corporation (NYSE: KGC) as ‘Buy’ and raised their price targets.
Image by Tshekiso Tebalo from Pixabay
In light of these, let's analyze our list of the 15 best gold mining stocks to invest in. We took into account hedge fund sentiment, analysts' ratings, long-term growth potential and fundamentals while choosing these stocks.
Best Gold Mining Stocks to Invest In
15. New Gold Inc. (NYSE: NGD)
Number of Hedge Fund Holders: 14
New Gold Inc. (NYSE: NGD) is a Canada-based mining company that specializes in the operation, exploration, and development of gold and other precious metals. The company ranks fifteenth on our list of the best gold mining stocks to invest in.
New Gold Inc. (NYSE: NGD) reported a strong first quarter with net earnings of $8 million and an EPS of $0.01. The revenue was recorded at $164.9 million, up from $142.3 million during the same period last year. The company produced 96,026 ounces and sold over 91,800 ounces of gold in Q1. The gold revenue stood at $112.4 million, compared with $98 million in the prior-year quarter. According to the company, the increased activity at Rainy River and New Afton will drive stronger financial results in 2021, in-line with its estimates.
In May, National Bank raised its price target to $4 on the stock, rating it as ‘Outperform’.
As of Q1 2021, 14 hedge funds tracked by Insider Monkey have positions in New Gold Inc. (NYSE: NGD), up from 12 in the previous quarter. The total value of these stakes is $70 million. Renaissance Technologies is the leading shareholder of the company with 17.7 million shares, worth $27.3 million.
Like Hecla Mining Company (NYSE: HL), Wheaton Precious Metals Corp. (NYSE: WPM), Freeport-McMoRan Inc. (NYSE: FCX), Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM) and Franco-Nevada Corporation (NYSE: FNV), New Gold Inc. (NYSE: NGD) is one of the best gold mining stocks to buy now.
14. AngloGold Ashanti Limited (NYSE: AU)
Number of Hedge Fund Holders: 14
AngloGold Ashanti Limited (NYSE: AU) is a gold mining company with headquarters in Johannesburg, South Africa. The company is the third-largest gold producer in the world with the production of 3.047 million ounces of gold in 2020.
In Q1 2021, AngloGold Ashanti Limited (NYSE: AU) reported a 42% year-over-year growth in headline earnings at $203 million or $0.48 per share. The revenue for the quarter stood at $979 million, up from $905 million during the same period last year. The gold production saw a 7% decline at 588,000 ounces, accounting for $956 million of the total revenue. The company’s strong numbers are driven by higher gold prices and the accelerated redevelopment project of its Obuasi mine in Ghana, which resulted in production growth by 53% year-over-year. These current earnings are in line with its 2021 guidance. AngloGold Ashanti Limited (NYSE: AU) expects gold production to reach $3.4 million ounces per year by 2025.
Earlier in March, Renaissance Capital raised its price target on AU stock to ZAR 450, ranking it as ‘Buy’.
At the end of Q1 2021, 14 hedge funds tracked by Insider Monkey have positions in AngloGold Ashanti Limited (NYSE: AU), worth $319 million.
Like Barrick Gold Corporation (NYSE: GOLD), Alamos Gold Inc. (NYSE: AGI), and Hecla Mining Company (NYSE: HL), AngloGold Ashanti Limited (NYSE: AU) is one of the best gold mining stocks to invest in.
13. Gold Fields Limited (NYSE: GFI)
Number of Hedge Fund Holders: 15
Gold Fields Limited (NYSE: GFI) is a gold mining company based in South Africa. The company has nine operating mines in Australia, West Africa, South Africa, Peru, and Chile. The South Deep gold mine is one the largest gold mines in the world with reserves of over 81.4 million ounces of gold. The company ranks thirteenth on our list of the best gold mining stocks to invest in.
In Q1 2021, the revenue is driven by the company’s production level and sales from gold. Gold Fields Limited (NYSE: GFI) generated over $1.7 billion in revenue, presenting 14% year-over-year growth. The company produced 541,000 ounces of gold, showing 0.7% growth from the prior-year quarter. The gold production is in line with 2021 guidance of 2.3 to 2.35 million ounces. In the past year, the stock has delivered a 36% As of June, 5 analysts from WSJ rank the GFI stock as a ‘Buy’ with a price target of $12.2.
At the end of Q1 2021, 15 hedge funds tracked by Insider Monkey have positions in Gold Fields Limited (NYSE: GFI), worth $323 million. AQR Capital Management is the leading shareholder of the company with 12.4 million shares, worth $117 million.
Like Agnico Eagle Mines Limited (NYSE: AEM), Newmont Corporation (NYSE: NEM), and Franco-Nevada Corporation (NYSE: FNV), Gold Fields Limited (NYSE: GFI) is one of the best gold mining stocks to invest in.
12. Hecla Mining Company (NYSE: HL)
Number of Hedge Fund Holders: 16
Hecla Mining Company (NYSE: HL) is an American mining company that specializes in gold, silver, and other precious metals. The company has the largest reserve in the U.S. and produces a third of the country’s silver. Its operating mines are located in Alaska, Idaho, and Quebec, Canada.
In Q1 2021, Hecla Mining Company (NYSE: HL) reported a net income of $30.6 million, with an EPS of $0.06, beating the market consensus of $0.04. The company managed to generate the second-highest revenue in 130 years at $210 million, presenting 54% year-over-year growth. Sales from gold generated over $101 million, up from $90 million in the prior-year quarter, whereas revenue from silver stood at $77.7 million. In Q1, Hecla Mining Company (NYSE: HL) also increased its quarterly dividend by 28.4% at $0.0112 per share. The HL stock saw its all-time low in March 2020 due to the global market cash but recovered quickly, gaining over 124% in the past year. In June, RBC Capital maintained its price target of $10 on HL stock, ranking it as a ‘Buy’.
At the end of Q1 2021, we see that number of hedge funds having positions in Hecla Mining Company (NYSE: HL) increased to 16, compared with 10 in the previous quarter. The total value of these stakes is $39.7 million.
Like Barrick Gold Corporation (NYSE: GOLD), Alamos Gold Inc. (NYSE: AGI), and Wheaton Precious Metals Corp. (NYSE: WPM), Hecla Mining Company (NYSE: HL) is one of the best gold mining stocks to invest in.
11. Sibanye Stillwater Limited (NYSE: SBSW)
Number of Hedge Fund Holders: 16
Sibanye Stillwater Limited (NYSE: SBSW) is a mining company based in South Africa that mainly deals in gold, platinum, and palladium. The company is the largest producer of platinum and the third-largest producer of gold. In 2020, the company produced over 0.98 million ounces of gold with reserves of over 15.5 million ounces of gold. It ranks eleventh on our list of the best gold mining stocks to invest in.
In Q1 2021, Sibanye Stillwater Limited (NYSE: SBSW) reported strong earnings, presenting a 78% growth, compared with the same period last year. The revenue was recorded at $1.3 billion. The average prices for four platinum group metals PGM showed a 59% year-over-year growth, whereas the gold price grew by 8% in Q1.
The company produced over 249,392 ounces of gold, accounting for $92 million of the revenue. In 2021, Sibanye Stillwater Limited (NYSE: SBSW) expects the PM output to reach approximately 680,000 ounces from operations in the U.S. The stock’s performance has also remained consistent over the years, soaring by 87% in the past year. The company’s dividend policy states a payment of 25% to 35% of earnings to shareholders. Recently, RBC Capital raised its price target to $28, rating it as an 'Outperform'.
Like Hecla Mining Company (NYSE: HL), Wheaton Precious Metals Corp. (NYSE: WPM), Freeport-McMoRan Inc. (NYSE: FCX), Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM) and Franco-Nevada Corporation (NYSE: FNV), Sibanye Stillwater Limited (NYSE: SBSW) is one of the best gold mining stocks to buy now.
At the end of Q1 2021, 16 hedge funds tracked by Insider Monkey have positions in Sibanye Stillwater Limited (NYSE: SBSW), worth $272 million. AQR Capital Management is the biggest shareholder of the company with 5.2 million shares, worth $93.5 million.
Desert Lion Capital released its Q1 2021 investor letter and mentioned Sibanye Stillwater Limited (NYSE: SBSW) and other stocks. Here is what the firm has to say:
“Sibanye is a South African gold and platinum group metals (“PGM”) producer with mines in South Africa and the U.S. Established in 2012, it has since become one of South Africa’s largest gold producers and the largest PGM producer in the world. Sibanye also operate a PGM recycling facility and own a majority interest in DRDGOLD, a specialist in the recovery of gold and other precious metals from open pit tailings.
The investment thesis incorporates the following logic:
If central banks globally are going to continue printing money unabated, precious metals prices should rise.
The drive for cleaner and greener is accelerating. The market for platinum, palladium and rhodium is structurally attractive.
The company is generally mischaracterized. Ask around, and one will find that most people still refer to Sibanye as “a South African gold miner” with “lots of debt from that Stillwater acquisition.” (Click here to see the full text)
10. Royal Gold, Inc. (NASDAQ: RGLD)
Number of Hedge Fund Holders: 17
Royal Gold, Inc. (NASDAQ: RGLD) is an American metal stream and royalty company that mainly partners with operators in building their portfolio containing precious metal assets. The company deals in gold, silver, nickel, copper, cobalt, etc. Royal Gold, Inc. (NASDAQ: RGLD) has recently come in a $100 million contract with Ero Gold for gold production in its mine in Brazil. The company ranks tenth on our list of the best gold mining stocks to invest in.
In Q3 FY21, Royal Gold, Inc. (NASDAQ: RGLD) reported a net income of $55.2 million, up from $44.3 million during the same period last year. The EPS for the quarter stood at $0.84, beating the market estimate by $0.05. The revenue also saw 5% year-over-year growth at $142 million. The company generated 68% of the revenue from gold and 12% from silver. In Q3, Royal Gold, Inc. (NASDAQ: RGLD) also increased its dividend by 7% at $0.30 per share. The RGLD stock soared by 6.6% in the past six months and 5.7% year to date. Earlier in March, JP Morgan initiated its coverage of Royal Gold, Inc. (NASDAQ: RGLD) and ranked the stock ‘Overweight’ with a price target of $143.
At the end of Q1 2021, 17 hedge funds tracked by Insider Monkey have positions in Royal Gold, Inc. (NASDAQ: RGLD), worth $237 million.
Like Hecla Mining Company (NYSE: HL), Wheaton Precious Metals Corp. (NYSE: WPM), Freeport-McMoRan Inc. (NYSE: FCX), Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM) and Franco-Nevada Corporation (NYSE: FNV), Royal Gold, Inc. (NASDAQ: RGLD) is one of the best gold mining stocks to buy now.
Argosy Investors recently released its Q1 2021 investor letter and mentioned Royal Gold, Inc. (NASDAQ: RGLD) in it. Here is what the firm has to say:
“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." (Click here to see the full text)
9. Franco-Nevada Corporation (NYSE: FNV)
Number of Hedge Fund Holders: 20
Franco-Nevada Corporation (NYSE: FNV) is a royalty and streaming company that specializes in gold mining. It has its headquarters in Toronto, Canada. In 2020, the company sold over 521,564 ounces of gold, which accounted for 91% of the total revenue. It ranks ninth on our list of the best gold mining stocks to invest in.
In Q1 2021, Franco-Nevada Corporation (NYSE: FNV) posted strong results, largely driven by mines’ expansion and exploration successes. The net income of the company presented 47% year-over-year growth at $160 million. The EPS for the quarter stood at $0.84, beating the market estimate by $0.03. The revenue also showed 38% growth, compared with Q1 2020 at $308.9 million. The sales from 107,500 ounces of gold accounted for $190 million, equivalent to 85% of the total revenue. Franco-Nevada Corporation (NYSE: FNV) also reported a 15.4% increase in the quarterly dividend to $0.30 per share. The company guided a 25% growth in revenue by 2026. After seeing its low in March 2020, the FNV stock has bounced back and gained over 11% in the past year. The stock has delivered a 6.46% return to shareholders in the past year. In May, National Bank raised its price target on FNV stock to $200, with a 'Sector Perform' rating.
At the end of Q1 2021, 20 hedge funds tracked by Insider Monkey have positions in Franco-Nevada Corporation (NYSE: FNV), worth $933 million. With 4.8 million shares, worth $606 million, Renaissance Technologies is the biggest shareholder of the company.
Like Alamos Gold Inc. (NYSE: AGI), Hecla Mining Company (NYSE: HL), and Newmont Corporation (NYSE: NEM), Franco-Nevada Corporation (NYSE: FNV) is one of the best gold mining stocks to invest in.
8. Alamos Gold Inc. (NYSE: AGI)
Number of Hedge Fund Holders: 22
Alamos Gold Inc. (NYSE: AGI) is a Canada-based gold producer with three operating mines in Canada and Mexico. The company has ongoing projects in the U.S., Turkey, Mexico, and Canada. As of December 2020, Alamos Gold Inc. (NYSE: AGI) has over 9.8 million ounces of mineral reserves, with gold reserves accounting for 3.3 million ounces.
In Q1 2021, Alamos Gold Inc. (NYSE: AGI) reported strong earnings, meeting the company’s guidance. The net earnings for the quarter stood at $49 million, up from $29 million during the same period last year. The EPS met the market consensus at $0.13. The company beat on revenue by $5.92 million at $227 million, presenting 28.5% year-over-year growth.
In Q1, Alamos Gold Inc. (NYSE: AGI) produced 125,000 ounces of gold, up 14% during the same period last year. In 2021, the company expects gold production to reach 470,000 to 510,000 ounces. Moreover, $208 million was paid to shareholders through dividends and repurchases. In May, National Bank raised its price target on AGI stock to $14.25, keeping an 'Outperform' rating.
Since 2018, Alamos Gold Inc. (NYSE: AGI) has reported a 400% growth in dividends and declared a quarterly dividend of $0.025 per share. In Q1 2021, the number of hedge funds having stakes in Alamos Gold Inc. (NYSE: AGI) increased to 22 from 17 in the previous quarter. The total value of these stakes is $267.9 million.
Like Hecla Mining Company (NYSE: HL), Wheaton Precious Metals Corp. (NYSE: WPM), Freeport-McMoRan Inc. (NYSE: FCX), Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM) and Franco-Nevada Corporation (NYSE: FNV), Alamos Gold Inc. (NYSE: AGI) is one of the best gold mining stocks to buy now.
7. Kirkland Lake Gold Ltd. (NYSE: KL)
Number of Hedge Fund Holders: 25
Kirkland Lake Gold Ltd. (NYSE: KL) is a gold mining company headquartered in Toronto, Canada. The company has operations in Canada and Australia. It is one of the largest gold mining companies which produced 1.3 million ounces of gold in 2020. The company ranks seventh on our list of the best gold mining stocks to invest in.
In Q1 2021, Kirkland Lake Gold Ltd. (NYSE: KL) reported net earnings of $167.8 million or $0.63 per share. The revenue for the quarter stood at $551.8 million. The gold production exceeded the guidance of 290,000 ounces and was recorded at 302,847 ounces. The strong earnings are driven by additional drilling at Detour Lake and enhanced exploration activities after Covid-19.
In 2021, the company’s production target is between 1.3 to 1.4 million ounces. In Q1, Kirkland Lake Gold Ltd. (NYSE: KL) returned $96.6 million to shareholders, $50.3 million of which was paid in dividends. Earlier in May, RBC Capital set a price target of $43 on KL stock, ranking it as a ‘Buy’. In 2021, the company’s production target is between 1.3 to 1.4 million ounces.
At the end of Q1 2021, 25 hedge funds tracked by Insider Monkey have positions in Kirkland Lake Gold Ltd. (NYSE: KL), worth $401 million. Renaissance Technologies is the biggest shareholder of the company with shares worth $108 million.
Like Hecla Mining Company (NYSE: HL), Wheaton Precious Metals Corp. (NYSE: WPM), Freeport-McMoRan Inc. (NYSE: FCX), Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM), Alamos Gold Inc. (NYSE: AGI) and Franco-Nevada Corporation (NYSE: FNV), Kirkland Lake Gold Ltd. (NYSE: KL) is one of the best gold mining stocks to buy now.
6. Kinross Gold Corporation (NYSE: KGC)
Number of Hedge Fund Holders: 27
Kinross Gold Corporation (NYSE: KGC) is another Canadian gold and silver mining company. It has mines and projects in several countries, including, Russia, the U.S., Chile, Brazil, Ghana, etc. In 2020, the company produced over 2.4 million ounces of gold, right in line with its guidance, successfully mitigating the effects of the pandemic.
In Q1 2021, Kinross Gold Corporation (NYSE: KGC) reported solid earnings with a 15% year-over-year growth in net income at $192.8 million. The EPS met the market estimate of $0.15. The company produced 558,777 ounces of gold, in line with 2021 guidance. Revenue also presented an 11% growth from Q1 2020 at $986.5 million.
Credit Suisse raised the price target on the stock to $8, asserting that Kinross Gold Corporation (NYSE: KGC) can benefit from the stocks repurchase in 2021 and ranked the stock as ‘Outperform’. The company announced a quarterly dividend of $0.03 per share.
At the end of Q1 2021, 27 hedge funds tracked by Insider Monkey have positions in Kinross Gold Corporation (NYSE: KGC). The total value of these stakes is $444 million. .
Like Hecla Mining Company (NYSE: HL), Wheaton Precious Metals Corp. (NYSE: WPM), Freeport-McMoRan Inc. (NYSE: FCX), Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Agnico Eagle Mines Limited (NYSE: AEM), Alamos Gold Inc. (NYSE: AGI) and Franco-Nevada Corporation (NYSE: FNV), Kinross Gold Corporation (NYSE: KGC) is one of the best gold mining stocks to buy now.
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Disclosure. None. 15 Best Gold Mining Stocks to Invest In was originally published on Insider Monkey.
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