5 Buy-Rated Gold Stocks Under $10 May Provide a Cheap Inflation and Portfolio Hedge

[view original post]

The company recently announced a definitive agreement with Asante Gold to sell its Chirano gold mine in Ghana for $225 million in total. Top analysts felt that the $225 million was below the intrinsic value of $263 million or more, but many felt that the Chirano mine was a highly likely candidate for a sale, given the small net asset value, and it had a relatively short mine life expectancy.

Shareholders receive a 2.92% dividend. BofA Securities has a $7.65 price target on Kinross Gold stock. The consensus target is up at $9.75, but on Friday the shares traded at $4.00.

Sandstorm Gold

This stock also took a big hit recently and is offering a great spot for investors who are more conservative to buy shares. Sandstorm Gold Ltd. (NYSE: SAND) operates as a gold royalty company. It focuses on acquiring royalties and gold and other metals purchase agreements (streams) from companies that have advanced stage development projects or operating mines.

Sandstorm Gold offers upfront payments for companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine’s production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties.

It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Côte D’Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji and Australia.

Investors receive a 1.05% dividend. The $14.75 H.C. Wainwright target price is well above the $10.05 consensus target and a share price of $6.05 seen on Friday.

Yamana

This is a smaller market cap gold-mining stock for investors looking to add a higher share count and some inflation protection. Yamana Gold Inc. (NYSE: AUY) is a Toronto-based mining company with operations and development projects in North, South and Central America. The company is focused on growing profitably through the careful management of costs.

Yamana engages in operating mines, development stage projects and exploration and mineral properties, chiefly in Canada, Brazil, Chile and Argentina. The company primarily sells precious metals, including gold, silver and copper. Its principal mining properties comprise the Chapada and Jacobina mines in Brazil, the Canadian Malartic mine in Canada, and the Cerro Moro mine in Argentina and the El Peñón and Minera Florida mines in Chile.

Investors receive a 2.46% dividend. BofA Securities has set a $6.25 price target, but the consensus target on Yamana Gold stock is up at $7.22. The shares traded at $4.85 on Friday.

These are five gold stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.