Insider Monkey picks best smid-cap gold stocks amid continuing rally in yellow metal

Insider Monkey has identified 12 gold mining companies that Wall Street analysts consider attractive "buys." Eight of them are small- or mid-cap firms.

Gold rose 2.2% in early trading on Monday to above $5,390 per ounce as tensions in the Middle East escalate. Wall Street believes the rally still has room to run, in part because investors are turning to safe-haven assets amid mounting geopolitical risks, Insider Monkey writes. Demand for gold remains resilient even with prices near record highs, it added, citing strategists at Barclays.

Below are the stocks picked by Insider Monkey.

Centerra Gold

Canada-based Centerra Gold, whose shares are listed in the U.S., owns gold and copper assets in North America and Turkey. The stock has seven “buy” ratings from Wall Street analysts versus four “hold” ratings and one “sell.” The average target price is $22.60 per share, about 7.6% above the Friday closing price.

NovaGold Resources

Canada’s NovaGold Resources, traded on the New York Stock Exchange, is developing the Donlin Gold project in Alaska together with Barrick Gold. The deposit is widely regarded as one of the largest and highest-grade undeveloped gold deposits in the world. Six Wall Street analysts recommend buying the stock. The average target price of $14.31 per share implies upside of about 7.4% from the most recent close.

Gold Royalty

Gold Royalty stands out for its business model: rather than developing resources itself, the company provides capital to mining firms in exchange for a share of future revenue. This structure allows it to mitigate operational risks. The stock carries six “buy” ratings from Wall Street analysts versus a single “hold.” The average target price of $6 per share implies upside of more than 28% from the Friday close.

Contango Ore

Contango Ore focuses on the exploration and production of gold, silver, and copper, primarily in Alaska. Late last year, it announced a merger with silver miner Dolly Varden Silver. Four Wall Street analysts cover the company, and all recommend buying its shares. The average target price is $38.25 per share, implying upside of nearly 28%.

Caledonia Mining

Caledonia Mining Corporation owns a 64% stake in the Blanket Mine in Zimbabwe and is also advancing two additional projects in the country – Bilboes and Motapa. Three Wall Street analysts assign a "buy" rating on the stock, while one rates it a “hold.” The average target price is $42 per share, about 32.5% above current trading levels.

Dakota Gold

Dakota Gold is developing gold deposits in the Homestake District of South Dakota. All four Wall Street analysts covering the company recommend buying the shares. The average target price is $10.94 per share, which implies upside of roughly 57%.

Galiano Gold

Galiano Gold is engaged in gold mining and exploration and owns and operates the Asanko Gold Mine in Ghana. The stock has three “buy” ratings from Wall Street analysts versus two “hold” ratings. The average target price is $4.54 per share, implying upside of nearly 29%.

DRDGOLD

South Africa’s DRDGOLD, whose American depositary receipts trade on the NYSE, produces gold in South Africa. Three Wall Street analysts have the shares rated
"buy" versus one “hold” and one “sell.” The average target price is $45 per share, almost 16% above current levels.

Four large-cap names also made Insider Monkey’s list: Newmont Corporation, Kinross Gold Corporation, Barrick Mining Corporation, and Gold Fields Limited.