Gold Royalty Companies Under $10: Following a Billionaire's Mining Strategy

The precious metals sector continues to attract sophisticated investors seeking stability amidst market volatility. For those eyeing gold mining stocks under $10, the investment thesis becomes particularly compelling when examining the strategic moves of seasoned billionaire investors. John Paulson, the legendary fund manager who correctly predicted the 2008 housing crisis, has recently positioned his portfolio in three sub-$10 gold mining equities—a decision worth analyzing for any investor considering exposure to the sector.

Why focus on gold royalty companies under $10? These sub-$10 valuations offer a unique combination of upside potential and established operational fundamentals that larger-cap mining stocks cannot provide. With gold prices hovering at elevated levels and analysts projecting further appreciation, the case for leveraging mining companies becomes increasingly attractive.

The Macro Case for Gold Mining Stocks Under $10

The gold market presents a multi-layered investment narrative. Physical gold has appreciated meaningfully in recent years, yet many gold mining stocks have significantly lagged the underlying commodity’s performance. This divergence creates opportunity for discerning investors.

Three factors currently support continued interest in the sector. First, central bank rate policy remains accommodative compared to previous cycles, which historically supports precious metals demand. Second, geopolitical uncertainties continue to drive safe-haven flows. Third, the transition to renewable energy has elevated demand for critical minerals including antimony and other elements essential for low-carbon technologies.

Paulson’s selective positioning in three specific mining equities suggests a strategic approach: choosing operationally mature producers and near-production companies with clear paths to profitability and production growth. His concentrated bets signal confidence in both the commodity thesis and management execution.

Equinox Gold Corp (EQX): Operational Scale with Acquisition Momentum

As one of the largest Canadian gold producers trading below $10, Equinox Gold demonstrates the characteristics Paulson favors: diverse geographic presence and active capital deployment. The company operates eight producing mines across the Americas, providing geographic diversification and production stability.

EQX’s recent financial performance in Q1 2024 revealed mixed but directional results. The company reported $11.4 million in operating mine income against a reported net loss of $42.8 million ($0.13 per share), with adjusted EBITDA reaching $52.2 million. Operating cash flow, before working capital adjustments, totaled $47.7 million—demonstrating the underlying cash generation capability despite accounting losses.

Capital deployment tells the real story. The company executed a major strategic move by acquiring the remaining 40% stake in Ontario’s Greenstone Gold Mine from Orion Mine Finance, securing complete operational control. To fund this expansion, management secured a $500 million three-year term facility, showcasing their ability to access growth capital markets confidently.

The investment thesis hinges on production expansion. EQX management guidance suggests potential production nearly doubling over the next several years. Analysts maintain a consensus “Moderate Buy” rating, with four of nine analysts recommending “strong buy” status. The mean analyst price target of $7.56 at the time of analysis implied approximately 50% upside, reflecting conviction in the company’s production trajectory and operational improvement initiatives.

NovaGold Resources Inc. (NG): Alaska’s Flagship Asset and Strategic Partnership

Among gold mining stocks under $10, NovaGold presents a different profile: a development-stage company positioned at an inflection point toward production. The company’s singular strategic focus—developing Alaska’s Donlin Gold project—demonstrates the power of concentrated ownership and focused execution.

Donlin represents one of North America’s premier undeveloped gold deposits, holding approximately 39 million ounces of gold. The company maintains an equal partnership structure with Barrick Gold Corporation, the world’s largest gold producer, which provides operational expertise, capital access, and market credibility that smaller operators cannot replicate independently.

Q2 2024 financials showed a $13.7 million net loss, typical for development-stage companies. However, the balance sheet reveals financial flexibility: NovaGold maintained $53 million in cash and $60 million in term deposits. Annual expenditure guidance of approximately $31 million, with $14 million directed toward Donlin advancement, indicates measured capital deployment during the permitting phase.

Beyond financial metrics, NovaGold’s commitment to responsible mining has strengthened its standing. The company finalized its 17th Shared Values Statement with local communities and conducted its third Subsistence Community Advisory Committee meeting in Aniak. Specific community enhancement initiatives—including salmon population monitoring programs—demonstrate the company’s environmental stewardship commitment and likely accelerate permitting timelines.

Paulson’s personal investment position underscores confidence: his firm holds 22 million shares valued at approximately $82 million, positioning him among the company’s largest stakeholders. Analysts remain optimistic with one “strong buy” and two “hold” ratings, with a consensus “moderate buy” and mean price target of $6.70 implying roughly 60% upside potential from historical trading levels. For investors seeking exposure to North American gold development at earlier stages, NG represents a compelling proposition.

Perpetua Resources Corp (PPTA): Critical Minerals and Dual Production Model

Among sub-$10 gold mining companies, Perpetua Resources stands out for its dual focus on both gold and critical minerals, specifically antimony—an element essential for renewable energy infrastructure and modern defense applications. The Stibnite Gold Project in Idaho combines resource production with brownfield remediation, addressing environmental restoration while generating commercial returns.

The stock has demonstrated substantial performance, delivering 71.6% gains over a 52-week period, with 2024 returns exceeding 80% as market interest in critical minerals accelerated. The company maintains a $375 million market capitalization, reflecting its earlier development stage compared to peer producers.

Q1 2024 results showed a $0.05 per share loss, marginally exceeding analyst expectations by a penny. As a pre-revenue company still advancing permitting, Perpetua’s financial performance should be evaluated through the lens of capital efficiency and funding progress rather than near-term profitability.

Funding momentum has accelerated meaningfully. The company secured conditional approval for $34.6 million in additional equity capital while simultaneously arranging potential non-dilutive financing of up to $1.8 billion from the U.S. Export-Import Bank. A recent royalty agreement with Franco-Nevada Idaho Corporation generated $8.5 million in upfront capital, providing additional financial runway while reducing development risk through a fixed royalty structure.

Analyst enthusiasm reaches maximum conviction among sub-$10 gold stocks: all three analysts in coverage recommended “strong buy” ratings. HC Wainwright & Co. established a price target of $13.25, while Roth MKM targeted $10. These valuations imply approximately 120% upside potential from historical trading levels, though investors should note this reflects analyst expectations at the time and may not reflect current market conditions.

Paulson’s substantial $103 million investment in Perpetua signals his conviction in both the Stibnite asset quality and the dual-commodity thesis. For investors seeking exposure to the critical minerals supercycle alongside traditional gold, PPTA merits serious consideration among gold mining stocks under $10.

Evaluating Gold Royalty Companies Under $10 for Your Portfolio

The intersection of a secular gold price uptrend, billionaire capital deployment, and analyst optimism creates a distinctive investment environment for sub-$10 mining equities. Equinox Gold offers operational scale and production growth; NovaGold provides development-stage exposure with premier assets; Perpetua Resources delivers critical mineral optionality alongside gold.

These gold mining stocks under $10 share common characteristics: analyst endorsement through “buy” or “strong buy” ratings, trading valuations discounting to mean price targets, and operational or asset characteristics that justify premium valuations over intermediate timeframes. They also share risks inherent to mining equities: regulatory uncertainty, commodity price dependency, and execution risk on production guidance.

The Paulson stamp of approval—representing billions in aggregate institutional capital—suggests these securities warrant serious consideration for investors seeking exposure to precious metals through operating entities rather than exchange-traded funds or physical holdings. As always, individual investment decisions should reflect personal risk tolerance, portfolio construction objectives, and conviction in commodity cycle timing.