Gold has long been regarded as a safe haven in times of market turmoil. Many investors have gained exposure to the precious metal by buying stocks of companies engaged in exploration and mining. Some of the major players in the gold industry include Canada-based Franco Nevada Corp. (FNV), Newmont Corp. (NEM), and Australia-based Newcrest Mining Ltd. (NCM).
Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have underperformed the broader market over the past year as the U.S. and other economies have begun to recover amid the global pandemic. GDX has provided a total return of -1.3% over the past 12 months, well below the Russell 1000’s total return of 43.5%. These market performance numbers and all statistics in the tables below are as of June 25, 2021.
Here are the top 5 gold stocks with the best value, the fastest growth, and the most momentum.
Value investing is a factor-based investing strategy that involves picking stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings (P/E) ratio. Value investors believe that if a business is cheap compared to its intrinsic value, in this case as measured by its P/E ratio, the stock price may rise faster than others as the price comes back in line with the worth of the company. These are the stocks with the lowest 12-month trailing P/E ratio.
|Best Value Gold Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Centerra Gold Inc. (
|Torex Gold Resources Inc. (
|Kinross Gold Corp. (
|Karora Resources Inc. (
|Dundee Precious Metals Inc. (
- Centerra Gold Inc.: Centerra Gold is a Canada-based gold mining and exploration company. It engages in the operation, exploration, development, and acquisition of gold properties in North America, Asia, and other global markets. The company operates three mines: the Mount Milligan Mine in Canada; the Kumtor Mine in the Kyrgyz Republic; and the Öksüt Mine in Turkey. Centerra produced 824,059 ounces of gold and 82.8 million pounds of copper in 2020. Centerra also has shares that trade in the U.S. on the New York Stock Exchange (NYSE) under the ticker symbol CGAU. On May 31, the company announced that its subsidiaries operating at its Kumtor Mine, Kumtor Gold Co. and Kumtor Operating Co., began bankruptcy proceedings in a U.S. court in order to preserve their value after the Kyrgyz Government had seized control of the Kumtor Mine earlier in the month. Centerra said that the action to file for chapter 11 bankruptcy was also taken to prevent further efforts by the Kyrgyz Government to strip Kumtor Gold of its assets or dispose of the Kumtor Mine in a manner that violates previous investment agreements.
- Torex Gold Resources Inc.: Torex Gold Resources is a Canada-based intermediate gold producer. It engages in the exploration, development, and operation of its 100%-owned Morelos Gold Property, which is comprised of 29,000 hectares in the Guerrero Gold Belt in Mexico. The company’s principal assets include: the El Limon Guajes Mine Complex, comprised of open pit and underground mines; and the Media Luna Project, an advanced stage development project. Torex also has shares that trade over the counter (OTC) in the U.S. under the ticker symbol TORXF.
- Kinross Gold Corp.: Kinross Gold is a Canada-based gold mining company with a diverse portfolio of mines and projects in the U.S., Brazil, Chile, Ghana, Mauritania, and Russia. The company employs approximately 9,000 people globally and produced 2.4 million gold equivalent ounces in 2020. Kinross also has shares that trade in the U.S. on the NYSE under the ticker symbol KGC. The company recently announced that it has resumed its mining operations at the Tasiast mine after a fire occurred on June 15, 2021. Kinross has also resumed construction on the Tasiast 24k expansion project. The company has revised its 2021 production forecast to 2.1 million gold equivalent ounces, down from a previous estimate of 2.4 million ounces.
- Karora Resources Inc.: Karora Resources is a Canada-based, multi-asset mineral resource company primarily focused on the acquisition, exploration, evaluation, and development of precious metal properties. The company’s two primary gold-producing operations are its Beta Hunt Mine and the Higginsville Gold Operations. Both operations are located in Australia along the Norseman-Wiluna Greenstone Belt. Karora also has shares that trade OTC in the U.S. under the ticker symbol KRRGF.
- Dundee Precious Metals Inc.: Dundee Precious Metals is a Canada-based international mining company engaged in the acquisition, exploration, development, mining, and processing of precious metal properties. The company owns three principal subsidiaries: Chelopech, which owns and operates a gold, copper, and silver mine in Bulgaria; Krumovgrad, which is developing a gold property in Bulgaria; and Tsumeb, which owns and operates the company’s concentrate processing facility in Namibia. Dundee Precious Metals announced at the end of May that it has agreed to acquire the remaining issued and outstanding shares of INV Metals Inc. (INV.TO) that it does not already own. It currently owns approximately 23.5% of INV Metals’ common shares. The implied equity value of the remaining shares on a 100% basis is approximately CA$132 million ($107 million) and CA$104 million ($84 million) on a fully-diluted basis. The transaction is expected to close shortly after a shareholder meeting in July 2021.
These are the top gold stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Gold Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Equinox Gold Corp. (
|Karora Resources Inc. (KRR.TO)||CA$3.86||CA$0.6||920.1||9.2|
|Centerra Gold Inc. (CG.TO)||CA$9.74||CA$2.9||764.8||0.1|
|Roxgold Inc. (
|Pretium Resources Inc. (
- Equinox Gold Corp.: Equinox Gold is a Canada-based, multi-asset mining company that operates entirely within the Americas. The company has seven operating gold mines and four growth projects throughout Canada, the United States, Mexico, and Brazil. It is poised to achieve annual gold production of one million ounces. Equinox also has shares that trade in the U.S. on the NYSE Arca exchange under the ticker symbol EQX. The company announced in early April that it completed its acquisition of Premier Gold Mines Ltd., adding new mining projects in Canada and Mexico to its portfolio. Equinox did not provide a specific amount for the value of the transaction. Premier’s gold projects in the U.S. were spun-out into a new company called i-80 Gold Corp. that holds Premier’ Nevada gold assets. Equinox owns 30% of i-80.
- Karora Resources Inc.: See above for company description.
- Centerra Gold Inc.: See above for company description.
- Roxgold Inc.: Roxgold is a Canada-based gold mining company with assets in West Africa. It owns and operates the Yaramoko Mine Complex, a high-grade mine located on the Houndé greenstone belt in western Burkina Faso. The company is also engaged in the development and exploration of the Séguéla Gold Project located in Côte d’Ivoire. Roxgold also has shares that trade OTC in the U.S. under the ticker symbol ROGFF. The company announced in late April that it has agreed to a merger with Fortuna Silver Mines Inc. (FSM). Under the agreement, Fortuna will acquire all of the issued and outstanding securities of Roxgold. The equity value of the transaction on an implied, fully-diluted, in-the-money basis is estimated at approximately CA$1.1 billion ($0.9 billion). The transaction was expected to close by late June or early July 2021.
- Pretium Resource Inc.: Pretium Resources is a Canada-based intermediate gold producer. Its primary operations are located at its 100%-owned Brucejack Mine, a high-grade gold underground mine located in Canada. The company has produced more than 1.3 million ounces of gold since its start-up in 2017. Pretium Resources also has shares that trade in the U.S. on the NYSE under the ticker symbol PVG.
Momentum investing is a factor-based investing strategy that involves investing in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks that have outperformed the market will often continue to do so because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock’s outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.
|Gold Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Hecla Mining Co. (
|K92 Mining Inc. (
|Sibanye-Stillwater Ltd. (
|Marathon Gold Corp. (
|Coeur Mining Inc. (
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||-1.3|
- Hecla Mining Co.: Hecla Mining is a precious metals company engaged in the discovery, acquisition, development, and production of gold, silver, and associated base metals. The company is the largest silver producer in the U.S. It operates the Greens Creek and Lucky Friday mines in the U.S., and the Casa Berardi mine in Canada. The company also owns a number of exploration and pre-development projects throughout North America.
- K92 Mining Inc.: K92 Mining is a Canada-based precious metals producer. The company owns and operates the high-grade, low-cost underground Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea. K92 also engages in exploration projects near its mine and in other parts of the region and has shares that trade OTC in the U.S. under the ticker symbol KNTNF.
- Sibanye-Stillwater Ltd.: Sibanye-Stillwater is a South Africa-based producer of precious metals. The company develops and extracts mineral properties. Its diverse portfolio includes platinum metal operations in the U.S. and South Africa, gold operations and projects in South Africa, and copper, gold, and platinum metal exploration properties in North and South America. The company is the largest primary producer of platinum, the second-largest primary producer of palladium, and ranks third among global gold producers on a gold-equivalent basis. Sibanye-Stillwater announced in early June that it will repurchase up to 5% of its ordinary shares in issue as of May 31, 2021. The share buyback program will be implemented between June 2, 2021 and April 6, 2022.
- Marathon Gold Corp.: Marathon Gold is a Canada-based gold development company. It is working to advance its 100%-owned Valentine Gold Project located in a Canadian region that is considered one of the top mining areas in the world. The project is an open-pit mining and conventional milling operation. It has an expected mine life of 13 years with first production scheduled for 2023. Marathon Gold also has shares that trade OTC in the U.S. under the ticker symbol MGDPF.
- Coeur Mining Inc.: Coeur Mining is a diversified precious metals producer with five operations throughout North America. Its operations include: the Palmarejo silver-gold complex in Mexico; the Rochester silver-gold mine in Nevada; the Kensington gold mine in Alaska; the Wharf gold mine in South Dakota; and the Silvertip silver-zinc-lead mine in Canada. The company also owns interests in a number of precious metals exploration projects. Coeur Mining announced in late April financial results for Q1 of its 2021 fiscal year (FY), the three-month period ended March 31, 2021. The company posted net income of $2.1 million, a significant turnaround from the net loss of $11.9 million in the year-ago quarter. Revenue rose 16.7%. Coeur reaffirmed its full-year 2021 production guidance of 322,500 – 367,500 ounces of gold and 9.7 million – 12.2 million ounces of silver.
The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
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