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 mining companies 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. GDX has provided a total return of 27.4% over the past 12 months, well below the Russell 1000’s total return of 57.7%. These market performance numbers and all statistics in the tables below are as of March 26, 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 in which you pick 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 ratio (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 price-to-earnings (P/E) ratio.
|Best Value Gold Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Sibanye-Stillwater Ltd. (
|Dundee Precious Metals Inc. (
|Karora Resources Inc. (
|Kinross Gold Corp. (
|Centerra Gold Inc. (
- 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, second largest primary producer of palladium, and ranks third among global gold producers on a gold-equivalent basis.
- Dundee Precious Metals Inc.: Dundee Precious Metals is a Canada-based international mining company engaged in the acquisition, exploration, development, and mining 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 focused on the development of a gold property in Bulgaria; and Tsumeb, which owns and operates the company’s concentrate processing facility in Namibia.
- 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 prolific Norseman-Wiluna Greenstone Belt. Karora Resources recently announced financial results for its 2020 fiscal year (FY), which ended Dec. 31, 2020. It reported record annual net earnings of $70.0 million (CA$88.1 million) compared to a net loss of $5.5 million (CA$6.9 million) in FY 2019. Revenue rose 86.8%.
- 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. The company projects that it will produce 2.4 million gold equivalent ounces in 2021.
- 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’s two flagship assets are its Mount Milligan Mine in Canada and its Kumtor Mine in the Kyrgyz Republic. It also operates a third mine in Turkey, named Öksüt Mine. Centerra produced 824,059 ounces of gold and 82.8 million pounds of copper in 2020. The company announced in late February financial results for FY 2020, which ended Dec. 31, 2020. It posted annual net earnings of $408.5 million compared to a net loss of $93.5 million in the previous year. Revenue grew 22.8%.
These are the top gold stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Gold Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Jaguar Mining Inc. (
|SSR Mining Inc. (
|Yamana Gold Inc. (
|Karora Resources Inc. (KRR.TO)||CA$3.37||CA$0.5||222.2||22.0|
|Torex Gold Resources Inc. (
- Jaguar Mining Inc.: Jaguar is a Canada-based mining company that explores and develops gold properties. The company operates in the Iron Quadrangle, a prolific belt located in Minas Gerais, Brazil. The Iron Quadrangle has been a center of mineral exploration dating back to the 16th century. Jaguar’s gold mining operations include the Turmalina Gold Mine Complex and the Caeté Complex. The company recently announced that it has completed the sale of its Net Smelter Return royalty from gold production at the CentroGold Project in Brazil to Metalla Royalty & Streaming Ltd. (MTA) for a total consideration of up to $18.0 million.
- SSR Mining Inc.: SSR Mining is a Canada-based intermediate gold mining company that operates four producing assets located in the U.S., Turkey, Canada, and Argentina, as well as development and exploration assets in the U.S., Turkey, Mexico, Peru, and Canada. The company’s four operating assets produced more than 720,000 ounces of gold and 7.7 million ounces of silver in 2019. SSR Mining announced in late February the appointment of Alison White to the roles of executive vice president and chief financial officer (CFO). Prior to joining SSR Mining, Ms. White served as the regional CFO for Newmont’s North America division. She will join the company at the end of March 2021.
- Yamana Gold Inc.: Yamana Gold is a Canada-based mining company that develops and explores gold and silver properties. The company operates five mines throughout the Americas: El Peñón, an underground mine with a strong track record of exploration success; Jacobina, an underground mine complex that has more than doubled production since 2014; Canadian Malartic, a large underground mining project with decades of potential opportunities; Minera Florida, an established underground mine in transition to newer high-grade zones; and Cerro Moro, a high-grade underground and open-pit mine with exploration upside for future growth.
- Karora Resources Inc.: See company description above.
- 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 highly prospective Guerrero Gold Belt in Mexico. The company’s principal assets include: the El Limon Guajes Mining Complex, comprised of open pit and underground mines, as well as a processing plant and related infrastructure; and the Media Luna Project, an early stage development project.
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which 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 (%)|
|Aura Minerals Inc. (
|Sibanye-Stillwater Ltd. (SBSW)||18.40||13.5||246.7|
|New Gold Inc. (
|Hecla Mining Co. (
|Pure Gold Mining Inc. (
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||27.4|
- Aura Minerals Inc.: Aura Minerals is a mid-tier gold and copper production company that is focused on the development and operation of gold and base metal projects in the Americas. The company’s four producing assets include Ernesto/Pau-a-Pique in Brazil, San Andres Mine in Honduras, Gold Road Mine in the U.S., and Aranzazu Mine in Mexico. Its four growth projects include Almas Gold Mine in Brazil, Matupa Gold Project in Brazil, Tolda Fria Gold Project in Colombia, and Sao Francisco Gold Mine in Brazil. Aura Minerals announced at the beginning of March financial results for FY 2020, which ended Dec. 31, 2020. Net income rose 175.2% on a 32.6% increase in net revenue. The sharp increases were achieved despite disruption of some of its mining operations due to the COVID-19 pandemic and related measures to limit the spread of the virus.
- Sibanye-Stillwater Ltd.: See above for company description.
- New Gold Inc.: New Gold is a Canada-based intermediate gold mining company engaged in the operation, development, and exploration of mineral properties. The company’s portfolio includes two core producing assets in Canada: Rainy River, a gold-silver mine; and New Afton, a gold-copper mine. It also is developing its Artemis Gold Blackwater project and has transitioned to the reclamation phase of its Cerro San Pedro gold-silver mine in Mexico. New Gold announced in mid-February financial results for FY 2020, which ended Dec. 31, 2020. The company’s net loss widened to $79.3 million from $73.5 million in FY 2019. Revenue for the year rose 2.0%. New Gold indicated that it expects to transition to positive free cash flow (FCF) in 2021.
- 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.
- Pure Gold Mining Inc.: Pure Gold Mining is a Canada-based gold exploration and development company. It owns 47 square kilometers in the high-grade gold district of Red Lake, located in the Canadian province of Ontario. The company’s PureGold Mine has indicated gold resources of 2.1 million ounces
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