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 dramatically 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 -21.6% over the past 12 months, well below the Russell 1000’s total return of 33.8%. These market performance numbers and all statistics in the tables below are as of Aug. 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|
|Torex Gold Resources Inc. (TXG.TO)||CA$13.49||CA$1.2||3.4|
|Gran Colombia Gold Corp. (GCM.TO)||CA$4.95||CA$0.5||3.5|
|Equinox Gold Corp. (EQX.TO)||CA$8.27||CA$2.5||4.5|
|Calibre Mining Corp. (CXB.TO)||CA$1.51||CA$0.5||4.9|
|Dundee Precious Metals Inc. (DPM.TO)||CA$7.56||CA$1.5||5.2|
- 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.
- Gran Colombia Gold Corp.: Gran Colombia Gold is a Canada-based mid-tier gold producer with mining operations in Latin America. The company is the largest underground gold and silver producer in Colombia, where it operates several mines at its high-grade Segovia Operations. It is also working to advance its recently acquired Toroparu Project in Guyana, and has investments in a number of other minerals projects. Gran Colombia Gold also has shares that trade OTC in the U.S. under the ticker symbol TPRFF. The company recently announced financial results for Q2 of its 2021 fiscal year (FY), the three-month period ended June 30, 2021. Gran Colombia Gold reported net income of $29.8 million, a significant improvement from the net loss of $18.6 million in the year-ago quarter. Revenue for the quarter rose 24.9% year over year (YOY), primarily driven by an increase in the company’s realized gold price.
- 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 throughout Canada, the U.S., Mexico, and Brazil. It is poised to achieve annual gold production of one million ounces. Equinox Gold also has shares that trade in the U.S. on the NYSE Arca under the ticker symbol EQX.
- Calibre Mining Corp.: Calibre Mining is a Canada-based, multi-asset gold producer with operations in Latin America. The company operates three producing gold mines, all three of which are located in Nicaragua: El Limon, which covers an area of 12,000 hectares; La Libertad, which covers an area of approximately 10,937 hectares; and Pavon Gold Mine, covering an area of 31.5 square kilometers. Calibre also has shares that trade OTC in the U.S. under the ticker symbol CXBMF.
- 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 also has shares that trade OTC in the U.S. under the ticker symbol DPMLF. The company announced in late July that it has completed its acquisition of all of the outstanding common shares of INV Metals that it did not already own. The implied value of the transaction, which was first announced at the end of May, is equal to approximately CA$132 million ($105 million) and CA$104 million for the portion not already owned by the company.
These are the top gold stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Gold Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Torex Gold Resources Inc. (TXG.TO)||CA$13.49||CA$1.2||1,430||67.2|
|Calibre Mining Corp. (CXB.TO)||CA$1.51||CA$0.5||N/A (see company description)||338.7|
|SSR Mining Inc. (SSRM.TO)||CA$20.40||CA$4.4||N/A (see company description)||261.1|
|Endeavour Mining PLC (EDV.TO)||CA$29.71||CA$7.4||N/A (see company description)||218.5|
|Wesdome Gold Mines Ltd. (WDO.TO)||CA$12.49||CA$1.7||463.6||16.6|
- Torex Gold Resources Inc.: See above for company description.
- Calibre Mining Corp.: See above for company description. An EPS growth rate for Calibre Mining could not be calculated because its earnings went from negative in the year-ago quarter to positive in the most recent quarter.
- 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 also has shares that trade in the U.S. on the Nasdaq under the ticker symbol SSRM. An EPS growth rate for the company could not be calculated because its earnings went from negative in the year-ago quarter to positive in the most recent quarter.
- Endeavour Mining PLC: Endeavour Mining is a U.K.-based gold mining company with operations across West Africa. The company’s mining operations are located in Senegal, Cote d’Ivoire, and Burkina Faso, with additional development and exploration projects along the Birimian Greenstone Belt. The company employs approximately 7,000 people. Endeavour Mining also has shares that trade OTC in the U.S. under the ticker symbol EDVMF. An EPS growth rate for the company could not be calculated because its earnings went from negative in the year-ago quarter to positive in the most recent quarter.
- Wesdome Gold Mines Ltd.: Wesdome Gold Mines is a Canada-based mid-tier gold mining company with operations in the Canadian provinces of Ontario and Quebec. Its Eagle River Complex, located in Ontario, is comprised of one underground mine and one open pit mine. The company is also actively exploring its Kiena Complex, which is located in Quebec. Wesdome aims to produce more than 200,000 ounces from its two mining complexes. The company also has shares that trade OTC in the U.S. under the ticker symbol WDOFF. Wesdome Gold Mines recently announced financial results for Q2 FY 2021, the three-month period ended June 30, 2021. Net income rose 445.5% on revenue growth of 16.6% compared to the year-ago quarter. Net income was boosted by the reversal of an impairment charge as well as an after-tax gain on the disposal of the company’s Moss Lake mineral properties.
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 (%)|
|New Found Gold Corp. (NFG.V)||CA$8.95||CA$1.4||442.4|
|Sibanye-Stillwater Ltd. (SBSW)||15.89||11.7||43.8|
|Marathon Gold Corp. (MOZ.TO)||CA$2.95||CA$0.7||25.5|
|Argonaut Gold Inc. (AR.TO)||CA$3.08||CA$1.0||15.8|
|K92 Mining Inc. (KNT.TO)||CA$7.25||CA$1.6||7.4|
|iShares Russell 1000 ETF (IWB)||N/A||N/A||33.8|
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||-21.6|
- New Found Gold Corp.: New Found Gold is a Canada-based mineral exploration company engaged in the acquisition, exploration, and evaluation of resource properties. It is primarily focused on gold properties located in the Canadian province of Newfoundland and Labrador. The company is currently focused on advancing its 100%-owned Queensway gold project in Newfoundland. New Found Gold also has shares that trade OTC in the U.S. under the ticker symbol NFGFF.
- 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 Southern 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 was implementing a share repurchase program. The company said it would buyback up to 5% of its ordinary shares in issue as of May 31, 2021 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.
- Argonaut Gold Inc.: Argonaut Gold is a Canada-based gold company engaged in the exploration, development, and production of gold. Its primary assets include the Mexico-based El Castillo Complex, comprised of the El Castillo and and San Agustin mines, and the La Colorada mine, and the U.S.-based Florida Canyon mine. The company’s advanced exploration projects include the Cerro del Gallo and Ana Paula projects in Mexico, the Magino project in Canada, and a number of other projects throughout North America. Argonaut Gold also has shares that trade OTC in the U.S. under the ticker symbol ARNGF. The company recently announced financial results for Q2 FY 2021, the three-month period ended June 30, 2021. It reported net income of $21.8 million, a significant improvement from the net loss of $7.7 million in the year-ago quarter. Revenue for the quarter rose 107.2% YOY to a new quarterly record. Argonaut Gold said that its Magino project was on track for its first gold pour during the first quarter of 2023.
- 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.
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