Gold is regarded as a safe-haven in times of market uncertinty, and it is Money.
Investors can gain exposure to the gold industry by buying stocks of companies engaged in the exploration and mining of the precious Yellow metal.
Some of the major players in the gold industry include mining companies Franco Nevada Corp. (FNV), Agnico Eagle Mines Ltd. (AEM), and Kirkland Lake Gold Ltd. (KL).
Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have outperformed the broader market amid the economic fallout from the C-19 coronavirus. The ETF has posted a total return of 60.5% compared to the S&P 500’s total return of 0.1% over the past 12 months.
These market performance numbers and the statistics in the tables below are as of 28 April 2020.
Here are the Top 3 gold stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Gold Stocks
These are the gold stocks with the lowest 12-month trailing P/E ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows investors are paying less for each USD of profit generated.
|BEST VALUE GOLD STOCKS|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Barrick Gold Corp. (ABX.TO)||CA$37.80||CA$67.2||12.7|
|Kinross Gold Corp. (K.TO)||CA$9.78||CA$12.3||13.0|
|Alacer Gold Corp. (ASR.TO)||CA$7.11||CA$2.1||13.8|
- Barrick Gold Corp.: Barrick Gold is a Canada-based mining company primarily engaged in the production and sale of gold and copper. The company operates mines and has development projects in the US, Canada, South America, Australia, and Africa.
- Kinross Gold Corp.: Kinross Gold is a Canada-based gold mining company engaged in the exploration, development, and production of gold with properties in Canada, the US, Russia, Brazil, Ecuador, Chile, Ghana, and Mauritania. The company announced in January that it had completed its acquisition of a high-quality development in Russia from N-Mining Ltd. for total fixed consideration of $283-M
- Alacer Gold Corp.: Alacer Gold is a gold producer engaged in the mining, development, and exploration of mineral deposits in Turkey.
Fastest Growing Gold Stocks
These are the gold stocks with the highest Y-Y EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|FASTEST GROWING GOLD STOCKS|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Newmont Corp. (NYSE:NEM)||62.61||50.6||18,360|
|Torex Gold Resources Inc. (TXG.TO)||CA$20.37||CA$1.7||3,990|
|Wheaton Precious Metals Corp. (WPM.TO)||CA$55.73||CA$25.0||1,600|
- Newmont Corp.: Newmont acquires and develops mineral properties. The company produces primarily gold, but also silver, copper, zinc, and lead. Newmont announced earlier this month that it slowed production at its Peñasquito mine in Mexico due to new government restrictions spurred by the coronavirus chaos. The announcement follows a similar ramping down of operations at its Yanacocha mine in Peru announced in March.
- Torex Gold Resources Inc.: Torex Gold Resources is a Canada-based gold mining company engaged in the exploration and development of gold properties. The company has operations in the Morelos Gold property located in southern Mexico. Torex Gold announced in early April the temporary suspension of operations at its El Limón Guajes mine in accordance with restrictions decreed by the Government of Mexico in response to the spread of C-19 coronavirus.
- Wheaton Precious Metals Corp.: Wheaton Precious Metals is a Canada-based precious metals streaming company. The company sells gold, silver, palladium and other metals.
Gold Stocks with the Most Momentum
These are the gold stocks that had the highest total return over the last 12 months.
|GOLD STOCKS WITH THE MOST MOMENTUM|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|DRDGold Ltd. (DRD)||9.32||805.8||401.4|
|Orla Mining Ltd. (OLA.TO)||CA$3.26||CA$729.6||219.6|
|Belo Sun Mining Corp. (BSX.TO)||CA$0.76||CA$341.1||204.0|
|S&P 500 (SPY)||N/A||N/A||0.1|
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||60.5|
- DRDGold Ltd.: DRDGold owns and operates underground mines and surface-retreatment operations in South Africa. The company announced in mid-April that it was resuming work at reduced levels at its Ergo and Far West Gold Recoveries operations. The company said that the resumption was warranted because the C-19 coronavirus infection rate in South Africa had slowed considerably.
- Orla Mining Ltd.: Orla Mining is a Canada-based mineral exploration and development company that acquires, explores, and develops mineral properties. The company explores for gold, silver, zinc, lead, and copper deposits. Orla Mining announced in early April that it had appointed Andrew Cormier to the role of Chief Operating Officer.
- Belo Sun Mining Corp.: Belo Sun Mining is a Canada-based mineral exploration and development company. It’s primarily focused on gold exploration and development of the Volta Grande advanced-staged development project in northern Brazil.
Have a healthy week, Keep the Faith!