Top Gold Stocks for April 2022

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 (NCMGY).

Gold stocks, as represented by the VanEck Gold Miners ETF (GDX), have outperformed the broader market over the past year. GDX has provided a total return of 14.7% over the past 12 months, above the 13.1% total return of the Russell 1000 Index. These market performance numbers and all statistics in the tables below are as of March 22, 2022.

Here are the top five gold stocks with the best value, fastest growth, and 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, as measured by its P/E ratio in this case, then the stock price may rise faster than that of 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
Equinox Gold Corp. (EQX) 8.52 2.6 5.3
Dundee Precious Metals Inc. (DPM.TO) CA$7.87 CA$1.5 5.7
Sibanye Stillwater Ltd. (SBSW) 18.23 12.8 5.9
Torex Gold Resources Inc. (TXG.TO) CA$16.29 CA$1.4 7.6
Calibre Mining Corp. (CXBMF) 1.3 0.6 8.1

Source: YCharts

  • 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 over 1 million ounces.
  • 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 February that its board of directors has declared a first quarter dividend of $0.04 per common share. The dividend, which is payable on April 18, 2022, to shareholders of record as of March 31, 2022, represents a 33% increase to the company’s quarterly dividend.
  • 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., South Africa, and Zimbabwe; gold operations and projects in South Africa; and copper, gold, and platinum metal exploration properties in North and South America. The company also has a 30% stake in a lithium project in Finland. Sibanye Stillwater 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. On March 8, 2022, the company announced that it received a strike notice from the Association of Mineworkers and Construction Union (AMCU) and the National Union of Mineworkers (NUM). The notice said that the unions planned to begin a protected strike action at the company’s South African (SA) gold operations, starting on March 9, 2022. On March 10, the company announced that it had given notice to the Coalition of unions that it would be implementing a lock out of its SA operations. Sibanye-Stillwater said that the union coalition had not made sufficient moves to meet its demands, and thus both parties remain in deadlock.
  • 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 composed of 29,000 hectares in the Guerrero Gold Belt in Mexico. The company’s principal assets include the El Limón Guajes Mine Complex, composed of open pit and underground mines as well as a processing plant; 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.
  • Calibre Mining Corp.: Calibre Mining is a Canada-based, mid-tier gold producer with operations in North and South America. The company operates several producing gold mines in Nicaragua: El Limόn, which covers an area of 12,000 hectares; La Libertad, which covers approximately 10,937 hectares; and Pavon, covering 31.5 square kilometers. It also operates the Pan Gold Mine, located in Nevada. Calibre Mining announced in mid-January that it has successfully completed the acquisition of Fiore Gold Ltd. in a stock and cash transaction. The company issued approximately 101.3 million shares and made an aggregate cash payment of approximately CA$10.2 million ($8.1 million) to complete the transaction.

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 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 figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest Growing Gold Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Wesdome Gold Mines Ltd. (WDO.TO) CA$15.70 CA$2.2 150.0 76.8
Centerra Gold Inc. (CG.TO) CA$12.34 CA$3.7 178.1 14.5
Victoria Gold Corp. (VGCX.TO) CA$18.34 CA$1.1 54.8 48.5
Equinox Gold Corp. (EQX) 8.52 2.6 -2.6 49.2
SSR Mining Inc. (SSRM) 21.70 4.6 74.6 10.0

Source: YCharts

  • 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. It operates the Eagle River Underground Mine in Ontario and is also actively exploring its Kiena Complex, 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 WDOFF.
  • 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, Turkey, and other global markets. The company operates two mines: the Mount Milligan Mine in Canada and the Öksüt Mine in Turkey. Centerra produced 308,141 ounces of gold and 73.3 million pounds of copper in 2021. Centerra also has shares that trade in the U.S. on the New York Stock Exchange (NYSE) under the ticker symbol CGAU. The company announced on Feb. 28 that it has completed its acquisition of Gemfield Resources LLC, which owns the Goldfield District Project. The acquisition was first announced six days earlier with a total purchase price of $206.5 million.
  • Victoria Gold Corp.: Victoria Gold is a Canada-based mineral exploration company. It is engaged in the operation, exploration, and acquisition of mineral properties. The company owns the Dublin Gulch gold property located in northern Canada. The company’s Eagle Gold Mine and Olive Gold Deposits, which together include proven and probable reserves of 3.3 million ounces of gold, are located on the property. Victoria Gold also has shares that trade OTC in the U.S. under the ticker VITFF.
  • Equinox Gold Corp.: See above for company description.
  • 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 711,000 ounces of gold in 2020. SSR Mining announced in mid-January that it has agreed to sell its Pitarrilla project in Mexico to Endeavour Silver Corp. for up to $127 million. The transaction is expected to close in the first half of 2022.

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 past 12 months.

Gold Stocks With the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Wesdome Gold Mines Ltd. (WDO.TO) CA$15.70 CA$2.2 88.9
Gold Fields Ltd. (GFI) 16.40 14.6 83.0
Karora Resources Inc. (KRR.TO) CA$6.40 CA$1.0 82.3
Orezone Gold Corp. (ORE.TO) CA$1.60 CA$0.5 66.7
Rupert Resources Ltd. (RUP.V) CA$5.89 CA$1.0 60.1
Russell 1000 Index N/A N/A 13.1
VanEck Gold Miners ETF (GDX) N/A N/A 14.7

Source: YCharts

  • Wesdome Gold Mines Ltd.: See above for company description.
  • Gold Fields Ltd.: Gold Fields is a South Africa-based gold mining company. It has nine operating mines located in Australia, Peru, South Africa, and West Africa. The company also has a project in Chile. Gold Fields has mineral reserves of approximately 51.3 million ounces of gold. It produced approximately 2.3 million ounces of gold in 2021.
  • 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 primary gold-producing operations are its Beta Hunt Mine, the Higginsville Gold Operations, and Spargos Gold Mine. All three operations are located in Australia along the Norseman-Wiluna Greenstone Belt. Karora Resources also has shares that trade OTC in the U.S. under the ticker KRRGF. The company announced in late January record annual gold production of 112,814 ounces in 2021 from its Beta Hunt and Higginsville mines.
  • Orezone Gold Corp.: Orezone Gold is a Canada-based development company with a 90% ownership interest in Bomboré, one of the largest undeveloped gold deposits in Burkina Faso. The Bomboré project is expected to yield 1.6 million ounces of gold over its 13+ years mine-life. Orezone plans to begin production soon with the first gold expected to be poured in the third quarter of 2022. The company also has shares that trade OTC in the U.S. under the ticker symbol ORZCF.
  • Rupert Resources Ltd.: Rupert Resources is a Canada-based gold mining company focused on the exploration and production of precious and base metals. The company’s main mining operations are located in Finland with a primary focus on the Rupert Lapland Project in the Central Lapland Greenstone Belt. But it also has other properties in central Finland and Canada. Rupert also has shares that trade OTC in the U.S. under the ticker symbol RUPRF.

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 adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in 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.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our
editorial policy.

Source link

Leave a Reply