CGAU, SAND, and KNT.TO are top for value, growth, and momentum, respectively.
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., Newmont Corp., and Australia-based Newcrest Mining Ltd.
Gold stocks—as represented by an exchange-traded fund (ETF), the VanEck Gold Miners ETF (GDX)—have underperformed the broader market over the past year. GDX has provided a total return of -20.8% over the past 12 months, below the -15.2% total return of the Russell 1000 Index.
These market performance numbers, and all statistics in the tables and company developments below, are as of Sept. 22, 2022.
Here are the top five gold stocks with the best value, fastest growth, and most momentum.
Best Value Gold Stocks
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 price-to-earnings (P/E) ratio. Value investors believe that if a business is cheap compared with its intrinsic value—in this case, as measured by its P/E ratio—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.
- Centerra Gold Inc.: Centerra Gold is a Canada-based gold and copper mining and exploration company. It engages in the operation, exploration, development, and acquisition of gold and copper properties in British Columbia, Canada and Turkey. As of Dec. 31, 2021, the company’s proven and probable gold mineral reserves included roughly 4.9 million ounces. On Sept. 6, Centerra announced that director Paul Wright would act as interim president and chief executive officer (CEO), replacing Scott Perry. Wright was previously president and CEO of Eldorado Gold Corp. The search for a new CEO is in process.
- 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 OTC in the U.S. under the ticker symbol TORXF.
- Sibanye Stillwater Ltd.: Sibanye Stillwater is a South Africa-based mining and metals processing company. Its operations focus on platinum group metal, gold, copper, and zinc. It has operations in the U.S., Zimbabwe, South Africa, Australia, and elsewhere. The company produced 1.1 million ounces of gold in 2021.
- i-80 Gold Corp.: i-80 Gold is a Canada-based gold mining company with operations primarily in Nevada, and it is engaged in exploration, development, and production. It is 100% owner of the 12,000-acre Lone Tree site in northern Nevada and has four other properties in various stages of development as well. On Aug. 30, the company reported that it had discovered high-grade deposits at its Ruby Hill property in Nevada. i-80 says it expects to eventually produce gold, silver, and base metals at the zone.
- Victoria Gold Corp.: Victoria Gold is a Canada-based gold mining company. It is 100% owner of the Dublin Gulch property in central Yukon, which includes the Eagle Gold Mine. The Eagle Gold Mine is expected to produce 165,000 ounces of gold in 2022, with a reserve of 2.7 million ounces of gold as of Dec. 31, 2021. Victoria Gold shares also trade OTC in the U.S. under the ticker VITFF. On Aug. 12, Victoria Gold reported financial results for Q2 2022. Net income surged more than 13-fold as revenue climbed by 9.2% YOY. Higher average realized price was one of the factors impacting performance.
Fastest Growing Gold Stocks
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 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.
- Sandstorm Gold Ltd.: Sandstorm Gold is a Canada-based gold royalty company that provides financing to gold mining companies in exchange for the right to a percentage of gold produced from mines. The company has a portfolio of 250 royalties. Sandstorm announced on Aug. 31 that it had completed the first portion of its reverse takeover of Horizon Copper Corp. The process included Sandstorm Gold’s sale of its 30% interest in the Hod Maden project to Horizon and received a $200 million gold stream on production from Hod Maden. Sandstorm said the transactions will return the company to its roots as a pure-play royalty and streaming company.
- Agnico Eagle Mines Ltd.: Agnico Eagle Mines is a Canada-based gold mining company with operations in Canada, Australia, Finland, and Mexico. It has additional development and exploration projects in the U.S. and Colombia. The company forecasts gold production of 3.2 million to 3.4 million ounces in 2022.
- Anglogold Ashanti Ltd.: AngloGold Ashanti is a South Africa-based gold mining company with operations, projects, and exploration activities spanning nine countries. The company also produces silver and sulfuric acid as byproducts in South America. The company produced approximately 2.5 million ounces of gold and employed an average of nearly 31,000 people in 2021. On Aug. 30, AngloGold announced the appointment of Gillian Doran as chief financial officer (CFO) and executive director of the company, effective Jan. 1, 2023. Doran previously was chief financial officer – Aluminum at Rio Tinto Group.
- Calibre Mining Corp.: Calibre Mining is a Canada-based 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 also has shares that trade OTC in the U.S. under the ticker symbol CXBMF. On Aug. 9, Calibre reported Q2 2022 earnings results. Net income climbed by 29.8% YOY on surging revenue. Record quarterly production was partly offset by industry-wide inflationary pressures.
- OceanaGold Corp.: OceanaGold is an Australia-based gold producer engaged in the development, exploration, and operation of gold properties. The company also produces copper and silver. Its operations include the Didipio Mine in the Philippines; Macraes and Waihi operations in New Zealand; and the Haile Gold Mine in the U.S. The company employs over 2,300 people. OceanaGold also has shares that trade OTC in the U.S. under the ticker symbol OCANF.
Gold Stocks With the Most Momentum
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 gold stocks that had the highest total return over the last 12 months.
- K92 Mining Inc.: K92 Mining is a Canada-based gold mining company. It operates the Kainantu Gold Mine in Papua New Guinea. The company also has 11 drill rigs involved in exploration projects in various regions. K92 shares trade OTC in the U.S. under the ticker KNTNF. On Sept. 11, K92 announced that it had been included in the Toronto Stock Exchange’s 2022 TSX30. TSX30 is a program recognizing the 30 top-performing stocks on the TSX based on dividend-adjusted share price appreciation over a three-year period.
- Yamana Gold Inc.: Yamana Gold is a Canada-based precious metals producer. Its portfolio includes gold and silver producing properties in Canada, Brazil, Chile, and Argentina. In 2021 it produced over 1 million gold-equivalent ounces. Gold equivalent production for the year was 88% of the company’s total production and silver was 12%. On May 31, Yamana Gold announced that Gold Fields Ltd. (GFI) would acquire Yamana. The transaction is valued at $6.7 billion and is expected to close in the second half of 2022.
- Osisko Mining Inc.: Osisko Mining is a Canada-based mineral exploration company which acquires, explores, and develops gold-yielding properties in Canada. Osisko owns several mining properties, including a 100% interest in the Windfall gold deposit in Quebec. Osisko shares also trade OTC in the U.S. under the ticker OBNNF. The company reported in mid-Sept. that its drill program had demonstrated “additional potential growth of the resource base” at Windfall.
- Sandstorm Gold Ltd.: See company description above. Note that this listing is for Canada-listed shares of Sandstorm Gold.
- Alamos Gold Inc.: Alamos Gold is a Canada-based gold producer. It operates three mines located in Canada and Mexico. It also has additional projects in development in Canada, Mexico, Turkey, and the U.S. The company employs over 1,700. Alamos Gold trades in the U.S. under the ticker AGI.
The Impact of the U.S. Dollar on Gold Stocks
The U.S. dollar, or greenback, has had a longstanding relationship with gold dating back to the introduction of the gold standard in the 1880s, where paper money was directly linked to a specific amount of the yellow metal. Although former president Franklin D. Roosevelt removed the gold standard in 1933, the Greenback still closely correlates with gold—and subsequently gold stocks—as the metal is priced in U.S. dollars.
Typically, a strong U.S. dollar means weaker gold prices as demand for the precious metal eases from buyers using foreign currencies. Conversely, demand increases when the greenback loses value, making gold cheaper for offshore buyers.
Although the U.S. dollar and gold often have an inverse relationship, both can move in the same direction. For example, during periods of global uncertainty, both assets may rise as investors flock to safe-haven investments. Due to its finite supply, gold is seen as a hedge against inflation, while the greenback’s status as the global reserve currency makes it sought after during times of risk aversion.
Advantages of Holding Gold Stocks in Your Portfolio
Two key advantages of holding gold stocks include leveraged upside and liquidity.
Leveraged Upside and Diversification: Buying gold stocks allows investors to effectively take a leveraged bet on the yellow metal’s price, as miners can increase production and grow their sales when gold rises in value. Because gold stocks closely follow the commodity’s price, the sector also provides a partial hedge against inflation, helping to diversify a “risk-on” equity portfolio.
Gold Discoveries: Large discoveries can significantly increase gold mining stocks’ prices, particularly if a junior miner has a small market capitalization. For instance, Canadian junior explorer Enduro Metals Corporation (ENDMF) announced that it had intersected gold in one of its mines in May 2021. Subsequently, shares of the $32.43 million miner more than doubled over the next several months.