Gold Stocks: Is Q1 the Best Time to Hold Them?

SmallCapPower | January 11, 2016  Gold is off to another good start to the year. Even during the precious metal’s current bear market, there’s been a perception that gold stocks have performed best between January and March. So, we took a look at the stock-price performance data for North American gold companies during the past four years, comparing first-quarter results.

The Ubika Gold 20 Index (UG20) surged 13.1% this month outperforming both the TSX Gold Index and the gold price, which gained 7.4% and 2.8%, respectively. Over the past 52-weeks, the UG20 is closest to seeing green, dropping a mere 1.7% versus gold’s drop of 8.7% and TSX Gold Index’s decline of 10.8%. SEMAFO Inc. (TSX: SMF) was the top-performing component company this month, climbing 22%.

Figure 1: Average Price Performance of NA Gold Universe
 Source: Thomson Reuters (01/08/2015)

As can be seen, the general performance has been positive 75% of the time. Tax-loss selling in November/December could be influencing these results, but the gold price itself rises or falls for different reasons each year. That be said, the stocks on our list today were the top performers in Q1 of 2015.

SciVacKirkland Lake Gold Inc. (TSX: KGI) – $5.26
Kirkland Lake Gold Inc. is a Canada-based gold mining company operating and exploring for gold in Kirkland Lake, Ontario, which is located in the Lower Abitibi Greenstone belt in northeastern Ontario. The Company owns the five former high-grade mines that produced 22 million ounces of gold at an average grade of 15.1 grams per tonne.

Market Cap: $302,260,462
Price Change (Jan-Mar 2015): 49%
Revenue (LTM): $176,609,878
Total Equity (LFQ): $237,929,030

SciVacBanro Corp. (TSX: BAA) – $0.295
Banro Corporation (Banro) is a gold mining company that holds a 100% interest in its four gold properties (Twangiza, Namoya, Lugushwa and Kamituga) through four Democratic Republic of the Congo (DRC) subsidiaries. The Company is focused on production from the Twangiza gold mine in the DRC, and is engaged in the development of two additional wholly-owned gold projects, Lugushwa and Kamituga.

Market Cap: $54,655,643
Price Change (Jan-Mar 2015): 53%
Revenue (LTM): $157,282,000
Total Equity (LFQ): $438,306,000

SciVacIntegra Gold Corp. (TSXV: ICG) – $0.34
Integra Gold Corp. is a Canada-based exploration-stage resource company engaged in the acquisition and exploration of mineral properties. It is focused on Lamaque gold project (consisting of the Lamaque South and Sigma-Lamaque properties) located in Val-d’Or, Quebec. It holds a number of properties in Canada, which are separated into three resource property groupings: Lamaque properties, the Abitibi Greenstone Belt properties in Quebec and Ontario, and the British Columbia properties.

Market Cap: $87,216,263
Price Change (Jan-Mar 2015): 50%
Revenue (LTM): $0
Total Equity (LFQ): $53,704,888

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