The gold stocks on our list have quietly been racking up returns despite the lackluster performance of their peer group
SmallCapPower | January 11, 2018: Gold prices have risen 5.9% during the past month due to uncertainty on the effects of the U.S. tax bill and the expectation of higher interest rates. This lifted the GDXJ 9.4%, but many smaller gold producers were struggling prior to this rise. Today we have discovered three gold stocks that have thrived despite the lackluster performance of their peer group.
Aura Minerals Inc. (TSX:ORA) – $2.77
Gold
Aura Minerals is a gold and copper company operating primarily in Latin America. The Company operates two gold mines in San Andres and Ernesto/Pau-a-Pique, producing 135,000 ounces per year. The Company has an impending merger with Rio Novo Gold Inc. (TSX:RN).The Company’s name shall remain Aura Minerals, Aura will acquire all Rio Novo shares, and Rio Novo shareholders will receive 0.053 of an Aura common share per Rio Novo share. This merger adds a potential development project in Almas, for which feasibility studies have been conducted and further development is planned.
- Market Cap: $101.7 Million
- 1 Month Total Return: 38.5%
- 3 Month Total Return: 45.8%
- Peer Median 3 Month Total Return: -2.6%
- 52 Week Total Return: 62.9%
Red Eagle Mining Corp. (TSX:R) – $0.33
Diversified Mining
Red Eagle is a Canada-based gold company operating in Columbia. The Company’s 100% owned Santa Rosa project expects to produce 50,000 ounces of gold in 2018. The Company’s exploration subsidiary, Red Eagle Exploration Ltd. (TSXV:XR), is developing projects in Vetas, California, and Santa Ana in Columbia.
- Market Cap: $124.0 Million
- 1 Month Total Return: 11.9%
- 3 Month Total Return: 29.4%
- Peer Median 3 Month Total Return: -2.6%
- 52 Week Total Return: -59.3%
Caledonia Mining Corporation Plc (TSX:CAL) – $9.10
Gold
Caledonia Mining is a gold company operating in Zimbabwe. The Company runs the Blanket Gold Mine in the Gwanda Greenstone Belt. CAL produced 55,000 ounces of gold in 2017, and plans to expand production to reach 80,000 ounces by 2021.
- Market Cap: $97.1 Million
- 1 Month Total Return: 7.1%
- 3 Month Total Return: 27.7%
- Peer Median 3 Month Total Return: -2.6%
- 52 Week Total Return: 1.0%
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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