The gold mining stocks we’ve uncovered have seen eye-popping stock price gains over the past five years
SmallCapPower | February 11, 2019: Driven by global economic uncertainty, inflation, and political unrest over US/China trade talks and Brexit, gold prices have increased to US$1,300/oz from US$1,200/oz over the past four months. The gold mining stocks on our list today have seen average cumulative returns of 725% over the past five years, vastly outperforming the Van Eck Gold Miners ETF GDX, and the Van Eck Junior Gold Miners ETF GDXJ, which decreased -14.4% and -25.4%, respectively, over the same period. That being said, continued economic uncertainty, fueled by Brexit woes, could create additional upside for these companies.
*Share prices as at close February 7, 2019, data obtained from S&P Capital IQ
Kirkland Lake Gold Ltd (TSX:KL) – $43.37
Kirkland Lake Gold is a 770,000 oz gold producer with four operating mines in Australia and Canada. The Company’s flagship asset is the Fosterville Mine in Australia, also known as the largest gold mine in the state of Victoria. Its largest Canadian asset is the Macassa Mine in Kirkland Lake. On August 2, 2018, Kirkland Lake announced record-setting operating cash flow of $120.9M, a 56% increase from Q2/2017. Subsequently, the Company improved its full-year 2018 consolidated guidance to 630,000 oz of production and operating cash costs to US$400 – $425/oz of gold sold.
- Market Cap: $9.09 Billion
- 5-Year Share Price Return: +1,811.8%
- 4-Month Return: +77.2%
- 1-Month Return: +26.0%
Wesdome Gold Mines Ltd. (TSX:WDO) – $4.89
Wesdome Gold Mines is a 64,000 to 67,000 oz gold producer situated in northern Ontario (operating) and Quebec (development). The Company aims to diversify its production through the development of its Kiena Complex located in Val d’Or, Quebec. On January 16, the Company released its Q4/18 production results and 2019 guidance. Shortly after, National Bank Financial Analysts reduced their FY2019 EPS estimates of $0.20 to $0.19 for the year. National Bank Financial also increased the Company’s target price on the stock from $4.75 to $5.00, resulting in a 20% increase in share price over nine days.
- Market Cap: $660.3 Million
- 5-Year Share Price Return: +537.5%
- 4-Month Return: +38.1%
- 1-Month Return: +9.9%
Harte Gold Corp. (TSX:HRT) – $0.38
Harte Gold is a Canada-based company that engages in the acquisition, exploration, and development of mineral resource properties, focusing on gold properties in Ontario. The Company has interests in exploration projects such as the Sugar Zone Property located 60 kilometers east of the Hemlo area gold mines and the Stoughton-Abitibi property located over 110 kilometers east of Timmins and about 50 kilometers north-east of Kirkland Lake. The Company’s exploration focus is the Sugar Zone property, consisting of approximately 29,425 hectares, covering the entire Greenstone Belt. On September 21, 2018, the Company’s share price surged 17%, after announcing it has received all necessary operating permits from the Government of Ontario to start its commercial production at its Sugar Zone location.
- Market Cap: $224.9 Million
- 5-Year Share Price Return: +471.4%
- 4-Month Return: -7.3%
- 1-Month Return: -11.6%
Atlantic Gold Corporation (TSXV:AGB) – $1.84
Atlantic Gold Corporation is a gold mining company that focuses on the acquisition, exploration, and development of gold properties in Canada. The Company’s Touguoy Gold Project in Nova Scotia covers an area of 1,760 hectares, and it holds a 100% interest in its Beaver Dam Gold Project. On January 22, 2019, the Company released positive drill results at its 149 Gold Deposit, resulting in an 18% stock-price increase.
- Market Cap: $435.7 Million
- 5-Year Share Price Return: +600.0%
- 4-Month Return: +11.5%
- 1-Month Return: +6.4%
Victoria Gold Corp. (TSXV:VIT) – $0.48
Victoria Gold engages in the acquisition, exploration, and evaluation of gold and minerals in Canada and the United States. The Company’s principal asset is the Dublin Gulch property in central Yukon, Canada, which hosts the Eagle Gold Deposit covering approximately 555 sq. km. Construction is well underway and is expected to be in production in H2/19, producing about 200,000 oz of gold per year for the next 10-11 years, becoming the largest gold mine in Yukon. On January 18, the Company reported its 2018 analytical results from the 2018 Nugget surface trench campaign on its Dublin Gulch Property, highlighted by 124.0 meters of 3.50 g/t gold, resulting in a 16% share-price increase.
- Market Cap: $381.2 Million
- 5-Year Share Price Return: +206.3%
- 4-Month Return: +40.0%
- 1-Month Return: +19.5%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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