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 mining companies Franco Nevada Corp. (FNV), Newmont Corp. (NEM), and Newcrest Mining Ltd. (NCM).
Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have dramatically outperformed the broader market. GDX has provided a total return of 35.6% over the past 12 months, well above the Russell 1000’s total return of 19.7%, as of December 21. All statistics in the tables below are as of December 22.
Here are the top 3 gold stocks with the best value, the fastest growth, and the most momentum.
Best Value Gold Stocks
These are the gold stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Gold Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Sibanye Stillwater Ltd. (SBSW)||15.79||11.6||4.3|
|Jaguar Mining Inc. (JAG.TO)||CA$7.34||CA$0.5||6.9|
|Kinross Gold Corp. (K.TO)||CA$9.64||CA$12.1||8.5|
- Sibanye Stillwater Ltd.: Sibanye Stillwater is a South Africa-based mining company that develops and extracts mineral properties. The company serves customers in South Africa and the U.S. On December 11, Sibanye Stillwater announced that it would make odd-lot and specific offers to shareholders holding up to 100, and between 100 and 400, shares of company stock. The offer price would constitute a premium of 5% on the stock’s listed price.
- Jaguar Mining Inc.: Jaguar is a Canada-based mining company that explores, develops, and operates gold properties in Brazil. On November 9, Jaguar reported a 14-fold increase in net income as well as an 89.1% year-over-year (YOY) increase in revenue in Q3 2020. The company posted its fifth consecutive quarter of increased gold production.
- Kinross Gold Corp.: Canada-based Kinross Gold is a gold exploration, development, and production company. The firm has operations in the U.S., Brazil, Mauritania, Chile, Russia, and Ghana.
Fastest Growing Gold Stocks
These are the gold stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Gold Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Jaguar Mining Inc. (JAG.TO)||CA$7.34||CA$0.5||1,060|
|Eldorado Gold Corp. (ELD.TO)||CA$16.67||CA$2.9||673|
|Dundee Precious Metals Inc. (DPM.TO)||CA$9.23||CA$1.7||631|
- Jaguar Mining Inc.: See company description above.
- Eldorado Gold Corp.: Eldorado is a Canada-based gold mining company. The company has operations throughout the world, including Brazil, China, Turkey, and Greece. The company reported a 35% increase YOY in gold production for Q3 2020 along with a 66.9% jump in revenue and a nearly 10-fold surge in net earnings.
- Dundee Precious Metals Inc.: Dundee Precious Metals is a Canada-based gold mining and processing company with operations around the world. Currently its main subsidiaries are: Dundee Precious Metals Chelopech, which operates a mine in Bulgaria; Dundee Precious Metals Krumovgrad, which is developing a gold mine in Bulgaria; and Dundee Precious Metals Tsumeb, which owns and operates a processing facility in Namibia. It also has partial stakes in developing gold mines in Canada and Serbia, as well as a 9.4% stake in Sabina Gold & Silver Corp. and a 19.4% stake in INV Metals Inc. On December 22, Dundee sold mining software and consulting firm, MineRP Holdings Inc., to Epiroc Rock Drills AB for $40 million, plus debt.
Gold Stocks with the Most Momentum
These are the gold stocks that had the highest total return over the last 12 months.
|Gold Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Jaguar Mining Inc. (JAG.TO)||CA$7.34||CA$0.5||368.0|
|Tudor Gold Corp. (TUD.V)||CA$2.67||CA$0.5||323.8|
|Pure Gold Mining Inc. (PGM.V)||CA$2.76||CA$1.1||278.1|
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||35.6|
- Jaguar Mining Inc.: See above for company description.
- Tudor Gold Corp.: Tudor is a Canada-based mining company focused on the exploration and development of precious metals. The company targets mining operations in the area of British Columbia known as the Golden Triangle.
- Pure Gold Mining Inc.: Pure Gold Mining is a Canada-based gold exploration company with operations in Canada. In December, the company reported that the first ore from its high-grade PureGold Mine in Red Lake, Ontario had been introduced to the mill, marking a major production milestone. The company says this will be followed by a full ramp-up of its mining and milling operations in the coming quarter.
YCharts. “Financial Data.” Accessed Dec. 22, 2020.
Sibanye Stillwater Ltd. “Finalisation announcement in relation to the proposed Odd-lot Offer and a Specific Offer,” Pages 1-3. Accessed Dec. 22, 2020.
Jaguar Mining, Inc. “Jaguar Mining Reports Strong Third Quarter 2020 Financial Results.” Accessed Dec. 22, 2020.
Eldorado Gold Corp. “Condensed Consolidated Interim Statements of Operations
For the three and nine months ended September 30, 2020 and 2019,” Page 2. Accessed Dec. 22, 2020.
Dundee Precious Metals.”About Us.” Accessed Dec. 23, 2020.
Dundee Precious Metals.”Dundee Precious Metals Announces Sale of MineRP.” Accessed Dec. 23, 2020.
Pure Gold Mining Inc. “PUREGOLD DELIVERS FIRST ORE TO THE MILL.” Accessed Dec. 22, 2020.