Gold has long been regarded as a safe haven for investors in times of market turmoil. Many investors have gained exposure to the gold industry by investing in stocks of companies engaged in the exploration and mining of the precious metal. Some of the biggest names in the gold mining industry include Barrick Gold Corp. (ABX), Newmont Goldcorp Corp. (NEM), and Franco Nevada Corp. (FNV). Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have dramatically outperformed the S&P 500 over the past year. GDX posted a 12-month trailing return of 34.7% versus the S&P's 26.4% as of January 8, 2020.
Below, we'll look at the top three gold stocks for best value, fastest growth, and most momentum.
Best Value Gold Stocks
Here 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|
|Gran Colombia Gold Corp. (GCM.TO)||5.54CAD||0.3||8.2|
|K92 Mining Inc. (KNT.V)||3.19CAD||0.7||10.6|
|Semafo Inc. (SMF.TO)||2.52CAD||0.9||13.4|
- Gran Colombia Gold Corp.: Gran Colombia Gold, based in Toronto, is a mineral exploration and production business with a particular focus on gold and silver resources in Colombia. In Q3 2019, Gran Colombia Gold generated revenue of $83.0 billion (USD), up from $66.6 billion a year earlier.
- K92 Mining Inc.: Vancouver, Canada-based K92 Mining is a mineral exploration and production firm focused on the Kainantu mine in Papua New Guinea. In December 2019, K92 Mining announced completion of a critical exploration phase in the Blue Lake region nearby the Kainantu area.
- Semafo Inc.: Semafo is a Canadian gold miner which operates two gold mines in the West African country of Burkina Faso. As of December, the Boungou mine, a site at which a November attack on employees, contractors, and suppliers left at least 39 dead, was still closed.
Fastest Growing Gold Stocks
Here are the gold stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Gold Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Semafo Inc. (SMF.TO)||2.52CAD||0.9||2030.0|
|Agnico Eagle Mines Ltd. (AEM.TO)||59.21||14.2||361.8|
|SSR Mining Inc. (SSRM.TO)||18.22||2.2||243.5|
- Semafo Inc.: See above for company description.
- Agnico Eagle Mines Ltd.: Agnico Eagle is a Canadian gold mining company with mines in Canada, Finland, and Mexico.
- SSR Mining Inc.: Canadian mining operation SSR Mining is involved in the operation, development, exploration, and acquisition of a variety of gold and silver projects. In Q3 2019, SSR Mining reported revenue of $74.8 million, up from $71.8 million the year prior.
Gold Stocks with the Most Momentum
These are the gold stocks that had the greatest price change over the past 12 months.
|Gold Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Price Change (%)|
|K92 Mining Inc. (KNT.V)||3.19CAD||0.7||228.9|
|Alacer Gold Corp. (ASR.TO)||6.54CAD||2.1||155.5|
|S&P 500 (SPX)||N/A||N/A||26.4|
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||34.7|
- Sibanye-Stillwater: Marketing and selling precious minerals in the U.S. and South Africa, Sibanye-Stillwater is focused on mining, extracting, and processing gold and platinum group metals. In Q3 2019, Sibanye-Stillwater reported a 240% YOY increase in adjusted EBITDA.
- K92 Mining Inc.: See company description above.
- Alacer Gold Corp.: Alacer is a Canadian gold mining and processing firm with an 80% interest in a gold mine in Turkey.
Gran Colombia Gold Corp. "Q3 Financial Statements," Page 3. Accessed Jan. 8, 2020.
K92 Mining Inc. "K92 Mining Exploration Update – Blue Lake Porphyry Prospect," Accessed Jan. 8, 2020.
Semafo, Inc. "SEMAFO: Corporate and Operational Update," Accessed Jan. 8, 2020.
SSR Mining, Inc. "SSR Mining Reports Third Quarter 2019 Results," Accessed Jan. 8, 2020.
Sibanye-Stillwater. "Operating Update: Quarter Ended 30 September 2019," Page 1. Accessed Jan. 8, 2020.