Best Gold Stocks 2016: The TSX's Top Performers

Without a doubt, it’s been an interesting year for the gold price. Mid-year, the yellow metal reached $1,365.40 following the United Kingdom’s decision to leave the European Union and naturally dropped off slightly after that. Ever since Donald Trump was elected the next president on November 8, the gold price has seen near nine-month lows; however, gold mining companies are still faring well despite the gold price’s recent tumble.
On that note, gold stocks in 2016 have outperformed gold stocks in 2015 with some reaching over 300 percent in 2016. So, with that being said, here is a list of the S&P/TSX Composite index (INDEXTSI:OSPTX)’s best gold stocks 2016. For those interested in 2015 data, it be found at the bottom of this article.
The list below was generated using The Globe and Mail’s market data filter, and does not include companies with a market cap of less than $50 million. For investors concerned about the current state of the gold market, it may provide some reassurance that there is still money to be made.

1.  Erdene Resource Development (TSX:ERD)

Current price: $0.81; 2016 percentage gain:337.50 percent
Erdene Resource Development has a diverse portfolio of projects containing gold, as well as silver, lead, zinc, molybdenum and copper. That said, the company’s projects include two significant gold discoveries (Bayan Khundii and the Altan Nar projects, of which Erdene owns 100-percent interest.

Discovered in the second quarter of 2015, Erdene’s Bayan Khundii project has–according to the company–become its “highest priority project” based on the high grades, zones coming to the surface, and size potential.
In December 2016, the company announced drill results from its Altan Nar gold project and Altan Arrow gold-silver project in Mongolia.

2.  Golden Star Resources (TSX:GSC)

Current price: $1.00; 2016 percentage gain: 321.28 percent
Golden Star Resources has the Wassa and Prestea mines on the Ashanti Gold Belt in Ghana.  The company owns the Wassa Gold Mine and processing operations through a 90 percent subsidiary, and has mineral reserves of 1.5 million ounces of gold. The Prestea Gold Mine has been in operation for over 100 years and has produced over 9 million ounce of gold, to date. The mine was acquired by Golden Star Resources in 2002.
Most recently, the company’s quarter 3 2016 results were released, noting it remains on track to achieve 2016 full year production, with 22,290 ounces from the Wassa Gold Mine and 22,684 ounces from the Prestea Gold Mine.

3. Gabriel Resources (TSX:GBU)

Current price: $0.58; 2016 percentage gain: 278.57 percent
Gabriel Resources is currently focused on permitting and developing its Rosia Montana gold and silver project in Romania. According to the company’s website, the project has measured and indicated resources of 171 million ounces of gold as well as 1.1 million ounces of silver.
The company is also exploring its Bucium project, targeting epthermal gold-silver as well as porphyry copper-gold deposits.
Gabriel Resources released its 2016 third quarter report in November. Despite the company’s efforts to permit and develop the Rosia Montana project, Gabriel Resources has struggled with its advancement, noting it will be pursuing an ICSID Attribution claim against Romania.

4. Luna Gold (TSX:LGC)

Current price: $1.66; 2016 percentage gain: 253.33 percent
Luna Gold operates the Aurizona Mine. In September 2016, a prefeasibility study was released, which is based on a new mine plan. According to the study, it outlines an average production of 150,000 ounces of gold per year for the first five years. Currently, a feasibility study is in the works, results of which are expected in the first quarter of 2017. Operations are expected to restart at the mine in late 2018.

5.  Vista Gold (TSX:VGZ)

Current price: $1.31; 2016 percentage gain: 232.47 percent
Vista Gold’s focus is currently on the Mt Todd gold project in Australia, with hopes of advancing the project towards development. Acquired in 2006 by the company, the project contains no less than 7.4 million ounces of gold.
On that note, the company most recently announced results of a process area optimization, which have shown the potential to enhance project economics for the Mt Todd gold project.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.