Best Gold Stocks of 2018 on the TSX

The gold price managed to stay above US$1,300 per ounce in the first quarter of the year, reaching a quarterly peak of US$1,357.70 on January 24.

As investors watch interest rate hikes, political uncertainty and a depressed US dollar, they are turning to the yellow metal as a safe-haven asset.

Overall, the gold price has increased about 3.8 percent year-to-date, and the best gold stocks have seen even greater gains.

The list below was generated on March 27 using the Globe and Mail’s market data filter, and it shows the TSX-listed gold companies that have seen the biggest share price gains so far this year. Only companies with market caps above $50 million as of that date are included.

1. Primero Mining (TSX:P)

Current price: C$0.25; year-to-date gain: 177.78 percent

Primero Mining is a precious metals producer that owns 100 percent of the San Dimas gold-silver mine. In January, the company entered into an agreement that will result in its acquisition by First Majestic Silver (TSX:FR,NYSE:AG).

Joseph Conway, interim president and CEO of Primero, commented on the deal, stating, “[w]e are very pleased at the overwhelming support by our stakeholders for this transaction with First Majestic. It provides our shareholders an attractive immediate premium as well as retaining exposure to the high quality, long-lived San Dimas asset that they invested in, with the benefit of a significantly reduced stream. Our debenture holders will also benefit by being paid out at par plus accrued interest.”

The transaction, which is expected to close before the end of April, will increase First Majestic’s presence within silver space, while still supporting its strong gold performance.

2. Teranga Gold (TSX:TGZ)

Current price: C$4.20; year-to-date gain: 42.86 percent

Teranga Gold is an emerging mid-tier, multi-jurisdictional West African gold company focused on production, development and exploration. It owns and operates the Sabodala gold mine, the only gold mine and mill in Senegal.

After exceeding its 2017 production guidance by delivering a record 225,000 ounces, Teranga is forecasting gold production of between 210,000 and 225,000 ounces in 2018 at Sabodala.

On the back of impressive recoveries at Sabodala, Teranga secured a total of US$200 million by early March. It will use the funds for a feasibility study for its Golden Hill project.

3. Corvus Gold (TSX:KOR)

Current price: C$2.24; year-to-date gain: 40 percent

Corvus Gold joins our best gold stocks list for the third time since last year. The exploration and development company is focused on its near-term gold-silver North Bullfrog project in Nevada. Corvus also controls a number of royalties on North American gold, silver and copper exploration projects.

In early January, the company continued to expand its Mother Lode deposit, drilling 70.1 meters at 1.45 g/t; it said results were thick, “shallow-dipping near-surface” and high grade. In March, Corvus expanded the east portion of that deposit, with results outlining a system at least 400 meters long.

4. Brio Gold (TSX:BRIO)

Current price: C$2.43; year-to-date gain: 24.62 percent

Brio Gold is an established mining company with significant gold producing, development and exploration-stage properties in Brazil. Brio Gold’s portfolio includes three operating gold mines.

At the beginning of January, the company announced that it had set its 2018 guidance at 75,000 to 85,000 ounces of gold, with expected cash costs of C$790 to C$820 per ounce. In addition, the powerline connecting its RDM mine to the grid is on schedule for completion in Q2 2018. That should “drive further cost improvements going forward with throughput increases and lower energy cost.”

Toward the end of January, the company began the initial phase of being acquired by Leagold Mining (TSX:LMC), resulting in an implied equity value for Brio Gold of C$314 million.

5. Avesoro Resources (TSX:ASO,LSE:ASO)

Current price: C$4.10; year-to-date gain: 17.14 percent

Avesoro Resources is engaged in the exploration and development of gold deposits in highly prospective and underexplored areas of Liberia and Cameroon.

The company has had a busy first quarter. In February, the board approved a US$25-million exploration program for 2018. The company also entered into finance agreements for the purchase of heavy mining equipment and additional auxiliary equipment totalling approximately US$10.3 million.

In March, Avesoro announced annual gold production guidance for 2018 of 220,000 to 240,000 ounces of gold at an operating cash cost of US$620 to US$660 per ounce.

Editor’s note: Midas Gold’s (TSX:MAX) share price was up 60 percent year-to-date as of March 27; however, it was not picked up by the Globe and Mail’s market data filter, which was used to generate the information used in this article.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Nicole Rashotte, currently hold no direct investment interest in any company mentioned in this article.