Best Gold Stocks of 2020 on the TSX

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Widespread market volatility caused by the coronavirus benefited the gold sector during the first quarter of 2020. Safe haven demand helped the metal retain gains made in 2019 and allowed it to surge as high as US$1,679 per ounce for the first time since 2012.

However, the steady growth displayed in January and February was upended in March, when countries began entering lockdown to safeguard citizens from COVID-19.

The uncertainty that the pandemic infused into the market made the yellow metal volatile — it climbed as high as US$1,679, then dramatically fell to US$1,471 on March 16.

Mine and project shutdowns, plus the closure of four of the world’s top gold refineries, helped motivate the gold price for the rest of the month, and concerns about supply also proved to be a tailwind.

Against that backdrop, a number of gold companies have been able to grow their value and record share price increases. Below the Investing News Network has rounded up the five best gold stocks on the TSX with the biggest share price gains year-to-date.

The list below was generated on April 16, 2020, using TradingView’s stock screener, and all companies listed had market caps above C$50 million at that time.

1. Aura Minerals (TSX:ORA)

Year-to-date gain: 117 percent; current share price: C$56

Diversified company Aura Minerals operates four gold and copper projects in Mexico and South America, and is currently developing an additional three properties.

Shares of Aura experienced their largest quarterly gain in mid-March, when they climbed by 225 percent to trade for C$85.04. According to the company’s full-year results, released in February, the San Andres mine in Honduras produced 115,462 ounces of gold in 2019.

In a report released on March 30, Aura announced it had put the San Andres mine on care and maintenance in compliance with a government lockdown directive. The miner also finalized the purchase of an additional gold project in Arizona called Gold Road.

2. NOVAGOLD (TSX:NG)

Year-to-date gain: 52.6 percent; current share price: C$16.73.

Precious metals company NOVAGOLD is currently focused on the development of its joint venture project, Donlin. The Alaska-based property is equally owned by NOVAGOLD and Barrick Gold (TSX:ABX,NYSE:GOLD).

In a quarterly update released on April 1, the firm described its efforts to safeguard employees from the coronavirus, and provided an update on drill activity at Donlin.

“As global gold production reaches ‘peak gold,’ we believe Donlin Gold’s scarcity value can only get better as the industry depletes its established reserves and begins to seek out replacement in a world where major discoveries have become nearly extinct,” reads the report.

3. Newmont (TSX:NGT)

Year-to-date gain: 48.2 percent; current share price: C$81.93

Global miner Newmont operates gold projects on four continents and produced 6.3 million attributable ounces of gold in 2019.

In a deal that was finalized last year, Newmont acquired Goldcorp for US$10 billion, a transaction that made Newmont the largest gold producer globally.

March was a busy month for the miner — early on, the company sold its stake in Continental Gold (TSX:CNL) for US$260 million. Later in the month, Newmont also finalized the sale of the Red Lake Complex in Ontario for US$375 million.

The company also made several COVID-19 related announcements around health and safety, including the ramping down of operations in Mexico and Peru.

4. Teranga Gold (TSX:TGZ)

Year-to-date gain: 47.2 percent; current share price: C$10.10

West African gold producer Teranga has produced more than 2 million ounces of the yellow metal since entering production in 2010 at its Sabodala project in Senegal.

Teranga also operates the Wahgnion mine in Burkina Faso.

At the end of March, the company released its Q1 projections; the release also includes a section on increased efforts to promote safety and self-isolation in response to COVID-19.

“Production, development and exploration are proceeding as planned and consolidated first quarter production is likely to be between 85,000 and 90,000 ounces as expected,” COO Paul Chawrun noted. “As previously disclosed to the market, this will be Wahgnion’s strongest quarter of the year and Sabodala’s softest quarter due to lower grades processed as a result of pit sequencing.”

5. Barrick Gold

Year-to-date gain: 45.6 percent; current share price: C$34.93

Precious and base metals producer Barrick Gold has gold- and copper-mining operations in 13 countries around the world. Due to the global nature of its business, the miner released several country-specific statements in March around its initiatives to curb the spread of COVID-19.

For Q1, it reported preliminary sales of 1.22 million ounces of gold and 110 million pounds of copper, as well as preliminary first-quarter production of 1.25 million ounces of gold.

According to the release, the company is well-positioned to meet its full-year production targets. A May 6 webinar will outline the company’s full Q1 tallies and plans for the future.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.