Best Gold Stocks of 2020 on the TSX

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After a challenging Q1, gold has rocketed higher, climbing 18 percent from its mid-March low.

Fallout from the COVID-19 market panic sent all asset classes plummeting during the third month of the year, but gold has been able to reclaim lost ground faster than other commodities.

The quick turnaround has benefited producers of the yellow metal, many of which have experienced substantial growth in share value.

Gold’s longstanding safe haven nature is expected to propel the metal higher amid continued uncertainty, and that is seen buoying producers with strong portfolios.

With that in mind, 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 July 7, 2020, using TradingView’s stock screener, and all companies listed had market caps above C$50 million at that time.

1. Freegold Ventures (TSX:FVL)

Year-to-date gains: 2,116.6 percent; current share price: C$1.35

Explorer Freegold Ventures is currently engaged in developing its Golden Summit project near Fairbanks, Alaska. The company also operates the Shorty Creek copper and gold project in Livengood, Alaska.

Shares of Freegold began trending higher in May and surged significantly in June, adding 156 percent to the stock’s value. The price bump was unexpected and prompted the firm to release a statement.

“(Freegold) wishes to confirm that it is not aware of any material, undisclosed information that would account for the recent increase in market price and level of trading volume of its ordinary shares,” the release from Freegold reads in part.

Presently, a 10,000 meter diamond drill program is underway at Golden Summit.

2. International Tower Hill Mines (TSX:ITH)

Year-to-date-gain: 251.4 percent; current share price: C$2.59

Also focused on Alaska is International Tower Hill Mines, which owns the Livengood gold project. The firm says the resource is the largest gold-only deposit in North America not owned by a major miner.

In early May, as the gold price was strengthening, International Tower Hill announced plans to prepare a prefeasibility study on the Livengood project.

Marcelo Kim, chairman, explained, “… (W)e believe that in a rising gold price, the Livengood project becomes one of the most coveted and substantial assets in a geopolitically safe jurisdiction, in a time when most gold companies are struggling to replenish their reserves.”

Shares of the company climbed to C$2.42 on June 30, a 324 percent increase from C$0.57 on April 1.

3. Erdene Resource Development (TSX:ERD)

Year-to-date gains: 214 percent; current share price: C$0.52 

Operating in Mongolia, Erdene Resource Development is currently developing a high-grade, open-pit mine at Bayan Khundii capable of producing 60,000 ounces per year. Erdene is also engaged in exploration and acquisition efforts.

Shares of the developer started the three month period down 19.9 percent for the year. A consecutive stream of positive project updates helped propel its shares from C$0.14 to C$0.36 by the end of quarter.

During the last update for the period, President and CEO Peter Akerley said, “(T)he current drill program has confirmed continuity of a new near-surface gold zone, southeast of the main midfield orebody, with multiple intersections containing visible gold.”

The samples that were collected have been sent for analysis, with results expected during Q3.

4. Jaguar Mining (TSX:JAG)

Year-to-date gains: 176.9 percent; current share price: C$0.59

Gold miner Jaguar Mining operates three gold complexes located in Brazil. The firm’s primary focuses are the Turmalina mine and Caeté gold complex, which includes the Pilar mine. Jaguar also owns the Paciência project, which was put on care and maintenance in 2012.

In its second quarter report, Jaguar announced the production of 23,483 ounces of gold.

“We are pleased to be able to announce our continued progress toward our goal of sustainable production of 25,000 ounces per quarter,” said CEO Vern Baker. “Our teams at Pilar and Turmalina continue to make steady strides to build the foundation of a strong company.”

The Q2 tally is 28 percent higher than the same period in 2019.

5. Guyana Goldfields (TSX:GUY)

Year-to-date gains: 150 percent: current share price: C$1.74

It has been an active quarter for Guyana Goldfields, which fought off a hostile takeover in May from Gran Colombia Gold (TSX:GCM,OTCQX:TPRFF). The proposed deal would have seen both Guyana Goldfields and Gold X Mining (TSXV:GLDX,OTCQX:SSPXF) be acquired by Gran Colombia.

In a May 13 release, the company reported that its board had unanimously rejected the three way merger. Guyana noted that instead it was going ahead with its previously announced plan with Silvercorp Metals (TSX:SVM,NYSEAMERICAN:SVM).

The late April deal would have seen Silvercorp pay C$33.2 million for the Guyana-focused gold company. But in early June, the Silvercorp acquisition fell through.

A few days later, news broke that Chinese major Zijin Mining (OTC Pink:ZIJMF,HKEX:2899) would be purchasing Guyana Goldfields for an all-cash payment of C$323 million.

That was the second time in six months that Zijin had made plans to acquire a Canada-listed gold company. In December, Zijin bought Continental Gold for C$1.4 billion.

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