Best Gold Stocks of 2020 on the TSX

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The gold price hit a record high in 2020, driven by uncertainty around COVID-19, the US election and the economy.

The gold market reached its all-time high in early August, surpassing US$2,063 per ounce.

While the 32 percent increase from January’s values was a milestone for the gold sector, these highs proved unsustainable and the gold price moved south of US$2,000 for the remainder of the year.

A rush to safe haven assets has benefited gold producers and gold exploration companies as well, with several gold-mining stocks achieving triple digit percentage bumps. Growing demand for the precious metal globally has made miners an attractive option.

Against that backdrop, 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 December 1, 2020, using TradingView’s stock screener, and all companies had market caps above C$50 million at that time.

1. Freegold Ventures (TSX:FVL)

Year-to-date gains: 1,208.33 percent; current share price: C$0.80

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

This gold stock surged 2,700 percent to a year-to-date high of C$1.83 on August 4, as the value of gold was approaching record levels.

During the third quarter, Freegold closed a C$34.5 million private placement. According to company documents, C$20 million of that came from veteran resource sector investor Eric Sprott.

The C$34.5 million will be used to fund exploration at Golden Summit and to update technical studies.

2. Aura Minerals (TSX:ORA)

Year-to-date gains: 725.06 percent; current share price: C$14.20

Focused on gold and copper, Aura Minerals is a mid-tier gold miner working on multiple projects in Mexico, where its Aranzazu copper-gold-silver mine is located, as well as Honduras, Colombia and Brazil.

Early in the year, Aura released updated resource and reserve estimates for its projects. In October, the company declared commercial production at its Ernesto open-pit mine, which is part of the Ernesto/Pau-a-Pique mine complex in Brazil. Over its mine life, Ernesto is expected to produce approximately 125,000 ounces at an average grade of 3 grams per tonne.

Aura announced a new offtake agreement with Mexico-based Trafigura in November. Trafigura has agreed to purchase 100 percent of the copper and gold concentrate produced at Aranzazu effective at the beginning of 2022 and continuing until the end of 2024.

3. Orosur Mining (TSX:OMI)

Year-to-date gains: 483.33 percent; current share price: C$0.364

Orosur Mining is a precious metals developer and explorer focused on identifying and advancing gold projects in South America. The company operates in Colombia and Uruguay.

Orosur’s share price high point for the year came in mid-October, when it shared its results for the first fiscal quarter of 2021. That same month, Orosur said its Colombian subsidiary, Minera Anzá, received a first payment of approximately US$650,000 to fund exploration from Minera Monte Águila, a joint venture between Newmont (TSX:NGT,NYSE:NEM) and Agnico Eagle Mines (TSX:AEM,NYSE:AEM).

4. Skeena Resources (TSX:SKE)

Year-to-date gains: 240.2 percent; current share price: C$2.57 

Focused on exploring British Columbia’s Golden Triangle, Skeena Resources is currently developing several precious metals properties.

Surging 339 percent on September 4, shares of the junior gold stock marked a nine year high of C$3.28. The rise followed the company’s graduation from the TSX Venture Exchange to the Toronto Stock Exchange on August 20.

During Q3, Skeena announced plans to acquire 100 percent of the past-producing Eskay Creek silver-gold mine. The company had previously optioned the project from major miner Barrick Gold (TSX:ABX,NYSE:GOLD). The junior has spent close to C$25 million on Eskay Creek. The deal, which closed in October, brought Barrick’s stake in Skeena to 12.4 percent.

Since then, Skeena’s work has centered on drilling at Eskay Creek. The company also closed a C$46 million common share public offering in November.

5. Cardinal Resources (TSX:CDV)

Year-to-date gains: 274.55 percent; current share price: C$1.03

Cardinal Resources is a West African gold exploration and development company that holds interests in tenements within Ghana. The company is focused on the Namdini gold project.

Cardinal’s stock gains in 2020 can largely be attributed to an ongoing bidding war for the company.

Earlier this year, China’s Shandong Gold Mining (SHA:600547), the country’s largest gold miner, launched an off-market takeover offer for Cardinal that was unanimously recommended by Cardinal’s board.

In July, the company received an unconditional takeover offer from Nordgold, its largest shareholder; Nordgold informed Cardinal that it wants to acquire the remaining 81.29 percent stake it doesn’t already own in Cardinal Resources. In September, Nordgold upped the ante on its takeover offer for Cardinal. Cardinal notified Shandong Gold to give the Chinese company an opportunity to match the offer.

The bidding war for the company was still deadlocked in a stalemate as of the end of November.

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