Best Gold Stocks of 2020 on the TSX

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Gold ended the third quarter of the year 6.8 percent higher, driven by uncertainty around COVID-19, the US election and the economy.

The yellow metal reached its highest point year-to-date during the period, surpassing US$2,063 per ounce in early August; that’s also its all-time high.

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

A rush to safe haven assets has benefited gold producers as well, with several achieving triple-digit percentage bumps. Growing demand for gold globally has made miners attractive options.

Gold purchases are anticipated to grow as the US election approaches and market volatility increases.

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 October 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: 1,405.6 percent; current share price: C$0.98 

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

Shares of the gold explorer 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. Jaguar Mining (TSX:JAG)

Year-to-date gains: 323.8 percent; current share price: C$7.84

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.

During Q2, production climbed by 28 percent to 23,483 ounces, giving Jaguar an early price bump during Q3. Shares hit a quarterly and year-to-date high in mid-August at C$8.70.

Jaguar also penned a strategic option agreement for 28 exploration tenements in Brazil.

The Iron Quadrangle Agreement with IAMGOLD (TSX:IMG,NYSE:IAG) gives Jaguar the option to earn as much as 60 percent of the package through a C$6 million exploration expenditure.

“At Jaguar, we are very pleased with the opportunity to work with our long-time neighbors, IAMGOLD,” Jon Hill, Jaguar’s vice president of geology and exploration, said in an announcement.

“The Iron Quadrangle Agreement, which doubles Jaguar’s current tenement footprint, will allow the geological team to systematically explore, define and drill-test this highly prospective Iron Quadrangle land package,” he continued.

3. Skeena Resources (TSX:SKE)

Year-to-date gains: 240.2 percent; current share price: C$2.54 

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 marked a nine year high of C$3.28. The rise followed its 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 (TSX:ABX,NYSE:GOLD). The junior has spent close to C$25 million on Eskay.

The deal will see Barrick own 12.4 percent of Skeena’s outstanding shares.

Commenting on the acquisition, Skeena CEO Walter Coles said, “Skeena is honored to have Barrick as a significant shareholder as we endeavor to revitalize Eskay Creek, the former highest-grade, past-producing gold mine in the world.”

4. Starcore International Mines (TSX:SAM)

Year-to-date gains: 182.9 percent; current share price: C$0.29 

Operating the San Martin gold and silver mine in Mexico, Starcore International Mines also has exploration projects in the US as well as Canada.

In late July, the company released its results for the year ended on April 30, highlighting some of the challenges related to COVID-19. Despite the global pandemic, the miner reported an annual production number of 13,112 gold equivalent ounces.

Shares fell to a quarterly low of C$0.16 on September 11 before rebounding to C$0.28 on September 16.

5. Steppe Gold (TSX:STGO)

Year-to-date gains: 164 percent; current share price: C$2.38 

Steppe Gold is advancing its ATO gold project in Mongolia, which achieved commercial production in Q2 of this year. As of July 6, the company had produced over 15,000 gold ounces.

The positive news drove the company’s shares higher in July, as did a C$15 million strategic investment by billionaire investor Sprott on July 9.

Steppe was up 233 percent by the end of July, with its share price at C$3, its highest value ever.

Other developments during Q3 include an update on the ATO project expansion. Developments to expand the resource remain underway. Steppe’s plans for the site include an annual production rate of 150,000 gold equivalent ounces annually over a 10 year mine life.

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

Editorial Disclosure: Steppe Gold is a client of the Investing News Network. This article is not paid-for content.