Which TSXV-listed junior gold stocks have performed the best so far this year? Our list includes the five biggest gainers.
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Riding the momentum of 2020, gold displayed strength at the start of 2021, peaking at US$1,950 per ounce in January before downward pressure set in.
A recovering global economy mixed with high US 10 year Treasury yields and a strengthening US dollar added headwinds for gold, peeling away at the safe haven asset’s value in the first quarter.
In Q2, the price of gold managed to rally from the US$1,730 level in April to a quarterly peak of US$1,908.20 on June 2. However, those same headwinds experienced in the first quarter once again pushed prices down to a June close of just above US$1,760.
The muted tone displayed by gold has prompted some to buy the dip, as lower values make a better entry point. But while discounts may be enticing for investors, they are not for explorers and miners.
The junior space prefers a higher gold price, which makes projects more economical and profitable. That said, it’s worth noting that gold is still holding at historically high levels, not far off 2020’s all-time high.
Now that the first half of 2021 has drawn to a close, the Investing News Network has rounded up the five best gold stocks on the TSXV with the biggest share price gains year-to-date.
The list below was generated on August 16, 2021, using TradingView’s stock screener, and all companies listed had market caps above C$10 million at that time.
1. St. James Gold (TSXV:LORD)
Year-to-date gain: 453.13 percent; current share price: C$3.54
St. James Gold has an option to acquire 29 claims covering 1,791 acres in North-Central Newfoundland, as well as an option to acquire 28 claims covering 1,730 acres in the central part of the province.
In the Yukon it has an option to acquire up to an 85 percent stake in the Florin gold project, which covers nearly 22,000 contiguous acres.
The company has released news frequently in 2021 as it moves forward in both Newfoundland and the Yukon. Its highest share price came on March 29 at C$6.24, and it hit another peak on July 20, coming in at C$5.37. Its July jump came the day before St. James started a diamond drill program at Florin.
2. Arizona Metals (TSXV:AMC)
Year-to-date gain: 308.82 percent; current share price: C$4.17
As its name suggests, exploration company Arizona Metals has 100 percent ownership of two key projects in the Grand Canyon state: the Kay mine project and the Sugarloaf Peak gold project.
In May, the company discovered a new gold-zinc zone at Kay, describing it as open ended and located in an area previously untested by historic drilling or exploration. Drilling at Kay also intersected massive sulfide mineralization. Arizona Metals kicked off June with an announcement that metallurgical testing at its Sugarloaf Peak project had demonstrated gold recoveries averaging 76 percent from surface to approximately 111 meters, with oxidized zones reaching recoveries up to 95 percent.
Company shares rose from the C$1 level in January to peak at C$5.55 on June 23.
3. Big Ridge Gold (TSXV:BRAU)
Year-to-date gain: 245.45 percent; current share price: C$0.38
Canada-focused Big Ridge Gold is exploring for gold in Quebec, Manitoba, Ontario and Newfoundland.
The company currently holds the Destiny gold project in Quebec, the Oxford gold project in Manitoba and is exploring in Ontario’s Beardmore-Geraldton gold belt. It is also earning up to an 80 percent interest in the Newfoundland-based Hope Brook property.
Big Ridge Gold’s highest share price so far in 2021 is C$0.38, which it has reached several times — on June 30, August 5 and August 16. Most of its news this year has related to its Hope Brook asset, where it recently received all the permits necessary to start a summer exploration program.
4. Cerrado Gold (TSXV:CERT)
Year-to-date gain: 220.1 percent; current share price: C$1.33
Cerrado Gold is not only a gold exploration company, but also a gold producer. The company’s Minera Don Nicolás mine is located in Argentina’s Santa Cruz province; its exploration assets include Minera Mariana in Argentina’s Santa Cruz province, and the Monte Do Carmo project in Brazil.
In May, Cerrado had plenty of positive news flow. At the start of the month, the company reported gold production of 7,485 ounces for Q1, a 45 percent increase over the previous quarter. Soon after, news out of the company’s ongoing 12,000 meter exploration drill program at Minera Don Nicolás highlighted intercepts of 118 grams per tonne (g/t) gold over 2.65 meters, including 566 g/t gold over 0.55 meters.
In mid-May and later in the month, Cerrado reported numerous high-grade gold intercepts above the current resource grade during Phase I drilling at the Serra Alta deposit, situated at its Monte do Carmo project. Shares of Cerrado hit a high of C$1.76 on May 27.
5. Labrador Gold (TSXV:LAB)
Year-to-date gain: 197.5 percent; current share price: C$1.19
Labrador Gold is focused on acquiring and exploring gold projects in Eastern Canada. The company has the option to earn a 100 percent interest in its flagship Kingsway gold project, located in the highly prospective Central Newfoundland gold belt. The property is along strike to the northeast of New Found Gold’s (TSXV:NFG) discovery of 92.86 g/t gold over 19 meters at its Queensway property.
In mid-May, Labrador garnered C$15 million in financial backing from Canadian billionaire Eric Sprott and New Found Gold to accelerate exploration at Kingsway. In early June, the company shared drill results from its ongoing 50,000 meter exploration program at Kingsway, including intercepts of 20.6 g/t gold over 3.6 meters and 10.48 g/t gold over 2.4 meters. Later in the month, Labrador released further positive drill results, highlighting intercepts of 50.38 g/t gold over 1.85 meters, including 160.42 g/t gold over 0.55 meters. The good news flow raised the company’s stock price to a peak of C$1.85 on June 21.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.