Gold Stocks in Western Australia

Where is gold found in Western Australia?

As mentioned, Australia is the second largest gold-producing country in the world. Gold output in the nation came in at 330 metric tons in 2021, up from 238 metric tons the previous year.

Western Australia is considered one of the best mining jurisdictions globally by the Fraser Institute, and it's also one of the more prolific gold-mining areas in Australia. In fact, it accounted for around 63 percent of the country’s entire gold production in 2021, as per government information.

Recent exploration activity in the Pilbara region of Western Australia has renewed interest and helped increase the country’s gold output. The area has been compared to South Africa’s Kaapvaal craton and Witwatersrand basin for their geological similarities, age and the fact that they sit atop Archean granite-greenstone.

While the Pilbara region is typically best known as one of the world’s largest producers of iron ore, it is currently experiencing increased gold exploration thanks to a major discovery in 2017 by Novo Resources (TSXV:NVO,OTCQX:NSRPF) and Artemis Resources (ASX:ARV,OTCQB:ARTTF); there was also a similar find by De Grey Mining (ASX:DEG,OTC Pink:DGMLF) more recently in 2020.

Other explorers that are active in the Pilbara region include NxGold (TSXV:NXN), Kairos Minerals (ASX:KAI,OTC Pink:MPJFF), Pacton Gold (TSXV:PAC,OTC Pink:PACXF) and Monterey Minerals (CSE:MREY). Major miners like Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) and BHP (ASX:BHP,NYSE:BHP,LSE:BHP) have also invested in the region.

How to invest in gold stocks?

Like all publicly listed stocks, gold companies issue shares that are available for investors to trade. When you purchase shares of a gold stock, you are essentially purchasing a stake in the company, making an investment that will either provide financial returns or losses depending on the firm's performance.

In Australia, companies are traded on the Australian Securities Exchange, known as the ASX. A wide range of gold stocks are listed on the exchange, from stable large-cap companies to more risky junior miners.

There's no way for gold stock investing to be 100 percent foolproof. But you can reduce some of the stress by doing your due diligence on companies — there are many factors to consider, but some of the key elements to consider are a strong management team, a well-stocked treasury and a clear plan for the future.

That said, it's important to understand that the performance of gold companies is correlated to the gold price. While they may not always move in tandem, it's typical for gold stocks to thrive when the metal's price is higher and vice versa. Gold itself is usually viewed as a counter-cyclical asset, meaning it increases in value while the market is down — that means times of turmoil can be a good opportunity to put money into gold stocks as well.

What are the top Western Australian gold stocks?

There are many ASX-listed gold companies focused on assets in Western Australia, and they may be a good place to begin if you're interested in getting gold exposure in the state.

The five companies below are ASX-listed gold stocks focused Western Australia, and they had seen the biggest share price gains year-to-date as of May 21, 2022. Data was gathered using TradingView’s stock screener, and companies with market caps of over AU$50 million at that time were considered.