Which Gold Stocks Have Performed The Best Over The Last 12 Months?
Investors are rushing to safe havens at a rapid rate right now and gold stocks are enjoying the scramble. Over the last few days, geopolitical tensions sent a ripple across the markets. This time it had nothing to do with U.S. – China trade relations.
For starters, this event has become one cause for investors to play things closer to the cuff over the last 12 months. Though the stock market bull run hasn’t slowed, events like this have seen investors begin to hedge a bit more. One of these hedges has been gold and other mining stocks.
However, if you haven’t heard, something potentially bigger that this has happened over the last few days. Military measures taken by the United States against Iran have caused rampant concern across the globe. Last week the US launched and succeeded in an initiative to take out one of Iran’s top-ranking officials. Some say he was the #2 in the country as it stands now. What I’m talking about is the elimination of Qasem Soleimani, an Iranian General.
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Obviously, the oil-rich Middle East hasn’t reacted positively on a large platform. Right now the White House is waiting for any signs of potential retaliation. But in the meantime, markets have dramatically flipped. And because of this, safe havens are in focus by investors right now. Given this instance, it’s important to take a closer look at which gold stocks have performed the best over the last 12 months. Let’s see if that move continues in light of these recent developments.
Best Gold Stocks #4: NovaGold (NG)
First, on this list of gold stocks, NovaGold (NG) has managed to run big over the last 12 months. After starting 2019 with a January 2 open o $3.93, shares of NG stock hit highs of $9.21. This 134% move and counting hasn’t come by chance. Of course, the rising price of gold has helped. However, the company has also executed initiatives of its own focusing on growth.
NovaGold’s President explained in its last quarterly report that there’s been progress “across the board.” Much of his focus is on the company’s Donlin Gold site.
“Donlin Gold constitutes a unique asset with which we are truly blessed. With our partner Barrick, your management team and board of directors have advanced this project up the value chain with a resolute strategic consistency.”
There are roughly 39 million ounces of gold in measured and indicated mineral resources. Not only is this “kind of a big deal,” but taking into account the scope, it could be one of the largest mines in the gold industry, according to the company. Furthermore, in its quarterly report of current operations, the company was also able to narrow its net losses for the quarter.
Best Gold Stocks #3: DRDGOLD (DRD)
Next on the list of gold stocks is DRDGOLD (DRD). Shares were trading at only $2.15 at the start of 2019. The last 12 months proved increasingly bullish for DRD stock. Recently share prices saw highs of $5.64 to mark a 162% rally so far. Similar to the companies you’ll see in this article, DRD has also focused on executing on expansionary milestones. That’s aside from whatever progress that the price of gold has had.
In the company’s last report, DRDGOLD released its Fiscal Q1 figured. Gold production came in just over 48,000 ounces. This was up 5% from its previous quarter. Gold sales also increased by a total of 6% to over 48,500 ounces. The average price per ounce received for the period was $1,475. Considering we just saw prices float beyond $1,500, could that signal potential for a better quarter for its Fiscal Q2?
Best Gold Stocks #2: Eldorado Gold Corporation (EGO)
Eldorado Gold Corporation (EGO) is one of the top-performing gold stocks to watch over the last 12 months. Since the start of 2019, EGO stock has seen a YTD rally of 192%. Furthermore, this isn’t as high as it’s run over the last year either. In August of 2019, shares briefly hit $10.09 marking a move of 252% at that time. Regardless, it is a gold stock making a name for itself, especially among junior gold mining stocks.
RBC Capital recently initiated coverage on the gold stock. The firm rated it at “Underperform” and set a $6.50 price target. In November Eldorad updated its reserve and resources statement. This showed total proven and probable reserves of 384 million tons at 1.32 grams per ton of gold, containing 16.4 million ounces. Inferred resources at its combined properties – Perama Hill and Perama South – also increased by just under 760,000 ounces of gold.
In its 3rd quarter update, Eldorado’s President and CEO, George Burns, stated: “We achieved several key milestones in the third quarter, including an excellent quarter at Lamaque, positive net earnings and steady EBITDA. At Kisladag positive test results have given us the confidence to begin waste stripping, which should extend the life of that asset. I’m very pleased with progress we are making in Greece. We have received installation permits for Skouries and Olympias as well as consent to move some historic mining workings from our Skouries site.”
Best Gold Stocks #1: Sibanye Gold Limited (SBGL)
The best gold stock of 2019 was Sibanye Gold Limited (SBGL) and it’s still climbing in 2020. Shares of the gold stock began the year at $2.89 and have just recently reached highs of $10.46 this month. This 262% jump didn’t come just from gold prices exploding either.
A large portion of this move came during the 4th quarter of last year. It came after the company reported its 2nd quarter results and continued well after reporting Q3 as well. In its third-quarter report, the company revealed several things.
First, it will resume its dividend payment in the second half of 2020. Furthermore, it guided its full-year U.S. PGM production would come in between 590k-610k. This was actually much lower than it had previously guided. But despite these results, the stock has managed to move even higher.
If you look at some of the more recent filings, you’ll see some other positives as well. In a December 19th filing, the company showed that Investec Asset Management Proprietary Limited has increased its total holdings from 4.9599% to 5.3343% of the total issued shares of the Company.
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