Gold topped $2,200 an ounce in the first three months of this year, reaching a quarterly high of $2,264.37 on March 31st. This was a new record for yellow metal at the time.
At the beginning of the year, market participants thought the Federal Reserve would begin lowering interest rates in March, but rising inflation in February prompted the central bank to continue its long-term rate hike strategy.
Gold also saw further upward momentum due to continued geopolitical instability, particularly the increasingly tense situation in the Middle East with the conflict between Israel and Hamas in the Gaza Strip showing no signs of abating.
Coinciding with Israeli attacks on international aid workers in the Gaza Strip at the beginning of the second quarter, gold prices rose further, with gold approaching $2,300 in early April. It then hit an all-time high of $2,364.72 on April 9th.
Against this backdrop, some gold stocks listed on the TSX are reacting positively. The following list highlights five of this year’s biggest winners. The data for this article was obtained on April 2, 2024 using TradingView’s stock screener and only includes companies with a market capitalization above CA$50 million.
1. Serabi Gold (TSX:SBI)
Year-to-date increase: 76%. Market capitalization: CAD 87.15 million. Current stock price: CAD 1.32
Serabi Gold is a mining company focused on the Tapajós region of northern Brazil.
Its flagship operation is the Palito complex, which includes the Palito and San Chico underground mines and an approximately 500 metric ton per day (MT) processing plant producing 30,000 to 40,000 ounces of gold annually. In its July 2023 mineral resource estimate, the company reported that Palito and San Chico contained total measured and indicated resources of 339,300 ounces and 38,400 ounces of gold, respectively.
In addition to Palito, the company is also working on the Coringa gold project. Currently, production is limited and the ore is processed at Palito. On January 31, the company reported that Coringa’s experimental mining license had been extended for three years. The permit allows the company to transport 50,000 tonnes of ore per year for processing at the Palito complex. Additionally, the company said in the announcement that it has received approval to install a planned crusher and sorter, which is scheduled to start operating in the fourth quarter of 2024.
If all goes well, the company estimates that Coringa will produce between 25,000 and 30,000 ounces of gold annually.
On March 27, Serabi’s stock hit a quarterly high of C$1.45.
2. Mineros (TSX:MSA)
Year-to-date increase: 69.23%. Market capitalization: CAD 334.18 million. Current stock price: CAD 1.10
Mineros is a mid-sized gold producer with a focus on Latin America.
The Nechi alluvial mine in Colombia and the Hemco property in Nicaragua are its main assets. Nechi uses gold-hosted sands that are extracted without the use of cyanide or mercury from closed ponds. According to the company’s 2023 management’s discussion and analysis report, which was made public on February 15, Nechi produced 93,756 ounces of gold in 2023, 1,372 more than in 2022.
The Company’s Hemco operations consist of the Panama Mine and the Pioneer Mine, and also contracts to process ore from third-party artisanal miners. Gold production in 2023 totaled 125,951 ounces, an increase of 6,569 ounces of gold compared to 2022. Mineros expects production from Hemco’s Porvenir satellite deposit to begin in 2027, increasing gold production by 44,700 ounces per year.
Mineros has been rising along with the gold price since early March, reaching a quarterly high of C$1.04 on March 28th.
3. Galiano Gold (TSX:GAU)
Year-to-date increase: 62.9%. Market capitalization: C$471.51 million. Current stock price: CAD 2.02 CAD
Galliano Gold is a gold production company that operates and develops the Asanko gold mine.
Asanko is located in Ghana’s Asankranwa Gold Belt, which consists of four open-pit mining districts: Abole, Miradani North, Nkulan and Esase. According to a March 2023 technical report, the site is home to a 5.8 million tonne per year leached carbon processing plant and has proven and estimated gold reserves of 2.07 million ounces.
On February 16, the company announced its fourth quarter and full year 2023 results, reporting that it produced 134,077 ounces of gold, exceeding expectations.
Asanko was previously a joint venture in which Galliano and Gold Fields (NYSE:GFI) both owned 45 percent and the Ghanaian government owned 10 percent. However, at the end of 2023, Gagliano signed a binding agreement with Gold Fields, acquiring a 45% interest. The deal, signed on March 4, saw Gold Fields receive a 19.9 percent stake in Galliano, $65 million, and a 1 percent net refinery royalty on 447,000 ounces of Nkran gold.
Galiano announced high-grade findings from infill drilling at Asanko’s Abore deposit in its most recent news release on March 11. One hole produced grades of 12.4 g/t gold across 45 meters from a depth of 191 meters. After the work is finished in April, the company said the drill program data would be used to update Abore’s estimations of its mineral resources and reserves as well as to offer guidance on production and costs for 2024.
Galliano shares reached a quarterly high of C$1.88 on March 28th.
4. Ascot Resources (TSX:AOT)
Year-to-date increase: 57.58%. Market capitalization: CAD 422.49 million. Current share price: CAD 0.78
Ascot Resources is a Canadian gold exploration and development company focused on building mining operations at the Premier Gold Project. Located in northern British Columbia’s Golden Triangle, this location is home to the Premier, Silver Coin and Big Missouri deposits, and his is one of only three mills in the area.
Ascot is currently in advanced stages of construction of a mining facility at Premier, with first gold injection scheduled for April 2024. Once fully operational, the company aims to produce approximately 150,000 ounces per year.
Ascot shares posted strong gains early in the quarter following a January 22 press release in which the company arranged a C$70 million financing to complete and expand its mining operations at Premier. According to the announcement, the funding comes from his $30 million license agreement with Sprott Resources Streaming and Royalty, a subsidiary of Sprott (TSX: SIL, NYSE: SIL), and his $2,000 Canadian dollar cost overrun allowance. It is stated that there will be a profit from the combination of $1,000,000. From the Nebari Natural Resources Credit Fund. There is also a private placement with gross proceeds of C$25 million. Ascott stock hit a quarterly high of C$0.77 on March 14th.
5. McEwen Mining (TSX:MUX)
Year-to-date return: 54.43%. Market capitalization: C$683.62 million. Current stock price: 14.64
McEwen Mining, led by industry veteran Rob McEwen, operates gold mines in Canada, the United States and Argentina.
McEwen Mining stock recorded its biggest gain from late February to early March. This increase coincided with positive news in the company’s fourth quarter and full year 2023 report, released on February 29th.
In the filing, the business reported a combined production total of 128,650 ounces of gold, an increase of 25,970 ounces over 2022, and a net income of US$54.7 million for the year. Despite unfavorable weather at McEwen Mining’s Gold Bar mine in Nevada, these advances were made.
In its announcement, McEwen Mining also revealed plans for its Fox complex in Ontario, Canada. The company announced that construction of an underground ramp to access the orebody at the Stock West deposit will begin in the first quarter. Once mining is completed in 2026, the Flume deposit will become Fox’s primary source of gold and silver production. Project Phoenix in Mexico will start in the second half of his 2024.
McEwen Mining’s stock reached a quarterly high of C$13.36 on March 28th.
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