Sunday April 26, 2015, 10:00pm PDT
By Teresa Matich+ - Exclusive to Gold Investing News
So far this year the gold price hasn’t put on the most stellar performance.
Since about mid-February, gold hasn’t managed to stay above $1,200 an ounce for any sustained period of time, and the metal’s price has dropped about 8.7 percent in the past three months. To be sure, that isn’t creating the most friendly environment for gold miners.
Still, some gold-mining companies have seen marked gains in share price, with a few recording increases of over 70 percent so far in 2015. Here’s a look at the top five gold-mining stocks on the Toronto Stock Exchange so far in 2015 in terms of percentage gains in share price.
1. Claude Resources (TSX:CRJ); up 100 percent to $0.63 year-to-date
Currently, the main producing asset for Saskatchewan-based gold producer Claude Resources is the Seabee gold operation in the La Ronge mining district. Seabee consists of two producing mines: the Seabee gold mine, which has been in operation since 1991, and the Santoy 8 gold mine, running since January 2011.
At the start of the year, Claude reported the best operating performance in its history, with a 44-percent increase in gold production for 2014 compared to 2013, largely driven by a 43-percent increase in gold grade at its operations. Notably, Claude was also the fourth top-gaining mining stock on the TSX for 2014.
2. Crocodile Gold (TSX:CRK); up 75 percent to $0.255 year-to-date
As with Claude, Crocodile reported record gold production for 2014, although the percentage increase from 2013 wasn’t quite as substantial at about 5 percent higher than 2013 production. A Canadian gold-mining and exploration company, Crocodile Gold has three producing mines in Australia: the Fosterville and Stawell gold mines in Victoria, and the Northern Territory-based Cosmo gold mine.
On January 14, Crocodile closed an earlier announced agreement to terminate a net free cash flow sharing arrangement with AuRico Gold (TSX:AUQ). The arrangement was terminated in return for a C$20-million cash payment to AuRico and the grant of a royalty on the Fosterville and Stawell gold mines.
3. Kirkland Lake Gold (TSX:KGI); up 72 percent to $5.78 year-to-date
Operating and exploration company Kirkland Lake Gold is focused on the historic Kirkland Lake gold camp in the Lower Abitibi Greenstone belt of Northeastern Ontario. The company recently increased the reserves and resources for its Macassa mine complex, and while it’s still finalizing its budget for the fiscal year of May 1, 2015 to April 30, 2016, Kirkland Lake is anticipating a robust underground and surface exploration program for the period.
Kirkland Lake announced the appointment of Eric Sprott as chairman of the board in January, and finalized the appointment February 20.
4. Banro (TSX:BAA,NYSE MKT:BAA); up 70 percent to $0.255 year-to-date
Being focused on the Democratic Republic of the Congo, Banro isn’t operating in the most favorable mining jurisdiction. However, that doesn’t seem to have bothered investors so far this year. The company is currently producing gold at its Twangiza project and continues to ramp up its Namoya mine in the country.
5. Klondex Mines (TSX:KDX,OTCQX:KLNDF); up 55 percent to $3.03 year-to-date
Rounding out the top five is Nevada-focused gold producer Klondex Mines. The company currently operates the Midas mine and mill, which it acquired from Newmont Mining (NYSE:NEM) in early 2014. Klondex is also developing the Fire Creek project 180 kilometers to the south, and as Wayne Hewgill of Mackie Research has noted, last year’s acquisition of the Midas mill “provided Klondex with a path to a relatively quick start up” for Fire Creek.
Klondex increased its mineral resource estimate at Fire Creek by 47 percent this year, and recently reported encouraging results from infill and step-out drilling at Midas.
Wondering how we got these numbers? Resource Investing News used The Globe and Mail’s stocks data tool to find the top performers year-to-date from the mining and precious metals sectors. Only companies with a market cap of over $50 million were included.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.