A Year of Recovery: Top 10 Gold Stocks on LSE

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Summary

• A favourable gold price environment seems to have helped the Gold stocks throughout 2020.
• Gold stocks have delivered up to 500 per cent return in the last one year.
• Recent price correction in Gold makes it an ideal opportunity for investors seeking indirect exposure in Gold through Gold stocks

As the economies start to recover from the catastrophe caused by the pandemic, Gold seems to have witnessed a correction in its prices. Notably, the year 2020 has been a remarkable one for Gold and related assets. The precious metal breached the barrier of US$ 2000 per ounce in 2020 as it is a preferred asset class among investors during uncertain times.  A price correction in Gold makes it an ideal opportunity for investors seeking indirect exposure in Gold through Gold stocks.

Gold stocks have delivered up to 500 per cent return in the last one year. This means that if you had invested £1,000 a year ago, your investment could grow by six times to £6,000 by now. Most of the Gold stocks have delivered exceptional growth in the last one year as they were helped by favourable gold price movement.

In this article, we shall put our lens through top gold stocks listed on the LSE.   

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1. Greatland Gold Plc

Greatland Gold Plc (LON: GGP) has gold projects in Tasmania and Western Australia. The gold miner is well capitalised as it has access to US$50 million of loan facility and cash equivalents of £5.9 million as of 31 December 2020. During the first six months of 2020, Greatland Gold made significant progress by signing the second joint venture with Newcrest and the initial Mineral Resource estimate at its Havieron project. Shares of Greatland Gold soared by over 499.43 per cent in the past one year (as of 22 March 2021 closing).

2. Thor Mining Plc

AIM-listed Gold miner Thor Mining Plc (LON: THR) struck high grade stream sediment samples of Gold in the Pilbara region of Western Australia. The company found 13 km stretch of anomalous gold in its geochemical sampling. The company now trades under the ticker "THORF” on the OTCQB market in the US. The company now has access to US institutional and retail investors. The company also has an exciting portfolio of uranium and vanadium exploration assets in Australia that can help the company in delivering growth for its shareholders across the globe. Shares of Thor Mining soared by over 401.18 per cent in the past one year (as of 22 March 2021 closing).

3. Oriole Resources Plc

AIM-listed gold exploration company Oriole Resources (LON:ORR) has all the right ingredients to deliver growth for its shareholders. The company is run by an experienced team that handles an exciting portfolio of gold assets in Cameroon and Senegal. The gold miner has already completed one-third of the drilling programme at the Bibemi gold project in Cameroon. All nine holes drilled have intersected mineralization. Shares of Oriole Resources soared by over 380.10 per cent in the past one year (as of 22 March 2021 closing).

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4. Panthera Resources Plc

Panthera Resources (LON:PAT) is set to breakeven in around a year’s time from now. According to industry experts, the gold miner is expected to churn a profit of US$2.2 million in 2021 after posting a final loss in 2020. Panthera has great potential to grow as it owns an exciting portfolio of gold projects across India and West Africa. Overall, the precious metal miner has access to over 1.7 million ounces of gold deposits. Shares of Panthera soared by over 216.00 per cent in the past one year (as of 22 March 2021 closing).

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5. AltynGold Plc

Gold exploration and development firm AltynGold Plc’s (LON:ALTN) revenues increased significantly by 92 per cent Q-o-Q, according to Q4 2020 production update. The major driving force behind the increase in revenues was a substantial increase of 88 per cent in gold production Q-o-Q. The gold mining company expects further grade improvement in the near-term, with the average grade improving by 10 per cent to 1.70g/t Q-o-Q. During Q4 2020, the company did not experience any significant negative effect on its production operations with reference to Covid-19 pandemic. Shares of AltynGold soared by over 165.78 per cent in the past one year (as of 22 March 2021 closing).

6. Hochschild Mining Plc

FTSE 250 Gold & Silver miner Hochschild Mining Plc (LON: HOC) delivered resilient performance despite the Covid-19 pandemic. The company has underpinned its growth on the positive results found from the Corina deposit, the Saavedra area at San Jose and Arcata. The company had cash balances of US$231.9 million as of 31 December 2020 (2019: $166.4 million). The company distributed $32.6 million in dividends during 2020. The company anticipates achieving a production target of 360,000-372,000 gold equivalent ounces in 2021. Shares of Hochschild Mining soared by over 128.85 per cent in the past one year (as of 22 March 2021 closing).

7. Goldplat Plc

AIM-listed precious metal miner Goldplat Plc (LON:GDP) yielded an operating profit of £2,600,000 for the six -month period ended 31 December 2020 (31 December 2019: £2,566,000). The company’s fully diluted EPS increased to 0.73 pence for the half year ended 31 December 2020 (Restated 31 December 2019: 0.32 pence). During the second half of 2021, the miner’s production remained satisfactory. However, profitability for the remainder year shall depend upon Gold’s production, quality and price. Shares of Goldplat soared by over 83.54 per cent in the past one year (as of 22 March 2021 closing).

8. Petropavlovsk Plc

FTSE 250 listed gold miner Petropavlovsk Plc (LON:POG) had managed to deliver approximately 6 per cent growth in gold production during 2020 despite facing several operational headwinds. Also, the company had accelerated the progress on various development projects like Malomir expansion and Pioneer floatation plant, which would aim to enhance the production capabilities of Petropavlovsk. Moreover, the Pioneer floatation plant commissioning would be expected to complete during the second quarter of 2021.

Subsequently, it would enhance the production capacity and reach almost double of already existing capacity. The production capacity will reach 7.2 Mtpa once Pioneer floatation plant becomes operational. Furthermore, the gold miner’s production capacity is expected to reach 9 Mtpa by the first quarter of 2022; after the completion of Malomir flotation plant. Overall, the company has the potential to generate sustainable and significant shareholder value. Shares of Petropavlovsk soared by over 34.45 per cent in the past one year (as of 22 March 2021 closing).

9. Polymetal International Plc

One of the top-10 gold and silver producer in the world, Polymetal International Plc (LON: POLY) immensely benefitted by an increase of 27 per cent in prices of both metals during 2020. The precious metals miner’s revenue increased by 28 per cent to US$ 2,865 million in 2020. Notably, Gold sales were up by 2 per cent year-on-year to 1,392 Koz. The leading gold producer announced a final dividend per share of US$ 0.89 for 2020. Shares of Polymetal International soared by over 27.90 per cent in the past one year (as of 22 March 2021 closing).

• Centamin Plc

FTSE 250 listed gold miner Centamin (LON:CEY) witnessed an increase of 54 per cent in its EBIDTA, driven by higher gold price and cost savings. The company managed to generate a record revenue of US$829 million from gold sales. The company is debt free and has a strong balance sheet with cash balances of US$310 million, as of 31 December 2020. The company also recorded a 91 per cent increase in free cash flow that enables it to pay US$104 million in dividends to its shareholders in 2020.