2019 has been a pretty impressive year for gold stocks investors, with the price of gold enjoying an incredible bull run over the summer as heightened geopolitical tensions and fears a global recession may be on the horizon send investors flocking to safe-haven assets. While a recent slowdown may be taken as somewhat of a red flag, it also represents a great entry point for investors before another possible rally in the New Year.
Small-cap gold stocks have a tendency to go under the radar a little, given that there’s just so many of them, but they represent a huge opportunity for investors given their generally low price and potential for huge gains. We’ll look at three such stocks that have been quietly but impressively going about their business.
K92 Mining (TSXV:KNT) (OTCQX:KNTNF)
K92 is a Vancouver-based junior gold stock that has seen its share price rocket in 2019. Opening the year at $0.66, this gold stock has gained a huge 207% to currently trade at $2.04. The company’s assets are focused in Papua New Guinea, where K92 operates the 410 square kilometer Kainantu Gold Project. The third quarter of 2019 saw 32,094 tonnes processed by K92, with production of 19,170 oz AuEq from the Kora North deposit. Revenue for the quarter was $20,989,036 USD with a gross margin of $8,750,138 USD.
With a performance like that in 2019 and the likelihood of gold prices maintaining their current form next year, K92 is definitely a gold stock to watch right now.
Gran Colombia Gold Corp (TSX:GCM) (OTCQX:TPRFF)
Gran Colombia is a Canadian gold producer with its primary focus in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its Segovia and Marmato Operations. Gran Colombia stock has had a fantastic 2019, more than doubling from its opening price of $2.055 to a September peak of $4.25, with investors benefiting hugely from that incredible summer bull run in gold prices.
On the books, everything is coming up golden for Gran Colombia. Reporting its third-quarter results in November, the Toronto-based firm saw revenue gain 19%, adjusted EBITDA up 34%, and cash flow rise by 22%. Gran Colombia is also about to embark on an aggressive drilling campaign of over 70,000 meters in the next 18 months after encouraging exploration results at its Segovia operation.
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Leagold Mining Corp (TSX:LMC) (OTCQX:LMCNF)
Leagold is another Canadian miner with huge interests in Latin America. The Vancouver-based firm operates four mines in Mexico and Brazil, along with a near-term gold mine restart project in Brazil and an expansion project at the Los Filos mine complex in Mexico. Beginning the year at $1.16, this gold-stock rocketed 98% to a peak of $2.27 in September, and despite a subsequent drop off as gold prices stalled slightly, it has recovered about 30% of its value in recent weeks.
That recent bull run was largely driven by some impressive quarterly results posted at the beginning of November. Gold production for the three months ended September 30 was 84,229 ounces, and 281,463 ounces for the first nine months of the year. This helped generate quarterly revenue of $121.7 million USD, and that figure should rise in coming quarters as the company begins expansion at Los Filos, which is expected to double its production during 2021.
The Takeaway
With a resolution to the trade war between the US and China yet to be reached, protests in Hong Kong escalating, and Britain’s exit from the European Union remaining uncertain, the global economy is in a pretty fragile place as we head into the New Year. As a result, safe-haven assets such as gold are set to make major gains as 2020 shapes up to be an excellent year for gold miners. Whether you decide to purchase physical gold, invest in gold mining companies, or buy shares of a gold ETF, there has hardly been a better time to do so.
Are there any gold stocks on your radar? Let us know!
Featured Image: DepositPhotos © riariu
