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Due to the pandemic, as well as an increase in inflation, there are higher gold prices causing more investors to hold gold. While these prices won’t hold because gold values vary a lot, for now, it’s a good idea to invest in gold and have it as part of a diverse portfolio.
Best Overall Gold Stocks in Canada
When just starting out in investing, you may be surprised to learn that you don’t have to purchase physical metals in order to invest in precious metals. With gold being one of the most popular metals, many are surprised to learn they don’t need to purchase physical gold such as gold bullion to invest. You can actually just invest in the gold stocks of gold miners.
When it comes to purchasing gold stocks in Canada, some stocks are better than others. It can be difficult to decide since there are many large mining companies as well as underlying mining companies. There are also royalty companies and streaming companies to choose from when it comes to gold stocks. Let’s take a look at some of the best gold stocks in Canada. Just because they’re considered the best, though, that doesn’t mean that they have a competitive advantage.
Agnico Eagle Mines (TSE:AEM)
Agnico Eagle Mines is one of the largest gold mining companies in Canada and has multiple locations worldwide, even though they’re Canadian-based. They aren’t new, either. Agnico was founded in 1957 and has been doing well ever since. Since 1983, they’ve actually been declaring a cash dividend every year.
While Agnico is invested in different countries producing different precious metals, that said, Agnico does have some key mines that aid in their gold production. These include their Canadian mines LaRonde, Meadowbank and Meliadine. They also have high-producing mines in Austria, Finland, and Mexico.
Not only is Agnico Eagle Mines known for producing a lot of precious metals, but they’re also known for their leading environmental, social and governance practices. Their strategy to achieve this is simple:
- They’re socially responsible when they operate.
- They look to grow their people and provide growth opportunities.
- They maintain their high quality while looking to build.
- They ensure their portfolio delivers.
In regards to the stock itself, the prices and specs are changing daily. That said, the cost of the stock is somewhere around $66. However, the year range sits between $59.36 and $82.90. Some other things to consider are:
- The average volume is 1.3M
- The market cap is 32.79B Canadian
- The dividend yield is 3.26%
- The P/E ratio is 12.34
Like many of the other stocks we’re going to discuss as well, Agnico is a Canadian-listed security.
Barrick Gold Corp (ABX.TO)
Another large gold producer in Canada is Barrick Gold. Many people don’t know this, but not only does Barrick produce gold, but they are also exposed to copper. By the end of 2023, their annual gold production was 4.05 million ounces, and their copper output was 420 million pounds. They have 16 different operating mines in over 13 different countries.
Another interesting thing to note about Barrick Gold Corp is that they’ve been significantly reducing their debt. As of 2023, they’re only $6.3 B in debt, whereas they were $17B in debt in 2023. They’ve also been focusing on giving money to their shareholders and have a 5-year streak of dividend growth.
Essentially, Barrick Gold is looking to plan for the long term. They operate worldwide and are focused on sustainable growth. They focus on owning the best assets, employing the best people and aiming to give the best returns to all shareholders.
In terms of the actual stock itself, Barrick shares are around $20 with a year range of $18.65 - $28.19. They have a market cap of 34.74 B CAD and an average volume of 3.00M. Their dividend yield is 2.74%, and the P/E ratio is 20.22.
B2Gold (BTO.TO)
Another gold company to consider is B2Gold. While it hasn’t been as lucrative of a producer as some of the other mining companies, they are starting to improve. An impressive feat for them was that they produced over 1 million ounces of gold in 2022, even though they had some large setbacks in 2019 and 2020.
Just like many other gold producers, B2Gold was founded in Canada. It’s actually headquartered in Vancouver, BC and has been around since 2007. They currently have operations in Mali, Namibia, and the Philippines. They also have a mine that’s currently under construction in northern Canada. They’re also currently exploring different places all over the world, including:
- Mali
- Columbia
- Finland
When it comes to B2Gold’s stock, it currently sits around $3.30 with a year range of $3.27 - $5.87. They have a market capitalization of 4.26B Canadian and an average volume of 3.08 Million. The P/E ratio of B2Gold is 296.73, and their dividend yield is 6.61%. The TSE (Toronto Stock Exchange) is the primary exchange for this stock.
Wesdome Mine (WDO.TO)
Another Canadian-based gold mining operation is Wesdome Mines, which is considered to be one of the top Canadian gold stocks. This company is based out of Ontario and operates Eagle River Mine in Ontario as well as Kiena Mine in Quebec. While they have run into some issues in the past, they’ve always been quick to find an innovative and pertinent solution.
One thing about Wesdome Mine that attracts Canadian investors is their sustainable mining practices. They are also known for their commitment to responsible mining practices and have a good operational track record. With all that in mind, though, Wesdome Mine is a high-risk, high-reward type of investment.
The current price of Wesdome Mine stock has gone down by over 50% since 2022. That said, more investors are becoming interested in this operation. Even though it doesn’t look like it now, this stock is supposed to pay off for the 2024 fiscal year. Let’s look at where the stock currently sits.
As a mid-tier gold producer, Wesdome Mine currently sits at around $8.95 per stock. That said, the yearly range is from $6.17 - $9.46. They have a market capitalization of 1.33B Canadian and an average volume of 336.33 K. The TSE is its primary exchange.
Franco-Nevada Corporation (FNV.TO)
Franco-Nevada Corporation is the number one gold stock in Canada. They were even able to outperform during economic downturns like the pandemic when other gold mining companies were having to shut down. One of the main reasons that they were able to do this is because Franco-Nevada is a streamer, and streamers outperform producers.
Because Franco-Nevada is a streaming company, its costs are low, and its revenue is high. This also offers them consistency, and with consistency, they’re able to have continuously raised dividends for the last 15 years. This makes them reliable, which is important for investors. Let’s take a look at the specifics of the Franco-Nevada stock to see what is such a draw to investors.
When you look at the stock prices of Franco-Nevada Corporation, it’s easy to see that their stock prices are higher than the others. The average stock price of this stock is $144, with a yearly range from $139.19 - $217.70. The market capitalization is 27.71B Canadian, with an average volume of 315.04 K. They have a P/E ratio of 30.14 with a dividend yield of 1.34%. The TSE is also its primary exchange.
Alamos Gold (TSE-AGI)
Another gold stock to consider adding to your portfolio is Alamos Gold Inc. They’re a Canadian-based gold producer and currently have 2 mines in Canada as well as 1 in Mexico. They even have some development-stage projects that have strong portfolios. They’re also a relatively new company compared to some of the other gold producers, having only been founded in 2003 from a merger between Alamos Minerals and National Gold.
Some of the key reasons that many investors choose Alamos Gold is their commitment to the health and well-being of their employees. They also focus on minimizing environmental impacts. It also helps that their diversified portfolio offers stable and long-life production of gold.
The Alamos Gold Inc. stock itself has an average stock price of $15. The yearly range is $13.56 - $20.20 with a market cap of 6.30B Canadian and an average volume of 534.67 K. They have a P/E ratio of 22.29 and a dividend yield of 0.86%. The TSE is the primary exchange.
Wheaton Precious Metals Corp (TSE: WPM)
One thing you should know about Wheaton Precious Metals Corp is that they’re considered to be one of the largest precious metals streaming companies in the world. They currently have streaming agreements with 18 mines that are currently operational. They also have 26 streaming agreements with developmental operations.
How Wheaton is set up makes it a popular choice among investors. They have high-quality assets, predictable costs and innovative dividends. They even offer investors leverage to commodity prices and exploration upside, but because they’re a streaming company and not a producer, they have a much lower risk profile. Here are the specifics of the Wheaton stock.
The current market price of Wheaton Precious Metals Corp sits at around $52.92. However, the yearly range is $52.15 - $71.39. They have a market capitalization of 23.91B Canadian and an average volume of 691.86K. Their P/E ratio is 33.17, and the dividend yield is 1.54%.
Top 10 Gold Mining Businesses in Canada
In Canada, there are quite a few gold mining companies. We’ve already discussed 5 of the top 10 major players. These are B2Gold, Barrick Gold, Franco Nevada, Amos and Agnico Eagle Mines. Let’s take a look at the others.
Centerra Gold Inc (TSE:CG)
Just like all the other gold mining companies, Centerra Gold Inc. is Canada-based. They have a few gold mining operations throughout the world, with their main ones being Mount Milligan Mine, which is based in British Columbia, and the Oksut Mine, which is based in Turikye. These aren’t their only projects, though. They also own the Goldfield District Project, the Kemess Project, and the Molybdenum Business Unit.
Centerra Gold stocks go for around $6.92 per share. The yearly range is between $6.07 - $10.28. They have a market cap of 1.49B Canadian and an average volume of 390.81K. The dividend yield is 4.05%, and they’re primarily found on the TSE.
SSR Mining Inc (TSE:SSRM)
SSR Mining is another Canadian company that has operations all over the world. They currently have operations in Canada, Argentina, Turkiye, and the USA. These operations have been very lucrative and have produced over 700 equivalent ounces of gold annually. On top of their active operations, they’re also currently developing operations in Turkiye, Mexico and Peru. They’re even exploring even more options in Canada as well as Turkiye.
The SSR Mining stock is around $6.33 per share, with a yearly range of $5.10 - $23.71. They have a market cap of 1.29B Canadian and an average volume of 1.03M. The P/E ratio is 4.61, the dividend yield is 6.11%, and their primary exchange is NASDAQ.
Kinross Gold Corp (TSE:K)
Kinross is another gold mining corporation that is headquartered out of Toronto but operates worldwide. They have operations in the United States, Canada, Brazil, Chile and Mauritania. They are attractive to investors because they offer operational excellence, balance sheet strength, and responsible mining.
Kinross Gold Corp stocks are around $6.63 per stock. Their yearly range is $4.71 -$8.39, and they have a market cap of 8.14B Canadian. Their average volume is 2.56M, they have a P/E ratio of 14.58, and their dividend yield is 2.45%.
Yamana Gold
Yamana is a Canadian gold mining company that was founded in 1993. Not only do they operate gold mines, but they also have silver and copper mines with operations out of Canada, Chile, Brazil and Argentina. This company has been through a lot over the years, and as of March 2023, it became a subsidiary of Pan American Silver. Unlike the other gold companies in Canada, Yamana Gold isn’t found on the Toronto Stock Exchange. They are found on NASDAQ and TSX, though.
Teck Resources Ltd (TSE:TECK.B)
Teck Resources is considered to be Canada’s largest diversified mining company. While they’ve only been around since 2008, prior to that, they were referred to as Teck Cominco. They’re headquartered in Vancouver, BC, with operations located all over the world. They even mine for other precious metals, such as copper, zinc, and even steelmaking coal, giving themselves a diverse portfolio.
Teck Resources stock is around $52 per stock, with a yearly range of $44.70 to $66.04. They have a market cap of 27.06B Canadian and an average volume of 842.58K. Their P/E ratio is 11.23, and they have a dividend yield of 0.96%.
The Best Ways to Invest in Gold in Canada
While investing in gold companies is a great way to invest in gold in Canada, there are other ways that you can invest in the gold mining industry as well. These include:
- Gold ETFs
- Gold Futures
- Gold Bars
- Gold Coins
- The Royal Canadian Mint
No matter which way you choose to invest, though, it’s predicted that 2024 will be a great year for gold.
Canadian Gold: Is it a Good Investment?
Investing in gold is different than investing in other securities. It’s a highly volatile investment, and its value is based on price speculations. It isn’t like a traditional security where its value is based on earnings or dividends. This can make it difficult for some investors. However, it does have a good store value.
Overall, though, Gold does tend to be a good investment, and many investors have made a lot of money on gold. Lately, the pandemic and inflation have made an impact on gold prices, which have also affected gold stocks. That said, the main reason that gold investors choose it is because it’s a safe investment when there is market volatility.
