Gold prices continue climb towards all-time record highs with December gold futures reaching an astounding $2,027 on Tuesday. The gold frenzy driven in part by the weakening dollar and the global pandemic is good news for Canadian junior gold miners and mid-tier gold exploration companies, particularly those in prolific gold regions across Canada.
Although some mining regions faced setbacks caused by the on-going lockdown, miners in Canada continued with operations. Gold producer Yamana Gold (TSX:YRI) (NYSE:AUY) and Agnico Eagle Mines (TSX:AEM) (NYSE:AEM) both managed to exceed production expectations and increased their annual dividends. Canadian junior gold miner Centerra Gold Inc. (TSX:CG) had such a profitable quarter that it boosted its quarterly dividend by 25%. It reported record Q2 net earnings of $80.7 million.
Production remains steady for another Canadian gold miner - Pretium Resources (TSX:PVG) (NYSE:PVG) at its Brucejack Mine in British Columbia. The gold mining company remains on track to meet 2020 production guidance. Junior gold exploration company Portofino Resources Inc. (TSXV:POR) announced two very promising projects in one of Canada's largest and highest-grade gold producing districts.
These are not the only gold stocks that have benefited from the recent surge in gold prices. Equinox Gold Corp.’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 115% over the past 60 days.
August saw another lucrative deal for Canadian junior gold miner Prosper Gold Corp. (TSXV: PGX) as well. The company acquired a 100% interest in the Golden Sidewalk and Skinner gold properties from Sabina Gold and Silver Corp. ("Sabina") (TSX:SBB) in the Red Lake mining district of Ontario. The Properties are located within the Birch-Uchi greenstone belt approximately 70 km (44 miles) east of Red Lake.
The present time seems well-suited for strategic deals and partnerships, particularly for junior gold miners looking to expand their portfolios and grow their assets.
As exciting as the present run of gold is, analysts advise caution when picking out gold stocks to invest in, drawing comparison to the raise in gold prices 3 years ago. In 2017, the majority of gold miners underperformed, even as gold rose steadily, revealing that there isn't a hard-and-fast relationship between the two.