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Gold & Silver: 4 Mining Stocks With Returns of More Than 250%

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A miner down a mine shaft
A miner down a mine shaft

Written by Christopher Liew, CFA at The Motley Fool Canada

Mining stocks dominated the TSX30 list in 2021. The third edition of TMX Group’s flagship program had 14 names from the mining industry — the same number as in 2020. Orla Mining (TSX:OLA) and Wesdome Gold Mines (TSX:WDO) are holdovers from last year, while SilverCrest Metals (TSX:SIL), and Marathon Gold (TSX:MOZ) are new additions.

Investors looking for exposure to gold and silver could choose from among the four top-performing growth stocks. The mining companies made the list because of their returns of more than 250% in the last three years. Only Wesdome trades above $10 per share.

Rank #8

Orla Mining jumped to rank number eight in 2021 from 14 last year. The $1.13 billion company wants to be known as an emerging gold company. Management aims for value growth by developing low-risk, low-capital-intensity heap leach projects with strong exploration upside.

Camino Rojo in Mexico is a sulphide project under construction. The probable mineral gold reserve is about 1.6 million ounces based on a robust feasibility study. The other project is Cerro Quema in Panama — a copper-gold sulphide discovery with a pre-feasibility study. Orla has returned 313% in the last three years and currently trades at 4.58%. Analysts predict 60.4% upside potential.

Rank #9

New entrant SilverCrest Metals trades at a bargain (-35.4%) today, although it has returned 286% in the last three years. The stock carries a strong buy rating from market analysts. They forecast the current share price of $9.16 to climb 68.9% to $15.47 in the next 12 months.

The $1.33 billion precious metals exploration company focuses on new discoveries and value-added acquisitions. SilverCrest’s principal production target is in the historic precious metal districts in Mexico. Management said the company has no source of revenue yet, although it has sufficient funds for exploration and development activities.

Rank #10

Wesdome Gold slid to 10th place in 2021, although it’s been on the TSX30 list since 2019. This gold stock has rewarded investors with a 283% return in the last three years. Market analysts recommend a buy rating and have set a 12-month average price target of $14.28 — a 32.5% climb from $10.78.

The $1.51 billion company principally produces gold and silver as a by-product. Also, 100% of Wesdome’s gold mining operations focus on Canada. Management envisions becoming the country’s next intermediate gold producer. Besides the Eagle River Underground Mine and the Mishi Open pit, the company actively explores Kiena Complex — a brownfields asset in Quebec.

Rank #11

Marathon Gold is another first timer on the TSX30 list and the cheapest ($3.11 per share) of the four mining stocks in focus. Market analysts are bullish, given their buy ratings. They predict a return potential of between 32.5% and 83.3% in the next 12 months.

The $755.95 million high-quality gold development company made the list on account of the stock’s +258% three-year performance. Marathon Gold is growth oriented. Its principal asset is the Valentine Gold Project. The site in the Central Region in Newfoundland and Labrador is one of the top mining jurisdictions in the world.

Excellent choices

Growth investors can’t overlook or bypass the mining sector. The last three installations of the TSX30 list (2019 to 2021) show that mining stocks deliver massive returns. Right now, you have excellent choices in Orla Mining, SilverCrest, Wesdome, and Marathon Gold.

The post Gold & Silver: 4 Mining Stocks With Returns of More Than 250% appeared first on The Motley Fool Canada.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends TMX GROUP INC. / GROUPE TMX INC. and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.


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