With so much that I wish to convey about the top five selections among my top 10 gold stocks for 2013, please indulge me while I dive right in. I strongly encourage readers to begin with Part 1 of this series to consider my associated outlook for continued strength in the gold price, and to review my first five selections. I also invite readers to bookmark my article list or follow me on Twitter in order to track my ongoing coverage of these and other standout gold equities throughout the year ahead. With that said, here’s wishing every Fool a happy and profitable year of prospecting in the gold patch during 2013.
5. Primero Mining (NYSE: PPP )
Following a monumental 162% advance since I declared Primero the greatest gold stock in the world some 15 months ago, it stands to reason that the stock would slip back a few spots from its prior position at the top of my list for 2012. But this standout growth story is far from over, and Primero remains a core position in this Fool’s stock portfolio. CEO Joe Conway and his team delivered a truly masterful performance during 2012, and now looks to deliver additional growth through the addition of a second gold mine by 2015. Like the looming expansion at San Dimas, the construction of Cerro del Gallo in Mexico‘s Guanajuato state strikes me as an attractively low-risk venture that will indeed catapult Primero into the next class of budding mid-tier gold producers. Although I certainly don’t anticipate another multibagger run for 2013, I see scope for perhaps a 30% advance or better with continued organic resource growth as a key potential catalyst.
4. Eldorado Gold (NYSE: EGO )
By hiking the ancient silk road — from its previous foray into China to a new operational focus upon Turkey and Greece — Eldorado Gold has amassed a peer-leading growth profile that targets a monumental 158% expansion of annual gold production over the next four years. Growing from a larger base this time around, it’s reasonable to expect some meaningful challenges along the way for such an aggressive growth trajectory. However, given the undeniable quality of the underlying asset portfolio, paired with an exceptional outlook for continued organic resource growth like the 1.5 million gold ounces added to the Certej project in Romania during 2012, Eldorado presents some of the more exciting upside potential among the larger mid-tier producers. Provided the company continues to execute well as these growth initiatives gather steam in 2013, I see potential for the stock to surpass $18 per share during 2013 for more than a 40% advance.
3. Goldcorp (NYSE: GG )
Every ship needs an anchor, and for gold investors looking to navigate the admittedly rough seas of the gold mining industry, I can think of no greater anchor than Goldcorp. With the important caveat that some of the company’s substantial challenges faced during 2012 could present further selling pressure in early 2013 as forward production guidance takes a bit of a haircut, I agree with Credit Suisse analyst Anita Soni that any such weakness may present a meaningful buying opportunity. I won’t go into great detail here, since investors can access my premium research report on Goldcorp for further discussion of the substantial long-term investment opportunity in the shares of this quality producer.
"A Golden Opportunity for Precious Metals and Gold Investors"