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The price of gold continued its steady rise in 2011. The yellow metal inched up another 10% to finish the year at $1,565, reaching as high as $1,888 in late August. As gold prices surged, several gold mining companies were able to capitalize.
Here were the top three performing gold stocks in 2011 based on percentage-point gains:
1. Midway Gold Corporation (AMEX: MDW)
Market Cap: $235.4 million
2010 Closing Price: $0.84
2011 Closing Price: $2.11
2011 Gains: 151.2%
Midway, a gold exploration company, made significant progress in its Gold Rock, Pan and Tonopah mining projects in Nevada this year. Meanwhile, the company grew from a five-person skeleton crew to a 30-man operation during 2011, expanding its management of areas such as operations, finance and engineering. Coupled with the increasing demand for gold, that was enough to help Midway transform from a penny stock into a borderline small-cap stock by year’s end.
2. Richmont Mines (AMEX: RIC)
Market Cap: $356.2 million
2010 Closing Price: $5.11
2011 Closing Price: $10.76
2011 Gains: 110.6%
This Canadian junior gold miner reported $20 million in earnings through the first nine months of the year – more than four times its earnings through the first three quarters of 2010. The company’s operating cash flow over the same period was $29.5 million, more than double what it was a year ago. Richmont’s Wasamac and Monique exploration programs were largely responsible for the company’s big improvements, as each mine produced favorable results. That helped Richmont’s stock have its best year since going public in March 1997.
3. Gold Reserve (AMEX: GRZ)
Market Cap: $166.7 million
2010 Closing Price: $1.81
2011 Closing Price: $2.80
2011 Gains: 55.2%
Gold Reserve’s stock popped in June on progress at its Brisas gold and copper mine in southeastern Venezuela. The stock surged 63% in just over two weeks during the first half of June before leveling off towards the end of the year. As an exploration stage company that engages in the acquisition, exploration and development of mining projects, Gold Reserve stock benefited from the escalating price of gold as the company’s mining projects expanded.