- When we look back over the past year, Canadian-listed micro-caps have posted some superlative returns, but only one stock stands alone as the best-performing, delivering a 2,775 per cent return year-over-year as of August 11, and that’s Goldgroup Mining (TSXV:GGA)
- The company operates two 100-per-cent-owned gold assets in Mexico with long-term growth potential
- CEO Ralph Shearing, founder of successful Mexican gold, silver, lead, zinc and copper producer Luca Mining (TSXV:LUCA), de-risks Goldgroup’s path forward thanks to his almost 40 years of junior mining executive experience
When we look back over the past year, Canadian-listed micro-caps have posted some superlative returns, but only one stock stands alone as the best-performing, delivering a 2,775 per cent return year-over-year as of August 11, and that’s Goldgroup Mining (TSXV:GGA).
This content has been prepared as part of a partnership with Goldgroup Mining Inc., and is intended for informational purposes only.
The assets
Goldgroup operates two 100-per-cent-owned gold assets in Mexico with long-term growth potential. Here’s a breakdown:
The producing Cerro Prieto heap-leach gold mine in the state of Sonora delivers about 11,500 ounces per year. An ongoing optimization program seeks to increase this output to more than 30,000 ounces, while concurrent exploration vies to expand the resource.
The past-producing Pinos underground gold project in the state of Zacatecas boasts a 2018 preliminary economic assessment (PEA) – based on an initial resource of 86,000 ounces of gold and 1.3 million ounces of silver measured and indicated – which management is in the process of updating to substantiate a return to production to exploit the property’s extensive gold and silver vein systems.
The run-up
Goldgroup’s leadership team, guided by CEO Ralph Shearing, a junior mining executive of almost 40 years, and the founder of successful Mexican gold, silver, lead, zinc and copper producer Luca Mining (TSXV:LUCA), began the company’s recent run-up in shareholder value with the acquisition of the Pinos project in August 2024, granting it exposure to historic production grades averaging 30–50 grams per ton (g/t) of gold.
The company followed this news up with metallurgical testing at Cerro Prieto in October demonstrating the potential for higher gold and silver recoveries versus historical results, significantly enhancing the operation’s path to profitability. Management acted swiftly on this upside, instituting crushing and leaching improvements to increase production to 25,000 ounces per year.
Positive news flow continued in March 2025, when Goldgroup secured a C$6.75 million investment from top junior mining supporter Eric Sprott, affording him 17.6 per cent ownership on a partially diluted basis, while enabling the company to advance mine improvements at Cerro Prieto, Pinos’ PEA update and debt reduction, as well as top up general working capital. Sprott invested another C$3 million in May as part of a separate C$15 million private placement to expedite the company’s growth initiatives.
Goldgroup finalized its Pinos acquisition on July 3rd, adding 11.11 per cent to the stock through the following trading week to about the C$1.10 mark, where it has been range-bound to date, topping out at C$1.18 on July 25.
The company’s latest C$12 million financing, closed on August 5th, featured yet another show of conviction from Sprott, who added C$1.5 million to his position.
Looking ahead
The question of whether or not Goldgroup stock will continue to add to its multi-bagger run depends a handful of factors, including Cerro Prieto production and resource expansion, Pinos’ ramp-up to a construction decision and eventual production, as well as resilience in the gold price, which has been range-bound near an all-time-high of more than US$3,500 per ounce since April.
While the economy will fluctuate according to its own whims, making gold price predictions a coin toss over the long term, the likely lasting effects of US President Trump’s tariff regime, including inflation and supply chain disruptions, point to lower earnings and highlight gold’s enduring appeal, which has long proven its worth as a hedge and portfolio diversifier.
Should the price per ounce hold, Goldgroup is in a favorable position to move its projects forward, thanks to C$26 million in cash and equivalents as of July 2025, a CEO well-versed in the Mexican mining industry to allocate it, and numerous high-potential targets to build value by increasing project quality as the company vies to improve margins and nudge its income statements towards cash generation.
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*Returns data for Canadian-listed stocks up to C$300 million in market capitalization according to The Globe and Mail’s stock screener as of August 11, 2025.
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