With low D/E multiples and strong cash flows, the TSX gold juniors on our list are poised to shine
SmallCapPower | January 9, 2017: With speculation of numerous interest rate hikes and a strong dollar pressuring the gold price, we have identified five low-debt TSX gold juniors with positive cash flows. These financial metrics position the companies to take on cheap debt in order to finance projects for future growth.
Alacer Gold Corp. (TSX: ASR) – $2.51
Alacer Gold Corp. (Alacer) is an intermediate gold mining company that operates in the segment of mining, development and exploration of mineral deposits in Turkey. The Company’s principal products are gold, copper and silver. The Company has an interest in the Copler Gold Mine in Turkey. Its Copler Sulfide Expansion Project is a gold exploration project located in east-central Turkey. Its prospects include Yakuplu Southeast prospect, Yakuplu East prospect, Yakuplu North prospect, Bayramdere prospect and Dursunbey project.
- Market Cap: $733 million
- Free Cash Flow: $60 million
- Total Debt: $0
- Debt to Equity: 0%
Argonaut Gold Inc. (TSX: AR) – $2.81
Argonaut Gold Inc. is engaged in gold mining, mine development and mineral exploration activities at gold-bearing mineral properties in North America. It owns the producing El Castillo mine in the State of Durango, Mexico; the producing La Colorada mine in the State of Sonora, Mexico; the advanced exploration-stage San Antonio property in the State of Baja California Sur, Mexico; the advanced exploration-stage Magino property in the Province of Ontario, Canada; the advanced exploration-stage San Agustin property located approximately 10 kilometers from the El Castillo mine in the State of Durango, Mexico, and various other exploration stage projects, all of which are located in North America.
- Market Cap: $433 million
- Free Cash Flow: $27 million
- Total Debt: $1.96 million
- Debt to Equity: 0.7%
Centerra Gold Inc. (TSX: CG) – $6.82
Centerra Gold Inc. is a Canada-based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, North America and other markets across the world. The Company’s exploration segment includes the operations of Lagares Project in which the activities are related to its subsidiary, Centerra Gold (KB) Inc. Its Kyrgyz segment includes Kumtor Gold Co. (KGC) (Kyrgyz Republic), which operates Kumtor Mine. Its Mongolian segment includes Centerra Gold Mongolia LLC (CGM) (Mongolia), which operates ATO Project and Gatsuurt Project, and Boroo Gold LLC (BGC) (Mongolia), which operates Boroo Mine.
- Market Cap: $1,987 million
- Free Cash Flow: $123 million
- Total Debt: $128.68 million
- Debt to Equity: 5.3%
Klondex Mines Ltd. (TSX: KDX) – $6.49
Klondex Mines Ltd is a Canada-based gold and silver mining company that focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, Nevada, and the Midas mine and ore milling facility located in Nevada. It also owns an underground mine project located in Manitoba, Canada, which includes the Rice Lake Mine and Mill complex, and early-stage exploration properties located in the State of Nevada, the United States, and Manitoba and Ontario, Canada.
- Market Cap: $964 million
- Free Cash Flow: $0.4 million
- Total Debt: $42.17 million
- Debt to Equity: 12.8%
Semafo Inc. (TSX: SMF) – $4.99
SEMAFO Inc. is a Canada-based mining company. Its segments include Mana, Burkina Faso; Natougou, Burkina Faso, and Other exploration. The Company, through its subsidiaries, is engaged in gold mining activities, including exploration, development and operations. Its properties include Mana project, which is located in Burkina Faso that includes the satellite Siou and Fofina deposits; Natougou advanced gold deposit, which is located approximately 320 kilometers east of Ouagadougou.
- Market Cap: $1,612 million
- Free Cash Flow: $96 million
- Total Debt: $74.58
- Debt to Equity: 15.4%