The Canadian junior gold mining stocks on our list are trading below the industry average on a cash adjusted PE (CAPE) basis
SmallCapPower | August 16, 2017: Imaging buying a wallet from the local convenient store for $100, then opening the wallet to find $50 in it. How much did you really pay for the wallet? $50. The same principal works for purchasing an ownership stake in a company, and this is what the CAPE ratio aims to capture. The CAPE ratio shows what investors are really paying for a company’s earnings. It is calculated as (price – net cash per share)/earnings per share. Today we have identified three Canadian junior gold mining stocks trading below the industry median CAPE ratio of 28x.
Alio Gold Inc. (TSX: ALO) – $5.15
Gold
Alio Gold Inc, formerly Timmins Gold Corp, is a Canada-based gold producer engaged in the operation, development, exploration and acquisition of resource properties in Mexico through its subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V. and Molimentales del Noroeste, S.A. de C.V. (MdN). MdN owns the San Francisco Mine in Sonora, Mexico. MdN also owns the Caballo Blanco Property, an exploration and evaluation asset in Veracruz, Mexico. The Company also holds the Ana Paula gold project, which is an advanced stage development project in the Guerrero Gold Belt.
- Market Cap: $224,668,029
- Net Cash Per Share: $1.04
- CAPE (LTM): 4.4x
Teranga Gold Corp. (TSX: TGZ) – $2.88
Gold
Teranga Gold Corp is a Canada-based mining company engaged in the production, sale and exploration of gold in Senegal, West Africa. The Company owns and operates a gold mine and mill, the Sabodala Gold mine, in Senegal, West Africa. The Company is focused on the exploration and development of Sabodala gold mine, which is located approximately 650 kilometers southeast of Dakar, the capital of Senegal. The Sabodala mine license covers an area of approximately 290 square kilometers.
- Market Cap: $309,150,438
- Net Cash Per Share: $1.19
- CAPE (LTM): 4.9x
Argonaut Gold Inc. (TSX: AR) – $2.45
Gold
Argonaut Gold Inc. is engaged in gold mining, mine development and mineral exploration activities at gold-bearing mineral properties in North America. The Company’s segments are El Castillo, La Colorada, San Antonio, Magino, and Corporate and other. It owns the producing El Castillo mine, which is located approximately 100 kilometers north of the city of Durango and construction-stage San Agustin property, which is located approximately 10 kilometers from the El Castillo Mine; the producing La Colorada mine, which is located approximately 40 kilometers southeast of Hermosillo, Sonora State, Mexico; the exploration-stage San Antonio property, which is located approximately 40 kilometers southeast from the port city of La Paz in the State of Baja California Sur, Mexico; the exploration-stage Magino property, which is located approximately 40 kilometers northeast of Wawa in the Province of Ontario, Canada, and several other exploration-stage projects, which are located in North America.
- Market Cap: $434,795,155
- Net Cash Per Share: $0.32
- CAPE (LTM): 14.6x
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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