Spot gold prices rebounded during January 2014 with a rise of 4.5% till
date after a steep decline of 28.2% during 2013. The yellow metal touched
its 10-week high of 1,270.06 an ounce on Jan 24 following weak global equities
on concerns about China’s economic slowdown coupled with expectations the
Fed would scale back its bond buying further. According to a report
compiled by London Bullion Market Association (LBMA), gold price is expected
to range between $1,067 and $1,379 in 2014. The analysts expect possible
strengthening of US dollar, the reining in of QE, weak global inflationary
pressures, oversupply of gold and further sales by investors who hold gold
in exchange-traded funds or ETFs could restrain gold prices.
Ubika Research has shortlisted the following Canadian gold producers,
which have registered significant growth in production during the trailing
twelve months. Also, these stocks have registered strong growth in sales
during the same period and are currently trading at low EV to EBITDA multiple.
Moreover, we note that majority of these stocks have outperformed the gold
prices during the past one month with average traded volume in excess of
100,000.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
TTM Sales Growth |
Trailing EV to EBITDA |
TTM Gold Production (MM Ounces) |
TTM Gold Production Growth |
|
First Majestic Silver Corp |
TSX |
FR |
1,366.9 |
11.68 |
820,821 |
13.2% |
11.1% |
10.4 |
0.01 |
158.3% |
|
Endeavour Silver Corp |
TSX |
EDR |
481.9 |
4.83 |
438,145 |
30.2% |
73.5% |
4.7 |
0.07 |
115.8% |
|
B2Gold Corp |
TSX |
BTO |
1,747.5 |
2.59 |
6,613,187 |
13.1% |
86.9% |
10.3 |
0.31 |
100.2% |
|
Centerra Gold Inc |
TSX |
CG |
992.8 |
4.20 |
1,038,781 |
0.5% |
56.2% |
1.8 |
0.55 |
71.6% |
|
Veris Gold Corp |
TSX |
VG |
44.8 |
0.29 |
354,697 |
-6.5% |
49.5% |
1.8 |
0.14 |
57.0% |
|
Kirkland Lake Gold Inc |
TSX |
KGI |
224.5 |
3.20 |
709,072 |
30.1% |
8.5% |
9.9 |
0.12 |
30.3% |
|
Timmins Gold Corp |
TSX |
TMM |
207.6 |
1.44 |
1,101,227 |
25.2% |
16.0% |
2.9 |
0.11 |
24.1% |
|
Lake Shore Gold Corp |
TSX |
LSG |
304.1 |
0.73 |
3,030,254 |
43.1% |
41.3% |
8.5 |
0.10 |
19.7% |
|
New Gold Inc |
TSX |
NGD |
3,282.5 |
6.52 |
1,775,902 |
19.0% |
15.9% |
10.0 |
0.40 |
1.1% |
|
Primero Mining Corp |
TSX |
P |
694.1 |
6.00 |
873,546 |
23.7% |
12.1% |
6.3 |
0.11 |
NA |
Source: Bloomberg, TTM – Trailing Twelve Months
Company Description:
First Majestic Silver Corp (TSX: FR)
First Majestic Silver Corp. is a silver producing mining company. The
company’s presently owns and operates producing silver mines in Mexico;
the La Parrilla Silver Mine, the San Martin Silver Mine, the La Encantada
Silver Mine, the La Guitarra Silver Mine, and Del Toro Silver Mine.
Endeavour Silver Corp (TSX: EDR)
Endeavour Silver Corp. is a small-cap silver mining company focused on
the growth of its silver production, reserves and resources in Mexico.
B2Gold Corp (TSX: BTO)
B2Gold Corporation is a gold exploration and production company. The company
is a Vancouver based gold producer with mines in Nicaragua and a portfolio
of development and exploration assets in Nicaragua, Colombia and Uruguay.
Centerra Gold Inc (TSX: CG)
Centerra Gold Inc, acquires, explores, develops, and operates gold properties
primarily in Central Asia, the former Soviet Union, and other emerging
markets. The company currently operates the Kumtor mine in the Kyrgyz Republic
and the Boroo mine in Mongolia.
Veris Gold Corp (TSX: VG)
Veris Gold Corp. is a growing mid-tier North American gold producer in
the business of developing and operating gold mines in geo-politically
stable jurisdictions. The company’s primary asset is the permitted and
operating Jerritt Canyon gold mine located north of Elko, Nevada, USA.
Kirkland Lake Gold Inc (TSX: KGI)
Kirkland Lake Gold, Inc. is an operating gold mining company located in
Ontario, Canada. The company owns the Macassa Mine and mill and several
contiguous gold producing properties. Kirkland Lake is developing
a lode gold deposit.
Timmins Gold Corp (TSX: TMM)
Timmins Gold Corporation operates as a gold exploration and production
company. The company owns and operates a Mexican based mine where they
develop, explore and produce gold.
Lake Shore Gold Corp (TSX: LSG)
Lake Shore Gold Corp. is a gold mining company that is in production and
pursuing rapid growth through the advancement of three wholly owned complexes
in the Timmins Gold Camp.
New Gold Inc (TSX: NGD)
New Gold Inc. is a natural resource company. The company acquires, explores,
and develops gold properties.
Primero Mining Corp (TSX: P)
Primero Mining Corporation is a gold and silver producer. The company
focuses on building a precious metals portfolio in the Americas.
