The Canadian gold mining stocks we’ve discovered have generated strong three-year Return on Equity (ROE)
SmallCapPower | August 2, 2019: Return on Equity (ROE) is calculated by dividing net income by shareholders’ equity. Shareholders’ equity is a company’s assets with debt subtracted. ROE can be considered as the return on net assets. Many investors use ROE to see how effectively management is utilizing its assets to generate profits. Today we have excavated four Canadian gold mining stocks that have exhibited strong Return on Equity (ROE) on their last annuals filings.
*Share prices as at close July 31, 2019, data obtained from S&P Capital IQ
Kirkland Lake Gold Ltd. (TSX:KL) – $54.58
Metals and Mining
Kirkland Lake Gold is a Canadian, U.S., and Australian-listed gold producer that owns five underground mining operation in Canada and Australia. These mines include: 1) the Macassa mine based in northeastern Ontario; 2) the Fosterville mine that is located in the state of Victoria in Australia, and the Holt Complex located in northeastern Ontario, which includes the last three mines: 3) the Taylor mine; 4) the Holt mine and; 5) Holloway mine. The Company also has a central mining facility, the Holt mill, at the Holt Complex. The Company has operations in the Northern Territory of Australia, which are currently undergoing maintenance (since June 30, 2017). These operations include the Cosmo mine, Union Reefs mill and a number of exploration properties. Additionally, the Company continues to conduct exploration on its land, which is focused on growing known zones of mineralization and testing for new discoveries. In Q2/19, the Company produced 214,593 oz/Au, which is up 30% from Q2/18. During the quarter, Kirkland had cash costs of $312/oz. Overall, revenue in Q2/19 was $281.3M, which was a 31% increase from $214.7M in Q2/18. See the Company website for more information.
- Market Cap: $11,462.4 Million
- ROE (FY2018): 22.6%
- 30 Day Share Price Return: -1.8%
- 30-Day Average Daily Volume (1,000): 822
OceanaGold Corporation (TSX:OGC) – $3.58
Metals and Mining
OceanaGold is a mid-tier, multinational gold producer with mines in the Philippines, New Zealand, and the U.S. Its assets include the underground Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. As well, on the North Island of New Zealand the Company operates a high-grade underground Waihi Gold Mine, and on the South Island of New Zealand OceanaGold operates the largest gold mine in the country at the Macraes Goldfield. The Macraes Goldfield property encompasses a series of open-pit mines and the Frasers underground mine. The Company operates the open-pit Haile Gold Mine in South Carolina. Additionally, OGC has exploration opportunities in the Americas and the Asia-Pacific regions. In Q2/19, the Company produced 129,290 oz/Au and 3,961 tonnes of copper. During the quarter, OceanaGold had cash costs of $688/oz and all-in-sustaining costs of $1,026/oz. OceanaGold generated Q2/19 revenue of $186M with EBITDA of $70.7M.
- Market Cap: $2,227.7 Million
- ROE (FY2018): 8.0%
- 30 Day Share Price Return: -1.9%
- 30-Day Average Daily Volume (1,000): 2,387
Centerra Gold Inc. (TSX:CG) – $10.54
Metals and Mining
Centerra is a Canada-based gold producer that operates, develops and explores gold properties worldwide. The Company’s main operations are the open-pit Kumtor Gold Mine based in Kyrgyzstan and the open-pit Mount Milligan Gold-Copper Mine located in British Columbia. Currently, the Company is working on constructing its next gold mine, the Öksüt Project in Turkey, and is developing two properties in Canada: the Kemess Project and the Greenstone Gold Project (50% ownership). Additionally, the Company has options to acquire exploration joint ventures or properties in Canada, Finland, Mexico, Sweden, Turkey and the United States. For Q2/19, the Company produced 199,578 oz/Au, had adjusted operating costs of $476/oz and all-in-sustaining costs (including taxes) of $861/oz. During this quarter, Centerra realized revenue of $340.5M.
- Market Cap: $3,088.1 Million
- ROE (FY2018): 5.4%
- 30 Day Share Price Return:10.5%
- 30-Day Average Daily Volume (1,000): 745
Pretium Resources Inc. (TSX:PVG) – $14.31
Metals and Mining
Pretium is a Vancouver-based gold company that owns the producing Brucejack gold project in British Columbia. The Brucejack Mine is made up of four mining leases and six mineral claims that total 3,304 hectares in area. The mine is a low-cost, high-grade, underground mine. Additionally, the Company is conducting exploration and evaluation of assets at the Snowfield Project and Bowser Claims. In Q1/19, the Company produced 79,180 oz/Au, a 5% increase from Q1/18. Pretium generated revenue of $103.1M in the quarter, up 15.3% from Q1/18. Cash costs were $686/oz of gold and all-in-sustaining cost were $868/oz. For more information visit the Company website.
- Market Cap: $2,637.2 Million
- ROE (FY2018): 4.2%
- 30 Day Share Price Return: 7.3%
- 30-Day Average Daily Volume (1,000): 580
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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