4 Debt-Loaded Gold Stocks That Could Drop Post Brexit Vote

Now that the uncertainty surrounding the British referendum to leave or stay in the EU is over, gold and gold-related equities could experience some seasonal weakness

SmallCapPower | June 24, 2016: Brexit fears have sparked a move into gold stocks recently but this could all change now that the vote is over. Leading on the downside will likely be gold-related equities with high total debt-to-total equity ratios, such as the ones on our list today.

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SciVacLuna Gold Corp. (TSE:LGC) – $0.195
Gold

Luna Gold Corp. is engaged in the exploration, development and operation of gold properties in Brazil. The Company is involved in the exploration and redevelopment of its Aurizona gold mine (Aurizona). Aurizona consists of an open pit mine and gold processing plant, and includes the Piaba, Tatajuba, Boa Esperanca, Ferradura and Conceicao deposits and over 10 near-mine exploration targets, which are being evaluated by the Company.

  • Market Cap: 56,514,131.38
  • Revenues: 39,363,245
  • Operating Income: -25,334,929
  • Debt-to-Equity: 331.1%

SciVacGolden Queen Mining Co Ltd (TSE:GQM) – $1.64
Gold

Golden Queen Mining Co., Ltd. is engaged in the development of the Soledad Mountain Project (the Project), located in the Mojave Mining District, Kern County, California.

  • Market Cap: 164,228,321.35
  • Revenues: 0
  • Operating Income: -11,938,433
  • Debt-to-Equity: 311.8%

SciVacAtlatsa Resources Corp. (TSE:ATL) – $0.095
Gold

Atlatsa Resources Corporation (Atlatsa) is an exploration company engaged in mining, exploration and development of mineral deposits located in the Bushveld Igneous Complex (BIC), South Africa. Atlatsa holds interests in properties located in the Republic of South Africa in a geological province known as the Bushveld Complex. The Company operates through two segments: the Bokoni Mine and the Projects.

  • Market Cap: 215,285,203.21
  • Revenues: 188,968,950
  • Operating Income: -394,169,110
  • Debt-to-Equity: 294.1%

SciVacRobex Resources Inc. (CVE:RBX) – $0.11
Gold

Robex Resources Inc. (Robex) is a Canada-based mining exploration and development company, focusing on gold projects in the country of Mali, West Africa. The Company holds over five exploration licenses. Over two of its permits are situated in southern Mali (Mininko and N’Golopene), and over three are located in the western area of the country (Diangounte, Sanoula and Kolomba).

  • Market Cap: 63,880,359.20
  • Revenues: 100
  • Operating Income: -2,323,130
  • Debt-to-Equity: 114.7%

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