5 Overvalued Gold Mining Stocks?

Gold sector is starting to get a little overhyped

SmallCapPower | July 11, 2016: In order to find potential overvalued gold stocks in the small cap universe, we looked at inflated valuation multiples. Specifically, we compared enterprise value to sales numbers for several hundred gold stocks, and identified five with lofty multiples. In order to find some gold stocks we feel are undervalued at the moment, we suggest investors take a look at this article.

Guyana Goldfields Inc. (TSE:GUY) – $9.26

Guyana Goldfields Inc. (Guyana Goldfields) is a Canada-based mineral development and exploration company primarily focused on the acquisition, exploration and development of gold deposits in Guyana, South America. The Company owns approximately 100% interest in the Aurora Project, which has total proven and probable reserves of approximately 3.04 million ounces of gold.

  • Market Cap: 1,435,627,165
  • Revenues: 63,108,412
  • Total Debt: 180,694,481
  • EV/Sales: 25.24 guyana graph

Rye Patch Gold Corp. (CVE:RPM) – $0.455

Rye Patch Gold Corp. is an exploration-stage company engaged in the acquisition, exploration and development of mineral properties in Nevada, the United States through its subsidiary, Rye Patch Gold US Inc. The Company’s activities are focused on over two geological trends in Nevada, including Oreana Trend and Cortez Trend.

  • Market Cap: 101,898,844
  • Revenues: 5,633,460
  • Total Debt: 0
  • EV/Sales: 17.39 Rye graph

Sandstorm Gold Ltd. (TSE:SSL) – $6.12

Sandstorm Gold Ltd. is engaged in providing financing alternatives to mining companies. The Company focuses on acquiring gold and other precious metal purchase agreements (Gold Streams or Silver Streams), and royalties from companies that have advanced stage development projects or operating mines. It has over 131 Gold Streams and net smelter returns royalties (NSRs), of which 20 of the underlying mines are producing.

  • Market Cap: 215,285,203.21
  • Revenues: 66,415,206
  • Total Debt: 100,130,800
  • EV/Sales: 14.19 Sand graph

Barkerville Gold Mines Ltd(CVE:BGM) – $0.73

Barkerville Gold Mines is engaged in the exploration and production of mineral properties located in the Cariboo Mining District in east-central British Columbia. The Company controls approximately 117,442 hectares of mineral tenure, including three groups of contiguous Crown-Granted mineral claims, such as the Cariboo Group, Island Mountain Group and Mosquito Creek Group, as well as a block of contiguous mineral tenures centered on the Town of Wells, which is located approximately 85 kilometers east of Quesnel, British Columbia.

  • Market Cap: 114,570,744.63
  • Revenues: 145,209,000
  • Total Debt: 104,120
  • EV/Sales: 13.55

BGM Graph
Marlin Gold Mining Ltd. (CVE:MLN) – $0.60

Marlin Gold Mining Ltd. is engaged in the exploration for, development of and production of gold in Mexico, silver in Arizona and acquiring royalty streaming agreements. The Company operates through the production of gold and exploration of resources segment.

  • Market Cap: 94,526,731
  • Revenues: 18,897,340
  • Total Debt: 51,217,480
  • EV/Sales: 7.12Marline Graph
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source. Ubika and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this site and which may also be clients of Ubika’s affiliates. In such instances, Ubika and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Ubika and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize the conflict.