The Canadian gold juniors on our list have clean balance sheets with no debt
SmallCapPower | July 27, 2017: Investing in companies with strong balance sheets is sound investment policy. These companies carry far less risk because defaulting on any obligations is out of the question for them. Furthermore, the less debt a company has, the more room they have to raise debt in the future, which can be beneficial to current shareholders as it is a non-dilutive financing option. Two common ratios used to analyze the balance sheet are the current ratio and the debt to equity ratio. The current ratio is an indicator of liquidity, and shows how many times a company’s current assets cover their current liabilities. Whereas the debt to equity ratio is a leverage ratio that indicated how much debt a company uses to finance its assets. All of the Canadian gold juniors on our list have current ratios over 2 and carry no debt.
John Kaiser, Sean Brodrick, and Tom Meredith Discuss West Red Lake Gold Mines (CSE: RLG)
IDM Mining Ltd. (TSXV: IDM) – $0.14
Gold
IDM Mining Ltd. (IDM), formerly Revolution Resources Corp., is a Canada-based exploration-stage company engaged in the business of acquiring, exploring and developing natural resource properties in British Columbia and Yukon. The Company’s primary focus is on the high-grade Red Mountain gold project located near Stewart, British Columbia. The Company has interests in approximately 17,125 hectare Red Mountain Project. The Yukon portfolio consists of approximately 14,500 claims covering over 10 project areas consisting of approximately 50 claim groups totaling over 300,000 hectares.
- Market Cap: $50,273,838
- Current Ratio: 2.8x
- Debt to Equity 0.0%
TriStar Gold Inc. (TSXV: TSG) – $0.38
Gold
TriStar Gold, Inc. is an exploration-stage junior mining company with a business focus on the acquisition, exploration and development of precious metal prospects in the Americas, including its focus on advancing the exploration of the Castelo de Sonhos project in the Tapajos Gold District of Brazil’s northerly Para State. The host rocks for the property’s gold mineralization are quartzites, meta-arenites and metaconglomerates of the Early Proterozoic Castelo de Sonhos Formation.
- Market Cap: $59,075,424
- Current Ratio: 9.6x
- Debt to Equity: 0.0%
Dalradian Resources Inc. (TSX: DNA) – $1.62
Gold
Dalradian Resources Inc. is a Canada-based gold development and exploration company engaged in the acquisition, exploration and evaluation of mineral properties in Northern Ireland. Its operations are focused on the Curraghinalt gold project in Northern Ireland. The Company is exploring and evaluating the Curraghinalt gold deposit while continuing to explore for other gold deposits at its properties in Northern Ireland. The Curraghinalt gold deposit is a lode gold system consisting of a series of structurally controlled, high-grade gold bearing quartz-carbonate veins.
- Market Cap: $406,683,783
- Current Ratio: 7.0x
- Debt to Equity: 0.0%
NewCastle Gold Ltd. (TSX: NCA) – $0.90
Gold
NewCastle Gold Ltd., formerly Castle Mountain Mining Company Limited, is an exploration gold company. The Company, through its subsidiaries, including Castle Mountain Venture, focuses on the exploration and development of gold deposits in its Permitted Castle Mountain Gold Project, which is in San Bernardino County, California, approximately 70 miles south of Las Vegas, Nevada. The Castle Mountain Property consists of patented lode claims, unpatented lode and millsite claims, and placer claims for an aggregate total of over 7,460 acres.
- Market Cap: $182,439,864
- Current Ratio: 3.2x
- Debt to Equity: 0.0%
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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