Ounce for ounce, the Canadian gold stocks on our list have the most profitable operations in the industry
SmallCapPower | May 2, 2017: Today we have identified those Canadian gold stocks (not just small cap) that have the highest EBITDA margins. The EBITDA margin is a measure of a company’s operating profitability as a percentage of its total revenue. It is calculated by taking the earnings before interest, tax, depreciation, and amortization (EBITDA) and dividing it by the total revenue. The benefits of this calculation is that it allows investors to compare and contract companies of difference size in different mining jurisdictions. Whether it be dollar for dollar or ounce for ounce, the companies on our list beat the industry average EBITDA margin of 28%.
Centerra Gold Inc. (TSX: CG) – $7.07
Centerra Gold Inc. is a Canada-based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, North America and other markets across the world. The Company’s exploration segment includes the operations of Lagares Project in which the activities are related to its subsidiary, Centerra Gold (KB) Inc. Its Kyrgyz segment includes Kumtor Gold Co. (KGC) (Kyrgyz Republic), which operates Kumtor Mine. Its Mongolian segment includes Centerra Gold Mongolia LLC (CGM) (Mongolia), which operates ATO Project and Gatsuurt Project, and Boroo Gold LLC (BGC) (Mongolia), which operates Boroo Mine.
- Market Cap: $2,059.3 million
- Total Revenue (LTM): $1,003.7 million
- Debt to Equity (LTM): 27.1%
- EBITDA Margin (LTM): 50.7%
Barrick Gold Corp. (TSX: ABX) – $22.72
Barrick Gold Corporation (Barrick) is a gold mining company engaged principally in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
- Market Cap: $26,486.3 million
- Total Revenue (LTM): $11,382.3 million
- Debt to Equity (LTM): 99.9%
- EBITDA Margin (LTM): 49.3%
Semafo Inc. (TSX: SMF) – $3.15
SEMAFO Inc. is a Canada-based mining company. Its properties include Mana project, which is located in Burkina Faso that includes the satellite Siou and Fofina deposits; Natougou advanced gold deposit, which is located approximately 320 kilometers east of Ouagadougou, and consists of a drill database of over 170 diamond, 625 multi-purpose (reverse-circulation (RC) pre-collar and core tail) and 550 RC drill holes; Banfora project, which is located approximately 200 kilometers south west of Mana, and Nabanga project, which is located approximately 250 kilometers south-east of Ouagadougou.
- Market Cap: $1,024.7 billion
- Total Revenue (LTM): $394.1 million
- Debt to Equity (LTM): 8.1%
- EBITDA Margin (LTM): 49.0%
Guyana Goldfields Inc. (TSX: GUY) – $6.55
Guyana Goldfields Inc. (Guyana Goldfields) is a Canada-based mineral development and exploration company focused primarily on the acquisition, exploration and development of gold deposits in Guyana, South America. The Company’s Aurora Gold Mine is an operating gold mine project, which is located in Guyana. 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. The Company also holds an interest in a land package located in the Aranka district of Guyana approximately 30 kilometers northeast of the Aurora Gold Mine, known as the Aranka Properties, which consist of a number of separate properties, including Sulphur Rose.
- Market Cap: $1,122.5 million
- Total Revenue (LTM): $254.9 million
- Debt to Equity (LTM): 23.3%
- EBITDA Margin (LTM): 47.6%
B2Gold Corp. (TSX: BTO) – $3.36
B2Gold Corp. (B2Gold) is a Canada-based gold producer with approximately four operating mines and one mine under construction. The Company has a portfolio of other evaluation and exploration projects in various countries, including Mali, Colombia, Burkina Faso, Finland, Chile and Nicaragua. Its material mineral properties consist of three mines and one mine under construction: Otjikoto mine, an open pit gold mine located approximately 300 kilometers north of Windhoek, the capital of Namibia (Otjikoto Mine); Masbate mine, an open pit gold mine, located near the northern tip of the island of Masbate, over 360 kilometers south-east of Manila (Masbate Gold Project); La Libertad mine, an open pit gold mine located over 110 kilometers due east of Managua and 32 kilometers northeast of Juigalpa, Nicaragua (La Libertad Mine), and Fekola gold project, an open pit gold mine under construction located approximately 40 kilometers south of the city of Kenieba, Mali (Fekola Project).
- Market Cap: $3,273.8 million
- Total Revenue (LTM): $897.3 million
- Debt to Equity (LTM): 33.7%
- EBITDA Margin (LTM): 46.1%
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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