Gold Stocks Valued at Less Than $100/Ounce: Too Good to Be True?

Sector valuations are still low despite a rebound in the gold price, making these companies potential takeover targets

SmallCapPower | April 28, 2016: Signs so far are pointing to a good year for gold stocks in 2016. Despite the recent rally, though, valuations remain low, especially on an enterprise value (EV) to gold ounces in the ground basis. Using that criteria, we’ve identified three stocks that are being valued at $100 an ounce, which could make the companies possible acquisition candidates.

Never Miss Out On The Action


SciVacNovaGold Resources Inc. (TSE:NG)

NovaGold Resources is engaged in the exploration and development of gold and copper mineral properties. The Company’s principal assets include a 50% interest in the Donlin Gold project in Alaska, and a 50% interest in the Galore Creek project in British Columbia, Canada.

  • Market Cap: $1,918 million
  • EV/gold ounce: $63


IAMGOLD Corporation is engaged in the exploration, development and production of mineral resource properties across the world, as well as holding various royalty interests on mineral resource properties. The Company’s mining activities in Canada include Doyon Division with Westwood Mine in Quebec and Cote Gold Project development project in Ontario. Its mining activities in Africa include Burkina Faso- Essakane mine and Mali – Sadiola Mine, and in South America include Suriname – Rosebel Mine.

  • Market Cap: $1,234 million
  • EV/gold ounce: $72

SciVacEldorado Gold Corp (TSE:EDL)

Eldorado Gold Corp’s activities involve various facets of the mining industry, including exploration, development, production and reclamation. Its operating gold mines include Kisladag in Turkey (100%), Efemcukuru in Turkey (100%), Tanjianshan in China (90%), White Mountain in China (95%) and Jinfeng in China (82%). Its gold projects include Perama Hill in Greece (100%), Olympias in Greece (95%), Skouries in Greece (95%), Certej in Romania (81%), Eastern Dragon in China (75%) and Tocantinzinho in Brazil (100%). Its other operating mines include Stratoni Lead and Zinc Concentrates in Greece (95%) and Vila Nova Iron Ore in Brazil (100%).

  • Market Cap: $2,775 million
  • EV/gold ounce: $80

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.