The junior gold stocks we’ve discovered have generated ‘shining’ returns during the past month
SmallCapPower | May 6, 2020: Gold ‘bugs’ are gearing up for potentially a great couple of years for the gold price given the record amount of global monetary stimulus related to COVID-19. Not surprising, then, the junior gold stocks we’ve sifted through and found are standing out due to their upward momentum.
*Returns are based on closing stock prices as of May 5, 2020
Wesdome Gold Mines Ltd. (TSX:WDO) – $11.28
Wesdome Gold Mines explores for, extracts, processes, reclaims, and sells gold in Canada. It produces principally gold in the form of doré bars, and silver as a by-product. WDO boasts over 30 years of continuous gold production and the Company’s principal assets include the Eagle River Mine, which consists of three contiguous mining leases and 442 contiguous active mining claims covering an area of 7,958 hectares; the Mishi Mine that consists of 19 patented mining claims, five mining leases, and five staked claims covering an area of 3,055 hectares; and the Eagle River Mill located near Wawa. During 2019, Wesdome Gold Mines saw a 28% increase in production along with a 9% decrease in cash costs over 2018. With most of its mining infrastructure already built, Wesdome can easily triple production without incurring significant additional capex costs, making the Company an attractive takeover target for a large-cap miner. On May 5, 2020, Wesdome Gold Mines announced that it generated $16.7 million in free cash flow during the first quarter of 2020.
- One-Year Return: 35%
Calibre Mining Corp. (TSX:CXB) – $1.28
Calibre Mining is a gold-focused producer in Nicaragua with two operating mines and several exploration projects. Calibre announced the acquisition of El Limon and La Libertad, the two Nicaraguan operating assets from B2Gold, in July 2019 for US$100 million. These assets have produced more than 1.4 million ounces of gold since 2010. On April 16, 2020, Calibre Mining announced first-quarter 2020 gold production of 42,085 ounces in addition to US$43 million in cash on hand at quarter end.
- One-Month Return: 91%
Troilus Gold Corp. (TSX:TLG) – $1.13
Troilus Gold is focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine in Quebec. Its most recent resource estimate (November 2019) showed 4.71 million Indicated gold equivalent ounces at 0.92 g/t along with 1.76 million Inferred gold equivalent ounces at 1.04 g/t. The Company has 2.5 million ounces open pit and another 3.5 million ounces underground with several miles of on strike unexplored claims. On April 21, 2020, Troilus Gold reports additional results from the 6,000 metre drill program at its 100%-owned Troilus property in Quebec, which included 1.56 g/t gold equivalent over 73 metres.
- One-Year Return: 74%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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