The junior gold stocks we’ve discovered are Industrial Alliance Analyst George Topping’s top picks as potential takeover targets for 2020
SmallCapPower | March 11, 2020: In a recent note, Industrial Alliance analyst George Topping increased his gold price target to US$1,900 by 2023. “Gold is the best way to protect purchasing power as central bankers print money to prop up their economies but devalue currencies relative to hard assets in the process. M&A transactions should build on 2019 as senior miners look for growth.” – George Topping. Today we’ve highlighted George Topping’s Top 4 picks for junior gold takeout candidates.
*Share prices as at March 9, 2020, data obtained from S&P Capital IQ
Wesdome Gold Mines Ltd. (TSX:WDO) – $9.26
Gold Mining
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. 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.
- Market Cap: $1,277.8M
- 90-Day Return: +0.2%
- 1-Year Return: +90.4%
- 90-Day Average Trading Volume: 986,250
Probe Metals Inc. (TSXV:PRB) – $0.97
Gold Mining
Probe Metals is a gold junior engaged in the acquisition, exploration, and development of gold properties in Canada. The Company’s flagship asset is the Val-d’Or East gold project, comprising approximately 820 claims covering an area of 33,429 hectares located in the city of Val-d’Or, Quebec. Probe Metals management has experience selling their assets to large-cap miners. Having sold the Borden Lake project to Goldcorp in 2015 for $526M, the likely exit strategy for this Company is a sale.
- Market Cap: $117.9M
- 90-Day Return: -5.0%
- 1-Year Return: -9.3%
- 90-Day Average Trading Volume: 67,650
Rubicon Minerals Corporation (TSX:RMX) – $0.84
Gold Mining
Rubicon Minerals engages in the exploration and development of gold properties in Canada and the United States. The Company holds a 100% interest in the Phoenix Gold project located in the Red Lake gold district in northwestern Ontario. It also holds interests in approximately 285 square kilometers of exploration ground in the Red Lake gold district; and approximately 900 square kilometers of mineral property interests in the Long Canyon gold district along the Nevada-Utah border.
- Market Cap: $80.3M
- 90-Day Return: -9.4%
- 1-Year Return: -33.9%
- 90-Day Average Trading Volume: 115,090
Sabina Gold & Silver Corp. (TSX:SBB) – $1.44
Gold Mining
Sabina Gold & Silver is a precious metals company focused on the exploration and development of gold and silver resource properties in Canada. The Company’s projects include the Back River gold project, comprising of the Goose, George, Boulder, Boot, and Del properties, as well as the port facility at Bathurst Inletthat, which covers an area of approximately 564 square kilometres located in southwestern Nunavut, Canada; and a silver royalty on the Hackett River project that consists of approximately 10,637 hectares, also located in Nunavut. Sabina is a compelling opportunity highlighted by the high-grade Back River project with significant exploration upside, in a stable operating jurisdiction, with low risk; increasing its attractiveness as a takeover target.
- Market Cap: $427.2M
- 90-Day Return: -24.7%
- 1-Year Return: +10.4%
- 90-Day Average Trading Volume: 355,490
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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