The TSX gold stocks on our list are trading at low price to cash flow multiples
SmallCapPower | September 26, 2017: Today we have shortlisted five TSX gold stocks trading at a significant discount to their peers on a cash-flow basis. Some of the stocks mentioned have declined YTD, representing a potential value play for investors.
Golden Star Resources Ltd (TSX: GSC) – $0.92
Gold
Golden Star Resources Ltd. is a gold mining and exploration company. The Company’s segments include Wassa, Bogoso/Prestea and Corporate. The Company, through its subsidiary, Golden Star (Wassa) Limited, owns and operates the Wassa open-pit gold mine, the Wassa underground mine and a carbon-in-leach (CIL) processing plant (Wassa). The Wassa mine is located in the southwestern region of Ghana approximately 35 kilometers northeast of the town of Tarkwa. The Company, through its subsidiary Golden Star (Bogoso/Prestea) Limited, owns and operates the Bogoso gold mining and processing operations (Bogoso), the Prestea open-pit mining operations and the Prestea underground development project.
- Market Cap: $346 million
- Price to Cash Flow: 3.7x
- YTD Price PCT Change: -7.1%
Roxgold Inc (TSX: ROXG) – $1.27
Gold
Roxgold Inc. is a Canada-based gold exploration and development company that is engaged in the business of acquiring, exploring and evaluating mineral properties, and developing them through to construction or disposing them when the evaluation is completed. The Company has a development project, the Yaramoko Gold Project, which is located in Burkina Faso, West Africa. The Yaramoko permit covers approximately 200 square kilometers in the Province of Bale in southwestern Burkina Faso. The Company also holds interest in the Houko, Solna and Boussara exploration properties.
- Market Cap: $472 million
- Price to Cash Flow: 5.4x
- YTD Price PCT Change: 5.0%
Semafo Inc. (TSX: SMF) – $3.45
Gold
SEMAFO Inc. is a Canada-based mining company. Its segments include Mana, Natougou, Burkina Faso, among other explorations. The Company, through its subsidiaries, is engaged in gold mining activities, including exploration, development and operations. 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: $1.2 billion
- Price to Cash Flow: 4.4x
- YTD Price PCT Change: -21.9%
Asanko Gold Inc. (TSX: AKG) – $1.23
Gold
Asanko Gold Inc. is a gold producer. The Company has operations in the Republic of Ghana. The Company’s segments include Canada and Ghana. The Company’s principal asset is the Asanko Gold Mine (AGM) located in Ghana, West Africa. The Company’s Project 5M will upgrade the plant’s throughput to five metric tons per annum and expand mining operations to integrate the Esaase deposit, including the construction of a 27-kilometer overland conveyor. The Company is involved in open pit mining and conventional processing of gold ores mined in its Asanko Gold Mine in Ghana.
- Market Cap: $250 million
- Price to Cash Flow: 1.90x
- YTD Price PCT Change: -70.1%
Alio Gold Inc (TSX: ALO) – $5.80
Gold
Alio Gold Inc, formerly Timmins Gold Corp, is a Canada-based gold producer engaged in the operation, development, exploration and acquisition of resource properties in Mexico through its subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V. and Molimentales del Noroeste, S.A. de C.V. (MdN). MdN owns the San Francisco Mine in Sonora, Mexico. MdN also owns the Caballo Blanco Property, an exploration and evaluation asset in Veracruz, Mexico. The Mine and the La Chicharra pit are collectively known as the Gold Property. The Company also holds the Ana Paula gold project, which is an advanced stage development project in the Guerrero Gold Belt.
- Market Cap: $253 million
- Price to Cash Flow: 6.1x
- YTD Price PCT Change: 39.8%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.
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