Gold has been on an uptrend this year gaining over 14% after witnessing 28% decline during 2013. During Wednesday’s trading session, bullion reached its six-month high of $1,371.80 an ounce, as investors opted for safety amidst weak equity markets due to systematic risk of economic slowdown in China and political and civil unrest in Ukraine. Gold prices have increased 5.2% during the past one month and 1.4% in the past five days, closing Wednesday at $1,366.84 an ounce. Meanwhile global equities tumbled yesterday over worries on global growth and the dollar fell 0.1% against a basket of main currencies and yields on 10-year U.S. treasuries dropped to 2.7%.
Going forward, gold prices could witness pressure as improving data from the U.S. could force the Federal Reserve to cut back stimulus and increase interest rates prompting less demand for gold. Investors would be keenly watching the U.S. Federal Reserve’s policy meeting scheduled on March 18 and 19.
Ubika Research has shortlisted nine gold producing stocks that have rallied over 30% year-to-date (YTD) outperforming the 14% rise in gold prices during the same period. We note that these stocks have recorded strong EBITDAX Margin with significant cash flow from operations during their latest reported quarter. Moreover, majority of these stocks have registered significant growth in production during the recent reported quarter. Additionally, these stocks have accumulated significant gains during the past one month with average traded volume in excess of 100,000.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
Price Change |
Price Change (YTD) |
EBITDAX Margin* |
Cash from operations* |
Gold Production* (MM Ounces) |
Gold Production Growth* |
|
Crocodile Gold Corp |
TSX |
CRK |
133.2 |
0.28 |
1,047,223 |
12.0% |
33.3% |
133.3% |
27.6% |
18.3 |
0.06 |
650.5% |
|
Endeavour Silver Corp |
TSX |
EDR |
592.7 |
5.94 |
372,614 |
0.7% |
5.1% |
54.7% |
43.2% |
22.0 |
0.02 |
95.2% |
|
Primero Mining Corp |
TSX |
P |
1,178.8 |
7.50 |
1,795,011 |
4.2% |
5.2% |
60.3% |
34.7% |
25.4 |
0.03 |
68.3% |
|
Kirkland Lake Gold Inc |
TSX |
KGI |
305.2 |
4.35 |
412,798 |
6.1% |
6.9% |
69.3% |
15.5% |
0.7 |
0.03 |
54.2% |
|
Pan American Silver Corp |
TSX |
PAA |
2,454.3 |
16.20 |
543,886 |
2.3% |
4.8% |
30.5% |
30.2% |
46.2 |
0.04 |
47.6% |
|
Veris Gold Corp |
TSX |
VG |
75.6 |
0.49 |
845,523 |
6.5% |
100.0% |
55.6% |
16.6% |
2.2 |
0.04 |
5.7% |
|
St Andrew Goldfields Ltd |
TSX |
SAS |
140.0 |
0.38 |
483,922 |
7.0% |
1.3% |
35.7% |
19.1% |
6.9 |
0.03 |
-1.2% |
|
Royal Gold Inc |
NASDAQ |
RGLD |
4,543.7 |
70.50 |
1,074,867 |
2.2% |
7.0% |
53.0% |
NA |
34.7 |
0.34 |
-15.9% |
|
Eldorado Gold Corp |
TSX |
ELD |
5,672.4 |
7.92 |
5,494,383 |
2.6% |
2.1% |
31.3% |
51.2% |
47.6 |
0.19 |
-45.2% |
Source: Bloomberg, *Latest Reported Quarter
EBITDAX: Earnings before interest, taxes, depreciation, amortization and exploration expense
Company Description:
Crocodile Gold Corp (TSX: CRK)
Crocodile Gold Corp. is a producing gold company. The company owns interests in gold assets in the Northern Territory and Victoria State, Australia.
Endeavour Silver Corp (TSX: EDR)
Endeavour Silver Corp. is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico.
Primero Mining Corp (TSX: P)
Primero Mining Corporation is a gold and silver producer. The company focuses on building a precious metals portfolio in the Americas.
Kirkland Lake Gold Inc (TSX: KGI)
Kirkland Lake Gold, Inc. is an operating gold mining company located in Ontario, Canada. The company owns the Macassa Mine and mill and several contiguous gold producing properties. Kirkland Lake is developing a lode gold deposit.
Pan American Silver Corp (TSX: PAA)
Pan American Silver Corporation is a primary silver producer. The company has seven operating mines in Mexico, Peru, Argentina and Bolivia and several development projects in USA, Mexico, Peru and Argentina.
Veris Gold Corp (TSX: VG)
Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The company’s primary asset is the permitted and operating Jerritt Canyon gold mine located north of Elko, Nevada, USA.
St Andrew Goldfields Ltd (TSX: SAS)
St. Andrew Goldfields Limited is a gold mining & exploration company located in the Timmins Camp, with current and near-term production, and advanced stage exploration targets.
Royal Gold Inc (NASDAQ: RGLD)
Royal Gold, Inc. acquires and manages precious metals royalties. The company seeks to acquire existing royalties or to finance projects that are in production or near production in exchange for royalty interests. Royal Gold Inc.’s gold-focused portfolio contains royalties ranging from those in production and development to those in the evaluation and exploration stages.
Eldorado Gold Corp (TSX: ELD)
Eldorado Gold Corporation acquires, explores, and develops mineral properties. The company currently has operating gold mines in Brazil, China, Turkey, Greece, and surrounding regions.
