Cash is king, and the Canadian gold miners on our list will give it to you
SmallCapPower | June 30, 2017: The free cash flow yield is a metric to evaluate the return you will likely get on a stock given the current market price, assuming free cash flow stays constant. It is also a valuation metric, which is useful when comparing the free cash flow yields on multiple companies. A high yield is good because it means you are paying less for the company’s cash flow relative to the other companies. Today we have identified four Canadian gold miners that have high free cash flow yields.
Alio Gold Inc. (TSX: ALO) – $7.43
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 Company also holds the Ana Paula gold project, which is an advanced stage development project in the Guerrero Gold Belt.
- Market Cap: $264,232,049
- Free Cash Flow: (LTM): $52,650,226
- Free Cash Flow Yield: 19.9%
Metanor Resources Inc. (TSXV: MTO) – $0.88
Gold
Metanor Resources Inc. is engaged in the acquisition, exploration and development of mining properties, as well as the commercial production of the ore reserves of its Bachelor Lake and Hewfran properties. The Company operates through three segments: the mining site (Bachelor mine), exploration and corporate. The Bachelor Mine is located approximately 90 kilometers northeast of the city of Lebel-sur-Quevillon, Quebec, Canada. The Bachelor property consists of approximately 240 claims and over two mining concessions covering an area of approximately 7,566.73 hectares.
- Market Cap: $66,463,388
- Free Cash Flow: (LTM): $11,652,350
- Free Cash Flow Yield: 17.5%
Premier Gold Mines Ltd. (TSX: PG) – $3.07
Gold
Premier Gold Mines Limited (Premier) is a Canada-based mineral exploration company focused on exploring for and developing gold deposits within North America. The principal projects in which Premier holds an interest are the Trans-Canada Property, which includes the Hardrock project and the Brookbank project; McCoy-Cove Project, Lander County, Nevada, and South Arturo Mine, Elko County, Nevada. The Trans-Canada Property is located in northern Ontario, Canada, approximately 200 kilometers northeast of Thunder Bay, and consists of three contiguous blocks comprising over 360 patented mining claims and 676 unpatented mining claims covering an aggregate area of over 28,550.64 hectares.
- Market Cap: $611,223,898
- Free Cash Flow: (LTM): $78,480,230
- Free Cash Flow Yield: 12.8%
Aura Minerals Inc. (TSX: ORA) – $1.45
Gold
Aura Minerals Inc. (Aura Minerals) is a Canada-based gold-copper production company focused on the operation and development of gold and copper projects in the Americas. The Company’s assets include The San Andres Gold Mine (San Andres), The Sao Francisco Gold Mine (Sao Francisco), The Aranzazu Copper Mine (Aranzazu) and The Serrote da Laje Project (Serrote). The San Andres mine is an open-pit heap leach gold mine located in the highlands of western Honduras, in the municipality of La Union, Department of Copan. The Sao Francisco mine is an open-pit heap leach gold mine located in the State of Mato Grosso, Brazil approximately 560 kilometers west of Cuiaba. e central-southern part of the State of Alagoas, Brazil, approximately 15 kilometers northwest of the city of Arapiraca.
- Market Cap: $52,415,789
- Free Cash Flow: (LTM): $24,558,336
- Free Cash Flow Yield: 46.9%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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