It’s shaping up to be another disappointing year for the Canadian gold sector in 2015. The S&P/TSX Global Gold Index is down nearly 2% year to date, yet there’s been a few stellar performers in the space. Apparently, the companies on our list today don’t realize we’re still in a bear market for gold stocks.
Lake Shore Gold Corp. (TSX: LSG)
Lake Shore’s stock has surged 59% so far in 2015 to its recent price of $1.24. The company is currently producing gold from its two mines near Timmins, Ontario. Its output was a record 185,600 gold ounces in 2014, a 38% increase from the previous year, at all-in-sustaining costs of US$950 an ounce. Lake Shore Gold recently announced full-year 2015 production guidance to at least 180,000 gold ounces and revealed its intentions to acquire Temex Resources (TSXV: TME) and its 60% owned Whitney Gold project, which is located near Lake Shore’s Bell Creek Mine and Mill. Whitney has a Measured and Indicated gold resource of more than 700,000 ounces at nearly 7 grams per tonne. Goldcorp, though, owns the remaining 40%.
Detour Gold Corporation (TSX: DGC)
Detour shares have made quite a turnaround since bottoming in late 2013. So far this year its stock has jumped 49% to its current price of $14.13. Detour Gold has a gold reserve of about 15 million ounces and its processed grade for the company’s most-recent quarter was 0.84 grams per tonne. During Q1 2015, Detour’s all-in sustaining costs wereUS$1,307 per ounce sold, although the company’s plan is to drive that figure down to $1,050-$1,150 by year’s end. Detour Gold raised $162 million earlier this year in a bought deal financing.
Asanko Gold Inc. (TSX: AKG)
Shares of Asanko have climbed more than 27% so far in 2015 to its recent price of $2.27. Its Asanko gold mine in Ghana has a Measured & Indicated resource of 7.9 million ounces and Proven & Probable reserves of 5.3 million ounces, all at a grade of about 1.7 grams per tonne. The company expects its first gold pour in Q1 2016, ramping up to production of 190,000 ounces per annum by Q2 2016 at total all-in sustaining costs of US$781 expected for Phase 1. Asanko Gold currently has about US$229 million in cash.
Goldstrike Resources Ltd. (TSX: GSR)
Goldstrike’s stock price has powered 150% higher so far in 2015 to its current value of $0.15.The company is developing its flagship Plateau property in the Yukon. Goldstrikesaid the discovery hole in its Goldstack Zone intersected what it called“shallow gold mineralization,” grading 4.05 grams per tonne over 28 metres. Goldstrike contends that its Lucky Strike property is contiguous with Kinross’ Golden Saddle deposit in the White Gold District and has similar geochemistry, host rock, alteration, and structure to Kaminak’s Coffee gold deposit.
Klondex Mines Ltd. (TSX: KDX)
Klondex’s shares have shot up 68% so far in 2015 to its recent price of $3.27. The company owns and operates the Fire Creek Project and Midas Mine and Mill in the precious-metals rich state of Nevada. It produced 107,861 gold equivalent ounces in 2014 from its recently-acquired Midas Mine, which translated into revenue of $121.7 million and net income of $18.3 million. During its most-recently reported quarter (Q1 2015) the company earned $10.1 million. For 2015, Klondex expects to produce 120,000 to 125,000 gold equivalent ounces at all-in sustaining costs US$800 – $850 per ounce. The company had $53 million in cash on hand at the end of 2014.
