5 Canadian Gold Mining Stocks With Expected Cash Costs Under US$550/oz

The Canadian gold mining stocks on our list with low production costs will likely benefit most from a rising gold price environment

SmallCapPower | April 13, 2017: Increasing geopolitical tensions have created upward momentum for the gold price of late. Today we have identified those Canadian gold mining stocks—not only small caps—that have the lowest extraction costs (or cash costs) in the mining industry. Cash costs refer to the mining and processing costs incurred per ounce; the lower the cash cost to extract each ounce of gold, the higher the potential profits. Below are five of our industry-leading gold producers with forecasted 2017 cash costs as low as US$525/oz.

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Gold Corp. (TSX: ASR) – $2.72

Alacer Gold Corp. is an intermediate gold mining company engaged in mining, development and exploration of mineral deposits in Turkey. The Company has interest in the Copler Gold Mine in Turkey operated by Anagold Madencilik Sanayi ve Ticaret A.S. (Anagold). The Copler Gold Mine is an open-pit, heap-leach operation that produces gold from oxide ore. The Copler Mine is located in east-central Turkey in the Erzincan Province, approximately 1,100 kilometers southeast from Istanbul and 550 kilometers east from Ankara, Turkey.

  • Market Cap: $796.4 million
  • Revenue (LTM): $185.8 million
  • D/E (LTM): 0%
  • Expected Cash Costs (per oz, 2017): $525

Barrick Gold Corp. (TSX: ABX) – $26.79

Barrick Gold Corporation (Barrick) is a gold mining company engaged principally in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.

  • Market Cap: $31,225.7 million
  • Revenue (LTM): $11,191.1 million
  • D/E (LTM): 115.8%
  • Expected Cash Costs (per oz, 2017): $525

Goldcorp Inc. (TSX: G) – $20.44

Goldcorp Inc. is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company is engaged in the sale of gold, silver, lead, zinc and copper. Goldcorp’s segments include Red Lake Gold Mines Ontario Partnership (Red Lake), Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine), Musselwhite, Les Mines Opinaca Ltee (Eleonore), Minera Penasquito S.A. de C.V. and Camino Rojo S.A. de C.V. (Penasquito), Desarrollos Mineros San Luis S.A. de C.V. (Los Filos), Montana Exploradora de Guatemala S.A. (Marlin), Oroplata S.A. (Cerro Negro), Corredor SpA (Project Corridor), Minera Alumbrera Limited (Alumbrera), El Morro and Pueblo Viejo Dominicana Corporation (Pueblo Viejo).

  • Market Cap: $17,451.9 million
  • Revenue (LTM): $4,580.6 million
  • D/E (LTM): 22.8%
  • Expected Cash Costs (per oz, 2017): $535

Guyana Goldfields Inc. (TSX: GUY) – $7.83

Guyana Goldfields Inc. (Guyana Goldfields) is a Canada-based mineral development and exploration company focused primarily on the acquisition, exploration and development of gold deposits in Guyana, South America. The Company’s Aurora Gold Mine is an operating gold mine project, which is located in Guyana. The Company owns approximately 100% interest in the Aurora Project, which has total proven and probable reserves of approximately 3.04 million ounces of gold. The Company also holds an interest in a land package located in the Aranka district of Guyana approximately 30 kilometers northeast of the Aurora Gold Mine, known as the Aranka Properties, which consist of a number of separate properties, including Sulphur Rose.

  • Market Cap: $1,339.9 million
  • Revenue (LTM): $225.9 million
  • D/E (LTM): 50.3%
  • Expected Cash Costs (per oz, 2017): $525

Torex Gold Resources Inc. (TSX: TXG) – $25.64

Torex Gold Resources Inc. is a Canada-based resource company engaged in the exploration, development and operation of the Morelos Gold Property. The Morelos Gold Property is located in the Guerrero Gold Belt in southern Mexico, approximately 180 kilometers to the southwest of Mexico City and 50 kilometers southwest of Iguala. The Morelos Gold Property consists of approximately seven mineral concessions covering a total area of approximately 29,000 hectares. Its principal assets are the El Limon Guajes (ELG) mine (the ELG Mine) and the Media Luna project (the Media Luna Project). The ELG Mine is an open pit operation with two main pits (the El Limon and Guajes pits), while the Media Luna Project is an early stage development project.

  • Market Cap: $2,044.4 million
  • Revenue (LTM): $312.5 million
  • D/E (LTM): 60.5%
  • Expected Cash Costs (per oz, 2017): $550

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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