5 Gold Miners That Could Remain Profitable After a 25% Gold Price Drop

The gold miners on our list have industry-leading all-in-sustaining-costs (AISC)

SmallCapPower | March 1, 2017: Today, we’ve identified those Canadian gold mining companies that would be able to withstand a low price environment for gold. With up to three interest rate hikes planned for this year in the United States, there’s a chance that gold may revisit the US$1000 level. Traditionally, cash cost reporting has focused only on the mining and processing costs incurred per ounce. However, the all-in-sustaining-costs, or AISC, focuses on costs incurred in the complete mining lifecycle from exploration to closure. That being said, the five gold miners on our list have AISC as low as US$660 per ounce.

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Alacer Gold Corp. (TSX: ASR) – $2.56

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: $748 million
  • Expected Revenue (FY1, CAD): $271 million
  • 2017E Production (Au oz): 170,000 oz
  • 2017E AISC (USD): $725/oz

Premier Gold Mines Ltd. (TSX: PG) – $2.58

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: $523 million
  • Expected Revenue (FY1, CAD): $152 million
  • 2017E Production (Au oz): 125-135,000 oz
  • 2017E AISC (USD): $$660-$690/oz

Roxgold Inc. (TSXV: ROG) – $1.30

Roxgold Inc. is a Canada-based gold exploration and development company 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.

  • Market Cap: $486 million
  • Expected Revenue (FY1, CAD): $40 million
  • 2017E Production (Au oz): 105-115,000 oz
  • 2017E AISC (USD): $$740-$790/oz

Torex Gold Resources Inc. (TSX: TXG) – $24.69

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 includes a land package of over 29,000 hectares and contains over two assets, the ELG Mine, which is in the production-stage, and the Media Luna Project, which is in an advanced-stage of exploration. The Morelos Gold Property is located in the Guerrero Gold Belt in southern Mexico, approximately 180 kilometers to the southwest of Mexico City and approximately 50 kilometers southwest of Iguala.

  • Market Cap: $1,969 million
  • Expected Revenue (FY1, CAD): $578 million
  • 2017E Production (Au oz): $350-380,000 oz
  • 2017E AISC (USD): $$775-$825/oz

Guyana Goldfields Inc. (TSX: GUY) – $6.56

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.

  • Market Cap: $1,123 million
  • Expected Revenue (FY1, CAD): $245 million
  • 2017E Production (Au oz): 160-180,000 oz
  • 2017E AISC (USD): $775-$825/oz