The TSX gold mining stocks on our list have near flawless operations, generating the most cash per ounce of gold
SmallCapPower | March 27, 2017: Today we have identified some TSX gold mining stocks that have the highest operating margins. Operating margins are calculated by taking the gross profit (from the sale of gold production) and then subtracting all the indirect costs involved in production and delivery of goods, such as employee salaries. Another well-known industry parameter for measuring margins of a gold producer are its All-in Sustaining Costs (AISC) per ounce of gold. AISC includes all the operating, sustaining, and exploration costs a company incurs per ounce of gold. By investing in companies with the leanest operations and AISC, investors have the best protection in the industry against declining prices, but also benefit from the rising bullion price.
Centerra Gold Inc. (TSX: CG) – $7.28
Centerra Gold Inc. is a Canada-based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, North America and other markets across the world. The Company’s exploration segment includes the operations of Lagares Project in which the activities are related to its subsidiary, Centerra Gold (KB) Inc. Its Kyrgyz segment includes Kumtor Gold Co. (KGC) (Kyrgyz Republic), which operates Kumtor Mine. Its Mongolian segment includes Centerra Gold Mongolia LLC (CGM) (Mongolia), which operates ATO Project and Gatsuurt Project, and Boroo Gold LLC (BGC) (Mongolia), which operates Boroo Mine.
- Market Cap: $2,120.5 million
- Operating Margin (FY0): 22.0%
- All-in Sustaining Costs: US$682
- YTD Price Change: 15.7%
Torex Gold Resources Inc. (TSX: TXG) – $26.92
Torex Gold Resources Inc. is a Canada-based resource company that operates through the segment of mineral exploration and mine development and operation in Mexico. The Company is 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).
- Market Cap: $2,150.2 million
- Operating Margin (FY0): 32.3%
- All-in Sustaining Costs: US$733
- YTD Price Change: 29.5%
Timmins Gold Corp. (TSX: TMM) – $0.51
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: $181.7 million
- Operating Margin (FY0): 30.2%
- All-in Sustaining Costs: US$800
- YTD Price Change: 22.9%
Barrick Gold Corp. (TSX: ABX) – $25.84
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. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa.
- Market Cap: $30,118.4 million
- Operating Margin (FY0): 28.3%
- All-in Sustaining Costs: US$730
- YTD Price Change: 20.2%
Guyana Goldfields Inc. (TSX: GUY) – $6.77
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: $1,160.7 million
- Operating Margin (FY0): 28.3%
- All-in Sustaining Costs: US$738
- YTD Price Change: 10.6%