An interesting valuation metric is to analyze the annual production of a gold company, and see how much investors are paying per ounce produced. Technically, the production is not sold off at 100% profit – most of the revenue is often eaten up by operating expenses and other costs. With this in mind, a good rule of thumb for investors is to look for gold stocks selling at less than $1000 per ounce of production, which includes the companies on our list today.
Endeavour Mining Corp. (TSX: EDV) – $0.54
Gold
Endeavour Mining Corporation (Endeavour) is a Canada-based intermediate gold mining company with four mines producing at a combined rate of approximately 500,000 ounces per year in West Africa. As of December 31, 2014, Endeavour had combined attributable proven and probable mineral reserves of approximately 4.0 million ounces of gold and attributable Measured and Indicated mineral resources (inclusive of reserves) of approximately 6.9 million ounces of gold.
- Market Cap: $244,414,601
- Gold Production (ounces, 2014): 465,770
- Price/Ounce of gold produced: $524.75
- Revenues (CAD, LTM): $720,297,393
Thompson Creek Metals Company Inc. (TSX: TCM) – $0.60
Diversified Mining
Thompson Creek Metals Company Inc. (TCM) is a mining company engaged in the full mining cycle, which includes acquisition, exploration, development, and operation of mineral properties. The Company operates in three segments: Copper-Gold, US operations Molybdenum and Canadian Operations Molybdenum. Thompson Creek’s principal products are copper, gold, and molybdenum.
- Market Cap: $146,409,189
- Gold Production (ounces, 2014): 177,606
- Price/Ounce of gold produced: $824.35
- Revenues (CAD, LTM): $775,448,790
Timmins Gold Corp. (TSX: TMM) – $0.35
Gold
Timmins Gold Corp. is a company engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Mexico, through its wholly-owned subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V. and Molimentales del Noroeste, S.A. de C.V. (MdN). The Company also owns and operates the open pit heap leach San Francisco Gold Mine in Sonora State, Mexico. Timmins Gold has explored over 200,000 hectares mine along the prolific Northern Sonora Gold District.
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- Market Cap: $102,872,495
- Gold Production (ounces, 2014): 120,023
- Price/Ounce of gold produced: $857.11
- Revenues (CAD, LTM): $145,793,003
Kinross Gold Corp. (TSX: K) – $2.15
Gold
Kinross Gold Corporation is a senior gold mining company that is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Its gold production and exploration activities are carried out principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
- Market Cap: $2,574,856,567
- Gold Production (ounces, 2014): 2,739,044
- Price/Ounce of gold produced: $940.06
- Revenues (CAD, LTM): $3,912,742,420
Golden Star Resources Ltd. (TSX: GSC) – $0.29
Gold
Golden Star Resources Ltd. (Golden Star) is a gold mining company that holds 90% interest in the Wassa, Prestea and Bogoso gold mines in Ghana. The Company is also engaged in the brownfield development projects at its Wassa and Prestea mines. The Wassa mine is located approximately 35 kilometers east of the town of Bogoso, Ghana.
- Market Cap: $252,294,855
- Gold Production (ounces, 2014): 260,788
- Price/Ounce of gold produced: $967.43
- Revenues (CAD, LTM): $366,911,259
