SmallCapPower | January 27, 2016: An industry-specific valuation metric to the gold sector is the Enterprise Value/Ounces. It measures the value of the Company per every ounce of gold it has in reserves. With that in mind, the gold stocks on our list today appear to be a bargain at current gold prices.
Chesapeake Gold Corp. (TSXV: CKG) – $1.89
Diversified Mining
Chesapeake Gold Corp. is a development-stage company that focuses on the discovery, acquisition and development of gold-silver deposits in North and Central America. Its primary asset is the Metates gold-silver project, an undeveloped gold and silver deposit located in Durango State, Mexico, which consists of 14 mineral concessions totaling 14,727 hectares. It also has a portfolio of other exploration properties.
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Market Cap: $80,935,021
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EV/Ounces of gold: 3.0x
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Ounce of Gold (LFY): 18,452,000
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Enterprise Value: $55,483,559
Gabriel Resources Ltd. (TSX: GBU) – $0.19
Diversified Mining
Gabriel Resources Ltd. (Gabriel) is a Canada-based resource company engaged in the exploration and development of precious metal mineral properties in Romania. Gabriel has two mineral projects located in Romania and is focused on permitting and developing the project at Rosia Montana, which is one of the largest undeveloped gold deposits in Europe.
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Market Cap: $73,888,156
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EV/Ounces of gold: 10.4x
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Ounce of Gold (LFY): 10,100,000
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Enterprise Value: $105,355,156
Seabridge Gold Inc. (TSX: SEA) – $8.49
Diversified Mining
Seabridge Gold Inc. (Seabridge) is a development stage company engaged in the acquisition and exploration of gold properties located in North America. Seabridge’s principal projects include the KSM (Kerr-Sulphurets-Mitchell) property located in British Columbia and the Courageous Lake property located in the Northwest Territories.
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Market Cap: $445,459,261
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EV/Ounces of gold: 12.3x
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Ounce of Gold (LFY): 34,817,772
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Enterprise Value: $429,578,815
Jaguar Mining Inc. (TSXV: JAG) – $0.195
Gold
Jaguar Mining Inc. (Jaguar) is a Canada-based gold mining company that is engaged in gold production and in the acquisition, exploration, development and operation of gold mineral properties in Brazil. Jaguar’s three producing projects include Turmalina, Caete and Paciencia, which are located in the Iron Quadrangle region of Brazil, a greenstone belt located east of the city of Belo Horizonte in the state of Minas Gerais.
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Market Cap: $18,000,967
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EV/Ounces of gold: 18.6x
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Ounce of Gold (LFY): 2,594,930
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Enterprise Value: $48,136,468
Argonaut Gold Inc. (TSX: AR) – $1.02
Gold
Argonaut Gold, Inc. is a Canada-based gold mining company that is engaged in exploration, mine development and production activities on gold-bearing properties in Mexico and Canada. The Company’s primary gold assets are the El Castillo Mine (Durango, Mexico), the La Colorada Mine (Sonora, Mexico), the exploration stage San Antonio project (State of Baja California Sur, Mexico), the exploration stage project Magino (Ontario, Canada), and the exploration-stage San Agustin project, the exploration-stage La Fortuna Project (Durango, Mexico) and gold exploration projects located in the Sonora Mojave Megashear.
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Market Cap: $144,472,812
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EV/Ounces of gold: 29.9x
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Ounce of Gold (LFY): 2,980,000
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Enterprise Value: $89,244,398
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