4 Canadian Gold Mining Stocks with Superior Cash Costs

The Canadian gold mining stocks we’ve discovered are producing gold at the lowest cash costs in the industry

SmallCapPower | October 22, 2019: Mining companies are price takers with regards to the commodities that they sell, meaning that the market price for their product(s) can fluctuate wildly, impacting their bottom lines. That being said, the Canadian gold mining stocks on our list today are operating with lowest cash costs in their industry, enabling them to better withstand a prolonged downturn in the gold price.

*Share price data as at October 21, 2019, data obtained from S&P Capital IQ

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Kirkland Lake Gold Ltd. (TSX:KL) – $58.79
Gold

Kirkland Lake Gold is a Canadian, U.S., and Australian-listed gold producer that owns five underground mining operations in Canada and Australia. These mines include: 1) the Macassa mine based in northeastern Ontario; 2) the Fosterville mine that is located in the state of Victoria in Australia, and the Holt Complex located in northeastern Ontario, which includes the last three mines; 3) the Taylor mine; 4) the Holt mine and; 5) Holloway mine. The Company also has a central mining facility, the Holt mill, at the Holt Complex. The Company has operations in the Northern Territory of Australia, which are currently undergoing maintenance (since June 30, 2017). These operations include the Cosmo mine, Union Reefs mill and a number of exploration properties. Additionally, the Company continues to conduct exploration on its land, which is focused on growing known zones of mineralization and testing for new discoveries. In Q2/19, the Company produced 214,593 oz/Au, which is up 30% from Q2/18. Kirkland Lake Gold also reported $446/oz cash costs and $788/oz AISC.

  • Market Cap: $12,357M
  • 30-Day Return: -7%
  • YTD-Return: +65%
  • 2019 Cash Cost Guidance: $290-$300/oz
  • AISC Guidance: $520-$560/oz

B2Gold Corp. (TSX:BTO) – $4.27
Gold

B2Gold engages in development and exploration of mineral properties in Burkina Faso, Colombia, Finland, Mali, Namibia, Nicaragua, and the Philippines. B2Gold Corp. also holds an 80% interest in the Fekola mine, located in Mali, a 90% interest in Otijkoto gold mine in Namibia, a 100% interest in La Libertad mine located in Nicaragua, and more. On January 17, the Company announced that it had record-setting 2018 production, boosting its output by 51% YoY. During the year, ~953K ounces of gold were produced from the new Fekola mine in Mali. The Company’s Masbate mine in the Philippines also set a record for production in 2018. In Q2/19, BTO reported cash costs of $554/oz and AISC of $807/oz.

  • Market Cap: $4,328M
  • 30-Day Return: -6%
  • YTD-Return: +7%
  • 2019 Cash Cost Guidance: $520-$560/oz
  • AISC Guidance: $835-$875/oz

Agnico Eagle Mines Ltd (TSX:AEM) – $71.24
Gold

Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden. Agnico Eagle has declared a cash dividend every year since 1983. In Q2/19, Agnico reported cash costs of $506/oz.

  • Market Cap: $16,975M
  • 30-Day Return: -7%
  • YTD-Return: +34%
  • 2019 Cash Cost Guidance: $620-$670/oz
  • AISC Guidance: $875-$925/oz

Yamana Gold Inc. (TSX:YRI) – $4.43
Gold

Yamana Gold is a Canada-based gold producer focused throughout North and South America. With locations in Canada, Brazil, Chile, and Argentina, Yamana focuses on selling precious metals, such as gold, silver, and copper. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties, with a primary focus in the Americas. In Q2/19, Yamana reported cash costs of $670/oz and AISC of $941/oz.

  • Market Cap: $4,210M
  • 30-Day Return: -5%
  • YTD-Return: +38%
  • 2019 Cash Cost Guidance: $640-$680/oz
  • AISC Guidance: $920-$960/oz

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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