The Canadian gold stocks we’ve dug up have all reported high institutional & strategic ownerships, averaging above 40%
SmallCapPower | January 10, 2019: Gold’s appeal as a defensive asset has returned due to the volatility experienced in global markets triggered by a potential trade war between the U.S. and China. Importantly, at a recent FOMC meeting, the Fed was rather cautious about the pace of its interest rate increases in 2019 and warned that it would continue to monitor economic data. This is a positive environment for gold mining companies as the commodity tends to rally with market uncertainty. Today, we have discovered three Canadian gold stocks that could benefit from potential upside in gold prices, all of which share high institutional ownership rates. Sometimes it’s fortuitous to follow the pros.
*Share prices as at close January 8, 2019, data obtained from S&P Capital IQ.
Mandalay Resources Corporation (TSX:MND) – $0.11
Gold
Incorporated in 1997, with headquarters in Toronto, Ontario, Mandalay Resources is involved with the acquisition, exploration, extraction, and processing of a variety of minerals, including gold, silver, and antimony. The Company holds 100% interests in several international locations including the gold-antimony mines in Central Victoria, Australia, the Cerro Bayo silver and gold mine in southern Chile, and the Björkdal gold mine in northern Sweden. On January 8, the Company released its year-end 2018 Mineral Resources and Reserves estimation for its mine in Victoria, Australia. Dominic Duffy, the President and CEO, also commented on the Company’s hopes to bring the high-grade Youle lode production to Mineral Reserves by the end of 2019. On the same day, Mandalay’s share price rose 10.5%.
- Institutional Ownership: 51.5%
- Market Cap: $47.4 million
- 7-Day Total Return: 40.0%
- 1-Month Total Return: 75.0%
Asanko Gold Inc. (TSX:AKG) – $0.96
Gold
Founded in 1999, Asanko Gold is a gold producer based in Ghana, West Africa. The Company focuses on its main project, the Asanko Gold Mine, which is comprised of two individual projects. The Asanko Gold Mine is a joint venture with Goldfields Ltd (NYSE:GFI), both having a 45% interest in the mine, with the Government of Ghana having the remaining 10%. Currently, the Company has one of the highest strategic ownerships, coming in third after Guyana Goldfields Inc. (TSX:GUY) and Mandalay Resources Corporation (TSX:MND), in terms of percentage owned.
- Institutional Ownership: 43.84%
- Market Cap: $216.8 million
- 7-Day Total Return: 10%
- 1-Month Total Return: -1%
Premier Gold Mines Limited (TSX:PG) – $1.74
Gold
Founded in 2006, Premier Gold Mines Limited explores, develops, and produces gold and silver for Canada, the United States and Mexico. Holding 100% of the interest in the Mercedes Mine located in Mexico, 40% interest in the South Arturo Mine in Nevada, and 50% interest in the Greenstone Gold property situated in Ontario and more, the Company has established a North and Central American presence for itself.
- Institutional Ownership: 41.5%
- Market Cap: $353.4 million
- 7-Day Total Return: 8.1%
- 1-Month Total Return: 11.5%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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