The Canadian gold mining stocks on our list have established revenue streams and a high free cash flow yield
SmallCapPower | June 9, 2017: Investing in small cap mining companies can be a risky game. The process of finding and extracting gold takes years, which leaves plenty of room for error. So why not buy a company that has established cash flows? Today we have identified four Canadian small cap gold mining stocks that have established revenue streams, and a high free cash flow yield.
Aura Minerals Inc. (TSX: ORA) – $1.52
Aura Minerals Inc. (Aura Minerals) is a Canada-based gold-copper production company focused on the operation and development of gold and copper projects in the Americas. The Company’s assets include The San Andres Gold Mine (San Andres), The Sao Francisco Gold Mine (Sao Francisco), The Aranzazu Copper Mine (Aranzazu) and The Serrote da Laje Project (Serrote). The San Andres mine is an open-pit heap leach gold mine located in the highlands of western Honduras, in the municipality of La Union, Department of Copan. The Sao Francisco mine is an open-pit heap leach gold mine located in the State of Mato Grosso, Brazil approximately 560 kilometers west of Cuiaba.
- Market Cap: $55,843,791
- Total Revenue (LTM): $196,358,687
- Debt to Equity: 26.1%
- Free Cash Flow Yield: 43%
Alio Gold Inc. (TSX: ALO) – $7.26
Alio Gold Inc, formerly 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: $259,222,640
- Total Revenue (LTM): $166,361,439
- Debt to Equity: 0.3%
- Free Cash Flow Yield: 20%
Metanor Resources Inc. (TSXV: MTO) – $0.93
Metanor Resources Inc. is engaged in the acquisition, exploration and development of mining properties, as well as the commercial production of the ore reserves of its Bachelor Lake and Hewfran properties. The Company operates through three segments: the mining site (Bachelor mine), exploration and corporate. The Bachelor Mine is located approximately 90 kilometers northeast of the city of Lebel-sur-Quevillon, Quebec, Canada. The Bachelor property consists of approximately 240 claims and over two mining concessions covering an area of approximately 7,566.73 hectares.
- Market Cap: $71,387,132
- Total Revenue (LTM): $48,313,860
- Debt to Equity: 15.5%
- Free Cash Flow Yield: 16%
Premier Gold Mines Ltd. (TSX: PG) – $3.09
Premier Gold Mines Limited (Premier) is a Canada-based mineral exploration company focused on exploring for and developing gold deposits within North America. The principal projects in which Premier holds an interest are the Trans-Canada Property, which includes the Hardrock project and the Brookbank project; McCoy-Cove Project, Lander County, Nevada, and South Arturo Mine, Elko County, Nevada. The Trans-Canada Property is located in northern Ontario, Canada, approximately 200 kilometers northeast of Thunder Bay, and consists of three contiguous blocks comprising over 360 patented mining claims and 676 unpatented mining claims covering an aggregate area of over 28,550.64 hectares.
- Market Cap: $625,237,014
- Total Revenue (LTM): $150,510,220
- Debt to Equity: 14.9%
- Free Cash Flow Yield: 13%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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