5 Gold Mining Stocks with Big Cash Positions

The Canada-listed gold mining stocks we’ve dug up have significant cash positions with little debt

SmallCapPower | August 22, 2018: Today we have identified five Canada-listed gold mining stocks that have strong net cash reserves (cash less debt). Positive net cash indicates that a company could be in a strong financial position to either expand and/or acquire new exploration projects.

Kirkland Lake Gold Ltd. (TSX:KL) – $25.40

Kirkland Lake Gold is a mid-tier gold producer operating four mines and three milling facilitates located in Canada and Australia. The Company’s main asset is the Fosterville Mine, located in Australia, which is the largest gold mine in the state of Victoria. The Company’s largest Canadian asset is the Macassa Mine, located in Kirkland Lake. On August 2, 2018, Kirkland Lake announced a record setting operating cash flow of $120.9M up 56% compared to Q2/2017. This prompted the Company to improve their full-year 2018 consolidated guidance to 630,000 ounces of production with operating cash costs per ounce sold expected to average between US$400 – $425.

  • Market Cap: $5,414.6 Million
  • Cash (CAD):  $291.3 Million
  • Total Debt (CAD):  $48.5 Million
  • Net Cash (CAD):  $242.7 Million

IAMGOLD Corp. (TSX:IMG) – $5.41

IAMGOLD is a gold developer with four active mines located in Quebec, Canada; Burkina Faso, West Africa; and Suriname, South America. The Company estimates full-year production guidance for 2018 of 850-900koz Au with sustaining costs per ounce ranging between US$990 – $1070.

  • Market Cap: $2,501.6 Million
  • Cash (CAD):  $615.3 Million
  • Total Debt (CAD):  $492.8 Million
  • Net Cash (CAD):  $122.5 Million

Premier Gold Mines Ltd. (TSX:PG) – $1.96

Premier Gold Mines operates two producing mines, a developing mine, and three exploration projects throughout North America. Premier’s 100%-owned Mercedes mine, located in Mexico, is guided to produce 90,000-100,000 oz. Au in 2018. The South Arturo Mine, 60% owned by Barrick Gold (TSX:ABX), is an open pit mine in Nevada, guided to produce 5,000 – 10,000 Au in 2018. Premier Gold has placed an emphasis on quality of production as it continues drilling at two pit locations in the South Arturo mine.

  • Market Cap: $403.2 Million
  • Cash (CAD):  $127.2 Million
  • Total Debt (CAD):  $24.2 Million
  • Net Cash (CAD):  $103 Million

Fortuna Silver Mines Inc. (TSX:FVI) – $5.92

Fortuna Silver Mines develops precious metals including silver, gold, lead, and znc through two active mines: the Caylloma mine in southern Peru and the San Jose mine in southern Mexico. In 2017, the Company began development of the Lindero Project, a 100% owned gold mine located in northern Argentina. On August 8, 2018, the Company announced that commercial operations of the Lindero Project are due to commence in Q3/2019, which is expected to increase production by 190,000 oz of Au and 9,000,000 oz of Ag in 2020.

  • Market Cap: $941.3 Million
  • Cash (CAD):  $100.7 Million
  • Total Debt (CAD):  $51.3 Million
  • Net Cash (CAD):  $49.4 Million

Wesdome Gold Mines Ltd. (TSX:WDO) – $3.38

Wesdome Gold Mines is a Canada-based gold producer operating in Ontario. The Company’s operating asset, the Eagle River Complex in Ontario, is projected to produce 64,000 – 67,000 oz. Au in 2018. The Company continues to diversify production through the development of its Kiena Complex, comprising of a fully-permitted mine and mill, in Val d’Or, Quebec. On June 26, 2018, drilling results from the Kiena Complex yielded multiple high-grade assays including 77.4 g/t Au over 14.4m.

  • Market Cap: $434.8 Million
  • Cash (CAD):  $13.1 Million
  • Total Debt (CAD):  $6.5 Million
  • Net Cash (CAD):  $6.6 Million

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

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