The Canada-listed gold mining stocks we’ve dug up have achieved an average return of 16% in the past three months despite recent market uncertainty
SmallCapPower | November 27, 2018: On Monday, the price of gold fell to US$1,223.50, down more than 6% since the beginning of 2018. This downturn has been seen throughout North American equity markets, as the TSX Composite index is down nearly 8% YTD while the S&P/TSXV Index is down a staggering 30.8% YTD. Goldman Sachs analysts, however, recently released a positive outlook for gold prices as we move into the New Year. Goldman Sachs cited a slowing growth rate for the U.S. economy as a reason to be bullish on gold investments and identified gold as a good defensive asset in an uncertain market. Today, we have identified five TSX-listed gold mining stocks that have shown surprising stock-price appreciation this past quarter (averaging returns of more than 16%) despite the underlining market turmoil. These stocks would likely further benefit should the spot price of gold rebound.
Note: Metrics are as at closing prices on November 23, 2018.
SSR Mining Inc. (TSX:SSRM, NASDAQ:SSRM) – $14.58
Gold
SSR Mining is engaged in the operation, acquisition, exploration and development of precious metal assets across North and South America. The Company operates three production properties, three development assets, and four exploration properties. The Company’s producing assets include: The Marigold Mine, the Seabee Gold Operation and the Puna Operations located in the United States, Canada and Argentina. The Marigold mine located in Humboldt County, Nevada has been in production since 1989 and is expected to produce an average of 211,000 oz Au per year. SSR Mining is commencing a $9M exploration of the mine to target higher-grade zones and increase annual production over the next six years.
- Market Cap: $1,753 Million
- 3-Month Total Return: 31.1%
- Total Revenue (Last Quarter): $148.7 Million
- Cost of Goods Sold (Last Quarter): $120.4 Million
- Revenue Growth (Last Quarter): 8.52%
Torex Gold Resources Inc. (TSX:TXG) – $9.88
Gold
Torex is a Canada-based gold producer operating in Mexico. The Company’s flagship asset, the ELG mine, has a 2018 production guidance between 325,000 and 350,000 oz Au per year. Torex also owns the nearby Media Luna project, which hosts reserves of 7.4M Au oz., grading 4.5 g/t Au. On November 20, 2018, the Company announced results from a drilling program in the Sub-Sill Zone of the ELG mine. Results included assays of 30.2 g/t Au over 8.1m, 48.9 g/t Au over 3.6m and 34.4 g/t Au over 4.6m.
- Market Cap: $839.0 Million
- 3-Month Total Return: 16.5%
- Total Revenue (Last Quarter): $163.4 Million
- Cost of Goods Sold (Last Quarter): $80.4 Million
- Revenue Growth (Last Quarter): 25.8%
TMAC Resources Inc. (TSX:TMR) – $5.70
Gold
TMAC Resource is a gold mining company with its flagship asset, the Hope Bay Property, located on an 1,100-square kilometer property in Nunavut, Canada. The Hope Bay Property hosts a Measured & Indicated resource of 4.91M oz Au at an average grade of 8.6 g/t Au. The 2018 drilling program was limited due to a slower-than-expected ramp up of the Doris processing plant. Nevertheless, assays from the program continue to indicate significant high-grade gold at the Doris (11.3 g/t Au over 16.2m) and Madrid (7.4 g/t Au over 65.7m) sites. On November 8, 2018, the Company announced plans to invest $20M in a 2019 exploration program strategically targeted at the Doris, Madrid and Boston sites.
- Market Cap: $640.9 Million
- 3-Month Total Return: 12.9%
- Total Revenue (Last Quarter): $50.3 Million
- Cost of Goods Sold (Last Quarter): $34.6 Million
- Revenue Growth (Last Quarter): 127.6%
Wesdome Gold Mines Ltd. (TSX:WDO) – $3.62
Gold
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 October 31, 2018, drilling results from the Kiena Complex yielded multiple high-grade assays including 21.1 g/t Au over 6.1 metres.
- Market Cap: $487.8 Million
- 3-Month Total Return: 10.0%
- Total Revenue (Last Quarter): $28.9 Million
- Cost of Goods Sold (Last Quarter): $21.0 Million
- Revenue Growth (Last Quarter): 36.6%
Dundee Precious Metals Inc. (TSX:DPM) – $3.21
Gold & Copper
Dundee Precious Metals is a Canada-based gold explorer and producer with one operating mine, one development project and four exploration projects located throughout the world. The Company’s flagship asset, the copper-gold Cehlopech mine in Bulgaria, is guided to produce 165,000-195,000 oz. Au and 31-37M lbs Cu in 2018. On November 7, 2018, after reporting strong quarterly results, the Company increased its gold production guidance for the Chelopech mine to 190,000-200,000 oz Au.
- Market Cap: $573.0 Million
- 3-Month Total Return: 11.5%
- Total Revenue (Last Quarter): $134.9 Million
- Cost of Goods Sold (Last Quarter): $90.4 Million
- Revenue Growth (Last Quarter): 13.0%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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