Although the TSX Gold Index up 11.5% to date in 2015, some gold stocks have handily surpassed that benchmark. The following six companies have seen its share-price performance more than double the index returns as of May 6, 2015.
Dynacor Gold Mines Inc. (TSX: DNG) +32%
Dynacor is a different type of gold junior – it runs profitable gold ore-processing facilities in Peru and uses the funds for exploration and project development in that country. By doing so, the company has kept its share count at 36.2 million by not having to do dilutive financings. And investors have liked what they’ve seen so far, sending its stock price soaring more than 1100% during the past five years. Dynacor shares, though, have been under pressure of late since the company reported that its net income fell to $6.1 million in 2014 from $9.1 million a year earlier, citing a difficult operating environment during the first six months due to the impact of governmental action and new rules regards the formalization process for artisanal small miners in Peru.
Teranga Gold Corporation (TSX: TGZ) +56%
Teranga, which mines gold in Senegal, West Africa, is an inspiration to those who still believe small can be beautiful in this industry. The company is expected to produce 200,000 to 230,000 ounces of gold in 2015 at all-in sustaining costs of US$900 to $975 per ounce. Teranga Gold is debt free and generated $39.1 million in free cash flow during 2014. The company expects to add 30,000 to 45,000 ounces from its Gora deposit by the end of 2015.
Klondex Mines Ltd. (TSX: KDX) +64%
Klondex owns and operates the Fire Creek Project and Midas Mine and Mill in the precious-metals rich state of Nevada. The company produced 107,861 gold equivalent ounces in 2014 from its recently-acquired Midas Mine, which translated into revenue of $121.7 million and net income of $18.3 million. For 2015, Klondex expects to produce 120,000 to 125,000 gold equivalent ounces at all-in sustaining costs US$800 – $850 per ounce. The company had $53 million in cash on hand at the end of 2014. Fire Creek has the potential to be one of the highest grade gold deposits in the world.
Kirkland Lake Gold Inc. (TSX: KGI) +76%
Much Kirkland Lake’s share price performance of late can likely be attributed to one man: Eric Sprott. On January 26, 2015, Kirkland Lake Gold announced the appointment of the founder of Sprott Asset Management as the company’s next Chairman. At the time of the release. Mr. Sprott held 11.3% of Kirkland Lake Gold’s issued and outstanding common stock. Kirkland Lake Gold owns the Macassa Mine and Mill and four contiguous formerly producing gold mining properties in northern Ontario. Macassa has one the highest reserve grades of any gold mine in the world at 17.1 grams per tonne (g/t). Year to date (YTD) 2015, the company’s all-in cash cost per ounce slid to US$1,153, which allowed it to generate net income of $4.2 million for the third-quarter and $11.9 million YTD. Kirkland Lake Gold also recently increased its production guidance for fiscal 2015 from 140,000- 155,000 ounces to 153,000-157,000.
Eastmain Resources Inc. (TSX: ER) +87%
Eastmain owns 100% interests in the Eau Claire and Eastmain gold deposits, both of which are in Quebec. Eau Claire is what has generated much of the investor interest, with a current Measured and Indicated resource of 951,000 ounces at 4.1 g/t along with 633,000 Inferred ounces at 3.9 g/t. Eastmain Resources has $2 million worth of drilling planned for 2015 along with $2 million earmarked for a Resource Update and Preliminary Economic Assessment (PEA).
Claude Resources Inc. (TSX: CRJ) +116%
While most gold stocks appear tarnished, Claude shares have been shining of late. The company has produced more than one million ounces of gold from its Seabee gold mine in Saskatchewan and is developing the Amisk Gold Project in the same province. Claude Resources recently reported record gold production of 62,984 ounces for 2014, a 44% increase from last year, while at the same time ramping up its mill head grade to 7.32 grams per tonne (g/t). In addition, the company’s all in sustaining cost per ounce fell 29% to US$1,186 allowing it swing to a net profit of $4.6 million in 2014. Claude also managed to reduce its debt by $10.6 million during the past year.
