Gold equities were among the few winners during the recent global stock selloff. While the sector’s momentum may have cooled a bit as other indices recover somewhat, the companies on our list today may see additional selling pressure on its stock price as large sums of debt and negative working capital might prevent it from making its interest payments.
Orezone Gold Corp. (TSX: ORE) – $0.27
Gold
Orezone Gold Corporation is a Canada-based exploration and development company that has focused its exploration efforts in West Africa. It is engaged in the acquisition, exploration and development of gold projects in Burkina Faso, with interests in three permits (two projects) covering approximately 336 square kilometers. Orezone’s projects include the Bombore Project and Bondi Project.
- Market Cap: $31,587,151
- Price Change (3 days): -12.9%
- Total Debt (LFQ): $3,934,665
- Working Capital (LFQ): -$1,434,217
Robex Resources Inc. (TSXV: RBX) – $0.06
Gold
Robex Resources Inc. (Robex) is a Canada-based mining exploration and development company, focusing on gold projects in the country of Mali, West Africa. The Company holds five exploration licenses. Two of its permits are situated in southern Mali (Mininko and N’Golopene), while the other three are located in the western area of the country (Diangounte, Sanoula and Kolomba).
- Market Cap: $34,663,636
- Price Change (3 days): -7.7%
- Total Debt (LFQ): $19,805,530
- Working Capital (LFQ): -$11,085,710
Golden Star Resources Ltd. (TSX: GSC) – $0.25
Gold
Golden Star Resources Ltd. (Golden Star) is a gold mining company that holds a 90% interest in the Wassa, Prestea and Bogoso gold mines in Ghana. The Company is engaged in the brownfield development projects at its Wassa and Prestea mines. The Wassa mine is located approximately 35 kilometers east of the town of Bogoso, Ghana. Wassa has a non-refractory processing plant (Wassa processing plant) consisting of a carbon-in-leach (CIL) system. Bogoso operates a gold ore processing facility, which uses bio-oxidation technology to treat refractory ore (Bogoso refractory plant).
- Market Cap: $223,077,137
- Price Change (3 days): -7.4%
- Total Debt (LFQ): $158,804,329
- Working Capital (LFQ): -$107,808,572
Gold Reserve Inc. (TSXV: GRZ) – $3.71
Gold
Gold Reserve Inc. is an exploration-stage company engaged in the business of acquiring, exploring, and developing mining projects. The Company has no commercial production and has no revenue producing operations. It conducts its business primarily through its wholly-owned subsidiaries, which include Gold Reserve Corporation, Gold Reserve de Barbados Ltd, Gold Reserve de Venezuela, Compania Aurifera Brisas del Cuyuni, GR El Choco Limited, GRI Minerales El Choco CA, Montoro Mining Ltd, Minera Gold Reserve, S.A. de C.V. and Compania Minera Unicornio CA. Its property is the La Tortuga property, a copper and gold prospect located in Jalisco State, Mexico.
- Market Cap: $281,620,044
- Price Change (3 days): -4.6%
- Total Debt (LFQ): $49,884,158
- Working Capital (LFQ): -$48,715,475
