4 Junior Gold Stocks That Look Compelling

The Canadian junior gold stocks on our list have potential returns relative to the average analyst target price ranging from 53% to 298%

SmallCapPower | July 24, 2018: Gold prices have been on a continuous downward trend since April 2018. Over that period, the gold price has fallen from US$1,352/oz to $1,222/oz, a decline of nearly 10%, reaching a low that has not been seen since 2016. However, the recent decline in gold stock prices could provide investors with a larger return relative to the target price should there be a reversal. The junior gold stocks we have uncovered today have an average potential return of 171% relative to their analyst target price.

Eastmain Resources Inc. (TSX:ER) – $0.20
Diversified Mining

Eastmain Resources is a gold developer located in Quebec. The Company’s flagship asset, the Clearwater Project, is undergoing expansion drilling as well as a preliminary economic assessment throughout 2018. Eastmain also has two other projects undergoing drilling in Quebec. Eastmain’s stock appears significantly oversold relative to its peers, down 42% compared to North American developer peers, which were down 5% over the same period.

  • Market Cap: $43.9 Million
  • 1 Month Total Return: -7.0%
  • YTD Total Return: -42%
  • Average Price Target Return: 298%


Falco Resources Ltd. (TSXV:FPC) – $0.50
Specialty Mining & Metals

Falco Resources is a Canada-based, exploration-stage company, focused on the Horne 5 project, evaluating its mineral properties in the Rouyn-Noranda district in the Province of Quebec. The Company holds about 72,800 hectares of land in the Rouyn-Noranda mining camp, including approximately 10 former gold and base metals mine sites. The Feasibility Study completed in 2017 has concluded Horne 5’s mine has life expectancy of 15 years, with average annual production of 219k Au oz/annually.

  • Market Cap: $94.6 Million
  • 1 Month Total Return: -10.7%
  • YTD Total Return: -43%
  • Average Price Target Return: 193%

GoldQuest Mining Corp. (TSXV:GQC) – $0.19
Diversified Mining

GoldQuest Mining is a mineral exploration and development company with a portfolio of high-quality, gold-copper exploration properties in the Dominican Republic. It holds over 20 exploration and exploitation permits, including its flagship Romero project, and a number  of concessions that are collectively referred to as the Tireo Property. GQC also has a large land package in the Jarabacoa district.

  • Market Cap: $50.9 Million
  • 1 Month Total Return: -2.6%
  • YTD Total Return: -49%
  • Average Price Target Return: 143%

Guyana Goldfields Inc. (TSX:GUY) – $4.14
Gold

Guyana Goldfields is a Canada-based mineral development and exploration company with operations in Guyana, South America. The 2018 guidance production equates to 190,000 – 210,000 Au oz and the AISC is US$830 – $880/oz. The Company also holds an interest in a land package located in the Aranka district of Guyana approximately 30 kilometers northeast of the Aurora Gold Mine, known as the Aranka Properties, which consist of a number of separate properties, including Sulphur Rose. The Company’s stock price is down 15% since July 12, driven by weak Q2/2018 production results.

  • Market Cap: $717.5 Million
  • 1 Month Total Return: -15.9%
  • YTD Total Return: -19%
  • Average Price Target Return: 53%

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

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