4 Junior Gold Stocks with the Lowest Production Costs

The junior gold stocks on our list are expected to produce gold at lower costs than their peers

SmallCapPower | March 20, 2018: Despite geopolitical tensions, gold prices continue to decline, reaching US$1310/oz, from a one-year high of $1360 on January 24, 2018. The junior gold stocks on our list today produce gold at industry-low costs, averaging $595/oz Au while their peers average $1,160/oz Au.

Roxgold Inc. (TSX:ROXG) – $1.10
Gold

Roxgold is a gold producer operating in Burkina Faso. The Company’s flagship asset, the Yaramoko project, began commercial production in October 2016. Yaramoko is an underground gold mine located in southwest Burkina Faso, the only underground gold mine in the country. The mine hosts mineral reserves of 1.8 million tonnes at 11.47g/t of gold, or 662 koz of gold. The mine produces an average of 125 koz per year.

  • Market Cap: $411.5 Million
  • Mining Production (oz Au) FY2017: 126,990
  • Production Guidance (oz Au) FY2018: 110,000 – 120,000
  • Mining Cash Cost/oz Au FY2017: $518
  • All-in Sustaining Cost FY2018: $780-830

Pretium Resources Inc. (TSX:PVG) – $9.01
Diversified Mining

Pretium Resources is a Canada-based gold producer operating in Western Canada. Pretium’s Brucejack mine is an underground operation located in northwestern British Columbia, ~65 kilometers north of Stewart, B.C. The site hosts reserves of 8,700 koz and produced 152 koz Au in 2017.

  • Market Cap: $1,643.3 Million
  • Mining Production (oz Au) FY2017: 152,484
  • Production Guidance (oz Au) H12018: 150,000 – 200,000
  • Mining Cash Cost/oz Au FY2017: $683
  • All-in Sustaining Cost H12018: $700-900

TMAC Resources Inc. (TSX:TMR) – $8.32
Gold

TMAC Resources is a Canada-based gold producer. TMAC’s flagship asset, the Hope Bay Mine, sits on an 1,100-square kilometer property located in Nunavut, Canada. The site hosts reserves of 3.6M oz Au. The Company plans to drastically expand production in 2018, increasing tonnes mined from 53,500 to 450,000, while increasing grade from 9.4 g/t to 12.5 g/t.

  • Market Cap: $765.2 Million
  • Mining Production (oz Au) FY2017: 56,300
  • Production Guidance (oz Au) FY2018: 160,000 – 230,000
  • Mining Cash Cost/oz Au FY2017: $1288
  • All-in Sustaining Cost FY2018: $950

New Gold Inc. (TSX:NGD) – $3.16
Gold

New Gold is a Canada-based gold company operating in North America. The Company expects to produce 560 koz Au in 2018, up from 430 koz due to the expansion of production at its Rainy River asset. The Company’s mines host total reserves of 14,800 koz, 90% of which are located in Canada.

  • Market Cap: $1,769.1 Million
  • Mining Production (oz Au) FY2017: 422,000
  • Production Guidance (oz Au) FY2018: 525,000 – 595,000
  • Mining Cash Cost/oz Au FY2017: 664
  • All-in Sustaining Cost FY2018: $860-900

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

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