The junior gold stocks we have dug up have an average 14 Day RSI of 16, implying significant overselling
SmallCapPower | August 15, 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 $1,193/oz, a decline of nearly 10%, reaching a low that has not been seen since 2016. Over the same period, the GDXJ has been down 10%. To put gold’s weakness in perspective, the precious metal has not been this low since early 2017. For reference, Relative Strength Index (RSI) is a measure of price momentum. High values above 70 indicate that a stock may be overbought, while low values below 30 indicate it may be oversold. All the junior gold stocks we have discovered today have low RSIs and have underperformed the GDXJ (down 22%) over the same period.
Marlin Gold Mining Ltd. (TSXV:MLN) – $0.13
Gold
Marlin Gold Mining is mining producer and developer with operations in America and Mexico. The Company’s 100% owned Commonwealth Project is located in Arizona and it mines gold and silver. On June 18, the Company signed a letter of intent to combine businesses with Golden Reign Resources and Sailfish Royalty Corp. Through this combination, Marlin acquired two properties in Nueva Segovia, Nicaragua.
- Market Cap: $22.3 Million
- 1 Week Total Return: -43.8%
- RSI – 14 Days: 17.8
- RSI – 30 Days: 24.6
Premier Gold Mines Ltd. (TSX:PG) – $2.02
Gold
Premier Gold Mines operates two producing mines, a developing mine, and three exploration projects throughout North America. Premier’s 100%-owned Mercedes mine, located in Sonora, Mexico, is guided to produce 80,000-85,000 oz. Au in 2018. The South Arturo Mine, 60% owned by Barrick Gold, is an open-pit mine in Nevada, guided to produce 5,000 – 10,000 Au in 2018. PG aims to develop an EA/EIS and PEA at other locations throughout 2018.
- Market Cap: $409.3 Million
- 1 Week Total Return: -17.2%
- RSI – 14 Days: 11.3
- RSI – 30 Days: 20.5
K92 Mining Inc. (TSXV:KNT) – $0.74
Gold
K92 Mining is focused on exploration and development of mineral deposits located in Papua New Guinea. The Company’s main asset is the Kainantu Gold Project consisting of two gold deposits. The Company is planning exploration drilling at the Kora deposit, targeting 5M oz to be completed by Q2/2019 and an expansion to 400K tpa/110K AuEq oz annually. The Company also plans to complete its Feasibility Study by 2019.
- Market Cap: $133.9 Million
- 1 Week Total Return: -14.6%
- RSI – 14 Days: 23.3
- RSI – 30 Days: 30.3
Sabina Gold & Silver Corp. (TSX:SBB) – $1.20
Gold & Silver
Sabina Gold & Silver is advancing the Back River gold project located in Nunavut, Canada. The Company also has exploration properties in Nunavut and in the vicinity of the Red Lake gold camp in Ontario. The Back River Project is located approximately 520 kilometers northeast of Yellowknife and over 70 kilometers south of Bathurst Inlet.
- Market Cap: $315.3 Million
- 1 Week Total Return: -12.0%
- RSI – 14 Days: 10.8
- RSI – 30 Days: 21.5
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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