The junior gold stocks we’ve dug up have performed well for their investors lately
SmallCapPower | August 21, 2019: On August 13, the gold price hit a six-year high, reaching US$1,533/ounce at one point as unrest in Hong Kong, a plummet in the Argentine peso, and flattening yield curve drove investors into safe-haven commodities. Investors are fleeing from riskier assets such as bonds and stocks and buying gold, which is viewed as a haven in times of political and economic uncertainty. Gold companies have been prospering from these increased gold prices, with larger players receiving most of the attention. Today we have discovered four junior gold stocks that have quietly outperformed as of late. We looked at both 30-day and year-to-day returns to uncover some of the strongest performing gold stocks that haven’t been getting the attention they likely deserve.
*Share prices as at close Monday, August 19, 2019, data obtained from S&P Capital IQ
Goliath Resources Limited (TSXV:GOT) – $0.11
Gold
Goliath Resources is a project generator with a portfolio of four, 100%-controlled properties in the prolific Golden Triangle and surrounding area of northwestern British Columbia. Covering 44,000 hectares, the four properties – Bingo, Golddigger, Lucky Strike and Copperhead, have returned widespread mineralization of gold, silver and copper from outcropping bedrock at surface due to receding glaciers and permanent snowpack melting. On August 15, 2019, Goliath Resources announced that it has extended the first drill hole to 718 metres on a new gold-copper-molybdenum porphyry system, located within its Lucky Strike Property, that remains open. The Company added that from the surface to a depth of 718 metres, the core from the first hole contains widespread sulphides, including key alteration, textures and geologic units consistent with a porphyry system.
- Market Cap: $11.6M
- 90 Day Average Trading Volume: 320,000
- 30 Day Return: 75%
- YTD Return: 23.5%
Wesdome Gold Mines Ltd. (TSX:WDO) – $6.71
Gold
Wesdome Gold Mines explores for, extracts, processes, reclaims, and sells gold in Canada. It principally produces gold in the form of doré bars, and silver as a by-product. WDO boasts over 30 years of continuous gold production and has one 100% owned project in Val d’Or, Quebec, and two 100% owned projects in Thunder Bay and Wawa, Ontario. On August 8, WDO announced its Q2/19 financial results. These results featured total revenue of $42.3M, an increase of 30.2% from the previous quarter and beating analyst estimates of $42.1M. Notably, the Company also posted EBITDA of $19.5M, an increase of 57.3% from the previous quarter and coming close to analyst estimates of $20M.
- Market Cap: $915.9M
- 90 Day Average Trading Volume: 680,000
- 30 Day Return: 7%
- YTD Return: 51.5%
Gran Colombia Gold Corp. (TSX:GCM) – $5.46
Gold
Gran Colombia Gold is a Canada-based gold producer with its primary focus in Colombia, where it is currently the largest underground gold and silver producer, with several mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia Operations. On August 14, GCM released its Q2/19 financial results. These results featured revenue of $74.5M, an increase of <1% from the previous quarter, and EBITDA of $31.9M, a decrease of ~5.9% from the previous quarter.
- Market Cap: $267.6M
- 90 Day Average Trading Volume: 190,000
- 30 Day Return: 20%
- YTD Return: 93.6%
Scorpio Gold Corporation (TSXV:SGN) – $0.12
Gold
Scorpio Gold engages in the exploitation, exploration, and development of mineral resource properties in the United States. Scorpio Gold holds a 100% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada. Despite mining being suspended at Mineral Ridge in November 2017, the Company continues to generate limited revenues from residual but diminishing recoveries from the leach pads. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada, with a fully-permitted underground mine and 400 ton per day mill facility.
- Market Cap: $7.5M
- 90 Day Average Trading Volume: 60,000
- 30 Day Return: 14.3%
- YTD Return: 300%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
