The Canada-listed resource stocks we have discovered look like potential takeover targets due in large part to their exploration successes
SmallCapPower | March 4, 2019: With the price of gold recently hitting ~US$1,340/oz, and the three-way fight between Goldcorp, Newmont, and Barrick, M&A activity appears to be heating up in the mining industry. Today we’ve dug up four Canada-listed resource stocks that could be potential takeover targets for larger mining companies.
*Share prices as at close February 28, 2019, data obtained from S&P Capital IQ
Torex Gold Resources Inc (TSX:TXG)
Gold Mining
Torex Gold Resources is a Canada-based intermediate gold producer that engages in the exploration, development, and operation of its 29,000 hectares Morelos Gold Property in Mexico City located in the highly-prospective Guerrero Gold Belt. The Company’s principal assets are the El Limón Sur open pits, the El Limón Guajes underground mine, and the Media Luna deposit. On February 21, the Company announced its 2018 year-end financial and operational results, reporting record gold production at the top end of its 2018 guidance, reaching 353,947 oz of gold.
- Market Cap: $1.4 Billion
- 1-Month Return: +10.4%
- 30-Day Average Volume: 339,000
Pretium Resources Inc. (TSX:PVG)
Gold Mining
Pretium Resources is a 376,012 oz gold producer with properties in North America. Its flagship project is the Brucejack project, which consists of four mining leases and six mineral claims, covering 3,304 hectares in northwestern British Columbia. On February 14, the Company released its financial and operated results for Q4/18. Pretium Resources reported revenue of $454.6M on 367,428 oz of gold sold. Furthermore, the Company provided 2019 production guidance at its Brucejack project, expecting 290,000 oz to 420,000 oz of gold.
- Market Cap: $2.0 Billion
- 1-Month Return: +4.4%
- 30-Day Average Volume: 738,000
Detour Gold Corporation (TSX:DGC)
Gold Mining
Detour Gold is an intermediate gold mining company that focuses on the acquisition, exploration, development, and operation of its metal mineral properties in Canada. The Company’s flagship asset is its Detour Lake property locate in the District of Cochrane, consisting of contiguous mining leases and claims totaling 625 sq. km. The Company released its 2019 guidance after market close on January 22, estimating 570,000 oz to 605,000 oz of gold production. The Company also announced a record 621,128 oz produced in 2018, 9% higher YoY.
- Market Cap: $2.3 Billion
- 1-Month Return: +4.1%
- 30-Day Average Volume: 749,000
Amex Exploration Inc. (TSXV:AMX)
Exploration
Amex Exploration is a junior exploration company with a focus on developing and bringing viable gold and base metals deposits into production in mining-friendly jurisdictions. The Company owns 100% interest in the Perron gold project, the Eastmain River gold properties, and the Cameron project, all located within Quebec, Canada. On February 21, the Company announced the completion of its $5.4M non-brokered private placement. On February 27, the Company reported that the ongoing drilling at its Perron project has successfully intersected high-grade gold mineralization in the first lateral step-out program on the high-grade zone at Perron.
- Market Cap: $60.3 Million
- 1-Month Return: +82.3%
- 30-Day Average Volume: 422,000
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:
