Emerging Junior Gold Producers Ranked – Market Cap $ per Ounce of Production 2011
Tue, Aug 17, 10:52 AM ET, by The Gold Stock Strategist
Below is the latest update of my market capitalization $ per ounce of production ranking for 2011. The year 2010 is already half over and investment analysis should be forward looking to identify undervalued gold producing companies. As I have written before, this technique provides a standard quantitative comparison of company share valuation. Again, it is just one dimension used to assess whether or not an emerging junior gold producer deserves further due diligence or recommendation. In fact, many of the most undervalued companies are undervalued for good reasons like operational challenges, permitting problems, etc..
There are several qualitative measures for assessing junior gold mining stocks that are important like political risk, currency exchange risk, property rights risk, remote site risk, single mine risk, operational risk, management competence risk, and others. Investment decisions should not be made on any single dimension of emerging gold producers. The following is my most recent analysis of 40 emerging gold producers using the market cap to production metric based on closing share prices on July 30, 2010. The lower the value, the more undervalued the stock on this narrow dimension of valuation.
| RANK | COMPANY | SYMBOL | MARKET CAP (MILLIONS $) | MC / OZ. PROD. ($) Proj. 2011 |
|
| | 1 | ATW Gold Corp. | ATWGF | $ 6 | $ 206 |
| | 2 | Starcore Intl Mines | SHVLF | $ 6 | $ 213 |
| | 3 | Hawthorne Gold | HWTHF | $ 7 | $ 243 |
| | 4 | New Guinea Gold | NGUGF | $ 16 | $ 403 |
| | 5 | Alexis Minerals | AXSMF | $ 33 | $ 444 |
| | 6 | MDN Inc. | MDNNF | $ 37 | $ 493 |
| | 7 | Gold-Ore | GREXF | $ 40 | $ 727 |
| | 8 | Santa Fe Gold | SFEG | $ 80 | $ 1,004 |
| | 9 | Timmins Gold | TMGOF | $ 110 | $ 1,373 |
| | 10 | Dynasty Metals/Mining | DMMIF | $ 140 | $ 1,478 |
| | 11 | La Mancha | LACHF | $ 228 | $ 1,517 |
| | 12 | Avion Gold | AVGCF | $ 126 | $ 1,575 |
| | 13 | Metanor Res | MEAOF | $ 66 | $ 1,655 |
| | 14 | Troy Resources | TRYRF | $ 193 | $ 1,751 |
| | 15 | Richmont Mines | RIC | $ 131 | $ 1,874 |
| | 16 | Great Basin Gold | GBG | $ 623 | $ 1,946 |
| | 17 | Jaguar Mining | JAG | $ 683 | $ 2,009 |
| | 18 | Oceana Gold | OCANF | $ 600 | $ 2,141 |
| | 19 | Gammon Gold (AuEq) | GRS | $ 824 | $ 2,197 |
| | 20 | Wesdome | WDOFF | $ 232 | $ 2,320 |
| | 21 | Claude Resources | CGR | $ 131 | $ 2,380 |
| | 22 | Orvana Minerals | ORVMF | $ 174 | $ 2,489 |
| | 23 | Capital Gold | CGC | $ 181 | $ 2,586 |
| | 24 | Golden Star Res | GSS | $ 1,060 | $ 2,617 |
| | 25 | Northgate | NXG | $ 861 | $ 2,649 |
| | 26 | Minefinders | MFN | $ 565 | $ 2,825 |
| | 27 | Aura Minerals | ARMZF | $ 776 | $ 3,233 |
| | 28 | Gold Resource | GORO | $ 686 | $ 4,035 |
| | 29 | Silvercrest Mines | STVZF | $ 55 | $ 4,617 |
| | 30 | Jinshan Gold Mines | JINFF | $ 659 | $ 5,066 |
| | 31 | Aurizon | AZK | $ 790 | $ 5,097 |
| | 32 | New Gold | NGD | $ 1,950 | $ 5,735 |
| | 33 | San Gold Corp | SGRCF | $ 1,000 | $ 7,407 |
| | 34 | Centamin Egypt | CELTF | $ 2,460 | $ 8,200 |
| | 35 | Lake Shore Gold | LSGGF | $ 1,050 | $ 9,545 |
| | 36 | Alamos Gold | AGIGF | $ 1,710 | $ 11,400 |
| | 37 | Allied Nevada | ANV | $ 1,460 | $ 17,176 |
| | 38 | NovaGold | NG | $ 1,370 | -- |
| | 39 | Osisko Mines | OSKFF | $ 4,670 | -- |
| | 40 | Vista Gold | VGZ | $ 64 | -- |
|
| AVERAGE |
| $ 646 | $ 3,299 |
|
This article was originally published in the August issue of the Gold Stock Strategist newsletter.
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