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The Gold Stock Strategist analyzes leading junior gold producers and major gold mining companies.

Comments are welcomed!

Monday, August 16, 2010

Emerging Junior Gold Producers Ranked – Market Cap $ per Ounce of Production 2011

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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