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One of the quantitative techniques I use to evaluate emerging junior gold producers is the market capitalization in U.S. dollars per the projected ounces of production in 2009.
Like other techniques, this one 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 warrants more scrutiny.
As I have written before, once I have several standard quantitative measures for assessing stocks I can apply qualitative factors to the investment decision like political risk, currency exchange risk, property rights risk, remote site risk, single mine risk, operational risk, and management competence risk.
The following is my analysis of 36 emerging gold producers using the market cap to production metric based on closing share prices on June 15, 2009. The lower the value, the more undervalued the stock.
|
| COMPANY |
| MARKET CAP (millions $) | MC / OZ. PROD. ($) Proj. 2009 |
| 1 | Oceana Gold | OGDCF | $166 | $553 |
| 2 | MDN Inc. | MDNNF | $56 | $751 |
| 3 | Castle Gold | CSGLF | $40 | $989 |
| 4 | Gold-Ore | GREXF | $49 | $1,089 |
| 5 | Golden Star Res | GSS | $451 | $1,127 |
| 6 | Richmont Mines | RIC | $90 | $1,201 |
| 7 | Troy Resources | TRYRF | $72 | $1,301 |
| 8 | Metanor Res | MEAOF | $31 | $1,310 |
| 9 | La Mancha | LACHF | $113 | $1,333 |
| 10 | Northgate | NXG | $537 | $1,414 |
| 11 | Alexis Minerals | AXSMF | $65 | $1,437 |
| 12 | ATW Ventures | ATWGF | $43 | $1,720 |
| 13 | New Guinea Gold | NGUGF | $26 | $1,733 |
| 14 | Jinshan Gold | JINFF | $139 | $1,990 |
| 15 | Claude Res | CGR | $90 | $2,006 |
| 16 | Wesdome | WDOFF | $159 | $2,126 |
| 17 | Dynasty Metals | DMMIF | $114 | $2,270 |
| 18 | Santa Fe Gold | SFEG | $91 | $2,286 |
| 19 | Capital Gold | CGLD | $120 | $2,398 |
| 20 | Timmins Gold | TMGOF | $37 | $2,488 |
| 21 | Gammon Gold | GRS | $923 | $3,182 |
| 22 | Jaguar Mining | JAG | $556 | $3,368 |
| 23 | Aurizon | AZK | $634 | $4,224 |
| 24 | New Gold | NGD | $893 | $4,463 |
| 25 | Gold Resource | GORO | $199 | $5,694 |
| 26 | Alamos Gold | AGIGF | $880 | $5,864 |
| 27 | Allied Nevada | ANV | $476 | $6,805 |
| 28 | Minefinders | MFN | $456 | $7,596 |
| 29 | Great Basin Gold | GBG | $536 | $8,941 |
| 30 | San Gold Corp | SGRCF | $474 | $9,489 |
| 31 | Lake Shore Gold | LSGGF | $452 | $18,075 |
| 32 | Hawthorne Gold | HWTHF | $23 | -- |
| 33 | Kinbauri Gold | KINBF | $30 | -- |
| 34 | NovaGold | NG | $871 | -- |
| 35 | Osisko Mines | OSKFF | $1,480 | -- |
| 36 | Vista Gold | VGZ | $71 | -- |
I hope this helps readers get a sense for the relative value of these companies based on this valuation metric.
Best,
The Gold Stock Strategist
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1 comments:
Appears to be an error with the first stock on the list, OceanaGold Corp. Market cap is actually $155 Million (Cdn), or approximately $137 Million US as of yesterday's close. That will obviously alter the calculation a bit.
Appreciate your efforts here though regardless of the occasional glitch :) Keep up the good work!
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