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

Comments are welcomed!

Wednesday, June 17, 2009

Emerging Gold Producers Ranked -- Market Cap $ Per Oz. of Production

Thanks to Haligonian for pointing out the errata on Oceana Gold's market cap. It has been fixed in the table.
========================
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

1 comment:

Haligonian said...

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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