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

Comments are welcomed!

Monday, November 9, 2009

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

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Errata: The previous version of this article contained errors in the data. This one includes the correct data.

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This is an update of my market capitalization $ per ounce of production ranking for 2009.

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. This data--and much, much more--is updated and provided to subscribers of the Gold Stock Strategist newsletter at the beginning of every month.

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 36 emerging gold producers using the market cap to production metric based on closing share prices on October 30, 2009. The lower the value, the more undervalued the stock on this narrow dimension of valuation.

RANK COMPANY SYMBOL MARKET CAP (million$) MC / OZ. PROD. ($) Proj. 2009
1 Oceana Gold $OGDCF $135 $450
2 ATW Gold $ATWGF $14 $560
3 MDN Inc. $MDNNF $51 $680
4 Richmont Mines $RIC $72 $960
5 Gold-Ore $GREXF $44 $978
6 New Guinea Gold $NGUGF $17 $1,133
7 Alexis Minerals $AXSMF $55 $1,213
8 Metanor Res $MEAOF $39 $1,625
9 Claude Resources $CGR $79 $1,756
10 Golden Star Res $GSS $725 $1,813
11 Castle Gold $CSGLF $77 $1,925
12 Northgate $NXG $751 $1,976
13 Wesdome $WDOFF $184 $2,457
14 Troy Resources $TRYRF $137 $2,491
15 Santa Fe Gold $SFEG $103 $2,568
16 Dynasty Mtls & Mng $DMMIF $130 $2,608
17 La Mancha $LACHF $223 $2,624
18 Capital Gold $CGLD $149 $2,980
19 Timmins Gold $TMGOF $47 $3,133
20 Gammon Gold (AuEq) $GRS $1,110 $3,828
21 Jinshan Gold
$JINFF $270 $3,857
22 Jaguar Mining $JAG $665 $4,030
23 Aurizon $AZK $693 $4,617
24 Alamos Gold $AGIGF $880 $5,867
25 New Gold $NGD $1,400 $7,000
26 Great Basin Gold $GBG $490 $8,167
27 Allied Nevada $ANV $587 $8,386
28 Minefinders $MFN $621 $10,350
29 Gold Resource $GORO $366 $10,457
30 San Gold Corp $SGRCF $637 $12,740
31 Lake Shore Gold $LSGGF $683 $27,320
32 Hawthorne Gold $HWTHF $23 --
33 NovaGold $NG $789 --
34 Osisko Mines $OSKFF $1,930 --
35 Terrane Metals $TRXOF $84 --
36 Vista Gold $VGZ $113 --


As always, I hope this helps readers get a sense for the relative value of these companies based on this single valuation metric.

Best,

The Gold Stock Strategist
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Check out the Gold Stock Strategist newsletter for detailed resource, operational and valuation information on over 50 gold producers. The letter provides recommendations in three risk-based categories—conservative, growth, and speculative. One recommended speculative pick, Castle Gold, is up 87 percent on a bid from Argonaut Gold since being picked by the Gold Stock Strategist as a buy-out candidate in the August 1 letter.

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