List of Emerging Junior Gold Producers with Symbols

The Gold Stock Strategist covers 36 emerging junior gold producers and posts do not always include the Canadian and U.S. ticker symbols. Readers have asked me to provide this information when I rank companies based on different metrics. It isn't possible due to formatting problems in html. Hopefully, this post will help readers with their due diligence.

The following is a list of covered junior producers with trading symbols.

COMPANY	CANADIAN SYMBOL	U.S. SYMBOL
Alamos Gold	AGI	AGIGF
Alexis Minerals	AMC	AXSMF
Allied Nevada	ANV	ANV
ATW Ventures	ATW	ATWGF
Aurizon	ARZ	AZK
Capital Gold	CGC	CGLD
Castle Gold	CSG	CSGLF
Claude Resources	CRJ	CGR
Dynasty Metals	DMM	DMMIF
Gammon Gold	GAM	GRS
Gold Resource	--	GORO
Gold-Ore	GOZ	GREXF
Golden Star Res	GSC	GSS
Great Basin Gold	GBG	GBG
Hawthorne Gold	HGC	HWTHF
Jaguar Mining	JAG	JAG
Jinshan Gold Mines	JIN	JINFF
Kinbauri Gold	KNB	KINBF
La Mancha	LMA	LACHF
Lake Shore Gold	LSG	LSGGF
MDN Inc.	MDN	MDNNF
Metanor Res	MTO	MEAOF
Minefinders	MFL	MFN
New Gold	NGD	NGD
New Guinea Gold	NGG	NGUGF
Northgate	NGX	NXG
NovaGold	NG	NG
Oceana Gold	OGC	OGDCF
Osisko Mines	OSK	OSKFF
Richmont Mines	RIC	RIC
San Gold Corp	SGR	SGRCF
Santa Fe Gold	--	SFEG
Timmins Gold	TMM	TMGOF
Troy Resources	TRY	TRYRF
Vista Gold	VGZ	VGZ
Wesdome	WDO	WDOFF

Best,

The Gold Stock Strategist

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Full disclosure: I own shares in many of the companies listed above. The information provided in this post is believed to be correct, but not guaranteed. Investing in junior gold miners entails risks. Readers are responsible for their own investment decisions. Do your own due diligence.

De-Hedging Trends Remain Bullish for the Price of Gold

The latest quarterly hedge book analysis from compiled by GFMS Ltd. for Société Générale was released on June 13 and shows net dehedging in the first quarter of 2009 was 3 tons.

(click chart to enlarge)

This data is important because it provides insight into the direction of the price of gold. If gold producers are de-hedging they are reducing the supply of gold on the market which should theoretically increase the price of gold. If companies are hedging, it puts downward pressure on the price of gold. Hedging isn't the only institutional force that puts downward pressure on gold prices. Other major actions that put downward pressure include central bank & IMF sales and central bank gold leasing. Analysts believe company de-hedging over the past several years has been one of several reasons that the price of gold has moved near $1,000 an ounce over the past year or so.

So what does GFMS/Société Générale say about the gold producer's hedge book?

The one large hedge buy-back in this quarter came from AngloGold Ashanti as they restructure their hedge portfolio to take advantage of higher gold price forecasts. The majority of the remaining hedge book is held by Anglogold Ashanti and Barrick Gold.

The global value of the producer hedge book was steady at negative $5.8 billion in Q1 2009.

Also of interest was the statistic that producer prices increased by 15 percent, rising from $783 an ounce in Q4 2008 to $897 an ounce in Q1 2009 (see chart below).

(click chart to enlarge)

There are currently 1.4 million ounces (44 tons) of contracts with maturity dates in 2009. The chart below shows the scheduled delivery of contracts currently and formally planned by global producers. Because AngloGold Ashanti and Barrick Gold control the majority of the hedge book, decisions they make can swing these plans sharply.

(click chart to enlarge)

GFMS and Société Générale expect mining companies to continue to remove hedges at a higher rate than suggested by the delivery profile (see chart above) and do not see a return to wholesale hedging by major producers.

Fresh hedges in the first quarter of this year were related to project finance in a period of unprecedented illiquidity.

Moreover, investors want to invest in gold mining companies that are unhedged in this era of rising gold prices.

As a result, GFMS/Société Générale expect gold producers to further remove hedges at a faster rate than the delivery profile suggests.

This would be bullish for the price of gold.

Best,

The Gold Stock Strategist

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.
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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