The CAPE (cash adjusted PE) ratio shows what investors are really paying for a company’s earnings. It is calculated as price – net cash per share/earnings per share. Today we have identified 3 Canadian junior gold mining stocks trading below the industry median CAPE ratio of 28x.
(All figures in Canadian dollars)
1. Alio Gold Inc. (TSX: ALO)
Alio Gold Inc. is a Canada-based gold producer engaged in the operation, development, exploration and acquisition of resource properties in Sonora, Veracruz and the Guerrero Gold Belt in Mexico.
- Market Cap: $224,668,029
- Net Cash Per Share: $1.04
- CAPE (LTM): 4.4x
2. Teranga Gold Corp. (TSX: TGZ)
Teranga Gold Corp. is a Canada-based mining company focused on the exploration and development of Sabodala gold mine, which is located approximately 650 kilometers southeast of Dakar, the capital of Senegal.
- Market Cap: $309,150,438
- Net Cash Per Share: $1.19
- CAPE (LTM): 4.9x
3. Argonaut Gold Inc. (TSX: AR)
Argonaut Gold Inc. is engaged in gold mining, mine development and mineral exploration activities at gold-bearing mineral properties in North America. In Mexico it owns the producing El Castillo mine 100 kilometers north of the city of Durango; the construction-stage San Agustin property 10 kilometers from the El Castillo Mine; the producing La Colorada mine 40 kilometers southeast of Hermosillo; the exploration-stage San Antonio property 40 kilometers southeast of La Paz in the State of Baja California Sur, Mexico. In Canada it owns the exploration-stage Magino property 40 kilometers northeast of Wawa, Ontario, Canada, and several other exploration-stage projects, which are located in North America.
- Market Cap: $434,795,155
- Net Cash Per Share: $0.32
- CAPE (LTM): 14.6x
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
The comments above are edited ([ ]) and abridged (…) excerpts from an article by SmallCapPower.com
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