A popular valuation multiple within the resource industry is to take a company’s market cap and divide it by its gold equivalent ounces in the ground. This ratio gives an indication as to how pricey one company’s gold is in comparison to another’s. As a reference, Barrick Gold (TSE:ABX) trades a 145 times its gold equivalent ounces in the ground, while Goldcorp (TSE:G) trades at 181x. That being said, the 5 low indebted gold stocks on our list today are trading below 55x.
The comments above and below are edited ([ ]) & abridged (…) excerpts from an article from SmallCapPower.com to provide a faster and easier read.
Figures are in millions CAD.
Brazil Resources Inc. (CVE:BRI) – $2.30
Brazil Resources Inc. is a Canada-based mineral exploration company that operates through the acquisition, exploration and development of mineral properties segment. It has operations in Brazil, the United States, Canada and Paraguay. Its exploration properties include Whistler, Sao Jorge, Cachoeira and Rea projects.
- Market Cap: $1,790
- FD Market Cap / Gold Eq.: $42.48
- Total Debt: $0.3
- Cash and ST Inv.: $5.8
Barkerville Gold Mines Ltd. (CVE:BGM) – $0.68
Barkerville Gold Mines Ltd. is engaged in the production and sale of gold, and the exploration, development, and acquisition of mineral properties in British Columbia. The Company controls approximately 117,440 hectares of mineral tenure, including over three historic groups of contiguous Crown-Granted mineral claims, namely the Cariboo Group, Island Mountain Group and Mosquito Creek Group, as well as a block of contiguous mineral tenures centered around the Town of Wells, which is located approximately 80 kilometers east of Quesnel, British Columbia.
- Market Cap: $205
- FD Market Cap / Gold Eq.: $42.93
- Total Debt: $0.1
- Cash and ST Inv.: $43.1
Sabina Gold and Silver Corp. (TSE:SBB) – $1.21
Sabina Gold & Silver Corp. is a precious metals company. Its principal assets are the Back River gold project and its silver royalty on the Hackett River project, both of which are located in Nunavut, Canada. The Company also has exploration properties in Nunavut and in the vicinity of the Red Lake gold camp in Ontario.
- Market Cap: $266
- FD Market Cap / Gold Eq.: $44.15
- Total Debt: $0.3
- Cash and ST Inv.: $43.0
Tanzanian Royalty Exploration Corp. (TSE:TNX) – $1.06
Tanzanian Royalty Exploration Corporation is a mineral resource company with exploration-stage properties. Its principal exploration and development properties are located in the United Republic of Tanzania, Africa. Its main area of interest is the exploration and development of gold properties, with a focus on exploring for and developing gold properties in Tanzania.
- Market Cap: $124
- FD Market Cap / Gold Eq.: $51.84
- Total Debt: $3.4
- Cash and ST Inv.: $0.2
Almaden Minerals Ltd. (TSE:AMM) – $1.83
Almaden Minerals Ltd. is exploration- and development-stage company that is engaged in the exploration and development of exploration and evaluation properties in Canada, the United States and Mexico. Its principal property interest includes the Tuligtic Property/Project-Mexico. It also holds an interest in the Logan property located in the Yukon Territory, Canada.
- Market Cap: $143
- FD Market Cap / Gold Eq.: $52.24
- Total Debt: $0.0
- Cash and ST Inv.: $7.2
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