Monday , 27 March 2017


5 Junior Gold Stocks That Are Undervalued Based On These Metrics

The Debt-to-Equity (D/E) ratio is used to calculate a company’s financial leverage, while thegold-nugget price-to-book ratio is a valuation metric used to compare a company’s stock market value to its book value; below 1 meaning the stock may be undervalued.

The comments above and below are excerpts from an article by SmallCapPower.com which has been edited ([ ]) and abridged (…) to provide a fast & easy read.

This post identifies and analyzes 5 junior gold stocks that  have attractive market values relative to their book, while sporting safe debt levels:

1. Primero Mining Corp (TSX: P) – $1.02 Canadian
Gold

Primero Mining Corp. is a precious metals producer with operations in both Mexico and Canada.

It owns two producing properties, including the San Dimas gold-silver mine, located in Mexico’s San Dimas district, and the Black Fox mine, located in the Township of Black River-Matheson, Ontario, Canada.

It also owns properties adjacent to the Black Fox mine, Grey Fox and Pike River, which together with the Black Fox mine and the Black Fox mill, located on the Stock Mill property, comprise the Black Fox Complex.

  • Market Cap: $192 million CAD
  • Total Revenue (LTM): $316.0 million CAD
  • Price / Book Value: 0.19x
  • Total Debt to Total Equity: 17.7%

2. Argonaut Gold Inc. (TSX: AR) – $2.50 Canadian
Gold

Argonaut Gold Inc. is engaged in gold mining, mine development and mineral exploration activities at gold-bearing mineral properties in North America.

It owns the producing El Castillo mine in the State of Durango, Mexico; the producing La Colorada mine in the State of Sonora, Mexico; the advanced exploration-stage San Antonio property in the State of Baja California Sur, Mexico; the advanced exploration-stage Magino property in the Province of Ontario, Canada; the advanced exploration-stage San Agustin property located approximately 10 kilometers from the El Castillo mine in the State of Durango, Mexico, and various other exploration stage projects, all of which are located in North America.

  • Market Cap: $396 million CAD
  • Total Revenue (LTM): $187 million CAD
  • Price / Book Value: 0.55x
  • Total Debt to Total Equity: 0.7%

3. ATAC Resources Ltd. (TSXV: ATC) – $0.52 Canadian
Gold

ATAC Resources Ltd. (ATAC) is an exploration-stage company engaged in the business of exploring for metals and minerals, primarily gold.

The Company is involved in the exploration and development of its Rackla Gold project, which is located in the Mayo Mining District of central Yukon. Its Rackla Gold project consists of over 8,710 mineral claims and covers an east-west extending land package approximately 190 kilometer long by over 20 kilometer wide and an area of over 1,700 square kilometer.

  • Market Cap: $64 million CAD
  • Total Revenue (LTM): $0
  • Price / Book Value: 0.63x
  • Total Debt to Total Equity: 0.0%

4. Pilot Gold Inc. (TSX: PLG) – $0.58 Canadian
Gold

Pilot Gold Inc. is a Canada-based exploration-stage company engaged in the acquisition and exploration of mineral properties located primarily in the United States and Turkey.

The Company holds an interest in Kinsley Gold LLC, which holds the underlying lease and directly held claims that comprise the Kinsley Mountain property. The Kinsley Mountain property is a Carlin-type, past-producing mine located south of Newmont Mining’s Long Canyon deposit in northeast Nevada.

The Company’s TV Tower gold-silver-copper property consists of over nine contiguous licenses and is located in northwestern Turkey. The Company’s Halilaga copper-gold porphyry project is located approximately 15 kilometers southeast of the Valley and Hilltop porphyries at TV Tower.

  • Market Cap: $87 million CAD
  • Total Revenue (LTM): $0
  • Price / Book Value: 0.69x
  • Total Debt to Total Equity: 0.0%

5. Goldstrike Resources Ltd. (TSXV: GSR) – $0.22 Canadian
Gold

Goldstrike Resources Ltd. is engaged in identifying, acquiring and exploring mineral interests.

The Company’s properties include Plateau Area properties, Lucky Strike property, Summit Property (Solomon’s Summit), Big One Property (Goldstream Trend), BRC property, Rockhaven Klaza Area (KZ-Strike), Gull property, Little Jimmy property. Its other properties include Cando and Cando-2 properties.

Its mineral projects include Yukon Gold properties. The Company has over three properties in the Plateau area: Plateau North, Plateau South and Plateau Northeast. The Lucky Strike property consists of over 260 contiguous mineral claims totaling over 50 square kilometers in the White Gold District. Its total Yukon land holdings consist of over 2,580 claims.

  • Market Cap: $37 million CAD
  • Total Revenue (LTM): $0
  • Price / Book Value: 0.73x
  • Total Debt to Total Equity: 1.5%
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