Wednesday , 26 July 2017


These 3 Gold Stocks Should Be On Every Bargain Hunter’s Radar

One of Benjamin Graham’s investment strategies was to purchase shares in companies trading at lessgold-mining than net current asset value, also commonly referred to as working capital. The theory behind such an approach is that you are purchasing the company’s most liquid assets at a discount, so if you were to buy the company and liquidate its assets, you would make a profit.

The comments above & below are edited ([ ]) and abridged (…) excerpts from an article by SmallCapPower.com

Graham’s strategy has proven to work so here’s 3 Canadian gold stocks trading at less than net current asset value. (All prices are in Canadian dollars.)

1. Monument Mining Ltd. (TSXV: MMY) – $0.08
Gold

> engaged in the mining of gold in the Central Gold Belt District of Peninsular Malaysia.

  • Market Cap: $24,022,305
  • Revenue (LTM): $30,491,818
  • Working Capital: $35,397,942
  • Discount to Working Capital: 68%

2. Mangazeya Mining Ltd. (TSXV: MGZ.H) – $0.03
Gold

> engaged in exploring for precious metals in the Russian Federation.

  • Market Cap: $31,963,714
  • Revenue (LTM): $45,438,000
  • Working Capital: $35,316,000
  • Discount to Working Capital: 91%

3. Minco Gold Corp. (TSXV: MMM) – $0.20
Gold 

> engaged in the exploration for minerals in China.

  • Market Cap: $10,076,821
  • Revenue (LTM): $0.00
  • Working Capital: $23,379,930
  • Discount to Working Capital: 43%

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.

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