Today we have assembled a list of five junior gold stocks…[that] are…the most undervalued compared to their peers.
This version of the original article from SmallCapPower.com has been edited for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read
Granada Gold Mine is an… exploration-stage gold company… located…south… of Rouyn-Noranda, Quebec, Canada.
- Market Cap: $11.6 Million
- Enterprise Value/Ounce: $2.00
- 1 Month Total Return: -8.3%
- YTD Total Return: 1.2%
Unigold is a Canada-based junior natural resource company focused on exploring and developing its land position in the Dominican Republic….
- Market Cap: $7.6 Million
- Enterprise Value/ Ounce: $3.00
- 1 Month Total Return: 25.0%
- YTD Total Return: 7.1%
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Triumph Gold is a Canada-based junior natural resource company…[focused on] the exploration of mineral properties in the Yukon (Canada) and Arizona (USA)…
- Market Cap: $19.8 Million
- Enterprise Value/ Ounce: $4.00
- 1 Month Total Return: -1.5%
- YTD Total Return: 17.9%
4. Satori Resources Inc. (TSXV:BUD)
Satori is a development-stage mining company, located in Flin Flon, Manitoba, Canada…
- Market Cap: $2.1 Million
- Enterprise Value/ Ounce: $5.00
- 1 Month Total Return: -12.5%
- YTD Total Return: -22.2%
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5. Cabral Gold Inc. (TSXV:CBR)
Cabral Gold is a Canada-based junior resource company engaged in the identification, exploration and development of mineral properties…in Brazil.
- Market Cap: $6.4 Million
- Enterprise Value/ Ounce: $6.00
- 1 Month Total Return: -32.8%
- YTD Total Return: -51.2%
The gold mining stocks on our list today all trade at large discounts to forward Price to Cash Flow per share multiples, as compared with their peer average of 5.7x. These stocks could have substantial upside as their cash flows are likely not incorporated into their current share prices.
Continued U.S. focused inflationary measures might put pressure on the U.S. dollar, which could send the U.S. dollar gold price higher. Today, we showcase our top 10 junior gold picks for the month of April.
The 4 gold miners on our list today trade at a significant discount to the peer average of 2.7x. These producers could represent value plays for a future gold rally.
4. 3 Junior Mining Stocks With Strong Free Cash Flow Yields
Today we have identified 3 junior mining stocks that have high Free Cash Flow yields making them undervalued relative to their peers.
The 20 gold mining stocks on the list have excellent risk/reward and large resources and all are highly undervalued based on their cash flow potential at higher gold prices.
Today, we look at valuations for four Canadian gold stocks that have declined an average of 24.45% YTD, considerably underperforming their respective benchmarks over the same period.
Gold and gold stocks have quietly put on a show since the beginning of 2016 but a quick screen of gold stocks shows a half-dozen currently valued at less than their book value. For some miners, this anemic valuation relative to book makes total sense, while for 2 companies it could represent an intriguing buying opportunity as it may signal an undervaluation of current assets and production potential. Frankly, a little shine is all these 2 gold miners need to be great once again.
The 5 gold mining companies on our list beat the industry average EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 28%.
By investing in companies with the leanest operations investors have the best protection in the industry against declining prices, but also benefit from the rising bullion price. This article highlights 5 TSX gold mining companies that have the lowest All-in Sustaining Costs per troy ounce of gold mined and the highest operating margins.
Today’s article features ONE gold producer, our top gold stock pick, that we think is most likely to outperform its industry peers out of our Gold Investing Pro universe of gold stocks.
Today we have identified five profitable small cap gold stocks with big upside potential, as they are trading at a significant discount to Net Asset Value (NAV).
Investing in small cap mining companies can be a risky game. The process of finding and extracting gold takes years, which leaves plenty of room for error, so why not buy a company that has an established cash flow?
One of Benjamin Graham’s investment strategies was to purchase shares in companies trading at less 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.
Investing in companies with strong balance sheets is sound investment policy. They carry far less risk because defaulting on any obligations is out of the question for them. Furthermore, the less debt a company has, the more room they have to raise debt in the future, which can be beneficial to current shareholders as it is a non-dilutive financing option. The 4 Canadian gold juniors on our list have current ratios over 2 and carry no debt.
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.
The following 5 Canadian junior gold companies have operating margins over 19% which gives an investor good protection against a falling gold price.