A Gold producer is often valued based on the Net Asset Value of its operations. In other words, an investor needs to value the company’s assets (reserves) and subtract its liabilities. Its future resource production is estimated based on current reserve levels, and it is used in accordance with projected gold prices to calculate future cash flows. With the current price of gold trading at the US$1,200 an ounce level, it is relatively hard to understand why certain companies trade at $100/ounce. Regardless, the five gold juniors on this list are being valued by the market at a substantial discount to its ounces in ground.
Alamos Gold Inc. (TO:AGI) - $8.46
Alamos Gold Inc. is a Canada-based, mid-tier gold producer engaged in the acquisition, exploration, development and extraction of precious metals. It is engaged in the exploration and development activities in Mexico, Turkey and the United States. It owns and operates the Mulatos mine in Mexico and holds the mineral rights to the Salamandra group of concessions in the State of Sonora, Mexico, which includes several satellite gold occurrences. It also owns the Agi Dagi, Kirazli and Camyurt gold development projects in Turkey.
- Market Cap: $1,080,252,690
- Gold Reserves (Troy Ounces): 54,800,000
- Revenue (LTM): $200,153,290
- Price/Oz of Gold Reserves: $20
Endeavour Mining Corp. (TO:EDV) - $0.63
Endeavour Mining Corporation (Endeavour) is a mid-tier gold mining company with four operating mines in West Africa, producing at a combined rate of over 450,000 ounces per year. The Company’s assets consist of the Agbaou Gold Mine in Cote d’Ivoire (the Agbaou Mine), the Nzema Gold Mine in Ghana (the Nzema Mine), the Tabakoto Gold Mine in Mali (the Tabakoto Mine) and the Youga Gold Mine in Burkina Faso (the Youga Mine). The Company also owns the Hounde gold project in Burkina Faso (the Hounde Project) and Kofi North Project, Mali, which are in the mine permitting and optimization stage.
- Market Cap: $260,958,932
- Gold Reserves (Troy Ounces): 4,500,000
- Revenue (LTM): $690,779,956
- Price/Oz of Gold Reserves: $58
Timmins Gold Corp. (TO:TMM) - $0.75
Timmins Gold Corp. is a company engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Mexico, through its wholly-owned subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V. and Molimentales del Noroeste, S.A. de C.V. (MdN). The Company also owns and operates the open pit heap leach San Francisco Gold Mine in Sonora State, Mexico. Timmins Gold has explored over 200,000 hectares mine along the prolific Northern Sonora Gold District. The Company is holds and explores a number of mineral properties in Mexico which are included in exploration and evaluation.
- Market Cap: $135,259,672
- Gold Reserves (Troy Ounces): 1,589,000
- Revenue (LTM): $156,271,723
- Price/Oz of Gold Reserves: $85
Argonaut Gold Inc. (TO:AR) - $1.95
Argonaut Gold, Inc. is a Canada-based gold mining company engaged in exploration, mine development and production activities on gold-bearing properties in Mexico and Canada. The Company’s primary gold assets are the El Castillo Mine (Durango, Mexico), the La Colorada Mine (Sonora, Mexico), the exploration stage San Antonio project (State of Baja California Sur, Mexico), the exploration stage project Magino (Ontario, Canada), and the exploration-stage San Agustin project, the exploration-stage La Fortuna Project (Durango, Mexico) and gold exploration projects located in the Sonora Mojave Megashear. El Castillo is the Company’s open pit, heap leach gold mine located to the north of the state capital Durango. El Castillo consists of approximately 1.23 million ounces of proven and probable gold reserves and approximately 1.7 million ounces of measured and indicated resources.
- Market Cap: $301,393,469
- Gold Reserves (Troy Ounces): 2,980,000
- Revenue (LTM): $206,972,059
- Price/Oz of Gold Reserves: $101
Teranga Gold Corp. (TO:TGZ) - $0.79
Teranga Gold Corporation (Teranga) is a Canada-based gold mining and production company principally engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. The Company operates the Sabodala gold mine. It is exploring nine exploration licenses covering 1,055 square kilometers in Senegal, consisting of the Regional Land Package, surrounding the Sabodala gold mine.
- Market Cap: $279,439,327
- Gold Reserves (Troy Ounces): 2,610,000
- Revenue (LTM): $300,679,311
- Price/Oz of Gold Reserves: $107
