The Canadian gold stocks on our list have market caps of 100M+ and have made substantial gains during the second quarter of this year
SmallCapPower | July 4, 2018: Over the last quarter, the gold price has faltered, falling from a high of US$1,364/oz to as low as US$1,235/oz. Despite gold’s negative performance, the Canadian gold stocks we have uncovered today are the best performers among their peers with quarterly returns averaging 47% and exceeding the TSX Canadian Gold index by 45%.
Wesdome Gold Mines Ltd. (TO:WDO) – $3.07
Gold
Wesdome is a Canada-based gold producer operating in Ontario. The company’s operating asset, the Eagle River Complex in Ontario, produced 59,000 oz. Au in 2017. The company is also advancing its Kiena Complex, comprising a fully-permitted mine and mill, in Val d’Or, Quebec. A high-grade discovery in early 2017 drove the stock to a high of $4.40. On June 11, the company released positive drilling results, including 51m at 21.2 g/t Au, which likely drove the stock’s price by 20% during the following week.
- Market Cap: $395.8 Million
- YTD Total Return: 45.5%
- Q2 2018 Return: 56.6%
Dalradian Resources Inc (TO:DNA) – $1.44
Gold
Dalradian Resources is a Canada-based gold developer in Northern Ireland in the United Kingdom. The company’s flagship asset, the high-grade Curraghinalt project, has Proven and Probable reserves of 5.24Mt grading 8.54 g/t Au for 1.44M oz Au. The mine is anticipated to produce 130,000 oz. Au/y over the first 10 years at all-in sustaining costs of US$653/oz Au. A Feasibility Study was released in early 2017 and the mine is currently undergoing public review. On June 21, the company’s share price surged 59% after agreeing to be acquired by Orion Mine Finance for $1.47/share, for a total sale price of ~$537M.
- Market Cap: $515.5 Million
- YTD Total Return: 8.7%
- Q2 2018 Return: 50.0%
Torex Gold Resources Inc (TO:TXG) – $11.71
Gold
Torex is a Canada-based gold producer operating in Mexico. The company’s flagship asset, the ELG mine, has a production capacity of 370,000 oz Au/year, and hosts 4.8Moz Au and 8.0Moz Ag, grading 3.0g/t and 4.9 g/t, respectively. Torex also owns the nearby Media Luna project, which hosts reserves of 7.4M AuEq oz., grading 4.5 g/t AuEq. On April 6, the company announced that the blockades of the mine had ended, enabling full production and exploration at its assets.
- Market Cap: $994.1 Million
- YTD Total Return: -1.8%
- Q2 2018 Return: 48.0%
Kirkland Lake Gold Ltd (TO:KL) – $27.84
Gold
Kirkland Lake Gold is a mid-tier gold producer operating four mines and three milling facilitates located in Canada and Australia. The company’s main asset is the Fosterville Mine, located in Australia, which is the largest gold producer in the state of Victoria. It has a 2018 production guidance of 260,000 – 300,000 oz Au. The company’s largest Canadian asset is the Macassa Mine, located in Kirkland Lake. The mine has 2018 production guidance of 215,000 – 225,000 oz Au. In January 2018, the company announced plans to incorporate a new shaft at the mine, resulting in an estimated production of 400,000 oz Au/year. In May, the company released positive drilling results and Q1/2018 results, leading to a ~20% stock price increase.
- Market Cap: $5,879.8 Million
- YTD Total Return: 44.8%
- Q2 2018 Return: 39.6%
K92 Mining Inc (V:KNT) – $0.90
Gold
K92 Mining is focused on exploration and development of mineral deposits located in Papua New Guinea. The company’s main asset is the Kainantu Gold Project consisting of two gold deposits. The company is planning exploration drilling at the Kora deposit, targeting 5M oz to be completed by Q2/2019 and an expansion to 400K tpa/110K AuEq oz annually. The company also plans to complete its Feasibility Study by 2019. On April 10, the company announced that it produced 9,324 oz Au and 166K lb Cu in Q1/2018.
- Market Cap: $161.2 Million
- YTD Total Return: 66.7%
- K92 Mining Inc (V:KNT): 38.5%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.