Alright I’ve updated my napkin calculations to include as many companies as possible…
High amounts of debt, market cap, and shares out are red flags for me, as are potentially problematic mining districts. I look for reasons to discard companies as potential investments. Quick back of the envelope analysis of all of the gold mining companies I could think of. Who to add to the list to look into? Anyone have any red flags for those that so far remain as potential investments?
Trading symbols are AMEX if available, Toronto otherwise
Potential: AR.TO GORO LODE MND.TO RIOM TGD
AR.TO – no debt, 149M shares out, 874M market cap, ramping up production
GORO - No debt, 52M shares, 498M market cap, pays a dividend, overpromised on production, has short seller campaign against it with baseless lawsuits, no Proven and probable reserves, but does have a 43-101
LODE – 14M debt, 57M shares out, 107M market cap, small producer
MND.TO – no debt, 325M shares out, 289M market cap, smallish producer, low reserves?
TGD – debt just 20M, 144M shares out, 327M market cap, Mexico, 100,000 Oz production in 2012, increasing to 130,000 Oz in 2013
RIOM – debt only 3M, 176M shares out, 598M market cap, Peru, low cash cost due to copper, La Arena contains 3.9 million ounces gold and 2.0 billion pounds copper
Red Flags…
For Large Cap (Over $1B): ABX AEM AGI AU AUQ AUY BTO.TO BVN EGO FCX FM.TO FNV GFI GG GOLD HMY IAG KGC NEM NGD NSU RGLD TRQ
For Debt: ANV BAA BRD CGR CRK.TO III.TO KGI.TO LSG OSK.TO
For Jurisdiction: CG.TO DRD EGI GSS ORV.TO PSU.TO SMF.TO TRX
Losing Money: RIC
Gold streaming: SAND
Not Producing: AAU JAG KBX LON MDW MGH MUX NAK NG PVG PZG SA THM TLR VGZ XPL XRA (I still love PVG though)
Soon Producing: RBY
Exploring: AGC.V BAT.V CBI.V EPZ.V GQC.V MXI.V NUS.TO PEM.V SBB.TO SOL.V TXX.V, many, many more
Royalty: AMB.TO EMXX
Silver: AG ASM AUMN AUN.V AXU BCM.V CDE EXK FSM GPL HDA.V HL IMZ.TO IPT.V MGN MSV.TO MVG PAAS RVM SBB.V SIL SLW SPM.TO SSRI SVBL SVL.V SVM
