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Message: Junior gold stocks: have wings, will fly
Junior gold stocks: have wings, will fly
A glance at some of the junior gold names in the space of the world's top 100 most in-demand listed gold stocks.
Author: Barry Sergeant
Posted: Tuesday , 16 Jun 2009
Posted: Tuesday , 16 Jun 2009
JOHANNESBURG -
A selection of the world's 100 most in-demand gold stocks shows up an aggregate market value of USD 151bn worth of market value (capitalisation), and, measured on an average weighted basis, stocks that are trading a modest 18.5% below 12-months highs.
For some perspective, the MSCI world equities USD index for all global equities is trading 35% below its 12-month highs, but has so far managed a bounce of just 42% from its 12-month lows. The same 100 gold stocks referred to have bounced by a substantial 169%, measured on a weighted basis.
This eye-popping performance becomes astonishing when considering some of the individual gains; Canada-listed Ventana Gold has registered a stock price increase of more than 13,000% since listing just over six months ago; Appleton Exploration has surged by more than 3,000%; Azteca Gold by 2,300%; La Mancha Resources by 2,150%; London-listed Australian miner Norseman Gold by 2,067%; Pelangio by 1,500%, and Australian Solomons by 1,400%.
While these stocks may be generally classified as juniors, even though some like Norseman Gold are in production, bigger gold stocks have also put in some triumphant performances. Russia's JSC Polymetal, sporting a market value of USD 2.8bn, is up 779% from its low stock price point; Centerra (USD 1.2bn, and always a stock to watch for adventure) has risen by 607%, and Canada's Osisko (USD 1.5bn, and moving towards production) by 357%.
Focusing on the performance of smaller gold stocks, there is no question that investors (and no doubt the odd speculator) are ready and able and willing to back great drilling results, and/or management that has some kind of a track record in proving up value by discovery, and/or interesting stories. Ventana Gold currently sports a market value of USD 377m, based on its two Colombian projects, La Bodega (including Coloro and El Cuatro), and California-Vetas; gold mineralisation was first discovered at La Bodega in 2006.
The two projects lie immediately adjacent to the Angostura project, held by Greystar, and where a resource of 15.02m ounces of gold has been outlined. It seems, however, that investors and speculators have forgotten that story for now; Greystar's stock price is way below its highs, and its market value is at USD 154m, well below the applicable number for Ventana.
Earlier this month Greystar announced that "significant, near surface gold mineralization continues to be encountered three kilometers south of its wholly-owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia". Much like the Angostura area, the Mongora results comprise higher-grade intercepts. Somehow, however, the news flow has being going the way of Ventana; Vancouver-based mining entrepreneur Ross Beaty's Lumina Capital has been noted as accumulating 16.9% of the issued and outstanding common shares of Ventana.
Among smaller (by value) gold juniors than Ventana, Canada listed Appleton Exploration saw its stock price surge on assay results from its Manalo project in Mali, returning in some cases astonishing yields, one referred to as more than six ounces of gold per tonne, or 192 grams per tonne, over a 10 meter quartz rich zone, including, in turn 640 grams per tonne of gold (20.58 ounces a tonne) over three meters.
Pelangio Exploration also rates as a top junior performer. The stock was formed during 2008, driven by Ingrid Hibbard, where Pelangio Mining was unfolded into PDX Resources, which kept a 42% stake in Detour Gold (current market value: USD 515m), and Pelangio Exploration, which started out with a million shares in Detour, plus exploration assets in Ghana and Canada. While Pelangio Exploration's stock price is close to highs, Detour's is more than 50% off its high points.
Australia-listed Sandfire Resources has seen its stock price soar after its 18 May announcement that it had intersected significant intervals of high-grade gold and copper mineralisation at the DeGrussa Prospect, part of its wholly owned owned Doolgunna Gold Project in Western Australia. Australia-listed Shield Mining has also risen strongly on recent well-received drilling results from its Tijirit project in Mauritania. Red Back‘s highly successful Tasiast mine lies 35km to the north west of the project area. Australian Solomons has also benefited from drill results from its Gold Ridge project in the Solomon lslands, described by the company most recently in April as "excellent".
Meanwhile, a good number of junior and mid-sized gold stocks that have become apparent favourites over the past six months, and include Norseman Gold, La Mancha Resources, Queenston Mining (with new discoveries at Canada's Kirkland Lake and Cadillac); London-listed Patagonia Gold (active in exploration in Argentina, including the complete portfolio of Barrick's properties in Santa Cruz); Azteca Gold, which may be headed towards changing its name with a possible world class zinc, lead and silver discovery at its 50% held Two Mile joint venture in Idaho; Allied Nevada, the state's "newest gold producer", with its Hycroft Mine, where annual production may reach 90,000 ounces in 2009; Auex Ventures, busy spending USD 21m this year at the Long Canyon and West Pequop projects in Nevada, and a cashed-up Rubicon Minerals, with its prospective Phoenix Gold Project in Canada's Red Lake Gold District. There are also real or imagined takeover targets, such as Moto Goldmines and Andean, respectively.
Australia's cashed up Chalice Gold continues to benefit from its recent merger with Sub-Sahara Resources, which held a 69% stake in the emerging 0.94m ounces Zara gold project in Eritrea, located in a historic gold district, where Nevsun is building its USD 250m Bisha gold and base metal mine, for life-of-mine 1.1m ounces of gold, 749m pounds of copper, 1,093m pounds of zinc, and 9.4m ounces of silver.
Orezone is another notable top junior performer. After selling its 5.3m ounce Essakane mine to Iamgold, in December 2008, Orezone returned to focus on expanding and developing its other gold assets in Burkina Faso which collectively hold 3.7m ounces. Further top performers include Medusa, focused on the Philippines, Int'l Tower Hill, to be found in Alaska and Nevada, Intrepid Mines (Australia and Indonesia), Marum Resources (Manitoba), Continental Mines (Xietongmen, China), and Pan African.
|
|
Stock |
From |
From |
Value |
|
|
price |
high* |
low* |
USD bn |
|
CAD 0.12 |
-11.1% |
300.0% |
0.005 |
|
|
AUD 0.20 |
0.0% |
900.0% |
0.008 |
|
|
CAD 0.21 |
-2.3% |
950.0% |
0.009 |
|
|
CAD 0.12 |
-20.0% |
166.7% |
0.011 |
|
|
CAD 0.99 |
-23.8% |
182.9% |
0.014 |
|
|
USD 0.28 |
-20.0% |
75.0% |
0.015 |
|
|
AUD 0.28 |
0.0% |
292.9% |
0.016 |
|
|
AUD 0.63 |
-6.0% |
3050.0% |
0.019 |
|
|
CAD 0.21 |
-6.8% |
720.0% |
0.019 |
|
|
CAD 0.48 |
-20.0% |
336.4% |
0.020 |
|
|
CAD 0.60 |
-10.4% |
300.0% |
0.021 |
|
|
GBP 0.12 |
-14.8% |
41.5% |
0.021 |
|
|
CAD 0.40 |
-8.0% |
1500.0% |
0.028 |
|
|
CAD 0.65 |
-4.4% |
150.0% |
0.031 |
|
|
AUD 0.22 |
-14.0% |
330.0% |
0.034 |
|
|
AUD 0.29 |
-17.1% |
114.8% |
0.034 |
|
|
CAD 0.38 |
-21.9% |
1400.0% |
0.035 |
|
|
CAD 1.38 |
-20.7% |
170.6% |
0.035 |
|
|
AUD 0.68 |
-15.0% |
392.8% |
0.036 |
|
|
AUD 0.08 |
-11.1% |
233.3% |
0.042 |
|
|
CAD 0.75 |
-25.0% |
400.0% |
0.044 |
|
|
AUD 0.69 |
-6.1% |
1280.0% |
0.046 |
|
|
AUD 0.63 |
-25.9% |
152.0% |
0.046 |
|
|
AUD 0.49 |
-9.3% |
151.3% |
0.051 |
|
|
AUD 0.42 |
-9.8% |
315.0% |
0.052 |
|
|
CAD 0.75 |
-24.2% |
150.0% |
0.056 |
|
|
AUD 0.12 |
-14.8% |
187.5% |
0.060 |
|
|
CAD 0.57 |
-14.9% |
171.4% |
0.065 |
|
|
CAD 0.32 |
-12.5% |
687.5% |
0.065 |
|
|
CAD 2.65 |
-11.7% |
231.3% |
0.070 |
|
|
CAD 0.71 |
-13.4% |
115.2% |
0.073 |
|
|
CAD 0.48 |
-5.9% |
2300.0% |
0.074 |
|
|
USD 0.81 |
-26.4% |
575.6% |
0.079 |
|
|
AUD 0.65 |
-27.0% |
400.0% |
0.080 |
|
|
GBP 0.33 |
-19.3% |
2066.7% |
0.081 |
|
|
GBP 0.82 |
0.0% |
88.4% |
0.083 |
|
|
CAD 3.92 |
-20.5% |
224.0% |
0.091 |
|
|
AUD 0.10 |
-19.2% |
410.5% |
0.091 |
|
|
GBP 0.05 |
-8.9% |
173.3% |
0.093 |
|
|
USD 3.36 |
-16.0% |
832.6% |
0.096 |
|
|
AUD 0.50 |
-21.9% |
693.7% |
0.098 |
|
|
AUD 0.47 |
-16.1% |
235.7% |
0.103 |
|
|
GBP 0.11 |
-10.2% |
175.0% |
0.107 |
|
|
HKD 2.88 |
-18.9% |
260.0% |
0.110 |
|
|
CAD 0.90 |
-16.7% |
2150.0% |
0.114 |
|
|
CAD 0.70 |
-27.1% |
125.8% |
0.120 |
|
|
AUD 0.37 |
-6.4% |
356.3% |
0.122 |
|
|
AUD 1.05 |
-26.1% |
600.0% |
0.136 |
|
|
CAD 1.19 |
-7.0% |
296.7% |
0.136 |
|
|
CAD 3.03 |
-24.3% |
604.7% |
0.152 |
|
|
CAD 3.76 |
-6.0% |
251.4% |
0.162 |
|
|
CAD 1.61 |
-26.8% |
360.0% |
0.184 |
|
|
AUD 0.50 |
-21.9% |
170.3% |
0.190 |
|
|
CAD 4.72 |
-8.2% |
521.1% |
0.241 |
|
|
USD 2.36 |
-21.1% |
521.1% |
0.248 |
|
|
AUD 2.01 |
-4.7% |
390.2% |
0.272 |
|
|
CAD 3.09 |
-15.1% |
375.4% |
0.315 |
|
|
AUD 1.61 |
-23.3% |
101.3% |
0.329 |
|
|
CAD 5.28 |
-1.3% |
13100.0% |
0.377 |
|
|
AUD 4.79 |
-15.8% |
150.8% |
0.396 |
|
|
USD 2.80 |
-10.5% |
300.0% |
0.414 |
|
|
CAD 2.01 |
-22.7% |
168.0% |
0.416 |
|
|
CAD 4.65 |
-11.4% |
604.5% |
0.447 |
|
|
CAD 2.40 |
-9.1% |
300.0% |
0.453 |
|
|
CAD 9.37 |
-4.3% |
354.9% |
0.477 |
|
|
CAD 9.33 |
-10.2% |
270.2% |
0.485 |
|
|
AUD 6.35 |
-9.0% |
188.6% |
0.490 |
|
|
CAD 2.28 |
-10.9% |
300.0% |
0.492 |
|
|
CAD 2.42 |
-19.1% |
261.2% |
0.550 |
|
|
HKD 6.77 |
-14.2% |
54.6% |
0.577 |
|
|
CAD 4.56 |
-26.9% |
276.9% |
0.643 |
|
|
HKD 12.36 |
-16.6% |
564.5% |
0.697 |
|
|
AUD 1.98 |
-7.5% |
365.9% |
0.713 |
|
|
CAD 9.27 |
-9.6% |
164.9% |
0.883 |
|
|
CAD 8.45 |
-24.6% |
215.3% |
0.924 |
|
|
CAD 6.30 |
-21.3% |
517.6% |
0.934 |
|
|
CAD 29.00 |
-14.7% |
286.7% |
0.964 |
|
|
CAD 6.36 |
-18.0% |
606.7% |
1.223 |
|
|
CAD 1.42 |
-15.5% |
230.2% |
1.249 |
|
|
AUD 5.42 |
-18.0% |
128.7% |
1.273 |
|
|
CNY 17.83 |
-10.5% |
199.7% |
1.428 |
|
|
CAD 6.40 |
-15.2% |
357.1% |
1.464 |
|
|
USD 41.81 |
-16.1% |
83.8% |
1.702 |
|
|
CAD 9.07 |
-18.9% |
217.1% |
1.846 |
|
|
CAD 30.75 |
-2.3% |
164.6% |
2.740 |
|
|
USD 8.79 |
-5.0% |
779.0% |
2.769 |
|
|
USD 8.28 |
-20.5% |
247.9% |
3.072 |
|
|
USD 9.25 |
-19.6% |
316.7% |
3.377 |
|
|
USD 66.05 |
-11.0% |
196.5% |
5.071 |
|
|
CNY 47.34 |
-6.3% |
356.8% |
5.477 |
|
|
AUD 2.91 |
-20.1% |
91.4% |
5.536 |
|
|
CNY 53.30 |
-10.0% |
303.8% |
5.550 |
|
|
GBP 5.93 |
-20.0% |
537.6% |
7.002 |
|
|
USD 25.95 |
-27.2% |
188.3% |
7.133 |
|
|
ZAR 92.00 |
-26.4% |
72.8% |
8.102 |
|
|
USD 46.00 |
-25.9% |
228.6% |
8.769 |
|
|
AUD 31.60 |
-15.0% |
90.9% |
12.279 |
|
|
USD 35.79 |
-17.1% |
167.7% |
12.678 |
|
|
CNY 9.43 |
-18.4% |
150.8% |
14.539 |
|
|
USD 41.58 |
-22.7% |
96.4% |
19.916 |
|
|
Averages/total
|
|
-14.9% |
528.1% |
150.493 |
|
Weighted averages
|
|
-18.5% |
168.5% |
|
|
* 12-month
|
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