The following was posted earlier this week by James Fraser, our Mining Analyst on his blog. Right now cash is a very important metric to consider for all junior companies, as a high cash position means there is less immediate risk of dilution, and that they also have the capital to work on projects.
One of the best ways to invest in mining stocks with the current market environment is to find companies with strong cash positions.
With all stocks on the TSX having to release Q2 financials before August 15th we have found some of the best cash rich mining stocks.
Companies on the TSX Venture have until the end of August to release Q2 financials.
Some of these mining companies are even trading at discount to cash value. That means investors get the assets of the company for free or even sometimes 60 or 70 cents on the dollar.
Here are some mining stocks we found that are trading at a market cap close to their cash position.
Ryan Gold – RYG.V
Ryan Gold decided due to market conditions after the 2013 exploration season in the Yukon to cease all exploration work and conserve cash. Currently the are looking to JV the Ida Oro project in the Yukon and are evaluating acquiring other assets.
June 30/2014 cash = $21,205,570
August 15/2014 share price $0.12 market cap = $14,060,000
Cash as a % of market cap = 150%
Eastern Platinum -ELR.T
Eastern Platinum was a former platinum producer that made the prudent decision to close its mine down just over a year ago in July 2013. The company was losing money quarter after quarter and decided that until the platinum market improves this would be the best decision.
June 30 cash = $87,297,000
August 15/2014 share price $0 .97 market cap = $89,940,000
Cash as a % of market cap = 97%
Independence Gold – IGO.V
Independence Gold is still sitting in a strong cash position a couple years after selling a project to New Gold (NGD.T)
June 30 cash = $8,102,732
August 15/2014 share price $0.12 market cap = $5,260,000
Cash as a % of market cap = 154%
Corona Gold – CRG.T
Corona Gold sold the Sugar Zone property to Harte Gold in May 2012. Management continues to look for acquisition opportunities to put the $8 million to work.
June 30 cash = $8,276,126
August 15/2014 share price $0.455 market cap =$9,740,000
Cash as a % of market cap = 84.9%
Entree Gold – ETG.T
Entree Gold has development properties in Mongolia and Nevada. Entree owns 20% of the large Lookout Hill project in Mongolia. In February 2013 Sandstorm provided $40 million in cash up front as a deposit. The Ann Mason project in Nevada is a large copper project with a PEA that has a $1.2 billion dollar CAPEX and 14% IRR at $3 copper.
June 30 cash = $42,011,899
August 15/2014 share price market cap = $45,570,000
Cash as a % of market cap =92%
The Top 10 Resource Stocks To Watch This Autumn
In late August, Tickerscores.com will release their Top 10 report on the best stocks to watch this autumn.
Our top 5 picks from the beginning of 2014 are up 59.3% year-to-date. Click below to get updates on our newest edition.