7 gold stocks to watch.

Gold producers and advanced gold projects with significant ounces in the ground react quickly to the changing price of gold.

Investors hate uncertainly. That’s only one of the numerous reasons why investors are attracted to the safe haven qualities of gold. What kind of uncertainties are we talking about? Well, there are several – the European economic house of cards with the UK soon to exit, and possibly others, unserviceable government debt levels in Europe, Japan and the US, nasty geopolitical events plus the unpredictability of the Trump administration.

Then there are the overvalued general US equity markets. If mainstream stocks are overvalued or fully valued, gold stocks could offer potential capital gains with rising gold prices.

What about the increasing European and US money supply? For every dollar that is ‘printed’ all the existing dollars have to be worth less – just like stock dilution. The world has a long history of fiat currency devaluation.

At the same time as these negative aspects, there is an increasing availability of gold products such as ETFs (which accounted for 532 tonnes of gold in 2016) to attract investors not to mention high quality gold stocks.

Finally, if inflation rears its head, this can also cause gold prices to rise – see Leonard Melman’s article Growing Inflationary Pressures.

Of course, what also makes gold stocks attractive, specifically, producers or advanced projects, is their ability to leverage rising gold prices into significant capital gains.

IAMGOLD CORP. IMG-TSX; IAG-NYSE

• Four producing mines: Westwood, Québec; Sadiola, Mali (41%); Rosebel, Suriname (95%); Essakane, Burkina Faso (90%)
• Total attributable production: 813,000 ounces
• Total cash costs: $739/oz; AISC: $1,057/oz
• For 2017, production expected to double
• Plans to lower AISC to $900-$950/oz by 2020
• One development-stage project
• Six advanced-stage exploration projects

INV METALS INC. INV-TSX; ILNLF-OTC

• Advanced-stage Loma Larga Project, Ecuador
• Completed positive pre-feasibility study
• PFS contemplates 3,000 tpd for 150,000/year
• Indicated resource 2.55 million oz gold within 17.9 million tonnes grading 4.42 g/t gold, 28.3 g/t silver and 0.26% copper
• Inferred resource estimated at 0.54 million oz gold within 7.3 million tonnes grading 2.29 g/t gold, 24.1 g/t silver and 0.13% copper
• Recent $20 million bought deal financing
• Feasibility study planned

KIRKLAND LAKE GOLD INC. KL-TSX; KLGDF-OTCQX

• Macassa Mine Complex and Taylor Mine, Ontario
• Fosterville Mine, State of Victoria, Australia
• Owns five past producers in Kirkland Lake, Ontario
• Preliminary operating cost/oz and AISC/oz estimated at $575 and $920, respectively
• 2016 Gold sales of 329,489 oz at average realized price of $1,235/oz
• 2017 gold production: 500,000+ oz

LUMINA GOLD CORP. LUM-TSXV

• Two advanced-stage projects, Ecuador
• Cangrejos gold-copper project: 4 million oz gold, 423 million lbs copper and 4.6 million oz silver at a cut-off grade of 0.35 g/t gold equivalent inferred
• Cangrejos drilling planned to upgrade inferred resources to measured & indicated, leading to PEA
• Condor gold-silver-copper project: 8 million oz indicated
• Recent $20 million financing
• Awarded Pegasus A1-7 and Pegasus B8-14 concessions

PURE GOLD MINING INC. PGM-TSXV

• Past  producer  at  Red  Lake  Camp, Ontario (Madsen property)
• One of the highest grade, undeveloped deposits in the world
• Defined resources of 928,000 oz at 8.93 g/t gold in 3.24 Mt Indicated
• 297,000 oz at 11.74 g/t gold in 0.79 Mt inferred
• Permitted mill and tailings facility
• Robust economics based on develop- ment using existing infrastructure and a portion of the mineral resource: Pre-Tax NPV (5%) $104 million; IRR 74%
• 70,000-metre,  four-rig  drill  program targeting resource growth near existing mine infrastructure
• Loads of talent on board

TOREX GOLD RESOURCES INC. TXG-TSX

• El  Limon-Guajes  Mine,  Guerrero, Mexico
• One of the richest open pit deposits grading 2.65 g/t gold
• Expected LOM average annual production of 370,000 oz gold at a LOM AISC of US $616/oz
• Measured and indicated resources: 4.12 million oz gold
• Inferred resources: 360,000 oz gold
• Advanced-stage Media Luna Project; 7.4 million gold equivalent ounces inferred grading 4.48 g/t gold
• Media Luna positive PEA envisions underground operation with expected average production of 313,000 oz/year gold equivalent with average AISC of US $636/oz

WESDOME GOLD MINES LTD. WDO-TSX

• Eagle River Complex produced 47,737 oz in 2016 from two high-grade mines
• 29 years continuous gold production
• 2016 Cash flow from operations $19.9 million
• Moss Lake Project drilling underway
• Moss Lake: 1.4 million oz indicated; 1.7 million oz inferred
• Discovery at past producer Kiena Mine Complex August 2016
• Kienna  Mine  measured  &  Indicated 450,000 oz; 450,000 oz inferred
• Over $26 million cash

Filed in: Business, Gold, Investment, Resources, Stock Talk

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